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HomeMy WebLinkAbout12 - Printing and Release of Tentative Agreement with the NBPMA CTY OF J+ - NEWPORT BEACH City Council Staff Report September 22, 2015 Agenda Item No. 12 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dave Kiff, City Manager— (949) 644-3002, dkiff@newportbeachca.gov PREPARED BY: Maggie Williams-Dalgart, Senior Human Resources Analyst PHONE: 949-644-3337 TITLE: Printing and Release of Tentative Agreement with the Newport Beach Police Management Association ABSTRACT: The Memorandum of Understanding (MOU) between the City of Newport Beach and the Newport Beach Police Management Association (NBPMA or Association) expired on December 31, 2014. The parties began meeting and conferring in good faith on wages, benefits and other terms and conditions of employment on April 1, 2015, and reached a Tentative Agreement on the terms of a successor MOU on September 8, 2015. Consistent with City Council's goal of providing greater transparency in the negotiations process and disclosure of the costs of labor contracts, the Tentative Agreement is being presented to allow time for public review and comment. The complete MOU, for the period January 1, 2015 through June 30, 2018, will be presented for City Council consideration at the October 13, 2015 regular meeting. RECOMMENDATION: Receive and file. FUNDING REQUIREMENTS: The estimated cost of the contract with the Police Management Association is provided in Attachment B. The cost in year one is estimated to be $293,300, which can be accommodated in the adopted FY2015-16 budget. DISCUSSION: The Newport Beach Police Management Association represents 33 full-time police management staff in the classifications of Police Sergeant, Police Lieutenant and Police Captain (the Captain classification is not currently active or budgeted). Employees in these positions are responsible for assisting the Police Chief in managing the Police Department's nearly 250 employees. Representatives for the City and the Police Management Association began negotiations on April 1, 2015. The parties met eight times before a Tentative Agreement was reached on September 8, 2015. 12-1 Pension contributions toward California Public Employees Retirement System (PERS) benefits and salary adjustments, in order to keep pace with increases in the cost of living, were the main topics of discussion during negotiations. At the expiration of the last contract, NBPMA employees were contributing 12.8 percent toward the pension benefit. NBPMA acknowledged the need to continue to address future pension costs and in the proposed contract NBPMA employees will contribute an additional 1.8 percent, for a total employee pick up of 14.6 percent by January 2016. This contribution rate is the highest of Orange County cities and the City's ten employee associations. The provisions of the Tentative Agreement include: Term of three and one-half years, from January 1, 2015, through June 30, 2018 . Additional employee contributions to the PERS pension benefit o January 1, 2015, employees contribute an additional .8 percent, for a total employee pick up of 13.6 percent o January 1, 2016, employees contribute an additional 1.0 percent, for a total employee pick up of 14.6 percent . Wage adjustments o January 1, 2015 — 1.8% o January 1, 2016 —3.0% o January 1, 2017 — 2.5% o January 1, 2018 — 3.0% . Increases to the cafeteria allowance, which is used to purchase medical, dental and/or vision coverage o July 1, 2015, an increase of$100 per month for a total benefit of$1,424 o January 1, 2017, an increase of$100 per month for a total benefit of $1,524 A reduction of the cafeteria benefit from $1,249 to $1,000 per month for employees who opt-out of medical coverage, effective January 1, 2016 . An agreement to reopen negotiations in July 2017 for the purpose of discussing the cafeteria allowance and healthcare benefits due to changes or revisions in law, such as the Affordable Care Act . An increase of .62 hours per pay period (representing an increase of 16.12 hours annually), toward the Flex Leave benefit for employees with 12 or more years of service . Other changes include: revisions to the Bereavement Leave policy and increasing the Court Standby pay minimum from 2 hours to 4 hours. The estimated cost of the proposed agreement for FY2015-16 and future years is included in Attachment B. All costs are itemized by salary, supplemental pays, fringe benefits, pension, and employees offsets, projected through FY2017-18. The employee offsets, which represent the additional employee pick-up towards pension and the reduction in the cafeteria allowance for those opting out of medical, provides an estimated $354,273 savings over the term of the contract. A proposed draft of the MOU between the City and NBPMA is included with this report (Attachment C; revisions noted in italics). Under Government Code Section 3505.1 the City Council must adopt or reject the successor MOU within thirty (30) days from the date the Tentative Agreement was first considered at a duly noticed public meeting. Following City Council review of the NBPMA Tentative Agreement, and Association ratification, a final version of the successor MOU will be presented to the City Council at the October 13, 2015 regular meeting. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has 12-2 no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Description Attachment A -Agreement Attachment B - Estimated Cost of PMA MOU Attachment C - Draft PMA MOU 12-3 ATTACHMENT A Tentative Agreement Between the City of Newport Beach and the Newport Beach Police Management Association On June 17, 2015, representatives from the City of Newport Beach and the Newport Beach Police Management Association (PMA) reached an initial tentative agreement on the terms of a successor Memorandum of Understanding to the one that expired December 31, 2014. On June 30, 2015, the NBPMA Membership rejected the Tentative Agreement. City and NBPMA representatives met again on July 8, 2015 and August 20, 2015 to discuss the rejected TA and possible terms. On September 8, the parties reached agreement on the provisions of a new contract, which are as follows: • Term January 1, 2015 through June 30, 2018 (42 months). • Compensation 0 1.8% base salary increase effective the pay period including 1/1/15. 0 3.0% base salary increase effective the pay period including 1/1/16. 0 2.5% base salary increase effective the pay period including 1/1/17. 0 3.0% base salary increase effective the pay period including 1/1/18. • PERS Retirement Contributions Effective the pay period including 1/1/15, Employees in all Tiers shall pay an additional .8% toward retirement costs, under cost sharing provision 20516(f), for a total employee contribution of 13.6% (9% Member Contribution plus 4.6% of the employer rate). Effective 1/1/16, the cost share amount shall be increased by 1.0%, for a total employee contribution of 14.6% (9% Member Contribution plus 5.6% of the employer rate). For employees in Tier III, should the statutory member contribution adjust upward or downward, the cost share contribution will increase or decrease accordingly so that the Tier III total contribution is the same as Tiers I & II. • Cafeteria Benefit o $100 monthly cafeteria benefit increase effective the pay period that includes 7/1/15. o Effective the pay period that includes 1/1/16, the "opt out" benefit shall be adjusted to $1,000 for all employees (down from $1,274 for current employees). o $100 monthly cafeteria benefit increase effective the pay issue that includes 1/1/17. 1 9/8/15 12-4 o On or before 7/1/17, at the request of either party, the City and Association will reopen negotiations to discuss possible changes to the medical benefit program, contribution levels, or other elements of healthcare services as a result of the Affordable Care Act or changes to laws; any changes to the MOU will occur by mutual agreement of the parties. ® Court Standby Pay o Effective upon MOU adoption, increase the minimum Court Appearance pay for off-duty employees required to appear in court from 2 hours to 4 hours, at 1.5 times the regular rate of pay. ® Bereavement Leave oTime must be taken "proximate" to the occurrence. o Benefit expanded to include stepmother, stepfather and stepchildren. o Flex Leave Accrual o Effective upon MOU adoption, the Flex Leave accrual rate for employees with greater than 12 years of law enforcement service, shall increase by .62 hours per pay period, for a bi-weekly accrual rate of 8.16 hours. PMA and City Representatives agree to recommend to their Principals the terms outlined above. This Tentative agreement is subject to appropriate ratification by PMA membership, adoption by City Council, and approval as to form by the City Attorney. For the City of Newport Beach: For the Newport Beach Police Management Association: Terri L. Ca idy, Deputy City Manger / R el 1 on, MA President Jon Hol an, Attorney for City Stuart Adams, Attorney for PMA Date =` �l 1y/C Date '?ll,o ( 1 2 9/8/15 12-5 Attachment B Estimated Cost of Successor MOU with the Newport Beach Police Management Association (representing 33 full-time management positions) Pay Ranges(monthly)for NBPMA Represented Positions(reflects 1.8%salary adjustment 1/1/15): Police Sergeant $7,522-$10,583 (8 step range) Police Lieutenant $8,843-$12,441 (8 step range) Existing Cost Projected Cost Value of FYI 5-16 Budget Year 1(FY15-16) Year 2(FY16-17) Year 3(FY17-18) Costs as Pay/Benefits Benefit` Base Base Base Total %of Total Base Cost Pension Total Cost Pension Total Cost Pension Total Cost Pension Total Comp Salary(Increases:l.8%1/15;3.0%1/16;2.5%1/17;3.0%1/18) 4,205,673 2,372,168 6,577,841 177,774 107,027 284,801 259,266 156,089 415,355 382,190 230,093 612,283 1,312,439 15.72% Supplemental Benefits - Scholastic Pay(based on degree attainment) 6.26% 263,242 148,479 411,721 11,127 6,699 17,826 16,228 9,770 25,998 23,922 14,402 38,324 82,148 0.98% Longevity(based on yrs of service) 1.55% 65,036 36,683 101,719 2,749 1,655 4,404 4,009 2,414 6,423 5,910 3,558 9,468 20,295 0.24% Bilingual Pay(flat$amount) $200/mo 4,800 2,707 7,507 - - - - - - - - - - - Holiday 4.55% 191,396 107,955 299,351 8,091 4,871 12,962 11,799 7,103 18,902 17,393 10,471 27,864 59,728 0.72% Leadership Pay 1.00% 18,813 10,611 29,424 795 479 1,274 1,160 698 1,858 1,710 1,029 2,739 5,871 0.07% Mer iCare(mandatory payment) 1.45% 68,860 - 68,860 2,908 - 2,908 4,241 - 4,241 6,251 - 6,251 13,400 0.16% Compensated Absences(City funding of liability) 3.50% 147,197 147,197 6,222 6,222 9,074 9,074 13,377 13,377 28,673 0.34% 4,965,017 2,678,603 7,643,620 209,666 120,731 330,397 305,777 176,074 481,851 450,753 259,553 710,306 1,522,554 18.24% Other City Paid Benefits Cafeteria Plan(fixed cast) refer to MOU 573,333 - 573,333 36,000 - 36,000 54,000 - 54,000 72,000 - 72,000 162,000 1.94% Employee Assistance Program(fixed cost) value if used 807 - 807 - - - - - - - - - - - Value of Uniform(not paid as cash to employee) $112(mo 44,547 25,126 69,673 - - - - - - - - - - - Smartphone(reimburse employee) $80/mo 22,202 - 22,202 - - - - - - - - - - - Life Insurance($50K max benefit;fixed cost) value if used 3,466 - 3,466 - - - - - - - - - - - Retiree Health Savings Account(employer portion) 1.00% 33,660 - 33,660 - 678,015 25,126 703,141 36,000 36,000 54,000 - 54,000 72,000 - 72,000 162,000 1.94% Increases to Flex Leave Accrual(.62 hrs/pay period) NA NA NA NA 30,580 - 30,580 31,742 - 31,742 32,535 - 32,535 94,857 1.14% Total Compensation 5,643,032 2,703,730 8,346,762 276,246 120,731 396,977 391,519 176,074 567,593 555,288 259,553 $14,841 1,779,411 21.32% Offset-Add(Employee Pick Up of PERS Pension Costs (.8%on 1/15 and additional 1.0%on 1/16) NA - - - - (91,866) (91,866) - (102,661) (102,661) - (110,426) (110,426) (304,953) .3.65% Offset-Reduction in the Cafeteria Allowance"Opt Out' NA NA NA NA (9,864) - (9,864) (19,728) - (19,728) (19,728) - (19,728) (49,320) -0.59% Total Cost(Less Offset) 8,346,7621 305,111 484,932 704,415 1,425,138 17.07% %Increase Over Prior Years - Incr over Yr1 52.4% Incr over Yr2 51.5% Represents the average benefit(not necessarily cost)provided to NBPMA members 9122115 12-6 Attachment C MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE 1. The Newport Beach Police Management Association ("NBPMA" or "Association"), a recognized employee organization, and the City of Newport Beach ("City"), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment. 2. NBPMA representatives and City representatives have reached a tentative agreement as to wages, hours and other terms and conditions of employment for the period from January 1, 2015 to June 30, 2018 and this tentative agreement has been embodied in this MOU, which has been executed concurrently. 3. This MOU, upon approval by NBPMA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters set forth herein. SECTION 1. — General Provisions A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers-Milias-Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No. 2001-50, the City acknowledges that NBPMA 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 NBPMA. Exhibit "A" is incorporated by reference into this MOU. B. Duration of Memorandum Except as specifically provided otherwise, any ordinance, resolution or action of the City Council necessary to implement this MOU shall be considered effective as of January 1, 2015. This MOU shall remain in full 1 _ NBPMA MOU 2015-2018 12-7 force and effect until June 30, 2018, 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. C. Release Time 1. NBPMA members shall be allowed to participate in the following activities during scheduled working hours without loss of pay ('Release Time"): a. Attendance at meetings, conferences, seminars or workshops related to matters within the scope of representation; b. To prepare for, travel to, and attend scheduled meetings between the City and NBPMA during the meet and confer process. C. To travel to and attend scheduled grievance and disciplinary hearings. d. To meet, for up to one (1) hour, with their representative prior to a hearing described in (c) above. 2. City grants NBPMA one hundred (100) hours of Release Time per calendar year to engage in the activities described in subsection 1(a). NBPMA may accumulate up to three hundred (300) hours of City-provided Release Time. 3. City grants NBPMA members the right to engage in the activities described in subsections 1(b), (c), and (d) at any time without reduction to the Release Time granted in subsection 2 4. NBPMA shall designate certain members as those members entitled to Release Time. In no event shall any one designate be entitled to use more than one hundred (100) hours of Release Time (exclusive of actual time spent meeting with City representatives on matters relating to the scope of representation), within any calendar year. Designates must give reasonable advance notice to, and obtain permission from, their supervisor prior to use of Release Time, or, prior to adjusting work hours per subsection 4(a). Requests for Release Time shall be granted by the supervisor unless there are specific circumstances that require the designate to remain on duty. Designates shall, to the maximum extent feasible, receive shift assignments compatible with participation in the meet and confer process. - 2 - NBPMA MOU 2015-2018 12-8 a. Any NBPMA negotiating team member may request and shall (subject to the approval process above) be granted flex work hours on any scheduled work day during which the negotiating team member is to attend a meet and confer session. Employees may flex start/finish time up to two (2) hours. D. Scope 1. 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. 2. 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. 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 the Police Department; b. The establishment of standards of service; C. To assign work to employees as deemed appropriate; d. The direction and supervision of its employees; e. The discipline of employees; f. The power to relieve employees from duty for lack of work or other legitimate reasons; g. To maintain the efficiency of operations; - 3 - NBPMA MOU 2015-2018 12-9 h. To determine the methods, means and personnel by which Police Department operations are to be conducted; i. The right to take all necessary actions to fulfill the Police Department's responsibilities in the event of an emergency; j. The exercise of complete control and discretion over the manner of organization, and the appropriate technology, best suited to the performance of departmental functions. The practical consequences of a Management Rights decision on wages, hours, and other terms and conditions of employment shall be subject to the grievance procedures. E. Conclusiveness This MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled, and each party expressly waives its rights to request the other to meet and confer concerning any issue relating primarily to matters within the scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement 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. Bulletin Boards Space shall be provided on bulletin boards within the Police Department at their present location for the posting of notices and bulletins relating to NBPMA business, meetings, or events. All materials posted on bulletins boards shall indicate the name of the organization responsible. Material posted shall not contain personal attacks on any City official or employee, any material which constitutes harassment, discrimination or retaliation on the basis of race, gender, ethnicity, religion or other statutorily or constitutionally impermissible basis, or any pornographic or obscene material. - 4 - NBPMA MOU 2015-2018 12-10 H. No Strike The parties recognize their mutual responsibility to provide the citizens of Newport Beach with uninterrupted municipal services and, therefore, for the term of this MOU, the parties agree not to conduct concerted strike, work slowdown, sick out, withholding of services, or lockout activities. I. Savings If any provision of this MOU shall be held invalid by any court of competent jurisdiction, or if compliance with or enforcement of any provision shall be restrained by court action, or other established governmental administrative tribunal, the remainder of this MOU shall not be affected, and the parties shall enter into negotiations for the sole purpose of arriving at a mutually satisfactory replacement for such provision or provisions. J. Impasse In the event of an impasse (the failure to agree on a new MOU after the express term of the existing MOU has expired), the parties may agree on mediation pursuant to the procedure outlined in Section 16 of Resolution No. 2001-50 or a successor resolution. SECTION 2. — Compensation A. Salary Adiustments— this MOU Period Base salary increases for all NBPMA represented classifications shall be as follows and as specified in Exhibit A: Effective the pay period including January 1, 2015, base salaries will be increased by 1.8%. Effective the pay period including January 1, 2016, base salaries will be increased by 3.0%. Effective the pay period including January 1, 2017, base salaries will be increased by 2.5%. Effective the pay period including January 1, 2018, base salaries will be increased by 3.0%. - 5 - NBPMA MOU 2015-2018 12-11 B. Code Seven/Duty Incentive Time The City and NBPMA have agreed to entitlement to compensation for duty incentive time and Code Seven time based upon implementation of the 9/80 work schedule (since modified to 3-12, with concurrence of NBPMA) and a settlement agreement between the City and NBPMA. NBPMA and its members agree that the provisions and rules relative to entitlement to compensation for duty incentive time or Code Seven time survive the termination of this MOU, that the provisions of the settlement agreement are in full force and effect, and that no request for compensation for duty incentive time or Code Seven time at variance with the provisions of existing rules or the settlement agreement shall be made at any time in the future by NBPMA or any of its members C. Overtime 1. Employees shall be entitled to overtime compensation at the rate of time and one half (1.5) the regular rate of pay for hours worked in excess of their regularly scheduled shift. Paid time off shall be considered time worked for overtime calculation purposes. 2. Overtime compensation shall be in the form of compensatory time off or pay at the election of the employee. Maximum compensatory time accrual shall be one hundred twenty (120) hours. All overtime worked for employees at the CTO maximum shall be paid. The parties agree that the current practice of accruing and utilizing CTO is reasonable and shall continue for the term of this agreement. 3. Overtime Compensation - Court a. Compensation - Employees shall receive either compensatory time or paid time at their discretion. b. On-Call - Off-duty employees on call for court who have not been canceled prior to the scheduled standby time shall, whether extended or not, be compensated at a rate equal to the actual standby time, with a minimum of one (1) hour paid at time and one-half (1.5) the employee's regular rate of pay. c. Appearance - Off-duty employees who are required to appear in court shall be compensated for the actual time involved with a minimum of four (4) hours paid at time and one-half the employee's regular rate of pay. Employees appearing in court after being on call the same day shall be compensated from the time listed on the subpoena until released by the court. - g - NBPMA MOU 2015-2018 12-12 d. Cancellation — Off-duty employees whose court appearance is cancelled with less than twelve (12) hours notice shall receive a payment for one (1) hour at the employee's regular rate of pay. 4. NBPMA members occupying the position of Captain shall not be entitled to compensatory time off or pay for overtime. City and NBPMA agree that the position of Captain is properly considered exempt from the overtime requirements of FLSA. However, NBPMA members occupying the position of Captain shall be eligible for up to eighty (80) hours of administrative leave per calendar year. The precise amount of administrative leave granted each Captain shall be based on the recommendation of the Police Chief and approved by the City Manager. Administrative leave may not be carried forward from one (1) calendar year to the next. 5. With the approval of the Division Commander, NBPMA members assigned to non-shift assignments may work certain holidays if they occur on regularly-scheduled work days. D. Uniform Allowance As permissible by law and subject to the provisions and limitations under the Public Employees Retirement Law, including restrictions on reporting uniform allowance as pensionable compensation for "non classic"members hired after January 1, 2013, the City shall report the value of provided uniforms at One Thousand Three Hundred Fifty Dollars ($1,350) per year, in accordance with PERS requirements. The parties agree the reported value of uniforms is intended to reflect clothing such as pants, shirts, jackets, and related attire and excludes health and safety related equipment. E. Scholastic Achievement Pay Sworn NBPMA members are entitled to additional compensation contingent upon scholastic achievement ("Scholastic Achievement Pay"). Sworn NBPMA members may apply for increases pursuant to this Section when eligible and scholastic achievement pay shall be included in the member's paycheck for the pay period immediately after approval by the Chief of Police. It is the responsibility of the NBPMA member to apply for Scholastic Achievement Pay. Approval of the member's application shall not be unreasonably withheld or delayed, and the member shall not be entitled to receive Scholastic Achievement Pay prior to the date the application is approved even though the member may have been eligible prior to approval. Scholastic Achievement Pay is contingent the number of units and/or degrees received by the employee. Effective the pay period - 7 - NBPMA MOU 2015-2018 12-13 beginning January 20, 2007 (prospectively), employees shall be eligible for Scholastic Achievement Pay based on their total full-time sworn law enforcement time, including up to a maximum of six (6) months' time employed as a police recruit or similar classification in a police training academy. The Scholastic Achievement Pay schedule is as follows, and is regardless of years of service: 60 Units 90 Units BA/BS MA/MS/JD 2% 3% 7% 8.5% Educational incentive payments shall be made only for units/degrees above the minimum qualifications called out in the job descriptions. Individuals receiving pay in this category (minimum units/degrees) as of January 1999 shall retain the compensation, however. Any unit members hired on and after September 12, 2012 shall be ineligible for any Scholastic Achievement Pay based upon having obtained units only. F. Special Leadership Compensation Individuals who have completed the California Post Supervisory Leadership Institute ("SLI"), Post Command College, or the FBI National Academy will receive an additional one percent (1%) of base pay. G. Holiday Time NBPMA members shall accrue holiday time at the rate of ninety-six (96) hours per fiscal year (July 1 through June 30th), and at the rate of three point seven (3.7) hours per pay period. Option 1 (Default): Unless otherwise irrevocably elected by the employee, holiday compensation shall be paid in cash along with the employee's regular bi-weekly check, and will be reported to PERS as special compensation in addition to the employee's bi-weekly base salary. Option 2: Within sixty (60) days of NBPMA membership, NBPMA members may irrevocably elect to have all or any portion of the three point seven (3.7) hours of accrued holiday compensation added to the member's flex leave bank on a bi-weekly basis in lieu of a cash payment. Once holiday time is accrued to the member's flex leave bank, all rules and opportunities concerning the flex leave program (described elsewhere in this MOU and in the Employee Policy Manual) will apply (e.g. usage, maximum balance, spillover, periodic payout, etc.). Pay for any time taken from the flex leave - 8 - NBPMA MOU 2015-2018 12-14 bank, and any spillover pay or other payout for flex leave, will not be reported to PERS as special compensation. H. Leave Pay-Off For the term of the agreement, NBPMA members shall receive payment for any accrued leave upon termination at the rate of one hundred percent (100%) of their base hourly rate. I. July 4tn The Police Department has the discretion to schedule any of its employees to work a regular work day on July 4`h, regardless of the day of the week or job assignment. This may include modifying work schedules and/or days off according to deployment needs. All Unit members who actually work July 4`h will be compensation at their regular hourly rate, plus premium pay equal to half ('/z) of the hours actually worked on that day. Employees will be provided their regular number of days off for the month of July (unless otherwise scheduled on an overtime basis), which will be selected/assigned according to the normal practices of their particular work unit. J. Bilingual Pay Employees certified as bilingual (Spanish) shall be eligible to receive Two Hundred Dollars ($200) per month in bilingual pay. The existing certification process will confirm that employees are fluent at the street conversational level in speaking, reading and writing Spanish. Employees certified shall receive bilingual pay the first full pay period following certification. Additional languages may be certified for compensation pursuant to this section by the Chief of Police. SECTION 3. — Leaves A. Flex Leave and Longevity Pay 1. Effective the first pay period after July 1, 2012, NBPMA members shall accrue (prospectively) flex leave and receive longevity pay based on the greater of their total continuous years of full-time service with the City of Newport Beach, or their total full-time employment as a sworn law enforcement officer, including up to a maximum of six (6) months time employed as a police recruit or similar classification in a police training academy. NBPMA g _ NBPMA MOU 2015-2018 12-15 members shall accrue Flex Leave and receive Longevity Pay at the following rates: Yrs of Service Accrual Per Maximum Longevity Pay Period Accrual Less than 5 5.69 443.82 0.00% 5 but less than 9 6.31 492.18 0.00% 9 but less than 12 6.92 539.76 0.00% 12 but less than 16 8.16 636.48 0.75% 16 but less than 20 8.16 636.48 1.50% 20 but less than 25 8.16 636.48 2.25% 25 or more 8.16 636.48 3.00% 2. NBPMA and the City acknowledge that employees assigned the 9/81 work schedule accrue one (1) additional hour per pay period in addition to the accrual levels set forth in subsections 1(a) and 1(b) above. 3. The Flex leave program shall be administered as follows: a. NBPMA members shall not accrue flex leave until continuously employed by the Newport Beach Police Department for a period of three (3) months provided, however, if a member on the flex leave program becomes sick during the first three (3) months of employment, the City will advance up to six (6) pay periods of paid leave time for use by the member to recover from illness. In the event the City advances paid leave time and the employee is terminated or resigns before completing three (3) months of continuous employment, the member's final check shall be reduced by an amount equal to the number of flex leave hours advanced multiplied by the member's hourly rate of pay. b. NBPMA members shall accrue three (3) months of flex leave upon completion of three (3) months continuous employment with the Newport Beach Police Department, provided however, this amount shall be reduced by any flex leave time advanced during the first three (3) months of employment. C. Members employed by the City prior to initiation of the flex leave program have had then current accrued vacation time converted to flex leave on an hour for hour basis with then current sick leave placed in a bank to be used as provided in - 10 - NBPMA MOU 2015-2018 12-16 the City of Newport Beach Employee Policy Manual. Members entitled to use sick leave pursuant to the Employee Policy Manual must notify appropriate department personnel of their intention to access the sick leave bank and, in the absence of notification, absences will be charged to the member's flex leave account. Members who wish to convert an absence from flex leave to sick leave must submit a written request to the Chief of Police within twenty (20) days after the absence (20 days from the last absence in the event the member was continuously absent for more than one day) specifying the nature of the illness and the person notified of the intent to use sick leave, or the reasons for the failure to notify appropriate department personnel. The Chief of Police shall grant the request for conversion if the member submits a written statement signed by his or her attending physician confirming the illness and the Police Chief determines that the member's failure to notify appropriate departmental personnel was reasonable under the circumstances. d. NBPMA members shall be entitled to accrue flex leave up to seventy-eight (78) times the members bi-weekly flex leave accrual rate (Flex Leave Accrual Threshold). NBPMA members first hired by the City prior to July 1, 1996, shall be paid for all flex leave that accrues in excess of the flex leave accrual threshold (Flex Leave Spillover Pay). Flex Leave Spillover Pay will be paid at the member's regular hourly rate of pay. Effective during the first pay period of January, 1998, NBPMA members who have not utilized at least eighty (80) hours of flex leave during the prior calendar year shall not accrue flex leave in excess of the Flex Leave Accrual Threshold and shall not be entitled to Flex Leave Spillover Pay. NBPMA members 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. Employees who have accrued in excess of seventy-eight (78) times the member's bi-weekly accrual rate shall accrue no additional time unless through use of time or any authorized cash payment (including spillover pay), the accrued hours decrease to less than seventy-eight (78) times the bi-weekly accrual rate. Except for persons eligible for Spillover Pay, in no case shall leave that would have 11 _ NBPMA MOU 2015-2018 12-17 been accrued in excess of the above limitations be earned for cash conversion. e. All requests for scheduled flex leave shall be submitted to appropriate department personnel. Flex leave may be granted on an hourly basis. In no event shall a member take or request flex leave in excess of the amount accrued. f. Members shall be paid for all accrued flex leave at their then current hourly rate of pay upon termination of the employment relationship. B. Bereavement Leave Bereavement Leave shall be defined as the necessary absence from duty by an employee having regular or probationary appointment because of the death or terminal illness in his/her immediate family. NBPMA members shall be entitled to forty (40) hours of bereavement leave per incident (terminal illness followed by death is considered one (1) incident). Leave hours need not be used consecutively, but should occur in proximate time to the occurrence. Immediate family shall mean an employee's father, mother, stepfather, stepmother, brother, sister, spouse/domestic partner, child, stepchild or grandparent, and the employee's spouse/domestic partner's father, mother, brother, sister, child or grandparent. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. C. Worker's Compensation Leave In accordance with Section 4850 of the Labor Code, unit employees shall be entitled to leave of absence while disabled without loss of salary for the period of the disability, not to exceed one (1) year. D. Scheduling of Medical Treatment for Industrial Injuries 1. Time spent by an employee receiving medical attention during the employee's normal working hours is considered hours worked and compensable, when the City or its representative schedules the appointment. 2. When an employee is temporarily totally disabled due to an industrial injury, and is unable to perform even limited duty in the workplace, all appointments, whether arranged by the City or the employees, shall be considered as occurring during normal working hours. The employee - 12 - NBPMA MOU 2015-2018 12-18 shall not be entitled to any additional compensation, regardless of the employee's regular work schedule or the type of compensation currently received, except as otherwise required by law. 3. When an employee has been released to either full or limited duty and has returned to the workplace, time spent receiving ongoing medical treatment, such as physical therapy or follow-up visits that are not scheduled by the City, is not considered hours worked and therefore, is not compensable. To avoid disruption in the workplace, an employee shall schedule such appointments to occur during off duty hours whenever possible. In the event such scheduling is not available, employee may be allowed to attend an appointment during their regularly scheduled duty shift with prior supervisory approval. Regular recurring appointments (i.e., weekly physical therapy) must be scheduled off duty. 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 BIC 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 - City Contribution The City has implemented an IRS qualified Cafeteria Plan. In addition to the amounts listed below, 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 Police Management 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 - 13 - NBPMA MOU 2015-2018 12-19 coverages in accordance with plan rules and during regular open enrollment periods. • The parties recognize that from January 1, 2015 through June 26, 2015 the City shall contribute $1,324 per month (plus the PERS minimum contribution) toward the Cafeteria Plan. • Effective the pay period that includes July 1, 2015 the City's monthly contribution towards the Cafeteria Plan will increase by $100 to $1,424.00 (plus the minimum CalPERS participating employer contribution as outlined in Government Code §22892.) • Effective the first pay issue in January 2017, the City's monthly contribution towards the Cafeteria Plan will increase by $100 to $1,524.00 (plus the minimum CaIPERS participating employer contribution as outlined in Government Code §22892.) On or before July 1, 2017, at the request of either party, the parties shall meet and confer in good faith to discuss possible changes to the medical benefit program, contribution levels, or other elements of healthcare services as a result of the Affordable Healthcare Act (CA) or changes in law, provided, however, that any changes to the MOU only may occur by mutual agreement of the parties. NBPMA members who do not want to enroll in any medical plan offered by the City must provide evidence of group medical insurance coverage, and execute an opt-out agreement releasing the City from any responsibility or liability to provide medical insurance coverage on an annual basis. Current employees electing to opt-out of City provided medical coverage will be eligible to receive a maximum Cafeteria Allowance of$1,274 per month. Effective the first pay issue in January 2016, the opt-out Cafeteria Allowance will be $1,000 per month. 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings as agreed upon by the BIC. 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the BIC. - 14 - NBPMA MOU 2015-2018 12-20 B. Additional Insurance/Programs 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. The City shall maintain a "reimbursable account program" in accordance with the provisions of Section 125 of the Internal Revenue Code, pursuant to which an Association member may request that medical, child care and other eligible expenses be paid or reimbursed by the City out of the employee's account. The base salary of the employee will be reduced by the amount designated by the employee for reimbursable expenses. The City's obligation to establish a reimbursable account program is contingent upon the City incurring no cost or potential liability relative to the plan or its administration. City shall cooperate to the fullest extent of the law, provided, however, City may require the plan to contain provisions that authorize the administrator to pay allowable expenses only upon submittal of a demand from the City. Any "reduction" in salary pursuant to this Section and/or the Section 125 Plan established by the City, shall not affect any other provision of this MOU. 2. Disability Insurance The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all regular full time employees with the following provisions: Weekly Benefit 66.67% gross weekly wages Maximum Benefit $10,000/month Minimum Benefit $15 (STD) and $100 (LTD) Waiting Period 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. - 15 - NBPMA MOU 2015-2018 12-21 Concurrent with the commencement of this program, employees assumed responsibility for the payment of the disability insurance cost in the amount of one percent (1%) of base salary. Simultaneously, the City increased base wages by one percent (1%). 3. Life Insurance The City shall provide life insurance for all regular full-time employees in $1,000 increments equal to one times the employee's annual salary up to a maximum of $50,000. At age 70 the City-paid life insurance is reduced by 50% of the pre-70 amount. This amount remains in effect until the employee retires from City employment. C. Employee Assistance Program City shall provide an EmployeeAssistance Program ("EAP") through a properly licensed provider. NBPMA members and their family members may access the EAP at no cost subject to provider guidelines. D. Retirement Benefits 1. Retirement Formula The City contracts with the California Public Employees Retirement System ("CalPERS"or "PERS) to provide retirement benefits for its employees. Pursuant to prior agreements and state mandated reform, the City has implemented first, second and third tier retirement benefits as follows: Tier I ("Legacy"): For employees hired by the City on or before November 23, 2012, the retirement formula for safety members shall be 3%@50, calculated on the basis of the highest consecutive 12 month period. Tier 11 ("Classic"): For employees first hired by the City between November 24 and December 31, 2012, or hired on or after January 1, 2013 and who are current members of the retirement system or a reciprocal retirement system, as defined in Public Employees Pension Reform Act (PEPRA), the retirement formula for safety members shall be 3%@55, calculated on the basis of the highest consecutive 36 month period. - 16 - NBPMA MOU 2015-2018 12-22 Tier Ill ("PEPRAI For employees first hired by the City on or after January 1, 2013, and who do not meet the Tier 11 criteria, the safety retirement formula shall be 2.7%@57, calculated on the basis of the highest consecutive 36 month period. 2. Other Contract Provisions The City's contract with PERS shall also provide for: a. The military buy-back provisions pursuant to Section 20930.3 of the California Government Code and the highest year benefit pursuant to California Government Code Section 20042. b. The Level 4 1959 Survivors Benefits. C. The PERS pre-retirement option settlement 2 death benefit (Section 21548) for miscellaneous and safety members. 3. Employee Contributions Unit members shall contribute additional amounts toward the PERS retirement benefit, to the extent permissible by law, as set forth below. Employee retirement contributions that are in addition to the normal PERS Member Contribution shall be calculated on base pay, special pays, and other pays normally reported as pensionable compensation, and will be made on a pre-tax basis through payroll deduction provided under 414(h)(2). Tiers I and 11: Effective the pay period that includes January 1, 2015, NBPMA Tier I and 11 safety members will contribute the full statutory member contribution, equal to 9% of pensionable compensation, plus an additional 4.6% of pensionable compensation toward retirement costs as permitted under Government Code §20516(1), for a total contribution of 13.6%. Effective the pay period that includes January 1, 2016, NBPMA Tier I and 11 safety members will contribute the full statutory member contribution, equal to 9% of pensionable compensation, plus an additional 5.6% of pensionable compensation toward retirement costs as permitted under Government Code §20516(0, for a total contribution of 14.6%. - 17 - NBPMA MOU 2015-2018 12-23 Tier lll: The minimum statutory employee contribution for employees in Tier 111 is subject to the provisions of the Public Employees' Pension Reform Act (PEPRA) and equals 50% of the 'total normal cost'as determined by PERS. For FY15-16, the employee safety rate is 11.25% and is subject to change based on annual PERS actuarial valuations. Effective the pay period that includes January 1, 2015 Tier 111 members will contribute the required 11.25% member contribution. In addition, Tier Ill members shall contribute 2.35% of pensionable compensation toward retirement costs pursuant to Government Code § 20516(f), for a total contribution of 13.6%. Effective the pay period that includes January 1, 2016, Tier 111 members will contribute the required 11.25% member contribution. In addition, Tier Ill members shall contribute 3.35% of pensionable compensation toward retirement costs pursuant to Government Code § 20516(17, for a total contribution of 14.6%. In the event the member contribution rate for employees in Tier 111 shall become greater or less than 11.25%, the additional contribution made by the employee under 20516(f) will be increased or decreased accordingly so that the total employee contribution is the same percentage contribution made by Tier I and 11 members. 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, 2005. b. Category 2 - Active employees hired prior to January 1, 2005, whose age plus years of service as of January 1, 2005 was less than 50 (46 for public safety employees). - 18 - NBPMA MOU 2015-2018 12-24 C. Category 3 - Active employees hired prior to January 1, 2005, whose age plus years of service was fifty (50) or greater (forty-six (46) for public safety employees) as of January 1, 2005. d. Category 4 - Employees who had already retired from the City prior to January 1, 2005, and were participating in the previous retiree medical program. 2. Program Structure This is an Integral Part Trust (IPT) Retirement Health Savings Plan (RHS) (formerly the Medical Expense Reimbursement Program Plan MERP). a. For employees in Category 1 . the program is structured as follows: Each employee will have an individual RHS account for bookkeeping purposes, called his or her "Employee Account." This account will accumulate contributions to be used for health care expense after separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. Contributions will be in three parts. Part A contributions (mandatory employee contributions): one percent (1%) of Salary. Part B contributions (employer contributions): One Dollar and Fifty Cents ($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 Two Dollars and Fifty Cents ($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 _ 19 - NBPMA MOU 2015-2018 12-25 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 the Association wishes to specify fifty percent (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 fifty percent (50%) of the amount that is cashed out added to the RHS, on a pre-tax basis. The remaining fifty percent (50%) would be paid in cash as taxable income. Individual employees would not have the option to deviate from this breakout. The Association has decided to participate in Part C contributions at the level of zero percent (0%) for Flex/Vacation Leave and one hundred percent (100%) for Sick Leave. This amount may be changed, on a going 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 and Compensatory Time are no 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 RHS Part C contributions, but only to the extent and within all the numeric parameters specified in the Employee Policy Manual. Section 11.21 of the Employee Policy 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 eight hundred (800), and specifies that sick leave hours are "cashed out" on a two (2) for one (1) basis (eight hundred (800) hours of sick leave are converted to four hundred (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. - 20 - NBPMA MOU 2015-2018 12-26 Part A contributions begin upon enrollment in the program and are credited to each RHS Employee Account each pay period. Eligibility for Part B contributions is set at five (5) years of vested City employment. At that time, the City will credit the first five (5) 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 (0). This right is triggered upon separation. If an employee leaves the City prior to five (5) years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the RHS Employee Account. Such an employee will not be entitled to any Part B contributions. The exception to this is a full-time employee, participating in the program, who leaves the City due to industrial disability during the first five (5) years of employment. In such cases, the employee will receive exactly five (5) years' worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's RHS account at the time of separation. Distributions from RHS Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and his or her spouse and legal dependents — again only as permitted by IRS Publication 502. Qualification for dependency status will be determined by guidelines in IRC 152. If used for these purposes, distributions from the RHS accounts will not be taxable. Cash withdrawal for any other purpose is prohibited. Under recent IRS Revenue Ruling 2005-24, any balance remaining in the Employee Account after the death of the employee and his or her spouse and/or other authorized dependents (if any) must be forfeited. That particular RHS Employee Account will be closed, and any remaining funds will become general assets of the plan. - 21 - NBPMA MOU 2015-2018 12-27 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 RHS account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one-time City contribution to their individual RHS accounts that equates to One Hundred Dollars ($100) per month for every month they contributed to the previous "defined benefit" plan, to a maximum of fifteen (15) years (one hundred eighty (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 (5) 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 (5) years total service. G. 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 Four Hundred Dollars ($400) per month into each of their RHS accounts after they retire from the City, to continue as long as the employee or spouse is still living. Each employee will contribute a flat One Hundred Dollars ($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 Four Thousand Eight Hundred Dollars ($4,800) per year, accruing at the rate of Four Hundred Dollars ($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 Seventy-Five Dollars ($75) per month for every month they contributed to the previous plan prior to January 1, - 22 - NBPMA MOU 2015-2018 12-28 2006, up to a maximum of fifteen (15) years (one hundred eighty (180) months). This contribution will be made to the RHS account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. 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 Four Hundred Dollar ($400) City contribution after retirement can be used for any IRS authorized purpose, not just City insurance premiums. Effective July 1, 2006, a RHS account has been opened for each retiree in this category, and the City will contribute Four Hundred Dollar ($400) per month to each account as long as the retiree or spouse remains living. For existing NBPMA retirees in this category, the Four Hundred Dollar ($400) was increased to Four Hundred and Fifty Dollars ($450) effective July 1, 2006. The NBPMA has agreed to reimburse the City for half of the cost of this increase, on an ongoing basis. To that end, the City will invoice NBPMA at the end of each quarter for half the actual cost of this increase during the previous three months. 3. Administration Vendors have been selected by the City to administer the program. The contract expense for program-wide administration by the vendor will be paid by the City. However, specific vendor charges for individual account transactions that vary according to the investment actions taken by each employee, such as fees or commissions for trades, will be paid by each employee. The City's Deferred Compensation Committee, 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 one percent (1%) of salary on which PERS retirement is based (Part A); plus a quarter percent (.25%) of other compensation (Part B). - 23 - NBPMA MOU 2015-2018 12-29 F. Tuition Reimbursement NBPMA 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. The maximum tuition reimbursement shall be One Thousand Four Hundred Dollars ($1,400) per fiscal year. SECTION 5. — Miscellaneous Provisions A. Reductions in Force/Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions a. "Layoffs" or "Laid off' shall mean the non—disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted permanent status in their current Classification or any Classification within the Series, subject to the following: i. Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status in the Classification or Series; ii. Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. C. "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part—time, seasonal or - 24 - NBPMA MOU 2015-2018 12-30 temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). d. "Series" shall mean two (2) or more Classifications within a Department which require the performance of similar duties with the higher ranking Classification(s) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities for subordinates. The City Manager shall determine those Classifications which constitute a Series. e. 'Bumping Rights", 'Bumping" or "bump" shall mean the right of an employee, based upon seniority within a series, to displace a less senior employee in a lower Classification within the Series. No employee shall have the right to Bump into a Classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience. 2. Procedures In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: a. Temporary and probationary employees within any Classification shall, in that order, be laid off before permanent employees. b. Employees within a Classification shall be laid off in inverse order of seniority; C. An employee subject to layoff in one (1) 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. d. In the event two (2) or more employees in the same Classification are subject to layoff and have the same seniority, the employees shall be laid off in inverse order of their position on the eligibility list or lists from which they were appointed. In the event at least one (1) of the employees was not appointed from an eligibility list, the Department Director shall determine the employee(s) to be laid off. 3. Notice Employees subject to lay—off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days pay in lieu of notice. In - 25 - NBPMA MOU 2015-2018 12-31 addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any), and accumulated sick leave to the extent permitted by the Employee Policy Manual. 4. Re—Employment Permanent and probationary employees who are laid off shall be placed on a Department re—employment list in reverse order of layoff. The re- employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re—employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re—employment list or the right to remove his or her name from the re—employment list by sending written confirmation to the Human Resources Director. 5. Severance Pay Permanent employees who are laid off shall, as of the date of layoff, receive one (1) week severance pay for each year of continuous service with the City of Newport Beach, but in no case to exceed ten (10) weeks of severance compensation. B. Schedule Nothing contained herein is intended to abridge management's right to schedule work to meet the Police Department's needs of providing services in an efficient and safe manner. Management recognizes its obligations under the Meyers- Milias-Brown Act to meet and confer before making any substantive changes to work schedules that impact an employee's conditions of employment. 1. Employees currently work a variety of alternative work schedules (some trial) as approved by the Chief of Police. They include 3/12 and 4/10. The basic work schedule shall be considered the 9/81 for the term of this MOU. Subject to the right to re—open as specified in this subparagraph, 9/81 shall be the standard work schedule for the term of this MOU. The 9/81 schedule will be structured to allow for one hundred and thirty (130) days off during the calendar year. NBPMA members shall be entitled to eleven (11) days off for ten (10) months of the year and ten (10) days off during two (2) months of the year. The Chief of Police shall determine the - 26 - NBPMA MOU 2015-2018 12-32 months during which NBPMA members shall receive ten (10) days off. The Chief of Police shall also have the right to alter the work schedule of any NBPMA member assigned to any multi—agency or regional task force. Upon notice, the parties shall meet and confer, in good faith, regarding the appropriate work schedule(s) for NBPMA members. 2. City shall have the right to designate a fourteen (14) day or twenty-eight (28) day work period pursuant to Section 29 U.S.C. 507(k) ("7 K Exemption"), provided, however, the 7k Exemption shall not affect the City's obligation to pay overtime pursuant to provisions of this MOU. 3. The parties agree that the following procedures are consistent with good police practices, provide each NBPMA member with ample time to perform all required duties, and comply with the Fair Labor Standards Act: a. All Patrol Supervisors are required to report to work fifteen (15) minutes early; b. All Patrol Supervisors acknowledge and agree that normally, they are to leave at the end of their shift, that they shall not routinely perform duties beyond the end of their shift, that the fifteen (15) minutes allotted for briefing preparation is adequate, and they will comply with an order issued by the Chief of Police consistent with this MOU; C. The fifteen (15) minutes per shift shall be converted to compensatory time on a straight time basis and placed in a compensatory time off bank, which the member may use as flex leave, vacation leave or sick leave, but for which the member would not be paid at any time. C. Grievance Procedure 1 . Definition The term "grievance" means a dispute between NBPMA or any member and the City regarding the interpretation or application of rules or regulations governing the terms and conditions of employment, any provision of the Employee Policy Manual, any provision of Resolution No. 2001-50, or this MOU. - 27 - NBPMA MOU 2015-2018 12-33 2. Guidelines Any NBPMA member may file a grievance without fear of retaliation or any adverse impact on any term or condition of employment. a. A grievance shall not be filed to establish new rules or regulations, change prevailing ordinances or resolutions, nor circumvent existing avenues of relief where appeal procedures have been prescribed. b. An employee may be self—represented or represented by one (1) other person. C. An employee and any representative shall be given notice of the time and place of any grievance proceeding, the opportunity to be present at such proceedings, a copy of any written decision or communication to the employee concerning the proceedings, and any document directly relevant to the proceedings. d. All parties shall engage in good faith efforts to promptly resolve the grievance in an amicable manner. The time limit specified may be extended upon mutual agreement expressed in writing. e. The procedures in this MOU represent the sole and exclusive method of resolving grievances. 3. Procedure a. Steps NBPMA members occupying the position of Sergeant or Lieutenant shall present any grievance to the supervising Captain, and may appeal the decision of the supervising Captain to the Chief of Police and City Manager by complying with the procedures in this subsection. Any member occupying the position of Captain shall present any grievance to the Chief of Police, and may appeal the decision to the City Manager by following the procedures outlined in this subsection. The decision of the City Manager shall be final. b. Written Notice All grievances shall be submitted in writing. The grievance shall be submitted within ten (10) working days after the member knew, or in the exercise of reasonable diligence should have known, of the act or events upon which the grievance is based. The grievance shall contain a complete statement of the matters at issue, the facts - 28 - NBPMA MOU 2015-2018 12-34 upon which the grievance is based, and the remedy requested by the member. All appeals shall be in writing and, in addition to the matters which must be stated in any grievance, shall specify the decision or decisions which form the basis of the appeal. Grievances and appeals shall be deemed submitted when personally delivered to the appropriate supervisor or the Chief of Police. C. Hearings/Meetings The appropriate supervisor, Chief of Police or City Manager shall meet with the member and any representative in an effort to resolve the grievance. The meeting shall be conducted within ten (10) working days after the appeal or grievance is served. The meeting shall be informal and the discussion should focus on the issues raised by the grievance. Written decisions on the grievance or appeal shall be served on the employee within ten (10) working days after the meeting. 4. General Grievance A grievance affecting more than one (1) NBPMA member may be filed by NBPMA on behalf of the affected employees with the Chief of Police. The grievance shall contain a complete statement of the matters at issue, the facts upon which the grievance is based, and the remedy requested by NBPMA. The Chief of Police shall meet with NBPMA representatives within fifteen (15) calendar days following receipt of the grievance and provide a written decision on the grievance within fifteen (15) calendar days after the meeting. In the event NBPMA is dissatisfied with the decision of the Chief of Police, it may appeal to the City Manager by following the procedures outlined in Step 4 of the procedure applicable to individual employees. In the event NBPMA is dissatisfied with the decision of the City Manager, it may appeal the decision to the Civil Service Board by filing a written notice of appeal within fifteen (15) calendar days after receipt of the decision. D. Direct Deposit All Unit employees shall participate in the City's Direct Deposit Program. - 29 - NBPMA MOU 2015-2018 12-35 E. Contract Negotiations The parties agree that, if NBPMA submits preliminary requests for changes in wages, fringe benefits and other terms and conditions of employment earlier than ninety (90) days prior to expiration of this MOU (as provided in Section 18. Timetable for Submission of Requests of the Employer-Employee Relations Resolution), the parties will begin negotiations promptly, with the objective of reaching agreement by July 1, 2018. Signatures are on the next page. - 30 - NBPMA MOU 2015-2018 12-36 Executed this day of 2015: NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION By: Rachel Johnson, President r Nv CITY OF NEWPORT BEACH �. Edward D Sell'b-Nh�Mayor th ,b ATTEST: By: Leilani Brown = City Clerk - c NY p APPROUED AS TbFORMr rx _ _. Aaron Harp =City Attorney ( Attachments: Exhibit�'A" NBPMA Represented Classifications and Pay Rates 31 - NBPMA MOU 2015-2018 12-37 EXHIBIT A Newport Beach Police Management Association Represented Classifications* and Pay Rates January 1, 2015 - June 30, 2018 Represented Classification Hourly Pay Rate Monthly Pay Rate Minimum Maximum Minimum Maximum Effective January 1, 2015 (1.8% Adjustment) Police Sergeant $43.40 $61.06 $7,522 $10,583 Police Lieutenant $51.02 $71.78 $8,843 $12,441 I Effective January 1, 2016 (3.0% Adjustment) Police Sergeant w-44.70 $62.90 $7,748 $10,902 Police Lieutenant $52.55 $%3.94 $9,108 $12,816 Effective January 1. 20 17 (2.x% Adjustrneot) Police Sergeant $45.82 $64.47 $7,942 $11,174 Police Lieutenant I $53.86 $75.79 $9,335 $13,136 Effective January 1, 2018 (J.0% Adjustment) Police Sergeant $47.19 $66.40 $8,179 $11,509 Police Lieutenant $55.48 $78.06 $9,616 $13,530 The City does not currently staff any postions at the Police Captain level, however the job classification remains represented by NBPMA 32 12-38