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HomeMy WebLinkAbout06 - MOU with the NBCEA and the Newport Beach Professional and Technical Employees AssociationPO CITY OF z NEWPORT BEACH Cq G�p� P City Council Staff Report January 12, 2016 Agenda Item No. 6 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dave Kiff, City Manager - 949-644-3001, dkiff@newportbeachca.gov Barbara Salvini, Human Resources Director 949-644-3259, bsalvini@newportbeachca.gov PREPARED BY: Maggie Williams-Dalgart, Senior Human Resources Analyst PHONE: 949-644-3337 TITLE: Adoption of Memoranda of Understanding with the Newport Beach City Employees Association and the Newport Beach Professional and Technical Employees Association ABSTRACT: On December 8, 2015, the City Council considered the Tentative Agreement between the City of Newport Beach and the Newport Beach City Employees Association ("NBCEA") and the Newport Beach Professional and Technical Employees Association ("NBPTEA"), on the terms of successor Memoranda of Understanding (MOUs) to the ones that expired on July 1, 2015. The proposed MOUs, for the period July 1, 2015 through December 31, 2018, include changes to wages, benefits, and other terms and conditions of employment that are subjects of collective bargaining as required under the Meyers-MiIias-Brown Act, California Government Code sections 3500-3510. During the "sunshine" period, prior to proposed MOU adoption, members of the public had an opportunity to consider the terms and associated costs of the contracts. The complete MOUs are presented for City Council's approval/adoption (or rejection), and is the final step in the meet and confer process, completing the agreements. RECOMMENDATION: a) Adopt Resolution No. 2016-3, A Resolution of the City Council of the City of Newport Beach, California, Adopting a Memorandum of Understanding between the City of Newport Beach and the Newport Beach City Employees Association for the Period July 1, 2015 through December 31, 2018; and 6-1 Memoranda of Understanding with the City Employees Association and the Professional and Technical Employees Association January 12, 2016 Page 2 b) Adopt Resolution No. 2016-4, A Resolution of the City Council of the City of Newport Beach, California, Adopting a Memorandum of Understanding between the City of Newport Beach and the Newport Beach Professional and Technical Employees Association for the Period July 1, 2015 through December 31, 2018. FUNDING REQUIREMENTS: A comprehensive estimate of the costs associated with the successor Memoranda of Understanding with NBCEA and NBPTEA were provided with the December 8, 2015 staff report and are included with this report (Attachments C and D respectively). The combined cost to implement the terms in FY2015-16 is estimated to be $638,400, and the overall/total is estimated to be $3,419,800 for the 3'/2 year contracts. Funding for the current fiscal year has been approved in the FY2015-16 adopted budget. DISCUSSION: The Newport Beach City Employees Association (NBCEA) and the Newport Beach Professional and Technical Employees Association (NBPTEA) are exclusively recognized bargaining units and represent 175 miscellaneous (non -safety) employees in engineering, planning, recreation, library, administrative support, finance, and information technology occupations. The Memoranda of Understanding for NBCEA and NBPTEA expired July 1, 2015. Since NBCEA and NBPTEA are both represented by the Laborers' International Union of North America (LIUNA), for the purposes of collective bargaining, they negotiate together. Following preliminary meetings, formal negotiations between the City and NBCEA and NBPTEA on the terms of a successor MOU began on November 2, 2015. The City was represented by Terri Cassidy, former Deputy City Manager and Chief Spokesperson (recently retired), Barbara Salvini, Human Resources Director, Mark Vukojevic, Deputy Public Works Director, Dave Curtis, Library Services Manager, and Maggie Williams- Dalgart, Senior Human Resources Analyst. The Newport Beach City Employees Association was represented by Teri Craig, President and Chief Spokesperson, Cynthia Shintani, Vice President, and Andrea Jason, Member -at -Large. The NBPTEA was represented by Ryan Stadlman, Secretary/Treasurer and Shane Burckle, Member -at - Large and Chief Spokesperson. Following City Council approval, the Tentative Agreement was reached on November 24, 2015, and presented to the City Council on December 8, 2015 to provide an opportunity for the public to review and comment on the proposed contracts. Rising pension costs and the City Council's stated position that employees share in the pension obligation continues to be a topic during negotiations with the City's labor groups. Miscellaneous employee groups, including NBCEA and NBPTEA were among the City's first to share in the cost of the Employer (City) pension obligation, and have increased their contribution to PERS nearly 9 percent over the past five years, from 3.42 6-2 Memoranda of Understanding with the City Employees Association and the Professional and Technical Employees Association January 12, 2016 Page 3 percent in 2010 to 12.35 percent in 2015. Recognizing that cost sharing is still needed, during negotiations NBCEA and NBPTEA agreed to contribute an additional .65% of pay toward pension, for a total employee pick up of 13%. Newport Beach has been at the forefront of pension reform and the contribution level of employees in these units is one of the highest in Orange County, which provides significant long term savings to the City. Other negotiations topics included wage adjustments to keep pace with cost -of -living, healthcare costs, and potential future changes to healthcare delivery due to legislation, including the Affordable Care Act. The proposed Memoranda of Understanding between the City and NBCEA and NBPTEA includes the following major provisions: • Term of three and one-half years, from July 1, 2015 through December 31, 2018 • Additional employee contributions to the PERS pension benefit o January 1, 2016, employees contribute an additional .35 percent, for a total employee pick up of 12.7% percent o January 1, 2017, employees contribute an additional .30 percent, for a total employee pick up of 13.0 percent • Wage adjustments o January 1, 2016 - 2.65% o January 1, 2017 - 2.65% o January 1, 2018 - 2.65% • Increases to the cafeteria benefit, which is used to purchase medical, dental or vision insurance o January 1, 2016, an additional $76 per month for a total benefit of $1,625 o January 1, 2017, an additional $100 per month for a total benefit of $1,725 • 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 (or as soon as practicable following MOU adoption) • An agreement to reopen negotiations in July 2017 for the purpose of discussing healthcare and cafeteria benefits due to changes or revisions in law, such as the Affordable Care Act • A one-time payment of $2,400 for all members, effective following MOU adoption • Changes to the Certificate Pay program, eliminating or "sunsetting" certain certificates and adding newer industry certificates 6-3 Memoranda of Understanding with the City Employees Association and the Professional and Technical Employees Association January 12, 2016 Page 4 • A change to the Bereavement Leave policy to include stepparents and stepchildren • An increase in the Tuition Reimbursement program, from $1,500 to $2,000 annually to promote educational attainment • Changes to the Grievance policy to remove certain procedural steps and provide for the City Manager as the final decision The estimated cost of the 3'/2 year contract with CEA and Prof Tech for FY2015-16 and future years is included in Attachments C and D Respectively. All costs are itemized by salary, supplemental pays, fringe benefits, pension, and employees offsets, projected through FY2018-19. The employee offsets, which represent the additional employee pick-up towards pension and the reduction in the cafeteria allowance, provides a combined estimated savings of $627,900 over the term of the CEA and Prof Tech contracts. In accordance with NBCEA and NBPTEA ratification procedures, the majority of members of each unit voted to approve the new MOU. The agreement will not become effective, per Government Code §3505.1, until the governing body, i.e., City Council, takes action to adopt it. If the City Council approves adoption of the Memorandum of Understanding with the NBCEA and NBPTEA, Human Resources and Finance Department staff will work to implement the provisions as soon as practicable. The proposed changes are noted in italics and the comprehensive MOU and cost analysis of the complete contract, if approved, will be published online. As City Manager, I would like to thank the NBCEA and NBPTEA leadership for the collaborative and respectful way in which they approached these negotiations and appreciate their willingness to come to the table to address key issues, including pension reform and cafeteria opt our benefit reductions. These are challenging times for city governments and a strong partnership between the City and its bargaining units remains vital in continuing to provide the community excellent services. 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 no potential for resulting in physical change to the environment, directly or indirectly. Memoranda of Understanding with the City Employees Association and the Professional and Technical Employees Association January 12, 2016 Page 5 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: A. Resolution No. 2016-3 Adopting a MOU with NBCEA B. Resolution No. 2016-4 Adopting a MOU with NBPTEA C. Estimated Cost of 3'/2 Year Contract with NBCEA D. Estimated Cost of 3'/2 Year Contract with NBPTEA 6-5 ATTACHMENT A RESOLUTION NO. 2016-3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, 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," pursuant to the authority contained in the Meyers-Milias-Brown Act, Government Code §3500; and WHEREAS, the City of Newport Beach supports effective communication and collaborative working relationships with its employee associations to promote improved relations while balancing good management practices; 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, 2012, through June 30, 2015; 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 reached a Tentative Agreement on wages, benefits, and other terms and conditions of employment; 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 a successor Memorandum of Understanding for the period of July 1, 2015, through December 31, 2018. NOW, THEREFORE, the City Council of the City of Newport Beach hereby resolves as follows: Section 1: The recitals provided above are true and correct and are incorporated into the operative part of this resolution. Section 2: Wages, hours, fringe benefits and other terms and conditions of employment of employees represented by the Newport Beach City Employees Association shall be provided in accordance with the provisions of the attached Memorandum of Understanding (Exhibit A). Section 3: The term of the Memorandum of Understanding shall be for 42 months, commencing retroactively to July 1, 2015, and remaining in full force and effect through December 31, 2018. Section 4: The City's Salary Schedule shall be modified so as to be consistent with this Resolution. • • Resolution No. 2016-3 Page 2of2 Section 5: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared invalid or unconstitutional. Section 6: The City Council finds the adoption of this resolution 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 no potential for resulting in physical change to the environment, directly or indirectly. Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this day of , 2016. Diane B. Dixon Mayor ATTEST: Leilani I. Brown City Clerk 6-7 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 The Newport Beach City Employees Association ("NBCEA"), a recognized employee organization, affiliated with the Laborers' International Union of North America, Local 777 (LIUNA), 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 a three and one-half year period, from July 1, 2015 through December 31, 2018 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. 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 July 1, 2015. This MOU shall remain in full force and effect until December 31, 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. 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 an annual maximum of 150 hours paid release time 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. 4. Each January, the City will examine the number of Release Time hours the Association used the preceding year. If the Association used in excess of 75% of the hours normally granted (150), the Association will be granted an additional 30 hours for that year. 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. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 • • E 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 (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. Employee Data and Access In January and July of each year, the City shall provide NBCEA a 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 total release time for NBCEA Officers, and shall be scheduled in a manner that NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 3 6-10 4 is not disruptive to departmental operations. Department heads may determine appropriate times for new employee contact, but they cannot reasonably deny such contact. 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, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herei n. As provided in the Employer -Employee Relations Resolution No. 2001-50, the City shall determine the manner in which City services are to be provided, including whether the City should provide services directly or contract out work, including work that is currently being performed by Association members. In the event the City introduces a plan to outsource services currently being performed by Association members to achieve greater efficiency and/or cost savings, and upon request by the Association, the City shall meet and confer with Association representatives to discuss the impacts of the City's decision to contract out work. The City shall retain sole authority to decide whether or not to contract out work, including work that is currently being performed by Association members. This provision shall not limit the City's authority to enter into such an agreement for any City services. G. Modifications Any agreement, understanding, 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. The parties have determined certain contract provisions may be outdated or inconsistent with policy, charter, or Federal, State or local law. Effective during the term of the MOU City and Association representatives will review the contract document with the intent of proposing simplified and appropriate language, content and formatting. No changes to the MOU shall be effective unless approved by City Council. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-11 5 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. The Association and LIUNA agree to defend, indemnify and hold harmless the City for its action pursuant to this section. SECTION 2. — Compensation A. Salary Base salary increases for all NBCEA represented classifications shall be as follows and as specified in Exhibit A: 1. Effective the pay period that includes January 1, 2016, base salaries will be increased by 2.65%. 2. Effective the pay period that includes January 1, 2017, base salaries will be increased by 2.65%. 3. Effective the pay period that includes January 1, 2018, base salaries will be increased by 2.65%. B. Normal Overtime 1. Definitions a. Miscellaneous Employee - An employee designated as a Miscellaneous member of the Public Employees Retirement System (PERS). NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-12 N 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. 2. Compensation Overtime for all non-exempt employees shall be paid at one -and - one -half (11/2) times the employee's regular rate of pay. Reporting of overtime on payroll forms will be as prescribed by the Finance 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. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-13 7 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 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 (1 1/2) 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. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-14 0 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. 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. G. Incentive Shift for Library Members For NBCEA 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 be paid eight hours incentive pay at the regular hourly rate. This article is not to be construed as to impact on other City rules. H. Court Time Employees who are required to appear in Court during their off-duty hours in connection with City business shall receive overtime compensation for the number of hours they spend in court, with a minimum of two (2) hours of such compensation. Actinq Pay 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 Effective January 1, 2013, the Certificate Pay program was modified to eliminate "inactive" certificates and "sunset" certain active certificates. Employees currently receiving a "sunset" certificate are considered grandfathered under the program, but no further employees will be eligible; effective January 1, 2014, the pay for eligible certificates was converted from a percentage based benefit to a flat dollar amount. The complete list of eligible certificates and the corresponding benefit is listed in Exhibit B. All other procedures associated with Certificate Pay remain in effect. K. 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 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-15 L 0 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. One -Time Payment Effective following City Council adoption of this 2015-2018 MOU, or as soon thereafter as reasonably practicable, currently employed unit members will receive a one-time payment of $2,400. The parties agree that this one-time payment does not meet the criteria under California Code of Regulations 571(b) as reportable compensation for retirement purposes. SECTION 3. — Leaves A. Flex Leave Effective the pay period including January 1, 2013, all unit members shall accrue Flex leave at the following rates: Years of Continuous Hrs Accrued per Annual Max Allowable Service Pay Period hours Balance (hours) 1 but less than 5 6.00 156.00 468.00 5 but less than 9 6.61 171.86 515.58 9 but less than 12 7.23 187.98 563.94 12 but less than 16 8.15 211.90 635.70 16 but less than 20 8.77 228.02 684.06 20 but less than 25 9.38 243.88 731.64 25 and over 10.00 260.00 780.00 Members shall accrue three (3) months of flex leave upon completion of three (3) months of continuous employment with the City of Newport Beach, provided however, this amount shall be reduced by any flex leave time advanced during the first three (3) months of 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 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-16 IQ C 10 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. 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/Sick Due to the full conversion of employees to the Flex leave program, former Vacation and Sick leave provisions "B" and "C" are hereby removed and shall be referenced exclusively in prior MOUs. Holiday Leave Subject to the provisions herein, the following days shall be observed as paid holidays by all unit members. For each designated holiday, except the Floating Holiday, employees shall receive an equivalent number of hours of paid leave or equivalent pay. Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas Day July 4 1St Monday in Sept. November 11 4t" Thurs. in November Last'/2 of working day December 25 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-17 I New Year's Eve New Year's Day Washington's Birthday Memorial Day Martin Luther King Day Floating Holiday Last'/2 of working day January 1 3rd Monday in February Last Monday in May 3rd Monday in January July 1St - 1 day 11 Effective the pay period including January 1, 2013 holidays will be paid based on the employee's regular work day schedule. For example, if an employee is on a 9/80 schedule and the holiday is observed on a day that the employee is regularly scheduled to work 9 hours, the employee is entitled to receive 9 hours of holiday pay. However, if an employee is on a 9/80 schedule and the holiday is observed on a day that the employee is regularly scheduled to work 8 hours, the employee is entitled to receive 8 hours of holiday pay. Employees will receive 8 hours of holiday pay annually for the Floating Holiday. 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. 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. leave that has been reviewed and approved by the Department Director). 3. In addition, for all employees an additional 8 hours of floating holiday will be added to his/her Flex leave accumulated total, on the first pay period in July each year. Bereavement Leave Bereavement leave shall be defined as "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." Unit members shall be entitled to forty (40) hours of bereavement leave per calendar year per incident (terminal illness followed by death is considered one incident). Bereavement leave shall be administered in accordance with the provisions of the Employee Policy Manual. Leave hours need not be used consecutively, but should occur in proximate time to the occurrence. For the purposes of this section, immediate family shall mean an employee's father, mother, stepfather, stepmother, brother, sister, spouse/domestic partner, child, stepchild, grandparents and the employee's spouse's/domestic partner's father, mother, brother, sister, child and grandparents. The provisions of this Section shall not diminish or reduce NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 'e S 12 any rights a member may have pursuant to applicable provisions of State or Federal law. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. E. Leave Sellback Twice annually, employees shall have the option of selling back on an hour for hour basis, accrued Flex leave. In no event shall the Flex leave balance be reduced below one hundred and sixty (160) hours. Hours sold back will be subject to the Retiree Health Savings Plan Part C contributions, per Section 4 (F), Retiree Medical. For the term of this MOU the Association has elected Part C contributions for Flex/Vacation at 0%. 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. 2. Medical Insurance The City has implemented an IRS qualified Cafeteria Plan. In addition to the contribution amounts listed below, the City shall contribute the minimum CalPERS participating employer's contribution towards medical insurance for employee enrolled in a CalPERS medical plan, per Government Code Section 22892. 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. 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. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-19 3 �, I G� 13 The parties recognize that from July 1, 2015 through December 31, 2015 the City has contributed $1,549 per month (plus the PERS minimum contribution) toward the Cafeteria Plan. Effective the first pay issue in January 2016, the City's contribution towards the Cafeteria Plan will increase by $76 per month to $1,625 (plus the minimum CaIPERS participating employer's contribution). Effective the first pay issue in January 2017, the City's contribution towards the Cafeteria Plan will increase by $100 per month to $1,725 (plus the minimum CaIPERS participating employer's contribution). NBCEA members who do not enroll in any medical plan offered by the City must provide evidence of group medical insurance coverage, and execute an opt -out agreement releasing the City from any responsibility or liability to provide medical insurance coverage on an annual basis. Effective January 1, 2016, or as soon thereafter is practicable following MOU adoption, the maximum cafeteria allowance provided to employees who execute an opt -out agreement is $1, 000 per month. Dental Insurance The existing or comparable dental of the City's health plan offerings Information Committee. Vision Insurance plans shall be maintained as part as agreed upon by the Benefits The existing or a comparable vision plan shall be maintained as part of the City's plan offerings as agreed upon by the Benefits Information Committee. Healthcare Reform The parties recognize that certain State and Federal laws, programs and regulations, including the Affordable Care Act, may impact future medical plan offerings. Effective July 2017, either party may request to reopen Section 4,A,(2) regarding medical insurance for the purpose of discussing alternative approaches and proposals to providing healthcare coverage. In addition, should State or Federal laws concerning taxation of healthcare benefits change, the parties agree to meet and discuss the impact of such change. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-20 14 B. Additional Insurance Proqrams 1 9 IRS Section 125 Flexible Soendina Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. An Association member may request that medical, child care and other eligible expenses be paid or reimbursed by the Section 125 Plan out of the employee's account. The base salary of the employee will be reduced by the amount designated by the employee for reimbursable expenses. Disabilitv Insurance The City shall provide disability insurance to following provisions: Weekly Benefit Maximum Benefit Minimum Benefit Waiting Period Short-term (STD) and Long-term (LTD) all regular full time employees with the 66.67% gross weekly wages $10,000/month $15 (STD) and $100 (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. Concurrent with the commencement of this program, employees assumed responsibility for the payment of the disability insurance cost in the amount of one (1.0%) percent of base salary. Simultaneously, the City increased base wages by one (1.0%) percent. Life Insurance The City shall provide life insurance for all regular full-time employees in $1,000 increments equal to one times the employee's annual salary up to a maximum of $50,000. 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. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-21 15 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 2. Retirement Formula The City contracts with employees. Pursuant reform, the City has retirement benefits: PERS to provide retirement benefits for its to prior agreements and state mandated implemented first, second and third tier Tier 1: For employees hired by the City on or before November 23, 2012, the retirement formula shall be the 2.5% @ 55 calculated on the basis of the best/single highest year. Tier 2: For employees first hired by the City between November 24 and December 31, 2012, or hired on or after January 1, 2013 and are current members of the retirement system, as defined in Public Employees Pension Reform Act, the retirement formula shall be 2% @ 60 calculated on the average 36 highest month's salary. Tier 3: For employees first hired by the City on or after January 1, 2013, and who do not meet the Tier 2 criteria, the retirement formula shall be 2% @a 62 calculated on the average 36 highest month's salary. Employee Contributions The Association has agreed to share in the rising cost of pension obligations. Under the terms of this MOU, unit members will contribute additional amounts toward the PERS retirement benefit, to the extent permissible by law. Should any provision be deemed invalid, the City and Association agree to meet for the purpose of renegotiating employee retirement contributions. At the conclusion of this contract employees in each Tier will contribute 13% of pensionable pay toward the retirement benefit. 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 "PERSable" compensation, and will be made on a pre-tax basis through payroll deduction, to the extent allowable by the government tax code. It is recognized that these payments will not be reported to PERS as NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-22 16 contributions toward either the Member or Employer rate, as provided under GC Section 20516(f). Under a separate agreement, and ratified via a contract amendment with CaIPERS in 2008, the modified normal member contribution for Tier 1 employees is 10.42% of pensionable compensation. The parties recognize that from July 1, 2015 through December 31, 2015, NBCEA members have been paying, in addition to the member contribution, a portion of the Employer rate under a 20516(f) cost sharing agreement. The normal Member rate and the cost sharing rate vary by Tier. However, the combined contribution rate for each Tier equals 12.35% of pensionable compensation, as provided in a prior agreement. Tier 1 and Tier 2 Employees: Effective the pay period including January 1, 2016, Tier 1 and Tier 2 employees shall contribute an additional .35% of pensionable compensation toward retirement costs pursuant to Government Code Section 20516 (f), for a total of 12.7001o. Effective the pay period including January 1, 2017, Tier 1 and Tier 2 employees shall contribute an additional .30% of pensionable compensation toward retirement costs for a total employee contribution of 13%. Tier 3 Employees: The minimum statutory employee contribution for employees in Tier 3 is subject to the provisions of the Public Employees Pension Reform Act of 2012 (PEPRA) and equals 50% of the "total normal cost". Effective the pay period including January 1, 2016, in addition to the statutorily required 50% contribution of total normal costs, Tier 3 employees shall make an additional contribution toward retirement pursuant to Government Code Section 20516(f), such that the total employee contribution equals 12.701o. Effective the pay period including January 1, 2017, in addition to the statutorily required 50% contribution of total normal costs, Tier 3 employees shall make an additional contribution toward retirement pursuant to Government Code Section 20516(f), such that the total employee contribution equals 13%. In the event pension reform is modified by State or Federal legislation, resulting in changes to previously negotiated terms, the parties agree to meet and confer to discuss subsequent changes to the contract. The City contracts with PERS for the 4t" Level 1959 Survivors Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military Service NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-23 17 Credit, 2% Cost of Living Adjustment and the pre -retirement option settlement 2 death benefit (Section 21548). 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 LIUNA 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. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-24 18 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) RHS Retiree Health Savings (RHS) plan (formerly the Medical Expense Reimbursement Program - "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): 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 employees it represents, subject employees within the Association the level of contribution for all to the following constraints. All must participate at the same level, NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-25 19 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 RHS, 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. 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 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 Manual contains a schedule, which specifies the amount of sick leave that can be "cashed out," based on time of service. The manual also caps the number of hours that can be "cashed out" at 800, and specifies that sick leave hours are "cashed out" on a 2 for 1 basis (800 hours of sick leave are converted to 400 hours for cash purposes). Sick leave participation is a separate item from vacation/flex leave participation, and thresholds must be separately identified by the Association. Part A contributions may be included in PERS compensation. Part B and Part C contributions will not be included in PERS compensation. Part A contributions begin upon enrollment in the program and are credited to each RHS 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 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-26 20 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 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 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 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. 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: NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-27 21 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 $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 21 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 workforce. Instead, the City will contribute $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 $100 per month to the plan for the duration of their employment to partially offset part of this expense to the City. The maximum benefit provided by the City after retirement is $4,800 per year, accruing at the rate of $400 per month. There is no cash out option for these funds, and they may not be spent in advance of receipt. Employees in this category will also receive an additional one-time City contribution of $75 per month for every month they contributed to the previous plan prior to January 1, 2006, up to a maximum of 15 years (180 months). This contribution will be made to the 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 $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 $400 per month to each account as long as the retiree or spouse remains living. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 • 22 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, or recognized professional organizations or agencies 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 coursework, seminars or professional development programs. Effective January 1, 2013, reimbursement will increase by $100 per year, for a maximum annual benefit of $1,500 per fiscal year. Effective January 1, 2016, reimbursement will increase to a maximum annual benefit of $2,000 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 or designee. 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. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-29 23 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. PROCEDURE NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-30 24 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 eighteen (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. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-31 25 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. Banding Position vacancy announcements for available City positions shall be distributed in a manner that reasonably assures unit members access to the announcements. In order to select the most qualified individual for vacant positions the City will continue its practice of "banding" candidates into one of the following ratings: Outstanding, Highly Recommended, Recommended, and Not Recommended, during the testing process. Department Directors review qualified candidates in band order, beginning with the top band and are permitted to hire any eligible candidate from the list (minimum rating of Recommended). 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. 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 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-32 26 9/80 (or 4/10) schedule test will be conducted by the Department Director, and his/her determination shall be final. Effective the pay period beginning January 15, 2011, the 9/80 flex -schedule was modified as follows: employees were provided the option of alternating Fridays off only. Employees on a 9/80 schedule with alternating Mondays or any other day off, converted to Fridays off beginning in January 2011. To ensure effective coverage, employees on the 9/80 schedule was 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. 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. 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 affect the spirit of this agreement. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-33 27 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. A grievance shall be brought to the attention of the immediate supervisor for discussion within ten (10) days of when the grievance arose. If the Employee is not satisfied with the decision reached through the informal discussion or if extenuating circumstances exist, the Employee shall have the right to file a formal grievance in accordance with Step 2 of this section. 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 employee is not in agreement with the decision rendered in Step 1, an employee shall have the right to present a formal grievance to the Department Director within ten (10) Days after the discussion in Step 1. The right to file a grievance petition shall be waived in the event the NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-34 28 Employee fails to file a formal grievance within ten (10) Days after the occurrence of the incident that forms the basis of the grievance. All formal grievances shall be submitted on the form prescribed by the Human Resources Director and no formal grievance shall be accepted until the form is complete. The formal grievance shall contain a clear, concise statement of the grievance, the facts upon which the grievance is based, the rule, regulation or policy the interpretation of which is involved in the grievance, and the specific remedy or remedies sought by the grievant. The Department Director should render a written decision within ten (10) Days after receipt of the formal grievance. Step 3: If the formal grievance has not been satisfactorily adjusted in Step 2, it may be appealed to the City Manager within ten (10) Days after the Employee receives the decision. The City Manager may accept or reject the decision of the Department Director and shall render a written decision within ten (10) Days after conducting a grievance hearing. The decision of the City Manager shall be final and conclusive. If mutually agreeable, a meeting may be conducted involving all affected parties at any step in the grievance procedure prior to a decision. The City Manager may delegate uninvolved Department Directors to act on behalf of the City Manager to provide findings and recommendations. The findings and recommendations of the uninvolved Department Directors are advisory only and the City Manager's decision shall be final. Time Limits: Grievances shall be processed from one step to the next within the time limit indicated for each step. Time limits shall be strictly enforced. Any time limits established in this Manual can be waived or extended only by mutual agreement confirmed in writing. Any grievance not carried to the next step by the Employee within the prescribed time limit shall be deemed resolved upon the basis of the previous decision. H. Probation 1. Probationary Period Newly hired employees shall serve a twelve (12) month probationary period. The probationary period for promoted employees shall be six (6) months. Newly hired employees shall become eligible for their first step increase after twelve (12) months. All other City rules regarding step increases shall remain unchanged. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-35 29 2. Failure of Probation (a) New Probation An employee on new probation may be released at the sole discretion of the City at any time without right of appeal or hearing, except as provided in (c), below. (b) Promotional Probation An employee on promotional probation may be failed at any time without right of appeal or hearing, except as provided in (c), below, and except that failing an employee on promotional probation must not be arbitrary, capricious or unreasonable. An employee who fails promotional probation shall receive a performance evaluation stating the reason for failure of promotional probation. When an employee fails his or her promotional probation, the employee shall have the right to return to his or her former class provided the employee was not in the previous class for the purpose of training for a promotion to a higher class. When an employee is returned to his or her former class, the employee shall serve the remainder of any uncompleted probationary period in the former class. If the employee's former class has been deleted or abolished, the employee shall have the right to return to a class in his or her former occupational series closest to, but no higher than, the salary range of the class which the employee occupied immediately prior to promotion and shall serve the remainder of any probationary period not completed in the former class. (c) Probationary Release An employee who alleges that his or her probationary release was based on discrimination by the City, may submit a grievance within ten (10) days after receipt of the Notice of Failure of Probation. 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). NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-36 30 J. Uniforms and Safety Equipment For assigned Park Patrol staff, uniforms shall be worn at all times during regular business hours. Park Patrol shall be provided with City designated shirts, shorts, pants, boots, jacket, and hat annually. Additional equipment or supplies may be issued to employees by the Department as deemed appropriate. If the provided winter jacket or work boots are lost, the employee shall replace the item with one from an authorized vendor. Work boots shall provide toe protection and meet Department safety standards. The Department Head or designee may approve exceptions to wearing uniforms. The City will continue its practice of directly paying for dry cleaning for individuals in the Park Patrol classification. 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 Deoosit All employees shall participate in the payroll direct deposit system. N. Deferred Compensation The City agrees to, through a joint City -Employee Committee, explore the possible addition of additional deferred compensation providers during the term of this agreement. O. 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 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6-37 31 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 NBCEA, 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. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 MN 32 Executed this day of , 2016: FOR THE NEWPORT BEACH CITY EMPLOYEES ASSOCIATION: z Y: � Teresa Craig, President FOR THE CITY OF NEWPORT BEACH Diane B. Dixon, Mayor ATTEST: go Leilani Brown, City Clerk OVED AS TO FORM: Aaron Harp, City Attorney 1 Li I V NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2095-2098 6-39 Newport Beach City Employees Association Represented Classifications and Pay Rates 2.65/ Wage Increase Effective January 1, 2016 Hourly Monthly Represented Classification Min Max Min Max Assistant, Administrative $27.13 $38.12 $4,703 $6,608 Assistant, Department $21.77 $30.61 $3,774 $5,306 Assistant, Office $18.61 $26.20 $3,226 $4,541 Building Dept Specialist $26.38 $37.15 $4,573 $6,439 Buyer $27.19 $38.24 $4,713 $6,628 Cultural Arts Coordinator $26.78 $37.67 $4,642 $6,530 Fiscal Clerk $19.63 $27.64 $3,402 $4,792 Fiscal Clerk, Senior $22.85 $32.15 $3,961 $5,573 Fiscal Specialist $26.47 $37.26 $4,589 $6,458 Inventory Analyst $23.29 $32.80 $4,037 $5,685 Librarian 1 $26.78 $37.67 $4,642 $6,530 Librarian 11 $29.43 $41.45 $5,101 $7,185 Librarian 111 $32.40 $45.58 $5,615 $7,900 Library Assistant $22.78 $32.04 $3,948 $5,553 Library Clerk 1 $17.75 $24.95 $3,076 $4,325 Library Clerk 11 $19.63 $27.64 $3,402 $4,792 Library Clerk, Senior $22.78 $32.04 $3,948 $5,553 License Supervisor $29.68 $41.77 $5,144 $7,240 Mail Processing Clerk, Sr $20.61 $29.01 $3,573 $5,028 Marketing Specialist $27.13 $38.13 $4,703 $6,610 Park Patrol Officer $19.34 $27.21 $3,352 $4,717 Park Patrol Officer, Lead $21.70 $30.54 $3,761 $5,293 Records Specialist $27.13 $38.12 $4,703 $6,608 Recreation Coord, Asst $20.61 $29.01 $3,573 $5,028 Recreation Coordinator $25.09 $35.30 $4,349 $6,119 Recreation Supervisor $27.66 $38.95 $4,795 $6,751 33 • �1 Newport Beach City Employees Association Represented Classifications and Pay Rates 2.65/ Wage Increase Effective January 1, 2017 Hourlv Monthly Represented Classification Min Max Min Max Assistant, Administrative $27.85 $39.13 $4,827 $6,783 Assistant, Department $22.35 $31.42 $3,873 $5,446 Assitant, Office $19.10 $26.89 $3,311 $4,662 Building Dept Specialist $27.08 $38.13 $4,694 $6,610 Buyer $27.91 $39.25 $4,838 $6,804 Cultural Arts Coordinator $27.49 $38.67 $4,765 $6,702 Fiscal Clerk $20.15 $28.37 $3,493 $4,918 Fiscal Clerk, Senior $23.46 $33.00 $4,066 $5,720 Fiscal Specialist $27.17 $38.25 $4,710 $6,629 Inventory Analyst $23.91 $33.67 $4,144 $5,836 Librarian 1 $27.49 $38.67 $4,765 $6,702 Librarian 11 $30.21 $42.55 $5,236 $7,375 Librarian 111 $33.26 $46.79 $5,765 $8,110 Library Assistant $23.38 $32.89 $4,053 $5,701 Library Clerk 1 $18.22 $25.61 $3,158 $4,439 Library Clerk 11 $20.15 $28.37 $3,493 $4,918 Library Clerk, Senior $23.38 $32.89 $4,053 $5,701 License Supervisor $30.47 $42.88 $5,281 $7,432 Mail Processing Clerk, Sr $21.16 $29.78 $3,667 $5,162 Marketing Specialist $27.85 $39.14 $4,827 $6,784 Park Patrol Officer $19.85 $27.93 $3,441 $4,841 Park Patrol Officer, Lead $22.28 $31.35 $3,861 $5,434 Records Specialist $27.85 $39.13 $4,827 $6,783 Recreation Coord, Asst $21.16 $29.78 $3,667 $5,162 Recreation Coordinator $25.75 $36.24 $4,464 $6,281 Recreation Supervisor $28.39 $39.98 $4,921 $6,930 34 6-41 Newport Beach City Employees Association Represented Classifications and Pay Rates 2.65/ Wage Increase Effective January 1, 2018 Hourly Monthly Represented Classification Min Max Min Max Assistant, Administrative $28.59 $40.17 $4,955 $6,962 Assistant, Department $22.94 $32.25 $3,977 $5,590 Assitant, Office $19.61 $27.60 $3,398 $4,784 Building Dept Specialist $27.80 $39.14 $4,818 $6,784 Buyer $28.65 $40.29 $4,966 $6,984 Cultural Arts Coordinator $28.22 $39.69 $4,891 $6,880 Fiscal Clerk $20.68 $29.12 $3,585 $5,048 Fiscal Clerk, Senior $24.08 $33.87 $4,174 $5,872 Fiscal Specialist $27.89 $39.26 $4,834 $6,804 Inventory Analyst $24.54 $34.56 $4,254 $5,991 Librarian 1 $28.22 $39.69 $4,891 $6,880 Librarian 11 $31.01 $43.68 $5,375 $7,571 Librarian 111 $34.14 $48.03 $5,918 $8,325 Library Assistant $24.00 $33.76 $4,160 $5,852 Library Clerk 1 $18.70 $26.29 $3,242 $4,557 Library Clerk 11 $20.68 $29.12 $3,585 $5,048 Library Clerk, Senior $24.00 $33.76 $4,160 $5,852 License Supervisor $31.28 $44.02 $5,421 $7,629 Mail Processing Clerk, Sr $21.72 $30.57 $3,765 $5,299 Marketing Specialist $28.59 $40.18 $4,955 $6,964 Park Patrol Officer $20.38 $28.67 $3,532 $4,969 Park Patrol Officer, Lead $22.87 $32.18 $3,964 $5,578 Records Specialist $28.59 $40.17 $4,955 $6,962 Recreation Coord, Asst $21.72 $30.57 $3,765 $5,299 Recreation Coordinator $26.43 $37.20 $4,582 $6,448 Recreation Supervisor $29.14 $41.04 $5,051 $7,114 35 6-42 City Employees Association Approved Certificates Certificate* Monthly Amount Certified Revenue Officer $85 Microsoft Certified Professional Certificate $45 Public Notary** $45 Forklift Training Certificate $45 * Only those unit members receiving the certificate pay at time of the 2012-15 MOU were eligible for the benefit. ** Added in 2015-18 MOU and only available to NBCEA members in Administrative supports positions and must be used for City business 36 6-43 ATTACHMENT B RESOLUTION NO. 2016-4 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, 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," pursuant to the authority contained in the Meyers-Milias-Brown Act, Government Code §3500; and WHEREAS, the City of Newport Beach supports effective communication and collaborative working relationships with its employee associations to promote improved relations while balancing good management practices; 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, 2012, through June 30, 2015; 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 reached a Tentative Agreement on wages, benefits and other terms and conditions of employment; 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 a successor Memorandum of Understanding for the period of July 1, 2015, through December 31, 2018. NOW, THEREFORE, the City Council of the City of Newport Beach hereby resolves as follows: Section 1: The recitals provided above are true and correct and are incorporated into the operative part of this resolution. Section 2: Wages, hours, fringe benefits and other terms and conditions of employment of employees represented by the Newport Beach Professional and Technical Employees Association shall be provided in accordance with the provisions of the attached Memorandum of Understanding (Exhibit B). Section 3: The term of the Memorandum of Understanding shall be for 42 months, commencing retroactively to July 1, 2015, and remaining in full force and effect through December 31, 2018. Section 4: The City's Salary Schedule shall be modified so as to be consistent with this Resolution. W Resolution No. 2016-4 Page 2of2 Section 5: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared invalid or unconstitutional. Section 6: The City Council finds the adoption of this resolution 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 no potential for resulting in physical change to the environment, directly or indirectly. Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this day of , 2016. Diane B. Dixon Mayor ATTEST: Leilani I. Brown City Clerk 6-45 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: :RWA LTJ:11 � The Newport Beach Professional and Technical Employees Association ("NBPTEA"), a recognized employee organization, affiliated with Laborers' International Union of North America, Local 777 (LIUNA), 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 a three and one-half year period, from July 1, 2015 through December 31, 2018. 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. 2 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, 2015. This MOU shall remain in full force and effect until December 31, 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. 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 an annual maximum of 150 hours paid release time, 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. 4. Each January the City will examine the number of Release Time hours the Association used the preceding year. If the Association used in excess of 75% of the hours normally granted (150), the Association will be granted an additional 30 hours for that year. D. Scope 1. All present written rules and current established practices and employees' rights, privileges and benefits that are within the scope of representation NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-47 3 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. 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 (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 With the exception of a separate MOU covering retirement issues, this MOU contains all of the covenants, stipulations, and provisions agreed NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 • 0: 4 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. As provided in the Employer -Employee Relations Resolution No. 2001-50, the City shall determine the manner in which City services are to be provided, including whether the City should provide services directly or contract out work, including work that is currently being performed by Association members. In the event the City introduces a plan to outsource services currently being performed by Association members to achieve greater efficiency and/or cost savings, and upon request by the Association, the City shall meet and confer with Association representatives to discuss the impacts of the City's decision to contract out work. The City shall retain sole authority to decide whether or not to contract out work, including work that is currently being performed by Association members. This provision shall not limit the City's authority to enter into such an agreement for any City services. F. Modifications Any agreement, understanding, 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. The parties have determined certain contract provisions may be outdated or inconsistent with policy, charter, or Federal, State or local law. Effective during the term of the MOU City and Association representatives will review the contract document with the intent of proposing simplified and appropriate language, content and formatting. No changes to this MOU shall be effective unless approved by City Council. G. Employee Data and Access In January and July of each year, the NBPTEA will be provided 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. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 IMM SECTION 2. —Compensation A. Salary Base salary increases for all NBPTEA represented classifications shall be as follows, and as specified in Exhibit A: Effective the pay period that includes January 1, 2016, base salaries will be increased by 2.65%. Effective the pay period that includes January 1, 2017, base salaries will be increased by 2.65%. Effective the pay period that includes January 1, 2018, base salaries will be increased by 2.65%. B. Normal Overtime 1. Definitions (a) Miscellaneous Employee - An employee designated as a Miscellaneous member of the Public Employees Retirement System (PERS). (b) Overtime - Normal overtime is defined as any scheduled hours worked in excess of the basic work week. For the purposes of this section, the basic work week is 40 hours, or as determined by the Department Director and approved by the City Manager which occurs between a fixed and regularly recurring period of 168 hours - 7 consecutive 24 hour periods - beginning at 0001 on Saturday and ending at midnight the following Friday. (c) Hours Worked - Hours worked are defined as hours which employees are required to be performing their regular duties or other duties assigned by the City. (d) Incidental Overtime - Incidental overtime is any extension of the basic work shift of less than 1/10 of an hour that is non - recurrent. 2. Compensation Overtime for all non-exempt employees shall be paid at one -and - one -half (1-1/2) times the employee's regular rate of pay. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-50 2 Reporting of overtime on payroll forms will be as prescribed by the Finance Director. Incidental overtime is not compensable. 3. Overtime Pav Calculations Durina Week Includina Holidav(s For the purpose of calculating overtime, holidays occurring during the regular work week will count as time worked. The floating holiday is excluded from this provision. C. Call -Back Duty 1. Defined Call back duty requires the employee to respond to a request to return to his/her work station after the normal work shift has been completed and the employee has left his/her normal work station. Those periods of overtime which had been scheduled by the Department Director prior to the end of the normal work shift are not considered call-back duty. 2. Compensation All personnel eligible for overtime pay shall be guaranteed two (2) hours pay, or pay for one -and -one-half (1-1/2) times the number of hours worked, whichever is greater. Reporting of overtime on payroll forms will be prescribed by the Administrative Services Director. 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 (1 1/2) 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. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-51 VA E. Niaht Shift Differential The City agrees to pay $1.00 per hour night shift differential for Employees working a regularly scheduled work shift of which four or more hours are worked between the hours of 5 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 Enqineer 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 Pay The City and Association established a certificate pay program for non - required job related certificates beneficial to City operations. Effective January 1, 2013, the Certificate Pay program was modified to eliminate "inactive" certificates and "sunset" certain active certificates. Employees currently receiving a "sunset" certificate are considered grandfathered under the program, but no further employees will be eligible. The complete list of eligible certificates and the corresponding benefit is listed in Exhibit B. All other procedures associated with Certificate Pay remain in effect. H. Court Time Employees who are required to appear in Court during their off-duty hours in connection with City business shall receive overtime compensation for the number of hours they spend in court, with a minimum of two (2) hours of such compensation. 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. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-52 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 Community Development 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. This assignment pay will cease once the employee is no longer performing the duties of the lead person at the Plan Check Counter. L. Weekend Standby Information Technology staff assigned Standby for the purpose of responding to calls for service during the weekend shall be paid $3 per hour for each hour of assigned duty. Weekend will be defined as the 62 hours beginning on Friday at 5:00 p.m. and concluding Monday at 7:00 a.m. for a total of 62 hours per weekend. Standby compensation is not considered PERSable pay. This provision is not intended to be a guarantee of hours and the City shall retain the right to determine when Standby duty shall be assigned. M. One -Time Payment Following City Council adoption of this 2015-18 MOU, or as soon thereafter as reasonably practicable, currently employed unit members will NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-53 E receive a one-time payment of $2,400. The parties agree that this one- time payment does not meet the criteria under California Code of Regulations 571(b) as reportable compensation for retirement purposes. SECTION 3 - Leaves A. Flex Leave Effective the pay period including January 1, 2013, all unit members shall accrue Flex leave at the following rates : Members shall accrue three (3) months of Flex leave upon completion of three (3) months of continuous employment with the City of Newport Beach, provided however, this amount shall be reduced by any Flex leave time advanced during the first three (3) months of employment. At the completion of three months of employment, three (3) months of accrued Flex leave will be placed in the employee's account. Employees who are assigned to an 88 hour schedule per pay period will accrue time in proportionate amounts. 1. Limit on Accumulation Employees may accrue flex leave up to an accumulated total equal to seventy eight (78) times the member's bi-weekly accrual rate. Any flex leave earned in excess of this level will be paid on an hour for hour basis in cash (spill over pay) at the employee's hourly rate of pay. Members hired prior to July 1, 1996 shall be paid for earned flex leave in excess of the maximum permitted accrual at the member's hourly rate of pay provided that they have utilized at least eighty (80) hours of flex leave the previous calendar year. Employees accruing at the 16 years of continuous service level or above shall be required to use 120 hours of flex leave the previous calendar year to receive such excess pay. Employees who have not utilized the required amount of leave the prior calendar year shall not be eligible to accrue time above the maximum accrual limit. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-54 Maximum Years of Continuous Hrs Accrued per Annual Allowable Service Pay Period hours Balance (hours) 1 but less than 5 6.00 156.00 468.00 5 but less than 9 6.61 171.86 515.58 9 but less than 12 7.23 187.98 563.94 12 but less than 16 8.15 211.90 635.70 16 but less than 20 8.77 228.02 684.06 20 but less than 25 9.38 243.88 731.64 25 and over 10.00 260.00 780.00 Members shall accrue three (3) months of Flex leave upon completion of three (3) months of continuous employment with the City of Newport Beach, provided however, this amount shall be reduced by any Flex leave time advanced during the first three (3) months of employment. At the completion of three months of employment, three (3) months of accrued Flex leave will be placed in the employee's account. Employees who are assigned to an 88 hour schedule per pay period will accrue time in proportionate amounts. 1. Limit on Accumulation Employees may accrue flex leave up to an accumulated total equal to seventy eight (78) times the member's bi-weekly accrual rate. Any flex leave earned in excess of this level will be paid on an hour for hour basis in cash (spill over pay) at the employee's hourly rate of pay. Members hired prior to July 1, 1996 shall be paid for earned flex leave in excess of the maximum permitted accrual at the member's hourly rate of pay provided that they have utilized at least eighty (80) hours of flex leave the previous calendar year. Employees accruing at the 16 years of continuous service level or above shall be required to use 120 hours of flex leave the previous calendar year to receive such excess pay. Employees who have not utilized the required amount of leave the prior calendar year shall not be eligible to accrue time above the maximum accrual limit. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-54 10 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 Due to the conversion of employees to the Flex leave program, former Vacation leave provision "B" is hereby removed and shall be referenced exclusively in prior MOUs. B. 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. 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 Accrual 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 NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-55 L 11 2. Method of Use (a) General Sick leave may not be taken in excess of that actually accrued. (b) Approval Sick leave may be granted only at the direction of or with the approval of the Department Director and only for the purposes defined in Section 11.2 of the Employee Policy Manual. 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 unit members. For each designated holiday, except the Floating Holiday, employees shall receive an equivalent number of hours of paid leave or equivalent pay. Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas Day New Year's Eve New Year's Day Washington's Birthday Memorial Day Martin Luther King Day Floating Holiday July 4 1 st Monday in September November 11 4th Thurs. in November Last 1/2 of working day December 25 Last 1/2 of working day January 1 3rd Monday in February Last Monday in May 3rd Monday in January July 1 St - 1 day NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-56 12 Holidays will be paid based on the employee's regular work day schedule. For example, if an employee is on a 9/80 schedule and the holiday is observed on a day that the employee is regularly scheduled to work 9 hours, the employee is entitled to receive 9 hours of holiday pay. However, if an employee is on a 9/80 schedule and the holiday is observed on a day that the employee is regularly scheduled to work 8 hours, the employee is entitled to receive 8 hours of holiday pay. Employees will receive 8 hours of holiday pay annually for the Floating Holiday. 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. 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. leave that has been reviewed and approved by the Department Director). 3. 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 Bereavement leave shall be defined as "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." Unit members shall be entitled to five (5) working days of bereavement leave per calendar year per incident (terminal illness followed by death is considered one incident). Bereavement leave shall be administered in accordance with the provisions of the Employee Policy Manual. Leave hours need not be used consecutively, but should occur in proximate time to the occurrence. For the purposes of this section, immediate family shall mean an employee's father, mother, stepfather, stepmother, brother, sister, spouse/domestic partner, child, stepchild, grandparents and the employee's spouse's father, mother, brother, sister, child and grandparents. The provisions of this Section shall not diminish or reduce any rights a member may have pursuant to applicable provisions of State or Federal law. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-57 13 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. Hours sold back will be subject to the Retiree Health Savings Plan Part C contributions, per Section 4 (F), Retiree Medical. For the term of this MOU the Association has elected Part C contributions for Flex at 0%. SECTION 4. — Fringe Benefits A. Insurance 1. Benefits Information Committee City has established a Benefits Information Committee (BIC) composed of one representative from each employee association group and up to three City representatives. The Benefits Information Committee has been established to allow the City to present data regarding carrier and coverage options, the cost of those options, appropriate coverage levels and other health 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. In addition to the contribution amounts listed below, the City shall contribute the minimum CalPERS participating employer's contribution towards medical insurance for employees enrolled in a CalPERS medical plan, per Government Code Section 22892. 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. 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. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 • 14 The parties recognize that from July 1, 2015 through December 31, 2015 the City has contributed $1,549 per month (plus the PERS minimum contribution) toward the Cafeteria Plan. Effective the first pay issue in January 2016, the City's contribution towards the Cafeteria Plan will increase by $76 per month to $1,625 (plus the minimum CaIPERS participating employer's contribution). Effective the first pay issue in January 2017, the City's contribution towards the Cafeteria Plan will increase by $100 per month to $1,725 (plus the minimum CaIPERS participating employer's contribution). NBPTEA members who do not enroll in any medical plan offered by the City must provide evidence of group medical insurance coverage, and execute an opt -out agreement releasing the City from any responsibility or liability to provide medical insurance coverage on an annual basis. Effective January 1, 2016, or as soon thereafter is practicable following MDU adoption, the maximum cafeteria allowance provided to employees who execute an opt -out agreement is $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 Benefits Information Committee. 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. 5. Healthcare Reform The parties recognize that certain State and Federal laws, programs and regulations, including the Affordable Care Act, may impact future medical plan offerings. Effective July 2017, either party may request to reopen Section 4,A,(2) regarding medical insurance for the purpose of discussing alternative approaches and proposals to providing healthcare coverage. In addition, should State or Federal laws concerning taxation of healthcare benefits change, the parties agree to meet and discuss the impact of such change. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-59 15 Additional Insurance Proarams 1. IRS Section 125 Flexible Spendinq 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 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. 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. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 1000181 16 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. Retirement Formula The City contracts with California Public Employees Retirement System (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: Tier 1: For employees hired by the City on or before November 23, 2012, the retirement formula shall be the 2.5% @ 55 calculated on the basis of the best/single highest year. Tier 2: For employees first hired by the City between November 24 and December 31, 2012, or hired on or after January 1, 2013 and are current members of the retirement system, as defined in Public Employees Pension Reform Act, the retirement formula shall be 2% @ 60 calculated on the average 36 highest month's salary. Tier 3: For employees first hired by the City on or after January 1, 2013, and who do not meet the Tier 2 criteria, the retirement formula shall be 2% @ 62 calculated on the average 36 highest month's salary. 2. Employee Contributions The Association has agreed to share in the rising cost of pension obligations. Under the terms of this MOU, unit members will contribute additional amounts toward the PERS retirement benefit, to the extent permissible by law. Should any provision be deemed invalid, the City and Association agree to meet for the purpose of renegotiating employee retirement contributions. At the conclusion of this contract employees in each Tier will contribute 13% of pensionable pay toward the retirement benefit. 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 "PERSable" compensation, and will be made on a pre-tax basis through payroll deduction, to the extent allowable by the government tax code. It is NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-61 `VA recognized that these payments will not be reported to PERS as contributions toward either the Member or Employer rate, as provided under GC Section 20516(f). Under a separate agreement, and ratified via a contract amendment with CalPERS in 2008, the modified normal member contribution for Tier 1 employees is 10.42% of pensionable compensation. The parties recognize that from July 1, 2015 through December 31, 2015, NBPTEA members have been paying, in addition to the member contribution, a portion of the Employer rate under a 20516(f) cost sharing agreement. The normal Member rate and the cost sharing rate vary by Tier. However, the combined contribution rate for each Tier equals 12.35% of pensionable compensation, as provided in a prior agreement. Tier 1 and Tier 2 Employees: Effective the pay period including January 1, 2016, Tier 1 and Tier 2 employees shall contribute an additional .35% of pensionable pay toward retirement costs pursuant to Government Code Section 20516 (f), for a total of 12.7001o. Effective the pay period including January 1, 2017, Tier 1 and Tier 2 employees shall contribute an additional .30% of pensionable pay toward retirement costs for a total employee contribution of 13%. Tier 3 Employees: The minimum statutory employee contribution for employees in Tier 3 is subject to the provisions of the Public Employees Pension Reform Act of 2012 (PEPRA) and equals 50% of the "total normal cost". Effective the pay period including January 1, 2016, in addition to the statutorily required 50% contribution of total normal costs, Tier 3 employees shall make an additional contribution of base pay toward retirement pursuant to Government Code Section 20516(f), for a total employee contribution of 12.7%. Effective the pay period including January 1, 2017, in addition to the statutorily required 50% contribution of total normal costs, Tier 3 employees shall make an additional contribution of base pay toward retirement pursuant to Government Code Section 20516(f), for a total employee contribution of 13%. In the event pension reform is modified by State or Federal legislation, resulting in changes to previously negotiated terms, the parties agree to meet and confer to discuss subsequent changes to the contract. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-62 18 The City contracts with PERS for the 4t" Level 1959 Survivors Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military Service Credit, 2% Cost of Living Adjustment and the pre -retirement option settlement 2 death benefit (Section 21548). 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 LIUNA 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: NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-63 19 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) Retiree Health Savings (RHS) Plan (formerly the Medical Expense Reimbursement Program, i.e.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): 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): NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 20 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 RHS, on a pre-tax basis. The remaining 50% would be paid in cash as taxable income. Individual employees would not have the option to deviate from this breakout. The Association has decided to participate in Part C contributions at the level of zero percent (0%) Flex and zero percent (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 and Compensatory Time are 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 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 Manual contains a schedule, which specifies the amount of sick leave that can be "cashed out," based on time of service. The manual also caps the number of hours that can be "cashed out" at 800, and specifies that sick leave hours are "cashed out" on a 2 for 1 basis (800 hours of sick leave are converted to 400 hours for cash purposes). Sick leave participation is a separate item from vacation/flex leave participation, and thresholds must be separately identified by the Association. Part A contributions may be included in PERS compensation. Part B and Part C contributions will not be included in PERS compensation. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-65 21 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 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 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 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 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. 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 NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 0=0 22 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 Cateqory 2, the program is the same as for those in Cateqory 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 $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 Cateqory 3, the program is the same as for those in Cateqory 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 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 $100 per month to the plan for the duration of their employment to partially offset part of this expense to the City. The maximum benefit provided by the City after retirement is $4,800 per year, accruing at the rate of $400 per month. There is no cash out option for these funds, and they may not be spent in advance of receipt. Employees in this category will also receive an additional one-time City contribution of $75 per month for every month they contributed to the previous plan prior to January 1, 2006, up to a maximum of 15 years (180 months). This contribution will be made to the 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 $400 City contribution after NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-67 23 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 $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, or recognized professional organizations or agencies 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 coursework, seminars or professional development programs. Effective January 1, 2013, reimbursement will increase by $100, for a maximum annual benefit of $1,500 per fiscal year. Effective January 1, 2016, reimbursement will increase to a maximum annual benefit of $2,000 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 or designee. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 0=0 24 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 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. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 0=0 25 5. "Bumping Rights", "Bumping" or "Bump" shall mean (1) the right of an employee, based upon seniority within a series to bump into a lower ranking classification within the same series, (2) to be followed by, an employee being permitted to bump into a classification within a different series. The latter bumping shall be based upon unit wide seniority and shall be limited to a classification in which the employee previously held regular status. No employee shall have the right to bump into a classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience. PROCEDURE In the event the City Manager determines to reduce the number of employees within a classification, the following procedures are applicable: 1. Temporary and probationary employees within any classification shall, in that order, be laid off before permanent employees. 2. Employees within a classification shall be laid off in inverse order of seniority. 3. An employee subject to layoff in one classification shall have the right to bump a less senior employee in a lower ranking classification within a series. An employee who has bumping rights shall notify the Department Director within three (3) working days after notice of layoff of his/her intention to exercise bumping rights. 4. In the event two or more employees in the same classification are subject to layoff and have the same seniority, the employees shall be laid off following the Department Director's consideration of established performance evaluations. NOTICE Employees subject to lay-off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days' pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any), and accumulated sick leave to the extent permitted by the 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 NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-70 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, to a maximum of ten (10) weeks' severance pay. B. Recruitment and Selection Position vacancy announcements for available City positions shall be distributed in a manner that reasonably assures unit members access to the announcements. In order to select the most qualified individual for vacant positions the City will continue its practice of "banding" candidates into one of the following ratings: Outstanding, Highly Recommended, Recommended, and Not Recommended, during the testing process. Department Directors review qualified candidates in band order, beginning with the top band and are permitted to hire any eligible candidate from the list (minimum rating of Recommended). 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. C. 9/80 Scheduling Plan The City agrees to maintain flex -scheduling where it is currently operating successfully. In January 2011 the 9/80 flex -schedule was be modified as follows: employees were provided the option of alternating Fridays off only. Employees on a 9/80 schedule with alternating Mondays or any other day off converted to Fridays off beginning in January 2011. To ensure effective coverage, employees on the 9/80 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 NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-71 1 organizational efficiency, deviations from established flex days, if legally permitted, will be considered on a case-by-case basis. D. Labor Manaaement 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. A grievance shall be brought to the attention of the immediate supervisor for discussion within ten (10) days of when the grievance arose. If the Employee is not satisfied with the decision reached through the informal discussion or if extenuating circumstances exist, the Employee shall have the right to file a formal grievance in accordance with Step 2 of this section. 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 employee is not in agreement with the decision rendered in Step 1, an employee shall have the right to present a formal grievance to the Department Director within ten (10) Days after the discussion in Step 1. The right to file a grievance petition shall be waived in the event the Employee fails to file a formal grievance within ten (10) Days after the occurrence of the incident that forms the basis of the grievance. All formal grievances shall be submitted on the form prescribed by the Human Resources Director and no formal grievance shall be accepted until the form is complete. The formal grievance shall contain a clear, concise statement of the grievance, the facts upon which the grievance is based, the rule, regulation or policy the interpretation of which is involved in the NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-72 grievance, and the specific remedy or remedies sought by the grievant. The Department Director should render a written decision within ten (10) Days after receipt of the formal grievance. Step 3: If the formal grievance has not been satisfactorily adjusted in Step 2, it may be appealed to the City Manager within ten (10) Days after the Employee receives the decision. The City Manager may accept or reject the decision of the Department Director and shall render a written decision within ten (10) Days after conducting a grievance hearing. The decision of the City Manager shall be final and conclusive. If mutually agreeable, a meeting may be conducted involving all affected parties at any step in the grievance procedure prior to a decision. The City Manager may delegate uninvolved Department Directors to act on behalf of the City Manager to provide findings and recommendations. The findings and recommendations of the uninvolved Department Directors are advisory only and the City Manager's decision shall be final. Time Limits: Grievances shall be processed from one step to the next within the time limit indicated for each step. Time limits shall be strictly enforced. Any time limits established in this Manual can be waived or extended only by mutual agreement confirmed in writing. Any grievance not carried to the next step by the Employee within the prescribed time limit shall be deemed resolved upon the basis of the previous decision. F. Probation Probationary Period Newly hired employees shall serve a twelve (12) month probationary period. The probationary period for promoted employees shall be six (6) months. Newly hired employees shall become eligible for their first step increase after twelve (12) months. All other City rules regarding step increases shall remain unchanged. 2. Failure of Probation (a) New Probation An employee on new probation may be released at the sole discretion of the City at any time without right of appeal or hearing, except as provided in (c), below. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-73 (b) 9E Promotional Probation An employee on promotional probation may be failed at any time without right of appeal or hearing, except as provided in (c), below, and except that failing an employee on promotional probation must not be arbitrary, capricious or unreasonable. An employee who fails promotional probation shall receive a performance evaluation stating the reason for failure of promotional probation. When an employee fails his or her promotional probation, the employee shall have the right to return to his or her former class provided the employee was not in the previous class for the purpose of training for a promotion to a higher class. When an employee is returned to his or her former class, the employee shall serve the remainder of any uncompleted probationary period in the former class. If the employee's former class has been deleted or abolished, the employee shall have the right to return to a class in his or her former occupational series closest to, but no higher than, the salary range of the class which the employee occupied immediately prior to promotion and shall serve the remainder of any probationary period not completed in the former class. (c) Probationary Release An employee who alleges that his or her probationary release was based on discrimination by the City, may submit a grievance within ten (10) days after receipt of the Notice of Failure of Probation. 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 NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-74 30 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. Uniforms For assigned Community Development and Public Works Department staff whose regular daily duties involve field work outside of the office, uniforms shall be worn at all times during regular business hours. Field staff shall be provided with City designated collared shirts (polo or button down as determined by Department) annually and one City designated winter jacket; replacement on an as -needed basis. In addition, inspections staff (Building and Public Works) will be provided one pair of work boots annually. If the provided winter jacket or work boots are lost, the employee shall replace them with one meeting Department specifications. Work boots shall provide toe protection and meet Department safety standards for construction sites. The Department Head or designee may approve exceptions to wearing uniforms. K. Separability Should any part of this MOU or any provision herein contained be rendered or declared invalid, by reason of any existing or subsequently enacted Legislation, or by decree of a Court of competent jurisdiction, such invalidation of such part or portion of this MOU shall not invalidate the remaining portion hereto, and same shall remain in full force and effect; provided, however, that should provisions of this MOU relating to any schedule adjustment be declared invalid, City agrees to provide alternative benefits agreeable to NBPTEA, to employees, which will cause such employees to receive the same amount of money as they would have received had such provision not been declared invalid. Signatures are on the next page. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-75 31 Executed this day of , 2016. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION By: ILMLe lkdj - Ryh Stadlman, Secretary/Treasurer CITY OF NEWPORT BEACH LIM Diane B. Dixon, Mayor ATTEST: in Leilani Brown, City Clerk ROVED A TO FORM: Aaron Harp, City Attorney y JU NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2015-2018 6-76 Newport Beach Professional and Technical Employees Association Represented Classifications and Pay Rates Effective January 1, 2016 2.65% wage increase Hourly Monthly Represented Classification Min Max Min Max Accountant $30.24 $42.49 $5,242 $7,364 Accountant, Senior $34.74 $48.88 $6,021 $8,473 Building Inspector, Principal $37.99 $53.45 $6,585 $9,265 Building Inspector 1 $29.83 $41.97 $5,171 $7,275 Building Inspector 11 $32.05 $45.11 $5,555 $7,820 Building Inspector, Senior $34.46 $48.50 $5,973 $8,407 Buyer, Senior $32.09 $45.15 $5,562 $7,825 Code Enforcement Officer 11 $29.11 $41.00 $5,046 $7,106 Code Enforcement Officer, Senior $32.77 $46.10 $5,680 $7,991 Code Enforcement Officer, Trainee $21.09 $29.68 $3,656 $5,144 Code Enforcement Officer 1 $25.30 $35.61 $4,386 $6,172 Code Enforcement Supervisor $37.99 $53.45 $6,585 $9,265 Civil Engineer - Plan Check $41.97 $59.10 $7,275 $10,243 Civil Engineer Senior - Plan Check $46.24 $65.05 $8,016 $11,275 Civil Engineer, Assoc - Plan Check $38.09 $53.63 $6,603 $9,297 Civil Engineer - PW $41.97 $59.10 $7,275 $10,243 Civil Engineer Assoc 5% $40.02 $56.28 $6,936 $9,756 Civil Engineer Jr. + 5% $36.16 $50.89 $6,268 $8,822 Civil Engineer, Associate $38.09 $53.63 $6,603 $9,297 Civil Engineer, Junior $34.46 $48.52 $5,973 $8,411 Civil Engineer, Senior $46.24 $65.05 $8,016 $11,275 Construct.Inspec.Super $40.02 $56.28 $6,937 $9,756 Emp Plans Examiner $40.02 $56.28 $6,937 $9,756 Engineering Technician $26.39 $37.19 $4,574 $6,446 Engineering Technician, Senior $29.11 $41.00 $5,046 $7,106 GIS Analyst $34.18 $48.08 $5,925 $8,334 GIS Technician $27.20 $38.27 $4,715 $6,633 Harbor Resources Supervisor $38.60 $54.26 $6,690 $9,405 Harbor Resources Tech 1 $22.85 $32.15 $3,961 $5,573 Harbor Resources Tech 11 $25.30 $35.62 $4,386 $6,174 Information Systems Coordinator $44.04 $61.95 $7,633 $10,738 IT Apps Analyst $34.18 $48.08 $5,925 $8,334 IT Apps Analyst, Sr. $37.96 $53.39 $6,580 $9,254 IT Apps Supervisor $47.17 $66.37 $8,176 $11,505 IT Operations Supervisor $44.12 $62.02 $7,647 $10,750 IT Specialist 111 $31.71 $44.61 $5,496 $7,733 IT Specialist, Senior $36.57 $51.46 $6,340 $8,919 IT Technician $21.09 $29.68 $3,656 $5,144 Management Assistant $29.87 $42.05 $5,178 $7,288 Permit Counter Supervisor $32.02 $45.06 $5,550 $7,811 Permit Technician 1 $25.17 $35.36 $4,363 $6,130 Permit Technician 11 $29.11 $41.00 $5,046 $7,106 Planner, Assistant $29.11 $41.00 $5,046 $7,106 Planner, Associate $32.09 $45.15 $5,562 $7,825 Planner, Senior $38.60 $54.26 $6,690 $9,405 Planning Technician $26.47 $37.26 $4,589 $6,459 Public Works Inspector 1 $29.83 $41.97 $5,171 $7,275 Public Works Inspector 11 $32.05 $45.11 $5,555 $7,820 Public Works Inspector Senior $34.46 $48.50 $5,973 $8,407 Real Property Administrator $37.99 $53.45 $6,585 $9,265 Res Building Records Insp $29.11 $41.00 $5,046 $7,106 Revenue Auditor $32.46 $45.68 $5,626 $7,918 Traffic Eng Tech, Sr. $31.36 $44.15 $5,436 $7,653 Traffic Engineering Tech $29.87 $42.05 $5,178 $7,288 Urban Forester $32.02 $45.06 $5,550 $7,811 Water Conservation Coord $33.43 $47.07 $5,795 $8,158 32 6-77 Newport Beach Professional and Technical Employees Association Represented Classifications and Pay Rates Effective January 1, 2017 2.65% wage increase Hourlv Monthlv Represented Classification Min Max Min Max Accountant $31.04 $43.61 $5,381 $7,560 Accountant, Senior $35.66 $50.18 $6,181 $8,697 Building Inspector, Principal $39.00 $54.87 $6,760 $9,510 Building Inspector 1 $30.62 $43.09 $5,308 $7,468 Building Inspector 11 $32.90 $46.31 $5,702 $8,027 Building Inspector, Senior $35.37 $49.79 $6,131 $8,630 Buyer, Senior $32.94 $46.34 $5,709 $8,033 Code Enforcement Officer II $29.88 $42.08 $5,180 $7,295 Code Enforcement Officer, Senior $33.64 $47.32 $5,831 $8,202 Code Enforcement Officer, Trainee $21.65 $30.46 $3,753 $5,280 Code Enforcement Officer 1 $25.97 $36.55 $4,502 $6,336 Code Enforcement Supervisor $39.00 $54.87 $6,760 $9,510 Civil Engineer - Plan Check $43.09 $60.66 $7,468 $10,515 Civil Engineer Senior - Plan Check $47.47 $66.77 $8,228 $11,574 Civil Engineer, Assoc - Plan Check $39.10 $55.06 $6,778 $9,543 Civil Engineer - PW $43.09 $60.66 $7,468 $10,515 Civil Engineer Assoc 5% $51.62 $57.77 $8,948 $10,014 Civil Engineer Jr. + 5% $41.08 $52.24 $7,120 $9,055 Civil Engineer, Associate $39.10 $55.06 $6,778 $9,543 Civil Engineer, Junior $35.37 $49.81 $6,131 $8,633 Civil Engineer, Senior $47.47 $66.77 $8,228 $11,574 Construct.Inspec.Super $41.08 $57.77 $7,121 $10,014 Emp Plans Examiner $41.08 $57.77 $7,121 $10,014 Engineering Technician $27.09 $38.18 $4,696 $6,617 Engineering Technician, Senior $29.88 $42.08 $5,180 $7,295 GIS Analyst $35.09 $49.36 $6,082 $8,555 GIS Technician $27.92 $39.28 $4,840 $6,808 Harbor Resources Supervisor $39.62 $55.70 $6,867 $9,654 Harbor Resources Tech 1 $23.46 $33.00 $4,066 $5,720 Harbor Resources Tech 11 $25.97 $36.56 $4,502 $6,338 Information Systems Coordinator $45.20 $63.59 $7,835 $11,022 IT Apps Analyst $35.09 $49.36 $6,082 $8,555 IT Apps Analyst, Sr. $38.97 $54.80 $6,754 $9,499 IT Apps Supervisor $48.42 $68.13 $8,392 $11,810 IT Operations Supervisor $45.29 $63.66 $7,850 $11,035 IT Specialist 111 $32.55 $45.79 $5,642 $7,938 IT Specialist, Senior $37.54 $52.82 $6,508 $9,156 IT Technician $21.65 $30.46 $3,753 $5,280 Management Assistant $30.66 $43.16 $5,315 $7,481 Permit Counter Supervisor $32.86 $46.26 $5,697 $8,018 Permit Technician 1 $25.84 $36.30 $4,478 $6,292 Permit Technician 11 $29.88 $42.08 $5,180 $7,295 Planner, Assistant $29.88 $42.08 $5,180 $7,295 Planner, Associate $32.94 $46.34 $5,709 $8,033 Planner, Senior $39.62 $55.70 $6,867 $9,654 Planning Technician $27.17 $38.25 $4,710 $6,630 Public Works Inspector 1 $30.62 $43.09 $5,308 $7,468 Public Works Inspector 11 $32.90 $46.31 $5,702 $8,027 Public Works Inspector Senior $35.37 $49.79 $6,131 $8,630 Real Property Administrator $39.00 $54.87 $6,760 $9,510 Res Building Records Insp $29.88 $42.08 $5,180 $7,295 Revenue Auditor $33.32 $46.89 $5,775 $8,128 Traffic Eng Tech, Sr. $32.19 $45.32 $5,580 $7,855 Traffic Engineering Tech $30.66 $43.16 $5,315 $7,481 Urban Forester $32.86 $46.26 $5,697 $8,018 Water Conservation Coord $34.32 $48.31 $5,949 $8,374 33 MOM Newport Beach Professional and Technical Employees Association Represented Classifications and Pay Rates Effective January 1, 2018 2.65% wage increase Hourly Monthly Represented Classification Min Max Min Max Accountant $31.86 $44.77 $5,523 $7,760 Accountant, Senior $36.60 $51.51 $6,344 $8,928 Building Inspector, Principal $40.03 $56.32 $6,939 $9,762 Building Inspector 1 $31.43 $44.23 $5,448 $7,666 Building Inspector II $33.77 $47.54 $5,853 $8,240 Building Inspector, Senior $36.31 $51.11 $6,294 $8,859 Buyer, Senior $33.81 $47.57 $5,861 $8,245 Code Enforcement Officer 11 $30.67 $43.20 $5,317 $7,488 Code Enforcement Officer, Senior $34.53 $48.57 $5,985 $8,419 Code Enforcement Officer, Trainee $22.23 $31.27 $3,853 $5,420 Code Enforcement Officer 1 $26.66 $37.52 $4,621 $6,504 Code Enforcement Supervisor $40.03 $56.32 $6,939 $9,762 Civil Engineer - Plan Check $44.23 $62.27 $7,666 $10,793 Civil Engineer Senior - Plan Check $48.73 $68.54 $8,446 $11,881 Civil Engineer, Assoc - Plan Check $40.14 $56.51 $6,957 $9,796 Civil Engineer - PW $44.23 $62.27 $7,666 $10,793 Civil Engineer Assoc 5% $42.17 $59.31 $7,309 $10,280 Civil Engineer Jr. + 5% $38.11 $53.63 $6,605 $9,295 Civil Engineer, Associate $40.14 $56.51 $6,957 $9,796 Civil Engineer, Junior $36.31 $51.13 $6,294 $8,862 Civil Engineer, Senior $48.73 $68.54 $8,446 $11,881 Construct.Inspec.Super $42.17 $59.31 $7,310 $10,280 Emp Plans Examiner $42.17 $59.31 $7,310 $10,280 Engineering Technician $27.81 $39.19 $4,820 $6,792 Engineering Technician, Senior $30.67 $43.20 $5,317 $7,488 GIS Analyst $36.02 $50.66 $6,243 $8,782 GIS Technician $28.66 $40.32 $4,968 $6,989 Harbor Resources Supervisor $40.67 $57.17 $7,049 $9,910 Harbor Resources Tech 1 $24.08 $33.88 $4,173 $5,872 Harbor Resources Tech II $26.66 $37.53 $4,621 $6,506 Information Systems Coordinator $46.40 $65.28 $8,043 $11,315 IT Apps Analyst $36.02 $50.66 $6,243 $8,782 IT Apps Analyst, Sr. $40.00 $56.26 $6,933 $9,751 IT Apps Supervisor $49.70 $69.94 $8,615 $12,123 IT Operations Supervisor $46.49 $65.35 $8,058 $11,328 IT Specialist 111 $33.41 $47.01 $5,791 $8,148 IT Specialist, Senior $38.54 $54.22 $6,680 $9,398 IT Technician $22.23 $31.27 $3,853 $5,420 Management Assistant $31.48 $44.30 $5,456 $7,679 Permit Counter Supervisor $33.74 $47.48 $5,848 $8,230 Permit Technician 1 $26.52 $37.26 $4,597 $6,459 Permit Technician 11 $30.67 $43.20 $5,317 $7,488 Planner, Assistant $30.67 $43.20 $5,317 $7,488 Planner, Associate $33.81 $47.57 $5,861 $8,245 Planner, Senior $40.67 $57.17 $7,049 $9,910 Planning Technician $27.90 $39.26 $4,835 $6,806 Public Works Inspector 1 $31.43 $44.23 $5,448 $7,666 Public Works Inspector 11 $33.77 $47.54 $5,853 $8,240 Public Works Inspector Senior $36.31 $51.11 $6,294 $8,859 Real Property Administrator $40.03 $56.32 $6,939 $9,762 Res Building Records Insp $30.67 $43.20 $5,317 $7,488 Revenue Auditor $34.20 $48.13 $5,928 $8,343 Traffic Eng Tech, Sr. $33.04 $46.52 $5,728 $8,064 Traffic Engineering Tech $31.48 $44.30 $5,456 $7,679 Urban Forester $33.74 $47.48 $5,848 $8,230 Water Conservation Coord $35.23 $49.59 $6,106 $8,596 34 6-79 Approved Certifications - Professional and Technical Employees Association Certificate Eligible Positions Monthly Amt City Manager's Office -- Information Technology (IT) Geographic Information System Professional GIS Analyst $75 (GISP) GIS Technician $75 CCENT (Cisco Certified Entry Networking IT Operations Supervisor $85 Technician) IT Specialist, Sr. IT Specialist 1/11/III Info Sys Coordinator CCNA certification (Cisco Certified Network IT Operations Supervisor $85 Associate) IT Specialist, Sr. IT Specialist 1/11/111 Info Sys Coordinator Microsoft Certified Technology Specialist IT Operations Supervisor $75 (MCTS) IT Specialist, Sr. IT Specialist 1/11/111 Info Sys Coordinator Microsoft Certified Systems Administrators IT Operations Supervisor $85 (MCSAs) IT Specialist, Sr. IT Specialist 1/11/111 Info Sys Coordinator Microsoft Certified Systems Engineers (MCSEs) IT Operations Supervisor $75 IT Specialist, Sr. IT Specialist 1/11/111 Info Sys Coordinator Microsoft Certified Professional (MCP)** IT Operations Supervisor $75 IT Specialist, Sr. IT Specialist 1/11/111 Info Sys Coordinator CompTIA A+ IT Operations Supervisor $75 IT Specialist, Sr. IT Specialist 1/11/111 Info Sys Coordinator CompTIA Network+ IT Operations Supervisor $75 IT Specialist, Sr. IT Specialist 1/11/111 Info Sys Coordinator Virtual Infrastructure Professional (VIP) or IT Operations Supervisor $75 VMWare Certified Professional (VCP) IT Specialist, Sr., IT Specialist 1/11/111 Info Sys Coordinator Land Surveyor in Training (LSIT)** or GIS Analyst $75 Fundamental of Surveying (FS)** Municipal Operations Department Certified Arborist Urban Forester $75 Certified Comm'I Pesticide Applicator Urban Forester $65 Public Works & Community Development Traffic Engineer Junior Engineer $85 Associate Civil Engineer Associate Engineer Senior Engineer (rev 2/29/08) 35 1/12/16 6-80 Approved Certifications - Professional and Technical Employees Association Public Works & Community Development Prestressed Concrete Special Inspector** PW Inspector I & 11, Sr PW Inspector, Construction $75 Inspection Supv., Principal Building Inspector, Senior Building Inspector, Building Inspector Structural Masonry Special Inspector** PW Inspector I & 11, Sr PW Inspector, Construction $75 Inspection Supv., Principal Building Inspector, Senior Building Inspector, Building Inspector Reinforced Concrete Special Inspector** PW Inspector I & 11, Sr PW Inspector, Construction $75 Inspection Supv., Principal Building Inspector, Senior Building Inspector, Building Inspector Community Development Department & Public Works (Code & Water Quality Enforcement) Certified Code Enforcement Officer (CACEO) CWQ Enfrc Officer, Sr CWQ Enfrc Off cr $65 Certificate in Investigative Interview and CWQ Enfrc Officer, Sr CWQ Enfrc Off cr $45 Interrog Techniques BATT ** Community Development Department (Planning) American Institute of Certified Planners Planner, Sr. $85 (AICP)** Planner, Associate Planner, Assistant Planning Technician AICP Exam Fee Planner, Sr. One time payment Planner, Associate for Exam Fee up to Planner, Assistant $495; refundable if Planning Technician APA application is rejected Community Development Department & Public Works ICC Permit Technician *** All represented Prof Tech Positions from the Building $70 ICC or California Residential Building Inspector Division, Code Enforcement, and Public Works $75 Department, not specifically covered in MOU ICC or California Residential Electrical Inspector $75 ICC or California Residential Plumbing Inspector $75 ICC or California Residential Mechanical $75 Inspector ICC or California Commercial Building Inspector $75 ICC or California Commercial Electrical $75 ICC or California Commercial Plumbing $75 ICC or California Commercial Mechanical $75 Inspector California Access specialist Casp $100 ICC California Building Plans Examiner $85 ICC Building Plans Examiner $85 36 1/12/16 6-81 Approved Certifications - Professional and Technical Employees Association Community Development Department & Public Works ICC Electrical Plans Examiner *** All represented Prof Tech Positions from the Building $85 ICC Mechanical Plans Examiner *** Division, Code Enforcement, and Public Works $85 ICC Plumbing Plans Examiner *** Department, not specifically covered in MOU $85 Residential Fire Sprinkler Inspector/Plans attainment and upon $75 Examiner renewal Changes to Prof Tech Cert Pay Program, effective January 1, 2016: Certificate Eligible Job Class Payment Method CalGreen Plans Examiner Plan Check Engineer Series (Assistant, Associate, $750 one time Senior) payment on proof of Building Inspector 1/11 and Senior attainment and upon CalGreen Inspector Principal Building Inspector renewal EMP Plans Examiner Certified Public Infrastructure Inspector Public Works Inspector 1/11 $1,000 one time Senior Public Works Inspector payment on proof of attainment and upon Public Works Inspection Supervisor renewal ** Per 2012-15 MOU, only those unit members receiving the certificate pay at time of MOU adoption are eligible for the benefit. Certificates will "sunset" upon certificate lapse or employee separation. *** Additional certificates to sunset (as above) per the 2015-18 MOU 37 1/12/16 6-82 ATTACHMENT C Cost Estimate of Successor MOU with the Newport Beach City Employees Association Contract Term: July 1, 2015 through December 31, 2018 (representing 92 full-time recreation, library, fiscal, and administrative support positions) Existing Cost Projected Costs . Represents the average benefit (not necessarily cost) provided to qualifying CEA members .. Represents the City's payment toward PERS pension costs (FY16 adjusted rate is 22.44%). The adjusted rate for FY17 is (23.27%) and applied to FY18 and FY19 since those rates are unknown at this time. 1/12/16 6-83 FY15-16 Budget Year 1 (FY15-16) Year 2 (FY16-17) Year 3 (FY17-18) Year 4 (FY18-19) Costs Pay/Benefits Value of Benefit' Total as % of Total Base Base Base Base Base Cost Pension " Total Cost Pension Total Cost Pension Total Cost Pension Total Cost Pension Total Com Salary 6,046,410 1,356,996 7,403,406 80,115 17,980 98,095 242,468 56,422 298,890 409,123 95,203 504,326 246,770 57,423 304,193 1,205,505 12.49% (Increases: 1/16 = 2.65%; 1/17= 2.65%; 1/18 = 2.65%) - Supplemental Benefits - Certificate Pay $55/mo 2,580 579 3,159 - - - 1,620 364 1,984 2,160 485 2,645 2,160 485 2,645 7,273 0.08% Bilingual Pay (flat $ amount) $150/mo 12,600 2,828 15,428 - - - - - - - - - - - - - MediCare (mandatory payment) 1.45% 87,854 - 87,854 1,164 1,164 3,523 3,523 5,945 5,945 3,586 3,586 14,218 0.15% Compensated Absences (City funding of liability) 3.50% 211,625 - 211,625 2,804 2,804 8,486 8,486 14,319 14,319 8,637 8,637 34,246 0.35% 7,721,472 Subtotal 6,361,069 1,360,403 84,083 17,980 102,063 256,097 56,786 312,883 431,547 95,688 527,235 261,153 57,908 319,061 1,261,242 Other City Paid Benefits Cafeteria Plan (fixed cost) Refer to MOU 1,809,211 - 1,809,211 33,744 - 33,744 111,888 - 111,888 156,288 - 156,288 78,144 - 78,144 380,064 3.94% Employee Assistance Program (fixed cost) value if used 2,235 - 2,235 - - - - - - - - - Smartphone (reimburse employee) $80/mo 16,323 16,323 Life Insurance ($50K max benefit; fixed cost) value if used 9,595 9,595 Retiree Health Savings Account (employer share) Refer to MOU 95,390 95,390 1,932,754 1,932,754 Total Compensation 8,293,823 1,360,403 9,654,226 One Time Payment (1/1/16) NA NA NA NA 224,002 224,002 - - - - - - 224,002 2.32% Tuition Reimbursement Increase ($500/yr) 3,000 3,000 3,000 3,000 3,500 3,500 3,500 3,500 13,000 0.13% Offset - Addl Employee Pick Up of PERS Pension Costs - (10,888) (10,888) - (35,164) (35,164) - (44,156) (44,156) - (22,880) (22,880) (113,088) -1.17% (.35% on 1/16 and additional .30% on 1/17) Offset - Reduction in the Cafeteria Allowance NA NA NA NA (26,892) - (26,892) (53,784) - (53,784) (53,784) - (53,784) (26,892) - (26,892) (161,352) -1.67% Opt Out Total Cost (Less Offset) 9,654,226 322,029 335,823 585,583 347,433 1,590,868 16.61% . Represents the average benefit (not necessarily cost) provided to qualifying CEA members .. Represents the City's payment toward PERS pension costs (FY16 adjusted rate is 22.44%). The adjusted rate for FY17 is (23.27%) and applied to FY18 and FY19 since those rates are unknown at this time. 1/12/16 6-83 ATTACHMENT D Estimated Cost of Successor MOU with the Newport Beach Professional and Technical Employees Association Contract Term: July 1, 2015 through December 31, 2018 (representing 83 full-time engineering, planning, inspections positio n Existing Cost Projected Costs * Represents the average benefit (not necessarily cost) provided to qualifying members ** Represents the City's payment toward PERS pension costs (FYI 6 adjusted rate is 22.44%). The adjusted rate for FY17 is (23.27%) and applied to FY18 and FYI since those rates are unknown at this time. 1/12/16 6-84 FY15-16 Budget Year 1 (FYI 5-16) Year 2 (FYI 6-17) Year 3 (FYI7-18)Year 4 (FY18-19) Costs as Pay/Benefits Value of Benefit* Total % of Total Base Base Base Base Cost Pension ** Total Cost Pension Total Base Cost Pension Total Cost Pension Total Cost Pension Total Comp Salary (Increases: 2.65% on 1/16, 2.65% on 1/17, 2.65% on 1/18 ) 8,047,518 1,806,104 9,853,622 106,630 23,931 130,561 322,715 75,096 397,811 544,526 126,711 671,237 328,441 76,428 404,869 1,604,478 13.24% Supplemental Benefits - Certificate Pay $55/mo 64,369 14,446 78,815 - - - 5,500 1,234 6,734 7,500 1,683 9,183 3,750 842 4,592 20,509 0.17% Bilingual Pay (flat $ amount) $150/mo 5,400 1,212 6,612 - - - - - - - - - - - - - MediCare (mandatory payment) 1.45% 116,943 - 116,943 1,550 1,550 4,690 4,690 7,913 7,913 4,773 4,773 18,926 0.16% Compensated Absences (City funding of liability) 3.50% 281,663 281,663 3,732 3,732 11,295 11,295 19,058 19,058 11,495 11,495 45,580 0.38% 8,515,893 1,821,763 10,337,656 Subtotal 111,912 23,931 135,843 344,200 76,330 420,530 578,997 128,394 707,391 348,459 77,270 425,729 1,689,493 Other City Paid Benefits Cafeteria Plan (fixed cost) Refer to MOU 1,639,357 - 1,639,357 27,360 - 27,360 90,720 - 90,720 126,720 - 126,720 63,360 - 63,360 308,160 2.54% Employee Assistance Program (fixed cost) Value if used 2,029 - 2,029 - - - - - - - - - - Smartphone (reimburse employee) $80/mo 27,904 27,904 Life Insurance ($50K max benefit; fixed cost) Value if used 8,706 8,706 Retiree Health Savings Account (employer portion) Refer to MOU 99,582 - 99,582 197779578 1,7779578 - Total Compensation 10,293,471 1,821,763 12,115,234 One Time In -Lieu Payment (1/1/116) NA NA NA NA 202,088 202,088 - - - 202,088 1.67% Tuition Reimbursement Increase ($500/yr) 2,000 2,000 3,500 3,500 3,500 3,500 2,000 2,000 11,000 0.09% Offset - Addl Employee Pick Up of PERS Pension Costs - (14,578) (14,578) - (43,057) (43,057) - (59,093) (59,093) - (30,614) (30,614) (147,342) -1.22% (.35% on 1/16 and additional .30% on 1/17) Offset - Reduction in the Cafeteria Allowance NA NA NA NA (34,362) - (34,362) (68,724) - (68,724) (68,724) - (68,724) (34,362) - (34,362) (206,172) -1.70% "Opt Out" Total Cost (Less Offset) 12,1159234 318,351 402,969 709,794 426,113 19857,228 15.33% * Represents the average benefit (not necessarily cost) provided to qualifying members ** Represents the City's payment toward PERS pension costs (FYI 6 adjusted rate is 22.44%). The adjusted rate for FY17 is (23.27%) and applied to FY18 and FYI since those rates are unknown at this time. 1/12/16 6-84