HomeMy WebLinkAbout21 - Labor Agreement - Newport Beach Police Association - NBPAP 3
Agenda Item No. 21
June 26, 2012
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, City Manager
949 - 644 -3002, dkiff @newportbeachca.gov
PREPARED BY: Dave Kiff, City Manager
APPROVED: lL y\
TITLE: Labor Agreement: Newport Beach Police Association (NBPA)
ABSTRACT:
The City's negotiators and the Newport Beach Police Association (NBPA) have reached
a tentative agreement on a Memorandum of Understanding (MOU) for the term of
January 1, 2012 through June 30, 2014. The Council's ratification of the MOU would
complete the agreement.
RECOMMENDATION:
1. Authorize Mayor Gardner to execute a Memorandum of Understanding (MOU) with
the Newport Beach Police Association (NBPA).
2. Adopt Resolutions 2012 -57 relating to PERS and ending reporting of Employer -
Paid Member Contributions (EPMC) over time.
3. Designate the City Manager as the authorized representative to execute subsequent
written agreements under Section 5(B) of the MOU (Work Schedules).
FUNDING REQUIREMENTS:
See financial information in the body of the discussion text.
DISCUSSION:
The roughly 184 - member Newport Beach Police Association (NBPA) is the recognized
labor group for the "rank and file" staff of the Newport Beach Police Department.
Positions included in the NBPA are the roughly 103 sworn (or "safety ") positions of
Police Officer and the roughly 81 non -sworn (civilian or "miscellaneous ") positions of
Animal Control Officer, Dispatcher, Crime Prevention Specialist, Crime Scene
LaborAgreement: Newport Beach Police Association (NBPA)
June 26, 2012
Page 2
Investigator, Community Services Officer, Parking Control Officer, Jail Custody Officers,
and more. The NB Police Management Association (PMA) represents the
classifications of Police Sergeant, Police Lieutenant, and Police Captain and are not
within this bargaining group nor part of this MOU. Three Police Department positions
are not included in any bargaining unit — Police Chief and Deputy /Assistant Chief (2).
The civilian position of PD Support Services Administrator is within the "Key and
Management" unit.
The City and the Association follow California law relating to collective bargaining,
specifically the Meyers - Milias -Brown Act. The MMBA guides the negotiating process,
including "meet and confer" direction as well as impasse procedures. When
negotiations are complete, a memorandum of understanding (MOU) is the typical form
for the City's labor agreements.
The current MOU for the NBPA expired at the end of December 31, 2011. The City and
NBPA have been negotiating since October 2011, but a number of challenging issues
have taken time to address. As such, negotiations continued past the expiration date
but have now concluded, subject to the City Council's approval (the NBPA membership
has approved the proposed MOU).
The key terms in this proposed MOU are as follows:
1. Term: January 1, 2012 through June 30, 2014.
2. Pension Contributions & Employer -Paid Member Contribution (EPMC)
a. NBPA Safety members currently have agreed to deduct 3.5% of base pay
deducted from their paychecks to assist the City in pension obligations. During
this time, the City was still reporting 9% as the EPMC. This payroll deduction
was temporary, and legally ended January 1, 2012, but was voluntarily continued
by NBPA members. Under the proposed MOU, this deduction would restart and
would roll into a permanent contribution of 3.5% of compensation towards the
"Employee Share" of the 3% at 50 Pension program for current employees.
Concurrently with the timing of this 3.5% switch, the amount paid and reported as
EPMC would decline from 9% to 5.5 %.
b. NBPA Safety members would, in the course of the MOU, pay an additional 5.5%
of compensation towards the Employee Share, making the total paid by
employees nine percent (9 %) of compensation. 9% is the full "Employee Share"
for the PERS 3% at 50 Safety formula. Each time an additional percentage is
paid by the employee, EPMC would be reduced until it reaches zero (and would
be reported as zero).
Labor Agreement. Newport Beach Police Association (NBPA)
June 26, 2012
Page 3
c. NBPA non -swom members ( "Miscellaneous ") receive a 2.5% at 55 Pension
benefit. NBPA non -swom members currently pay 1% on the Employee Share
towards pensions and additionally pay 2.42% of the Employer Share, for a total
of 3.42 %. This MOU would direct that NBPA non -sworn members pay another
5.58% (all on the Employee Share side) towards pension costs, bringing them to
eight percent (8 %). At this time, 2.42% would remain reported as EPMC,
because this 8% still leaves 2.42% on the Employee's Share being paid by the
City. This MOU addresses that by agreeing that, if the remainder of the City's
Miscellaneous employees also pick up the remaining 2.42% (leading to reporting
0% EPMC), the City could "reopen" the MOU to seek the same contribution from
NBPA's Miscellaneous employees.
See Attachment B for more details about how the EPMC reporting works.
3. 2nd Tier for New Hires. This MOU proposes that new employees to the NBPA
membership be brought in under the following "2nd Tier" retirement formula:
a. For Safety personnel, a "3% at 55" defined benefit plan. This means that a new
safety hire to the NBPD would be enrolled in the Cal -PERS plan that allows them
to retire at age 55 with 3% of salary for each year worked at the NBPD (up to
90% of salary). Pensionable salary would be based on the average of the
highest three years of compensation. New hires would pay 9% of pensionable
compensation for their retirement costs immediately on hire (thus there would be
zero EPMC for these employees).
L For NBPA Miscellaneous employees, a "2% at 60" defined benefit plan with the
new employee paying the full 7% employee share, 0% EPMC, and the
employee's pensionable salary being based on the highest three -year average
compensation. This means that a new non -safety hire to the NBPD would be
enrolled in the Cal -PERS plan that allows them to retire at age 60 with 2% of
salary for each year worked at the NBPD.
4. Additional Pension Cost Sharing & 26.5% Total Pension Cost Floor /Cap. This MOU
proposes that, after the 3% at 55 Plan for new hires is contracted within PERS (July
1, 2013), the City shall give a 3.1% increase in salary to NBPA Sworn members that
is immediately offset by a 3.1% deduction in pay that would be an additional
payment on the Employer's Share of the PERS costs. At that point in time, the City
estimates that sworn NBPA members will be paying about 26.5% of the total cost of
their pension benefit. This MOU provides that, in the event that the City s pension
costs increase from that point forward during the term of the MOU, NBPA members
will pay up to 2% of pensionable salary more towards the Employer's Share without
a compensating offset. Similarly, should the City's pension costs go down, NBPA
members would be eligible for up to a 2% decrease in their contribution to the
Employer's Share.
:3
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Labor Agreement: Newport Beach Police Association (NBPA)
June 26, 2012
Page 4
5. Cost of Living Adjustment (COLA). This MOU proposes that the NBPA membership
receive two "collared" COLAs. Both would be based on the change in the Consumer
Price Index (CPI) from generally a year prior with a floor of 1% and a cap of 2 %. As
a result, the minimum COLA in this 30 -month MOU period would be 2% with the
maximum at 4 %. The current cost of living has been increasing at slightly more than
3% per year (or 7.5% over 30 months).
6. Medical Insurance Contribution. The City's "cafeteria" plan sets aside a sum of
money per month for each employee to purchase medical insurance from one of the
City's vendors, or to take cash if other insurance is available through a spouse or
partner, Currently, NBPA members receive $1,124 /month plus an additional amount
($112 /month) if they are in a PERS medical program. This MOU proposes that the
City's contribution go to $1,324 /month in three steps during the MOU.
7. Retiree Medical Trust. This MOU directs that the City make a $100 /month
contribution per employee to a retiree medical trust effective January 1, 2013. This
trust would not be administered by the City.
8. Additional Leave Time, Currently, NBPD members have among the lowest "flex"
(vacation and sick combined) leave accruals of our comparison cities. As a part of
this negotiations process, the City consented to allowing an additional 12 hours of
leave to be accrued per employee per year starting July 1, 2012,
9. Other. The negotiators have tentatively agreed to these additional changes (others
are fairly minor and not listed):
a. Severance would be capped at 10 weeks (otherwise one week for every year
worked in Newport Beach).
b. "Unit Pay," This MOU would close off Scholastic Achievement Pay for new
hires if they received only educational units, not degrees.
c. A new lower step for entry-level officers would be created, five percent (5 %)
below the current bottom step for the Police Officer classification.
d. If a person separates from employment, cash -out of certain leave time would
be at 100% of the amount, not 109% as was in the current MOU.
e. Persons who opt -out of the City's Medical Plans (and who have other
insurance) have a cap of $1,274 /month.
FINANCIAL IMPACT OF THIS MOU:
Financially, our best estimate shows that the net impact of the entirety of the MOU
increases the City's cost by about $205,000 across the duration of the MOU for the
:,j
Labor Agreement: Newport Beach Police Association (NBPA)
June 26, 2012
Page 5
NBPA unit. This increase is less than 0.5% of the total Police budget of $41,820,000 for
FY 2012 -13. The $205,000 in increased costs reflect:
1. Sworn membership changes that will result in about $168,000 in savings over the
MOU term; plus
2. Miscellaneous membership changes, in part because of the impact of the cafeteria
increases on lower -salary employees, will increase City costs by about $374,000
over the MOU term. Should the City be able to reopen the MOU for additional
pension pickups for Misc PA employees, additional savings may be attained, but
costs incurred as well.
Importantly, the cost estimate here includes the cost of the COLAs and the increased
cafeteria amounts as well as the savings associated with two critical things:
1. 2 "d Tier. Bringing in new employees at a different, less generous retirement tier
(3% at 55 and 2% at 60) has a long -term benefit that increases in value each
year, as Old Tier employees retire and are replaced by New Tier employees. It
starts out fairly small (net savings across this MOU estimated at about $70K).
2. Employees paying the Employee Share of the pension benefit — this reduces
the City's cost in three ways:
a) The employee is paying something the City once paid;
b) The City no longer has to pay a PERS charge based on the fact that the City
was paying the Employee's share (called "PERS on PERS "); and
c) The City's overall pension obligation is calculated on a lower base - not
109% of pensionable salary (with growth assumptions of 3.25% /year) but
100% of pensionable salary.
Considering the 2 "d Tiers (Safety and Misc), the additional employee contributions, and
the elimination of the EPMC, the net savings to the City for solely these retirement -
related changes for the NBPA unit is about $1,500,000 over the MOU term, or about
$600,000 on an annual basis (although due to the timing of the MOU items, the
annualized savings number varies fiscal year to fiscal year).
The chart on the next page shows how one aspect of the savings (eliminating EPMC
and thereby reducing pensionable payroll as well as PERS on PERS) works for one
generic employee specifically.
Labor Agreement: Newport Beach Police Association (NBPA)
June 26, 2012
Page 6
How EPMC and PERS on PERS affects City Pension Costs
$
Under Current (old) MOU
Net City Pension Cost for This Employee
Police Officer (PERS-able Pay)
S 84,000
Total Pension Costfor This Employee
$ 41,142
Net City Pension Costfor This Employee
$ 38,202
Amount Employee Pays towards Pension
$ 2,940
% of Total Pension Cost Paid by City
92.9%
% of Total Pension Cost Paid by Employee
7.15%
At Conclusion of MOU
Police Officer (PERS -able Pay- includes COLAs +3.1 %) $ 90,103
Total Pension Cost for This Employee
$
41,087
Net City Pension Cost for This Employee
$
30,184
Amount Employee Pays towards Pension
$
10,902
%of Total Pension Cost Paid by City
$ 1,323
73.5%
% of Total Pension Cost Paid by Employee
26.5%
City Retirement Savings for this EE- this MOU from Current MOU
$
8,017
It is important to note that, with the changes in this MOU and since the date of the
NBPA membership's last raise, the purchasing power of an NBPA member's paycheck
-- if he or she was at top step - will have declined substantially (estimated at from -12%
to -17 %) between December 2008 and June 2014 if inflation remains at about three
percent (3 %) per year. As a case in point, the City's cafeteria increases generally have
just kept up with health care inflation (thought it depends on the plan selected), and
have always resulted in out of pocket expenses for these family plans:
I will conclude this staff report noting my appreciation for the NBPA leadership's
participation in this challenging process and the membership's vote to approve this
MOU. MOU discussions are never easy, and they were especially challenging this
term, as the City sought additional pension contributions and the 2nd Tier that would
necessarily impact NBPA members' compensation. I appreciate the NBPA's approach,
as well as the Council's approach in seeking respectful but meaningful change.
6-
00
s
e
s
Blue Shield Family PPO
$ 1,164
$ 1,517
30.33%
PORAC Family Plan
$ 1,076
$ 1,323
22.96%
City Cafeteria (NBPA)
$ 971t7$
1,276
31.41%
I will conclude this staff report noting my appreciation for the NBPA leadership's
participation in this challenging process and the membership's vote to approve this
MOU. MOU discussions are never easy, and they were especially challenging this
term, as the City sought additional pension contributions and the 2nd Tier that would
necessarily impact NBPA members' compensation. I appreciate the NBPA's approach,
as well as the Council's approach in seeking respectful but meaningful change.
6-
Labor Agreement: Newport Beach Police Association (NBPA)
June 26, 2012
Page 7
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.
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).
Submitted by
Dave Kiff
City Manager
Attachments: A. Key Provision Summary
B. EPMC & Retirement Comparison with Other Bargaining Units
C. Resolution 2012 - relating to PERS and the EPMC
D. Proposed MOU with the NBPA
r.
Attachment A
Key Provisions of the NBPA -City proposed MOU
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•pay
Temp 3-5% payroll
pay 2.7s% more
Pay 2.29% more on EE Side.
Members pay at least 5.58%
deduction made
Penslon Pickup
on EE Side (EE
More Icku
P ppast8 %total
Pay 3.5 %moreon EE Side IEE
on EE side and 2.42% on ER
Members 12.1% with zero
Pension Pickup
permanent, moves to
Sha at
subject to reo ener.
Share now at 9 %)
side 8 %)
d
reporting of EPMC
EE share (EE Share
1 -2%
Min 2 %, max 4%
Retiree Medical Trust
.25%)
6 .25 %J
Members are at $100 /mo
Medical
.550 1Montb
now at 3.5 %J
+$100 1Month
+$50 /Month
Members are at$1,325 /mo
Additional Leave Time
12 hours /yr
3.1% pay Increase offset wl th
Members receive 12 more
Additional Penslon
3.1% pension contribution,
hours of leave er yea r.
Cost Share for Sworn
26,5 9&Total Pension Cost
Floor /cop applies.
COLA
I
1
1 1 -2%
1
1 1 -2%
Min 2 %, max 4%
Medical
+S50 /Month
+$100 /Month
+550 /Month
Members are at$1,325 /mo
Retiree Medical Trust
+ S300 /Month
Members are at $100/mo
Additional Leave Time
]2 hours /yr
Members receive 12 more
hours of leave per year.
1y
er
- -_
_ __f
ANOM
Pay 2.29% more on EE Side.
Members pay at least 5.58%
Pay 2.29% more
Penslon Pickup
More Icku
P ppast8 %total
on EE side and 2.42% on ER
on Eslde
EEsl
subject to reo ener.
side 8 %)
COLA
1.2%
1 -2%
Min 2 %, max 4%
Retiree Medical Trust
* $100 /Month
Members are at $100 /mo
Medical
.550 1Montb
+$100 1Month
+$50 /Month
Members are at$1,325 /mo
Additional Leave Time
12 hours /yr
Members receive 12 more
hours of leave er yea r.
1y
Labor Agreement: Newport Beach Police Association (NBPA)
June 26, 2092
Page 9
Attachment B
EPMC & Retirement Contribution Comparison of Selected Other Bargaining Units — Sworn and Misc
MOU and Date
NBPASworn
°•
• rn
NBFAMisc
'Lifeguards,
most Other
Temp 3.5% Payrol I
3.S% Payrol
O,IdlCurrentMOU
Deduction,
EE Pays 3.42 %,
Deduction,
EE Pays 3.42 %,
E£ Pays 9 %,
EE Pays 5.58 %,
7% EPMC
7% EPMC
0EPMC
2.42% EPMC
9% EPMC
9% EPMC
Upon Adoption of
EE Pays 3.5%,
EE Pays 3.5 %,
EE Pays 6.5 %,
N/A
New MO.0
5.5% EPMC
5.5% EPMC
3.92% EPMC
July 1, 2012
EE Pays 6.25 %,
E£ Pays 5.71 %,
2-7S% EPMC
4.71% EPMC
EE Pays 7 %,
EE Pays 8 %,
January 1, 2013
2.0% EPMC
2.420/. EPMC
July 1, 2013
EE Pays 12.1 %,
EE Pays 8 %,
Subject to
0% EPMC
2.42% EPMC
Pending
January 1, 2014
EE Pays 9 °.6,
Negotiations
0% EPMC
By June 30 ' 2014
EE Pays 12.1%,
EE Pays 8 %,
EE Pays 9 %,
EE Pays 8 %,
£E Pays 9 %,
0% EPMC
2.42 %EPMC
0% EPMC
2.42 %EPMC°
0% EPMC
Notes: 'Subject to reopener.
2 Subject to "me too" provision.
C"l
Attachment C
RESOLUTION NO. 2012-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH RESCINDING RESOLUTIONS NO. 94-40 AND 2010 -75 TO MODIFY
THE PAYING AND REPORTING OF THE VALUE OF THE EMPLOYER PAID
MEMBER CONTRIBUTION TO THE CALIFORNIA PUBLIC EMPLOYEES
RETIREMENT SYSTEM (CALPERS) FOR EMPLOYEES REPRESENTED BY
THE NEWPORT BEACH POLICE ASSOCIATION
WHEREAS, the City Council of the City of Newport Beach previously
adopted Resolutions No. 94 -40 and 2010 -75 to pay and report the value of the
Employer Paid Member Contribution (EPMC) to CalPERS for employees
represented by the Newport Beach Police Association; and
WHEREAS, the City Council of the City of Newport Beach has the
authority to implement Government Code Section 20636(c)(4) pursuant to
Section 20691 to report the value of the Employer Paid Member Contribution if
provided for in a labor agreement; and
WHEREAS, the City Council of the City of Newport Beach and the
Newport Beach Police Association have a written agreement which specifically
provides a portion of the normal member contribution to be paid by the employer
and reported as additional compensation; and
WHEREAS, one of the steps in the procedures to implement Section
20691 is the adoption by the City Council of the City of Newport Beach of a
resolution to modify the paying and reporting of the EPMC; and
WHEREAS, the City Council of the City of Newport Beach has identified
the following conditions for the purpose of its election to pay and report the value
of the EPMC.
NOW, THEREFORE, the City Council of the City of Newport Beach does
hereby RESOLVE to pay and report the value of EPMC as follows:
Section 1. This benefit shall apply to all employees represented by
the Newport Beach Police Association (NBPA).
Section 2. Effective the first payroll period commencing on and
after July 1, 2012, this benefit shall be modified to consist of paying 2.75% of the
normal contributions as EPMC for NBPA sworn employees and 4.71% of the
normal contributions as EPMC for NBPA non -sworn Miscellaneous employees,
and reporting the same percent (value) as compensation eamable (excluding
Government Code Section 20636(c)(4)) as additional compensation.
Section 3. Effective the first payroll period commencing on and
after July 1, 2013, this benefit shall be modified to consist of paying 0% of the
normal contributions as EPMC for NBPA sworn employees and 2.42% of the
normal contributions as EPMC for NBPA non -sworn Miscellaneous employees,
and reporting the same percent (value) as compensation earnable (excluding
Government Code Section 20636(c)(4)) as additional compensation.
go
ATTEST:
City Clerk
Adopted this 26th day of June, 2012.
Nancy Gardner, Mayor of the City of Newport Beach
i�
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF NEWPORT BEACH AND
THE NEWPORT BEACH POLICE ASSOCIATION
This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU ") is
entered into with reference to the following.
PREAMBLE
1. The Newport Beach Police Association ( "NBPA "), a recognized employee
organization, and the City of Newport Beach ( "City"), a municipal corporation and
charter city, have been meeting and conferring, in good faith, with respect to
wages, hours, fringe benefits and other terms and conditions of employment.
2. NBPA representatives and City representatives have reached a tentative
agreement as to wages, hours and other terms and conditions of employment for
the period from January 1, 2012 to June 30, 2014 and this tentative agreement
has been embodied in this MOU, which has been executed concurrently.
3. This MOU, upon approval by NBPA and the Newport Beach City Council,
represents the total and complete understanding and agreement between the
parties regarding all matters set forth herein.
SECTION 1. — General Provisions
A. Recognition
In accordance with the provisions of the Charter of the City of Newport
Beach, the Meyers - Milias -Brown Act of the State of California and the
provisions of the Employer's /Employee Labor Relations Resolution No.
7173, the City acknowledges that NBPA 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 NBPA.
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 January 1, 2012. This MOU shall
remain in full force and effect until June 30, 2014, and the
provisions of this MOU shall continue after the date of expiration of
J
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. NBPA members shall be allowed to participate in the following
activities during scheduled working hours without loss of pay
('Release Time "):
a. attendance at off -site meetings, conferences, seminars or
workshops related to matters within the scope of
representation;
b. to prepare for scheduled meetings between the City and
NBPA during the meet and confer process.
C. i. to travel to, and attend scheduled meetings between
the City and NBPA during the meet and confer
process.
ii. to travel to and attend scheduled grievance and
disciplinary hearings.
iii. to meet, for up to one hour, with their representative
prior to a hearing described in subsection C.c.ii
above.
2. NBPA shall designate certain members as those members entitled
to release time. In no event shall any one designate be entitled to
use more than 100 hours of Release Time (exclusive of actual time
spent meeting with City representatives on matters relating to the
scope of representation), within any calendar year. Designates
must give reasonable advance notice to, and obtain permission
from, their supervisor prior to use of release time, or, prior to
adjusting work hours per subsection C.2.a. Requests for release
time shall be granted by the supervisor unless there are specific
circumstances that require the designate to remain on duty-
2
li�
Designates shall, to the maximum extent feasible, receive shift
assignments compatible with participation in the meet and confer
process.
a. Any NBPA negotiating team member may request and shall
(subject to the approval process above) be granted Hex
work hours on any scheduled work day during which the
negotiating team member is to attend a meet and confer
session. Employees may flex starUfinish time up to two (2)
hours.
3. City grants NBPA members the right to engage in the activities
described in subsection 1(c) at any time without any reduction to
City — provided Release Time or to any Release Time bank created
pursuant to subsection C.S.
4. City Grants NBPA 500 hours of Release Time per calendar year to
engage in the activities described in subsection C.1.a and 1.b.
(City — provided Release Time.) NBPA may accumulate up to 300
hours of City— provided Release Time.
5. In addition to City — provided Release Time and Release Time
provided pursuant to subsection C.3, NBPA members may
contribute up to two hours of earned compensatory time off ( "CTO ")
to an NBPA Release Time Bank. Members may contribute earned
CTO only during the period from July 1 through August 15 during
any calendar year. However, members shall not have the right to
contribute CTO to the NBPA Release Time bank if NBPA has
accumulated more than 600 hours of total Release Time. Any
NBPA member who contributes CTO to the Release Time Bank
gives up any right to usage of, or payment for, the contributed CTO.
Contributions may be made only in hourly increments.
Contributions shall be on forms prepared by the City which shall
then be submitted to the appropriate department employee. City
shall advise NBPA as to the balance of hours in the Release Time
Bank upon request. For purposes of this subparagraph only, the
term "compensatory time off or CTO" includes accrued flex leave,
accrued vacation leave, and accrued holiday time.
6. There is no entitlement to release time for any matter not set forth
above.
D. Scope
1. All present written rules and current established practices and
employees' rights, privileges and benefits that are within the scope
3
15
of representation shall remain in full force and effect during the term
of this MOU unless specifically amended by the provisions of this
MOU.
2. Pursuant to this MOU, the City reserves and retains all of its
inherent exclusive and non —exclusive managerial rights, powers,
functions and authorities ("Management Rights ") as set forth in
Resolution No. 2001 -50. Management Rights include, but are not
limited to, the following,
a_ the determination of the purposes and functions of the Police
Department;
b. the establishment of standards of service;
C. to assign work to employees as deemed appropriate;
d. the direction and supervision of its employees;
e. the discipline of employees;
f. the power to relieve employees from duty for lack of work or
other legitimate reasons;
g. to maintain the efficiency of operations;
h. to determine the methods, means and personnel by which
Police Department operations are to be conducted;
the right to take all necessary actions to fulfill the
Department's responsibilities in the event of an emergency;
the exercise of complete control and discretion over the
manner of organization, and the appropriate technology,
best suited to the performance of departmental functions.
The practical consequences of a Management Rights decision on
wages, hours, and other terms and conditions of employment shall
be subject to the grievance procedures.
E. Conclusiveness
This MOU contains all of the covenants, stipulations, and provisions
agreed upon by the parties. Therefore, for the life of this MOU, neither
party shall be compelled, and each party expressly waives its rights to
request the other to meet and confer concerning any issue relating
4
primarily to matters within the scope of representation except as expressly
provided herein or by mutual agreement of the parties. No representative
of either party has the authority to make, and none of the parties shall be
bound by, any statement, representation or agreement which is not
embodied in this MOU.
Subject to the paragraph above, this section shall not be construed to
prevent the Newport Beach Police Department from giving notice to the
Association and affording the Association the opportunity to meet and
confer on the impact of policy changes or the exercise of management
rights. However, the terms of this MOU may not be modified through the
impact negotiations process; except by mutual agreement.
F. Modifications
Any agreement, alteration, understanding, variation, or waiver or
modification of any of the terms or provisions of this MOU shall not be
binding upon the parties unless contained in a written document executed
by authorized representatives of the parties.
G, Bulletin Boards
Space shall be provided on bulletin boards within the Police Department at
their present location for the posting of notices and bulletins relating to
NBPA business, meetings, or events. All materials posted on bulletins
boards shall indicate the name of the organization responsible. Material
posted shall not contain personal attacks on any City official or employee,
any material which constitutes harassment, discrimination or retaliation on
the basis of race, gender, ethnicity, religion or other statutorily or
constitutionally impermissible basis, or any pornographic or obscene
material.
H. No Strike
The parties recognize their mutual responsibility to provide the citizens of
Newport Beach with uninterrupted municipal services and, therefore, the
parties agree not to conduct concerted strike, work slowdown, sick out,
withholding of services, or lockout activities.
Savings
If any provision of this MOU shall be held invalid by any court of
competent jurisdiction, or if compliance with or enforcement of any
provision shall be restrained by court action, or other established
governmental administrative tribunal, the remainder of this MOU shall not
5
be affected, and the parties shall replace such invalidated provision with
another of similar or equal value through the negotiations process.
J. Impasse
In the event of an impasse (the failure to agree on a new MOU after the
express term of the existing MOU has expired), the parties may agree on
mediation pursuant to the procedure outlined in Section 16 of Resolution
No. 2001 -50.
SECTION 2. —Compensation
A. Salary Adjustments —this MOU Period
Effective the first payroll period commencing on or after July 1,
2012, there shall be a base salary increase of not less than 1.0 %,
nor more than 2.0 %. The precise amount of the increase shall be
determined with reference to the percent increase in the Consumer
Price Index (All Urban Consumers) for the Los Angeles, Riverside,
Orange County areas for the 12 consecutive months ending on
April 30, 2012. If there is either a decrease in the CPI, no increase
in the CPI or the increase is less than or equal to 1.0 %, the base
salary increase shall be 1.0 %. If the increase is greater than 1.0 %,
the base salary increase shall be in the same amount, but in no
event, greater than 2.0 %.
2. Effective the first payroll period commencing on or after July 1,
2013, there shall be a base salary increase of not less than 1.0 %,
nor more than 2.0 %. The precise amount of the increase shall be
determined with reference to the percent increase in the Consumer
Price Index (All Urban Consumers) for the Los Angeles, Riverside,
Orange County areas for the 12 consecutive months ending on
April 30, 2013. If there is either a decrease in the CPI, no increase
in the CPI or the increase is less than 1.0 %, the base salary
increase shall be 1.0 %. If the increase is greater than 1.0 %, the
base salary increase shall be in the same amount, but in no event,
greater than 2.0 %.
3. Concurrent with City Council adoption of the 2012 -2014 MOU, the
"Police Officer" classification, Schedule J20, shall reflect a new
lowest salary step of 5% below the lowest base salary step in place
prior to the adoption of this MOU. This salary step may advance
over time as adjustments are made to base salary that apply to the
entire Police Officer classification, but shall always remain 5%
below the step above it.
C.
s
4. Concurrent with the July 1, 2013 implementation of the 3.1%
Government Code § 20516(a) cost sharing as to all unit safety
members (see Section 4.D. below,) the base salary for all unit
safety members shall be increased by 3.1 %.
B. Code Seven /Duty Incentive Time
The City and NBPA have agreed to eliminate entitlement to compensation
for duty incentive time and Code Seven time based upon implementation
of the 9/80 work schedule and a Settlement Agreement between the City
and NBPA. NBPA and its members agree that the provisions and rules
relative to entitlement to compensation for duty incentive time or Code
Seven time survive the termination of this MOU, that the provisions of the
settlement agreement are in full force and effect and that no request for
compensation for duty incentive time or Code Seven time at variance with
the provisions of existing rules or the settlement agreement shall be made
at any time in the future by NBPA or any of its members.
C. Overtime
1. Employees shall be entitled to overtime compensation at the rate of
time and one half the regular rate of pay for hours worked in excess
of their regularly scheduled shift. Paid time off shall be considered
time worked for overtime calculation purposes.
2. Employees shall also be entitled to overtime compensation for
hours worked in excess of 2,080 hours in the 12 month period
commencing January 1st of each year. These overtime payments
shall be offset by Section 1 above.
3. Overtime compensation shall be in the form of compensatory time
off or pay at the election the employee. Maximum compensatory
time accrual shall be 120 hours. All overtime worked for employees
at the CTO maximum shall be paid.
4. The current practice for scheduling and approving CTO shall
continue for the term of this agreement. CTO is approved on a
"first come, first served" basis. Department policy is to approve
CTO unless the use of CTO would result in staffing below minimum
levels established by the Department, or the Department has a
special circumstance or an operational need that requires staff
resources above its established minimum levels- The Association
may reopen negotiations concerning the protocol of approving CTO
requests if the Department's staffing level drops such that it
routinely runs at or below minimum staffing levels.
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5. The Police Department has the discretion to schedule any of its
employees to work a regular work day on July 4th, regardless of the
day of the week or job assignment. This may include modifying
work schedules and /or days off according to deployment needs.
Unit employees who actually work July 4th will be compensated at
their regular hourly rate, plus premium pay equal to 1/2 of the hours
actually worked on that day. Employees will be provided their
regular number of days off for the month of July (unless otherwise
scheduled on an overtime basis), which will be selected /assigned
according to the normal practices of their particular work unit.
Should the employees work an additional shift in subsequent leap
years compensation shall be paid at the appropriate rate of overtime
pay,
6. The City and NBPA jointly petitioned the NLRB and were granted a
7(b) exemption of the Fair Labor Standards Act to allow for use of
the overtime standards as set forth in this section. The exemption
allows continued use of the Department's alternative /semi- flexible
schedule.
D. Overtime Compensation - Court
1. Compensation - Employees shall receive either compensatory time
or paid time at their discretion.
2. On -Call - Off -duty employees on call for court who have not been
canceled prior to the scheduled standby time shall, whether
extended or not, be compensated at a rate equal to the actual
standby time, with a minimum of one (1) hour paid at time and one -
half the employee's regular rate of pay.
3. Appearance - Off -duty employees who are required to appear in
court shall be compensated for the actual time involved with a
minimum of two (2) hours paid at time and one -half the employee's
regular rate of pay. Employees appearing in court after being on
call the same day shall be compensated from the time listed on the
subpoena until released by the court.
4. Cancellation — Off -duty employees whose court appearance is
cancelled with less than 12 hours notice shall receive a payment for
one hour at the employee's regular rate of pay.
E. Master Police Officer Recognition Program
The City and NBPA agreed to institute a Master Officer Recognition
Program ( "MORP ") on July 4, 1987. The intent of the MORP is to attract
8
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highly qualified and experienced lateral officers and encourage NBPA
members to remain with the Newport Beach Police Department by
compensating employees who have acquired special skills, training and
ability through years of service. The MORP is comprised of four levels
with progressively higher compensation paid as years of service and
experience increase.
For the purposes of this Section E, credits shall be defined as follows:
Completion of any Police Academy shall equal 0.25 credits.
One Credit shall equal:
1) Two years of experience as a sworn police officer in patrol, bikes,
K9, motors, accident investigation, helicopters, or any other
uniformed assignment, or
2) One year of assignment as a detective, with partial credit earned at
quarterly intervals (three months = 0.25 credits), or
3) 2080 hours of service as a Field Training Officer.
Years of sworn service includes actual time employed as a police recruit
or similar classification in a police training academy, not to exceed six
months.
Effective concurrent with City Council adoption of the 2012 -2014 MOU,
lateral hires shall be authorized to utilize pre - Newport Beach "years of
sworn service" and years of "specialty assignment' service, in satisfying
those Master Office requirements set forth herein.
A lateral hire shall be ineligible to participate in the "MORP" until
successfully completing the mandated probationary testing period.
Except for E3 above, MORP shall commence beginning the first full pay
period after the employee qualifies for each Master Officer step. It is the
responsibility of the employee to apply for MORP pay or any increase in
MORP compensation level. The City reserves the right to administratively
modify the MORP program so as to structure it as a Special Pay rather
than an element within the base rate, as long as the overall compensation
of the employees is not reduced. The Association will be given advance
notice if such a change is to be implemented.
The requirements and compensation of the four levels of MORP are
summarized as follows:
9
MASTER OFFICER I
Requirements.
A MORP I candidate must have:
1. A minimum service of five (5) years as a sworn Police Officer,
including one credit; and
2. An intermediate POST Certificate or the educational equivalent;
and
3. Must maintain at least an overall "meets standards" or equivalent
rating on their most recent performance evaluation.
Compensation:
Five percent (5 %) base salary step increase.
MASTER OFFICER fl
Requirements:
A MORP II candidate must have all of the qualifications of a MORP I
candidate plus:
1. A minimum service of eight (8) years as a sworn Police Officer; and
2. An advanced POST Certificate, or the educational equivalent; and
3. Must maintain at least an overall "meets standards" rating on their
most recent performance evaluation.
Compensation:
Five percent (5 %) base salary step increase above Master Officer I.
MASTER OFFICER III
Requirements:
A MORP III candidate must have all of the qualifications of a MORP II
candidate plus:
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1. A minimum service of ten (10) years as a sworn Police Officer,
including two credits; and
2. Must maintain at least an overall "meets standards" rating on their
most recent NBPD performance evaluation.
Compensation:
Five percent (5 %) base salary step increase above Master Officer II.
MASTER OFFICER IV
Requirements:
A MORP IV candidate must have all of the qualifications of a MORP III
candidate plus:
1. Minimum service as a sworn Police Officer:
a. Fifteen (15) years plus a Bachelors degree or a
minimum of 120 semester units
b. Twenty (20) years plus a minimum of 90 semester
units
C. Twenty -five (25) years plus a minimum of 60
semester units
The above must include three credits; and
2. At least one year assigned as an FTO in the Patrol Division,
regardless of the number of hours actually training, or have
attended the POST FTO school; and
3. Must receive and maintain at least an overall "meets standards"
rating on their most recent NBPD performance evaluation.
Compensation:
Five percent (5 %) base salary step increase above Master Officer III.
F. Education Retention Incentive Program
Effective the pay period beginning June 23, 2007, the City shall institute
the Education Retention Incentive Program to retain experienced, well-
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4 ---%
educated non -sworn employees. Employees shall be eligible for payment
for education beyond minimum qualifications and years of service as
follows. Incentive pay shall commence beginning the first full pay period
after the employee qualifies. It is the responsibility of the employee to
apply for incentive pay or any increase in compensation level.
Education Years of City Service
30 units 15
AA or 60 units 12
MA/BA or 120 units 8
A graduate degree Is the only eligible increment of education for positions
requiring BA.
Compensation:
Five percent (5 %) of member's base monthly salary.
G. Scholastic Achievement Pay
Sworn NBPA members are entitled to additional compensation contingent
upon scholastic achievement ( "Scholastic Achievement Pay "). Sworn
NBPA members may apply for increases pursuant to this Section when
eligible and scholastic achievement pay shall be included in the member's
paycheck for the pay period immediately after approval by the Chief of
Police. It is the responsibility of the NBPA member to apply for Scholastic
Achievement Pay. Approval of the member's application shall not be
unreasonably withheld or delayed, and the member shall not be entitled to
receive scholastic achievement pay prior to the date the application is
approved even though the member may have been eligible prior to
approval. Scholastic achievement pay is contingent upon years of service
and the number of units and/or degrees received by the employee.
Effective the pay period beginning January 20, 2007 (prospectively), years
of service shall include time employed as a police recruit or similar
classification in a police training academy, not to exceed six months.
For persons hired on or after the adoption date of this MOU, a "degree"
shall be defined as a degree awarded by an institution accredited by the
State of California, the United States Department of Education, the
Council for Higher Education, or the Distance Education Training Council.
Eligibility to receive compensation shall be conditioned upon a
determination by the appointing authority that the major in which a degree
is earned and /or a substantial number of earned units which will qualify
the individual for a degree, are in a field or protocol reasonably likely to
enhance the employee's job performance.
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.P
The Plan consists of five levels which reflect multipliers of the base
monthly salary. Qualifying units and /or degrees must be awarded by
accredited community colleges, state colleges or universities. The
following is a schedule of monthly payments pursuant to the Scholastic
Achievement Program:
Scholastic achievement pay is:
Years of
Service:
30 Units
60 Units
90 Units
BA/BS
MAIMS /JD
2
1%
1%
1%
1%
1%
3
1%
2%
3%
5.5%
5.5%
4
1%
2%
3%
5.5%
6.5%
Any unit members hired on and after City Council adoption of this 2012-
2014 MOU shall be ineligible for any scholastic pay based upon having
obtained units only.
H. Non -sworn Personnel Shift Differential
The night shift differential pay for non -sworn personnel shall be $1.50 per
hour between the hours of 6 p.m. and 6 a.m.
Training Pay
Police Officers assigned to Field Training Officer duties for either Regular
or Reserve officers and Civilian Employees assigned to training duties for
new employees are entitled to receive compensation for these extra
duties. To be eligible for compensation, the employee shall have
completed a 40 -hour FTO course and shall be required to complete a
Daily Evaluation Report for each shift worked with a trainee. Employees
assigned full training responsibilities who have not completed the FTO
course shall be eligible for compensation pending course completion.
Employees will be compensated for each shift worked as an FTO with a
trainee at the rate of 1.5 straight time hours per shift:
The following classifications are not eligible for training pay consistent with
existing department/division practice.
Sr. Community Service Officer
Sr. Custody Officer
Sr. Animal Control Officer
Sr. Police Dispatcher
Sr. Crime Scene Investigator
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K.
Motor Officer Pay
Assigned Motor Officers shall receive six (6) additional hours of overtime
per month pursuant to this City and Association mutual agreement that the
six (6) additional hours of overtime represent reasonable compensation for
maintenance of the motorcycle in a clean and serviceable condition.
Canine Officer
Employees assigned to work as Canine Officers, (in accordance with
individual signed contracts between the employees and department) shall
receive additional compensation at the rate of six (6) additional hours of
overtime pay per month (six hours of time and a half equals nine (9) hours
of compensation). This pay is recognition of the additional hours required
of employees assigned to care for a City dog. City and Association
mutually agree that the additional six (6) hours pay does represent
reasonable compensation for the additional tasks required in maintaining
the canine. No employee shall work more than six (6) hours in performing
Canine Officer duties without the express direction of their supervisor.
L. Matron Pav
Any female non -sworn employees assigned matron duties shall receive
one (1) hour straight time pay for each shift matron duties are performed.
M. Minimum Call Back
The following shall determine the type of compensation for the overtime
worked:
a. Court (two hour minimum).
b. Call Out - off duty personnel called out for a special assignment
(two hour minimum).
C. Payment shall not be made for employees required to return to
work to correct work errors.
d. Call back shall be paid only for hours not contiguous to the
employees regular work schedule when they are required to
physically return to work.
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N. Bilingual Pay
Employees certified as bilingual (Spanish) shall be eligible to receive Two
Hundred ($200.00) Dollars per month in bilingual pay. The existing
certification process will confirm that employees are fluent at the street
conversational level in speaking, reading and writing Spanish.
Employees certified shall receive bilingual pay the first full pay period
following certification.
Additional languages may be certified for compensation pursuant to this
section by the Chief of Police.
O. Certification Pay
Unit employees in Mechanic classification shall be eligible for annual
certification pay as follows:
1. Smog License - $250.00
2. Fire Mechanic State Level I - $100.00
3. Fire Mechanic State Level II - $200.00
4. ASE Certification - $25.00 per certification up to a maximum of
eight (8) and $100.00 for possessing a current ASE Master Truck
Technician and $100.00 for possessing a current ASE Master
Automobile Technician certification.
5. Commercial Drivers License, Class A- $100.00
6. Commercial Drivers License, Class B - $75.00
P. Uniform Allowance.
The City reports to PERS a uniform allowance amount of $1,100 per year
for sworn officers; $118.56 per year for non -sworn personnel.
SECTION 3. —Leaves
A. Flex Leave
1. NBPA members shall accrue (prospectively) flex leave based on
the greater of their total continuous years of full -time service with
the City of Newport Beach, or their total full -time employment as a
sworn law enforcement officer, including up to a maximum of six
months time employed as a police recruit or similar classification in
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a police training academy. NBPA members shall accrue Flex leave
at the following rates:
Years
of Cont. Service:
1 but less than 5
5 but less than 9
9 but less than 12
12 but less than 16
16 but less than 20
20 but less than 25
25 and over
Adjusted Accrual
Per Pay Period:
5.85
6.46
7.08
7.70
8.31
8.92
9.54
Starting July 1, 2012, the above accrual schedule shall change to:
Years
of Con't. Service:
1 but less than 5
5 but less than 9
9 but less than 12
12 but less than 16
16 but less than 20
20 but less than 25
25 and over
Adjusted Accrual
Per Pay Period:
6.31
6.92
7.54
8.16
8.77
9.38
10.00
2. NBPA and the City acknowledge that employees assigned the 9181
work schedule accrue one (1) additional hour per pay period in
addition to the accrual levels set forth above.
1 The Flex leave program shall be administered as follows:
a. NBPA members shall not accrue flex leave until continuously
employed by the Newport Beach Police Department for a
period of six (6) months provided, however, if a member on
the flex leave program becomes sick during the first six
months of employment, the City will advance up to thirteen
(13) pay periods of paid leave time for use by the member to
recover from illness. In the event the City advances paid
leave time and the employee is terminated or resigns before
completing six months of continuous employment, the
member's final check shall be reduced by an amount equal
to the number of flex leave hours advanced multiplied by the
member's hourly rate of pay.
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b. NBPA members shall accrue thirteen pay periods of flex
leave immediately upon completion of six (6) months
continuous employment with the Newport Beach Police
Department, provided however, this amount shall be
reduced by any flex leave time advanced during the first six
months of employment.
C. Members employed by the City prior to initiation of the flex
leave program have had then current accrued vacation time
converted to flex leave on an hour for hour basis with then
current sick leave placed in a bank to be used as provided in
Section 11.2 of the City of Newport Beach Employee Policy
Manual. Members entitled to use sick leave pursuant to
Section 11,2A of the Employee Policy Manual must notify
appropriate department personnel of their intention to access
the sick leave bank and, in the absence of notification,
absences will be charged to the member's flex leave
account. Members who wish to convert an absence from
flex leave to sick leave must submit a written request to the
Chief of Police within twenty (20) days after the absence (20
days from the last absence in the event the member was
continuously absent for more than one day) specifying the
nature of the illness and the person notified of the intent to
use sick leave, or the reasons for the failure to notify
appropriate department personnel. The Chief of Police shall
grant the request for conversion if the member submits a
written statement signed by his or her attending physician
confirming the illness and the Police Chief determines that
the member's failure to notify appropriate departmental
personnel was reasonable under the circumstances.
d. NBPA members shall be entitled to accrue flex leave up to
seventy (70) times the members bi- weekly flex leave accrual
rate (Flex Leave Accrual Threshold). NBPA members first
hired by the City prior to September 1, 1997, shall be paid
for all flex leave that accrues in excess of the flex leave
accrual threshold (Flex Leave Spillover Pay). Flex Leave
Spillover Pay will be paid at the members regular hourly rate
of pay. Effective during the first pay period of January, 1998,
NBPA members who have not utilized at least 80 hours of
flex leave during the prior calendar year shall not accrue flex
leave in excess of the Flex Leave Accrual Threshold and
shall not be entitled to Flex Leave Spillover Pay.
17 ) i
NBPA members first hired, or rehired by the City subsequent
to September 1, 1997, shall not be eligible for Flex Leave
Spillover Pay and shall not be entitled to accrue flex leave in
excess of the Flex Leave Accrual Threshold.
Employees who have accrued in excess of seventy (70)
times the member's bi- weekly accrual rate concurrent with
adoption of the 2012 MOU, shall accrue no additional time
unless through use of time or any authorized cash payment,
the accrued hours decrease to less than seventy (70) times
the bi- weekly accrual rate. Except for persons eligible for
Spillover Pay, in no case shall leave that would have been
accrued in excess of the above limitations be earned for
cash conversion.
e. All requests for scheduled flex leave shall be submitted to
appropriate department personnel. Flex leave may be
granted on an hourly basis. In no event shall a member take
or request flex leave in excess of the amount accrued.
f. Members shall be paid for all accrued flex leave at their then
current hourly rate of pay upon termination of the
employment relationship.
g. Should approved leave be canceled due to the needs of the
City, a reasonable extension of time (up to 90 days) will be
granted for employees to reschedule the leave without the
loss of spillover or leave accrual.
h. Employees actually working 2088 hours per year shall be
credited with two hours holiday pay per quarter worked on
the 12 hour schedule.
B. Holiday Time
NBPA members shall accrue holiday time at the rate of 96 hours per fiscal
year (July 1 through June 30th), and at the rate of 3.7 hours per pay
period.
Option 1 (Default): Unless otherwise irrevocably elected by the employee,
holiday compensation shall be paid in cash along with the employee's
regular bi- weekly check, and will be reported to PERS as special
compensation in addition to the employee's bi- weekly base salary.
Option 2: Within 60 days of NBPA membership, NBPA members may
irrevocably elect to have all or any portion of the 3.7 hours of accrued
18 7r
holiday compensation added to the member's flex leave bank on a bi-
weekly basis in lieu of a cash payment. Once holiday time is accrued to
the member's flex leave bank, all rules and opportunities concerning the
flex leave program (described elsewhere in this MOU and in the Employee
Policy Manual) will apply (e.g. usage, maximum balance, spillover,
periodic payout, etc). Pay for any time taken from the flex leave bank, and
any spillover pay or other payout for flex leave, will not be reported to
PERS as special compensation.
C. Leave Pay Off
For the term of this agreement, NBPA members shall receive payment for
any accrued leave upon termination at the rate of 100% of their base
hourly rate.
D. Bereavement Leave
Bereavement Leave shall be defined as the necessary absence from duty
by employee having regular or probationary appointment because of the
death or terminal illness in his /her immediate family. NBPA members
shall be entitled to forty (40) hours of bereavement leave per incident
(terminal illness followed by death is considered one incident). Immediate
family shall mean an employee's father, mother, brother, sister,
spouse /domestic partner, child or grandparent, and the employee's
spouse /domestic partner's father, mother, brother, sister, child or
grandparent.
E. 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.
F. Worker's Compensation Leave
1. Sworn Members
Any NBPA member who is a sworn peace officer and incapacitated
by reason of any injury or illness which has been determined to
have arisen out of or in the course of his or her employment shall
receive compensation in accordance with the provisions of Section
4850 et. seq. of the Labor Code of the State of California.
19 {
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G.
2. Non —sworn Members
Any employee incapacitated by reason of any injury or illness which
has been determined to have arisen out of or in the course of his or
her employment shall receive, in addition to temporary disability
compensation pursuant to the laws of the State of California, an
additional sum which, when added to temporary disability
payments, provides the injured employee with regular
compensation. Regular compensation is defined as the salary for
the position and step occupied by the employee on the date of the
job — related illness or injury. Payment shall commence with the first
day of approved absence and end with the termination of temporary
disability, or the expiration of six (6) months, whichever occurs first.
Scheduling of Medical Treatment for Industrial Injuries
Time spent by an employee receiving medical attention during the
employee's normal working hours is considered hours worked and
compensable, when the City or its representative schedules the
appointment.
When an employee is temporarily totally disabled due to an industrial
injury, and is unable to perform even limited duty in the workplace, all
appointments, whether arranged by the City or the employees, shall be
considered as occurring during normal working hours. The employee
shall not be entitled to any additional compensation, regardless of the
employee's regular work schedule or the type of compensation currently
received, except as otherwise required by law.
When an employee has been released to either full or limited duty and has
returned to the workplace, time spent receiving ongoing medical
treatment, such as physical therapy or follow -up visits that are not
scheduled by the City, is not considered hours worked and therefore, is
not compensable. To avoid disruption in the workplace, an employee
shall schedule such appointments to occur during off duty hours whenever
possible. In the event such scheduling is not available, employee may be
allowed to attend an appointment during their regularly scheduled duty
shift with prior supervisory approval. Regular recurring appointments
(i.e., weekly physical therapy) must be scheduled off duty.
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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 BIG 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 amounts listed below, the City shall contribute the
minimum CalPERS participating employer's contribution towards
medical insurance. Employees shall have the option of allocating
Cafeteria Plan contributions towards the City's existing medical,
dental and vision insurance /programs. The City and the Newport
Police Employees Association will cooperate in pursuing additional
optional benefits to be available through the Cafeteria Plan.
Any unused Cafeteria Plan funds shall be payable to the employee
as taxable cash back. Employees shall be allowed to change
coverages in accordance with plan rules and during regular open
enrollment periods.
Effective the pay period beginning on or immediately after
• March 1, 2012, the City's contribution towards the Cafeteria
Plan will increase to 1,174.00 (plus the minimum CalPERS
participating employer's contribution.)
• January 1, 2013, the City's contribution towards the Cafeteria
Plan will increase to $1,274.00 (plus the minimum CalPERS
participating employee's contribution.)
• January 1, 2014, the City's contribution towards the Cafeteria
Plan will increase to $1,324.00 (plus the minimum CalPERS
participating employee's contribution.)
21
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NBPA members who do not want to enroll in any medical plan
offered by the City must provide evidence of group medical
insurance coverage, and execute an opt -out agreement releasing
the City from any responsibility or liability to provide medical
insurance coverage on an annual basis.
Those members participating in the opt -out program shall be
permitted to cash out no more than $1,274.00 /monthly.
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 Insuran
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. Chances in Insurance Carriers and Coverages
There shall be no change in Insurance carriers or coverages during
the term of this agreement unless the City has given prior notice to
the Association and, upon request, met and conferred.
B. Additional I nsurance/Prog rams
1. IRS Section 125 Flexible Spendinq Account
Section 125 of the Intemal Revenue Code authorizes an employee
to reduce taxable income for payment of allowable expenses such
as child care and medical expenses. The City shall maintain a
"reimbursable account program" in accordance with the provisions
of Section 125 of the Internal Revenue Code, pursuant to which an
Association member may request that medical, child care and other
eligible expenses be paid or reimbursed by the City out of the
employee's account. The base salary of the employee will be
reduced by the amount designated by the employee for
reimbursable expenses.
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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 Benefd 66.67% gross weekly wages
Maximum Benefit $10,000lmonth
Minimum Benefit $50
Waiting Period 30 Calendar Days
Employees shall not be required to exhaust accrued paid leaves
prior to receiving benefits under the disability insurance program.
Employees may not supplement the disability benefit with paid
leave once the waiting period has been exhausted.
Concurrent with the commencement of this program, employees
assumed responsibility for the payment of the disability insurance
cost in the amount of one (1.0 %) percent of base salary.
Simultaneously, the City increased base wages by one (1.0 %)
percent.
3. Life Insurance
The City shall provide life insurance for all regular full -time
employees in $1,000 increments equal to one times the employee's
annual salary up to a maximum of $50,000. At age 70 the City-paid
life insurance is reduced by 50% of the pre -70 amount. This
amount remains in effect until the employee retires from City
employment.
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 (Superseding inconsistent April 13, 2010
SUPPLEMENTAL MOU and inconsistent 2008 -2010 MOU provisions)
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1. Current Non -Sworn Members (Miscellaneous)
a. Pursuant to a separate agreement, miscellaneous (non -
safety) unit members have agreed to have 2.42% of the
employer retirement cost added to the employee's rate
pursuant to California Government Code Section 20516.
Non -safety erriployees now pay 3.42% of retirement costs
(2.42% employer cost sharing and 1% employee normal
member contribution) on a pre -tax basis pursuant to IRS
Code Section 414(h)(2).
Effective the first pay period after July 1, 2012, non -safety
employees shall in addition to the Government Code §20516
cost sharing provision described above, pay an additional
2.29% of compensation as and for the individual members
normal employee PERS contributions required to be paid by
PERS (totaling 3.29% towards Employee's Rate plus 2.42%
towards Employer's Rate). Said payment shall be made
pursuant to Government Code § 20691.
Effective the first pay period after July 1, 2013, non -safety
employees shall in addition to the Government Code §20516
cost sharing provision described above, pay an additional
2.29% of compensation as and for the individual members
normal employee PERS contributions required to be paid by
PERS (totaling 5.56% towards Employee's Rate plus 2.42%
towards Employer's Rate or 8% of pensionable
compensation). Said payment shall be made pursuant to
Government Code § 20691.
Effective at such time as one or more of the City's other
Miscellaneous units agrees to an additional employee
contribution within this MOU term, NBPA agrees to reopen
negotiations for the purpose of considering an equivalent
contribution.
d. The City provides the Public Employees' Retirement System
retirement formula of 2.5% at 55 for unit members hired prior
to implementation of the 2% at 60 retirement formula (see
below,)
e. The provisions of this 2012 -2014 MOU shall supersede and
take precedence over any other inconsistent provisions in
the September 9, 2007 SUPPLEMENTAL MEMORANDUM
OF UNDERSTANDING BETWEEN THE CITY OF
24 _ f
r
NEWPORT BEACH AND THE POLICE EMPLOYEES
ASSOCIATION.
2. Current Sworn Members
a. The City provides the Public Employees' Retirement System
retirement formula of 3% at 50.
b. Effective concurrent with City Council adoption of this MOU,
the April 13, 2010 Supplemental Memorandum of
Understanding SECTION 4 FRINGE BENEFITS shall be
modified to reflect that the 3.5% payroll deduction made by
all safety unit employees as regards funding of retirement,
shall continue in said amount but shall be made pursuant to
Government Code § 20691.
C. Effective the first payroll period commencing on and after
July 1, 2012, sworn unit members shall pay an additional
2.75% of compensation as and for the individual member's
normal employee PERS contributions required to be paid by
PERS (totaling 6.25% on Employee's Rate). Said payment
shall be made pursuant to Government Code § 20691.
d. Effective the first payroll period commencing on and after
July 1, 2013, sworn unit members shall pay an additional
2,75% of compensation as and for the individual member's
normal employee PERS contributions required to be paid by
PERS (totaling 9.0% on Employee's Rate). Said payment
shall be made pursuant to Government Code § 20691.
3. The City's contract with PERS shall also provide for-
a. A 3% @ 50 retirement formula pursuant to the provisions of
Section 21252.01 of the California Government Code
(subject to the Amendment described in Section 5, below.)
b. The military buy -back provisions pursuant to Section
20930.3 of the California Government Code and the highest
year benefit pursuant to Section 20042.
C. The Level 4 1959 Survivors Benefits.
d. The PERS pre- retirement option settlement 2 death benefit
(Section 21548) for miscellaneous and safety members.
NLI
4. To the extent during the term of this Memorandum of
Understanding, that the City pays a portion of the normal PERS
contributions of members, said payments shall be reported to
PERS as special compensation as is authorized by Government
Code §20636(c)(4).
Payment by any unit member of the individual member's normal
employee PERS contributions required to be paid by PERS, shall
not be reported to PERS as special compensation as was
authorized by Government Code § 20636(c)(4) or by any other
authority.
5. All employees hired following City Council adoption of this 2012-
2014 Memorandum of Understanding and implementation of
enabling contract amendment(s) with CalPERS, whenever those
amendment(s) shall be made, shall be subject to the following
retirement benefits.
a. Safety personnel — the 3% at 55 retirement formula with the
retiree's annuity being calculated based upon the
employee's compensation earnable during the highest paid
consecutive thirty -six (36) month period preceding the
effective date of retirement.
b. Miscellaneous personnel — the 2% at 60 retirement formula
with the retiree's annuity being calculated based upon the
employee's compensation earnable during the highest paid
consecutive thirty -six (36) month period preceding the
effective date of retirement.
C. All such hirees shall individually pay 100% of the statutorily
mandated member normal employee PERS contribution.
d. Unless specifically modified herein, said newly hired
employees shall be subject to other then -existing City-PERS
contract provisions.
6. Safety Member Government Code §20516 Cost Sharing.
Effective on July 1, 2013 or as soon thereafter as is reasonably
possible, the City shall amend its contract with PERS to provide for
a Government Code Section 20516(a) authorized cost sharing by
safety unit members of the cost of optional retirement benefits. The
Section 20516(a) contract amendment shall provide for all safety
unit members to participate in cost sharing by a contribution of
3.1% of member compensation towards the current service cost of
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benefits. This 3.1% cost sharing contribution shall be treated as
normal member PERS contributions to the extent mandated by
statute.
However, the parties acknowledge that implementing the
Government Code § 20516(a) PERS contract amendment as to all
unit safety members is contingent upon the cost sharing
contribution being uniform with respect to all local police officers
within the City and /or to compliance with any and all other
provisions as may be mandated by statute and /or PERS.
(Compliance with the requirement of uniform contribution with
respect to all local police officers, will require a future agreement
with the Newport Beach Police Management Association which is in
accord with the cost sharing agreement of the Newport Beach
Police Association.)
The parties acknowledge that compliance with the Section
20516(a) "uniform contribution" requirement within the classification
of all local police officers, is not a certainty and may not be possible
at the time of adoption of this 2012 -2014 MOU. The parties further
acknowledge that implementation of a Section 20516(a) PERS
contract amendment is contingent upon PERS determining that all
conditions precedent to a Section 20516(a) contract amendment
have been met.
Therefore, the parties acknowledge that implementing a
Government Code § 20516(a) PERS contract amendment as to
unit safety members will entail the passage of an unspecified period
of time and in fact, may not be approved by PERS. Therefore, the
parties further agree that If a Section 20516(a) PERS contract
amendment is not implemented effective July 1, 2013, the parties
shall effective July 1, 2013, utilize Government Code § 20516(f) to
effectuate the 3.1% safety member cost sharing contribution.
Implementation of cost sharing pursuant Section 20516(f) shall
remain in full force and effect unless or until a Section 20516(a)
contract amendment is approved by PERS. To the extent
authorized by the IRS and /or Franchise Tax Board, Section
20516(f) cost sharing shall be implemented through pre -tax payroll
deductions.
Finally, f for any reason unit safety member cost sharing is not
authorized by either Section 20516(a) or (f), then effective
concurrent with either disallowance by PERS of such cost sharing
or a Superior Court judgment being rendered disallowing cost
sharing pursuant to Section 20516(a) or (f), the above Section
2.A(f) 3.1% base salary increase shall be immediately terminated
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and the parties shall reconvene the meet and confer process
confined to the issue of a replacement for the 3.1% cost sharing
and 3.1% base salary increase.
Attached to this Memorandum of Understanding as Exhibit 1 is a
March 1, 2012 letter from PERS Senior Pension Actuary, Kerry
Worgan. Based upon the representations made in Exhibit 1, it is
the agreement of the parties that unless and /or until modified
pursuant to the meet and confer process or as mandated by law,
these designated safety member cost sharing contributions shall
continue until the August 26, 2020 "expiration date" designated in
Exhibit 1 and shall then concurrently revert to the amount of
2.142% on August 26, 2020, unless and /or until said amount is
modified pursuant to the meet and confer process and /or
requirements of law.
7. The parties further agree and acknowledge that if during the term of
the MOU, State statutory or other requirements of law change to
mandate modifications to substantive retirement benefits and /or the
mariner of funding such benefits, the parties shall promptly
reconvene the meet and confer process in order to address the
impact of any such mandatory statutory or other changes in the
law. MOU changes which are required in order to bring the
Agreement into conformance with mandatory statutory or other
requirements, shall be implemented concurrent with the effective
date of said statutory/other changes of law, regardless of the
impact - related meet and confer process having been convened or
completed.
8. Percent of retirement funding amount to be paid by safety
members.
The CalPERS safety retirement defined benefit plan is funded by
CalPERS mandated employer contributions based on a percentage
of payroll (and statutorily mandated employee member
contributions, as well.) The combined employer and member
contribution percentages constitute the cost of funding the safety
retirement plan. Effective concurrent with implementation of the
above July 1, 2013 safety member payment of 9% of compensation
as and for the individual member's normal employee PERS
contributions, unit members who are safety employees shall be
funding 26.5% of the cost of the safety retirement plan. (The 26.5%
amount is the result of adding the July 1, 2013 9% normal member
contribution to the above described 3.1% employee organization
agreement that its safety members shall pay 3.1% of the employer
cost of retirement funding, pursuant to Government Code § 20516.)
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The safety member funding of 26.5% of the cost of the retirement
plan shall remain in full force and effect on and after July 1, 2013,
subject to the mandate that maintenance of the 26.5% member
funding of the retirement cost shall be limited to an increase or
decrease in Government Code § 20516 employee cost sharing of
2.0 %. For example, maintenance of 26.5% employee retirement
funding rate shall result in a maximum Government Code § 20516
employee cost sharing of 5.1% and a minimum of 1.1 %. In the
event that compliance with the above 26.5% member funding of
retirement cost would result in member funding an excess any
statutory or other legal limitations on such funding, each affected
employee shall fund the maximum amount (not to exceed 26.5%
plus or minus 2 %) allowed by statute or other legal authority.
E. Retiree Medical Benefit
1, Background
In 2005, the City and all Employee Associations agreed to replace the
previous "defined benefit" retiree medical program with a new "defined
contribution" program. The process of fully converting to the new program
will be ongoing for an extended period. During the transition, employees
and (then) existing retirees have been administratively classified into one
of four categories. The benefit is structured differently for each of the
categories. The categories are as follows:
a. Category 1 - Employees newly hired after January 1, 2005.
b. Category 2 -Acti ve employees hired prior to January 1,
2005, whose age plus years of service as of January 1, 2005
was less than 50 (46 for public safety employees).
C. Category 3 - Acti ve employees hired prior to January 1,
2005, whose age plus years of service was 50 or greater (46
for public safety employees) as of January 1, 2005.
d. Category 4 - Employees who had already retired from the
City prior to January 1, 2005, and were participating in the
previous retiree medical program.
2. Program Structure
This is an Integral Part Trust (IPT) Medical Expense Reimbursement
Program Plan (MERP).
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a. For employees in Category 1, the program is structured as
follows:
Each employee will have an individual MERP account for
bookkeeping purposes, called his or her "Employee Account." This
account will accumulate contributions to be used for health care
expense after separation. All contributions to the plan are either
mandatory employee contributions or City paid employer
contributions, so they are not taxable to employees at the time of
deposit. Earnings from investment of funds in the account are not
taxable when posted to the account. Benefit payments are not
taxable when withdrawn, because the plan requires that all
distributions be spent for specked 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 151
based on status as of December 315 of the prior year). Effective
January 2008, this contribution will increase to $2.50 per month.
Part C contributions (leave settlement as determined by
Association):
The Association will determine the level of contribution for all
employees it represents, subject to the following constraints. All
employees within the Association must participate at the same
level, except that Safety members and Non - safety members within
an Association may have different levels. The participation level
should be specified as a percentage of the leave balance on hand
in each employee's leave bank at the time of separation from the
City.
For example, if the Association wishes to specify 50% of the leave
balance as the participation level, then each member leaving the
City, or cashing out leave at any other time, would have the cash
equivalent of 50% of the amount that is cashed out added to the
MERP, on a pre -tax basis. The remaining 50% would be paid in
cash as taxable income. Individual employees would not have the
option to deviate from this breakout.
The Association has decided to participate in Part C contributions
at the level of zero percent (0 %) for Flex/Vacation Leave and zero
30
percent (0 %) for Sick Leave. This amount may be changed, on a
go forward basis, as part of a future meet and confer process.
However, the participation level must be the same for all employees
within the Association except that Safety members and Non - safety
members within an Association may have different levels.
Additionally, the purpose and focus of these changes should be
toward long -term, trend type adjustments. Due to IRS restrictions
regarding "constructive receipt," the City will impose restriction s
against frequent spikes or drops that appear to be tailored toward
satisfying the desires of a group of imminent retirees.
Spillover pay is not eligible for Part C contributions.
Nothing in this section restricts taking leave for time off purposes.
Sick leave balances may also be included in the MERP Part C
contributions, but only to the extent and within all the numeric
parameters specified in the Employee Policy Manual. Section
11.21 of the Manual contains a schedule which specifies the
amount of sick leave that can be 'bashed 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
Rem from vacation/flex leave participation, and thresholds must be
separately idenfified by the Association.
Part A contributions may be included in PERS compensation. Part
B and Part C contributions will not be included in PERS
compensation.
Part A contributions begin upon enrollment in the program and are
credited to each MERP Employee Account each pay period.
Eligibility for Part B contributions is set at five years of vested City
employment. At that time, the City will credit the first five years
worth of Part B contributions into the Employee Account (interest
does not accrue during that period). Thereafter, contributions are
made bi- weekly. Part C deposits, if any, will be made at the time of
employment separation.
Each Employee has a right to reimbursement of medical expenses
(as defined below) from the Plan until the Employee Account
balance is zero. This right is triggered upon separation. If an
employee leaves the City prior to five years employment, only the
Part A contributions and Part C leave settlement contributions, if
any, will be in the MERP Employee Account. Such an employee
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will not be entitled to any Part B contributions. The exception to
this is a full -time employee, participating in the program, who
leaves the City due to industrial disability during the first five years
of employment. In such cases, the employee will receive exactly
five years worth of Part B contributions, using the employee's age
and compensation at the time of separation for calculation
purposes. This amount will be deposited into the employee's
MERP account at the time of separation.
Distributions from MERP Employee Accounts are restricted to use
for health insurance and medical care expenses after separation,
as defined by the Internal Revenue Code Section 213(d) (as
explained in IRS Publication 502), and specified in the Plan
Document. In accordance with current IRS regulations and
practices, this generally includes premiums for medical insurance,
dental insurance, vision insurance, supplemental medical
insurance, long term care insurance, and miscellaneous medical
expenses not covered by insurance for the employee and his or her
spouse and legal dependents — again only as permitted by IRS
Publication 502. Qualification for dependency status will be
determined by guidelines in IRC 152. If used for these purposes,
distributions from the MERP accounts will not be taxable. Cash
withdrawal for any other purpose is prohibited. Under recent IRS
Revenue Ruling 2005 -24, any balance remaining in the Employee
Account after the death of the employee and his or her spouse
and /or other authorized dependents (if any) must be forfeited. That
particular MERP Employee Account will be closed, and any
remaining funds will become general assets of the plan.
The parties agree that the City's Part B contributions during active
employment constitute the minimum CalPERS participating
employer's contribution towards medical insurance after retirement.
The parties also agree that, for retirees selecting a CalPERS
medical plan, or any other plan with a similar employer contribution
requirement, the required City contribution will be withdrawn from
the retiree's MERP account.
b. For employees in Category 2, the program is the same as for
those in Category 1, with the following exception:
In addition to the new plan contributions listed above, current
employees who fully convert to the new plan will also receive a
one -time City contribution to their individual MERP accounts that
equates to $100 per month for every month they contributed to the
previous "defined benefit' plan, to a maximum of 15 years (180
months). This contribution will be made only if the employee retires
32
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from the City and at the time of retirement. No interest will be
earned in the interim.
Employees in Category 2 who had less than five years service with
the City prior to implementation of the new program will only
receive Part B contributions back to January 1, 2006 when they
reach five years total service.
C. For employees in Category 3, the program is the same as for
those in Category 2, with the following exception:
For employees in this category, the City will make no Part B
contributions while the employees are still in the active work force.
Instead, the City will contribute $400 per month into each of their
MERP accounts after they retire from the City, to continue as long
as the employee or spouse is still living.
Each employee will contribute a flat $100 per month to the plan for
the duration of their employment to partially offset part of this
expense to the City. The maximum benefit provided by the City
after retirement is $4,800.00 per year, accruing at the rate of
$400.00 per month. There is no cash out option for these funds,
and they may not be spent in advance of receipt.
Employees in this category will also receive an additional one -time
City contribution of $75 per month for every month they contributed
to the previous plan prior to January 1, 2006, up to a maximum of
15 years (180 months). This contribution will be made to the MERP
account at the time of retirement, and only if the employee retires
from the City. No interest will be earned in the interim.
d. For employees (retirees) in Category 4, the structure is very
similar to the previous retiree medical program except that
there is no cost share requirement, and the $400 Cif
contribution after retirement can be used for any IRS
authorized purpose not lust City insurance premiums.
Effective July 1, 2006, a MERP account has been opened for each
retiree in this category, and the City will contribute $400 per month
to each account as long as the retiree or spouse remains living.
For existing NBPA retirees in this category, the $400 was increased
to $450 effective July 1, 2006. The NBPA and Police Management
Association have agreed to reimburse the City for half of the cost of
this increase, on an ongoing basis. To that end, the City will
33
invoice NBPA at the end of each quarter for half the actual cost of
this increase during the previous three months.
3. Administration
Vendors have been selected by the City to administer the program.
The contract expense for program -wide administration by the
vendor will be paid by the City. However, specific vendor charges
for individual account transactions that vary according to the
investment actions taken by each employee, such as fees or
commissions for trades, will be paid by each employee.
The City's Deferred Compensation Committee, or its successor
committee, will have the authority to determine investment options
that will be available through the plan.
4. Value of Benefit
For all purposes, including compensation comparisons, the Retiree
Medical Program shall be valued at 1% of salary on which PERS
retirement is based (Part A); plus .25% of other compensation (Part
B).
F. City Contribution to PORAC Retiree Medical Trust (RMT)
Effective the first payroll period starting on or after January 1, 2013, the
City shall contribute $100.00 per month, per unit member to the PORAC
Retiree Medical Trust. Said City contributions shall be made through pre-
tax payroll deductions in the $100.00 uniform amount for all unit
employees. At no time shall the City be liable for administering the
PORAC RMT, paying fees towards it, remedying or covering any losses
by it, or assuming any of the PORAC RMT's liabilities or legal obligations.
In the event the City is required to pay or withhold payroll taxes on
employee contributions, the parties shall immediately meet and confer in
good faith to attempt to implement equitable adjustments to the
contributions referenced herein. In the event that the City finds no
equitable remedies or adjustments, City may discontinue the contribution.
In the even the PORAC RMT ceases to operate, the Association shall
designate an alternate retiree medical vehicle to which the City
contribution shall be made, with said contribution being conditioned upon
maintenance of all pre -existing terms and conditions existing during
operation of the PORAC RMT.
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G. Tuition Reimbursement
NBPA members attending accredited community colleges, colleges, trade
schools or universities may apply for reimbursement of one hundred
percent (100 %) of the actual cost of tuition, books, fees or other student
expenses for approved job - related courses- Beginning July 1, 2012, the
maximum tuition reimbursement for both sworn and non -sworn personnel
shall be $1,400 per fiscal year.
H. Physical Conditioning Equipment/Apparel
City has acquired fitness equipment for use by members in maintaining
physical fitness. City shall budget $5,000 -00 per each calendar year for
the maintenance, repair, improvement, or replacement of fitness
equipment. Any purchase of new equipment shall be subject to the
concurrence of the Department. All exercise facilities and equipment will
be available to all members of the department.
SECTION 5. - Miscellaneous Provisions
A. Reductions in Force /Layoffs
The provisions of this section shall apply when the City Manager determines that
a reduction in the work force is warranted because of actual or anticipated
reductions in revenue, reorganization of the work force, a reduction in municipal
services, a reduction in the demand for service or other reasons unrelated to the
performance of duties by any specific employee. Reductions in force are to be
accomplished, to the extent feasible, on the basis of seniority within a particular
Classification or Series and this Section should be interpreted accordingly.
1. Definitions
a. "Layoffs" or "Laid off' shall mean the non - disciplinary termination of
employment.
b. "Seniority" shall mean the time an employee has worked in a
Classification or Series calculated from the date on which the
employee was first granted permanent status in their current
Classification or any Classification within the Series, subject to the
following:
i. Credit shall be given only for continuous service subsequent
to the most recent appointment to permanent status in the
Classification or Series;
35
ii. Seniority shall include time spent on industrial leave, military
leave and leave of absence with pay, but shall not include
time spent on any other authorized or unauthorized leave of
absence.
C. "Classification" shall mean one or more full time positions identical
or similar in duties and embraced by a single job title authorized in
the City budget and shall not include part—time, seasonal or
temporary positions. Classifications within a Series shall be ranked
according to pay (lowest ranking, lowest pay).
d. "Series" shall mean two or more Classifications within a
Department which require the performance of similar duties with the
higher ranking Classifications) characterized by the need for less
supervision by superiors, more difficult assignments, more
supervisory responsibilities for subordinates. The City Manager
shall determine those Classifications which constitute a Series.
e. "Bumping Rights ", 'Bumping" or "bump" shall mean the right of an
employee, based upon seniority within a series, to displace a less
senior employee in a lower Classification within the Series. No
employee shall have the right to Bump into a Classification for
which the employee does not possess the minimum qualifications
such as specialized education, training or experience,
2. Procedures
In the event the City Manager determines to reduce the number of
employees within a Classification, the following procedures are applicable:
a. Temporary and probationary employees within any Classification
shall, in that order, be laid off before permanent employees.
b. Employees within a Classification shall be laid off in inverse order
of seniority;
C. An employee subject to layoff in one Classification shall have the
right to Bump a less senior employee in a lower ranking
Classification within a Series. An employee who has Bumping
Rights shall notify the Department Director within three (3) working
days after notice of layoff of his /her intention to exercise Bumping
Rights.
d. In the event two or more employees in the same Classification are
subject to layoff and have the same seniority, the employees shall
be laid off in inverse order of their position on the eligibility list or
36
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lists from which they were appointed. In the event at least one of
the employees was not appointed from an eligibility list, the
Department Director shall determine the employee(s) to be laid off.
3. Notice
Employees subject to layoff 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.
4. Re— Employment
Permanent and probationary employees who are laid off shall be placed
on a Department re—employment list in reverse order of layoff. The laid off
former employee shall remain on the re- employment list for not to exceed
two (2) years from the date of layoff. In the event a vacant position occurs
in the Classification which the employee occupied at the time of layoff, or
a lower ranking Classification within a Series, the employee at the top of
the Department re—employment list shall have the right to appointment to
the position, provided, he or she reports to work within seven (7) days of
written notice of appointment. Notice shall be deemed given when
personally delivered to the employee or deposited in the U.S. Mail,
certified, return receipt requested, and addressed to the employee at his
or her last known address. Any employee shall have the right to refuse to
be placed on the re—employment list or the right to remove his or her
name from the re—employment list by sending written confirmation to the
Human Resources Director.
5. Severance Pay
Permanent employees who are laid off shall, as of the date of layoff,
receive one week severance pay for each year of continuous service with
the City of Newport Beach, but in no case to exceed ten (10) weeks of
severance compensation.
B. Work Schedules
Nothing contained herein is intended to abridge management's right to schedule
work to meet the Police Department's needs of providing services in an efficient
and safe manner. Management recognizes its obligations under the Meyers-
Milias -Brown Act to meet and confer before making any substantive changes to
work schedules that impact an employee's conditions of employment.
37
d.? l
I . Substantive Work Schedule Modifications
Newport Beach Police Department currently has available a variety of
work schedules including 5/8, 3/12, 9181 and 4110 schedules. Except in
the case of emergency, prior to moving any employee or group of
employees from one work schedule to another (for example from a 9/81 to
a 3/12 schedule), the Department shall notify, and upon request, meet and
confer with the Association in advance of any schedule change. If an
emergency prohibits meeting and conferring prior to the schedule change,
the Department shall meet and confer with the Association as soon as is
reasonably possible after the schedule change.
2. Non - Substantive Schedule Modifications
In the event of any non - substantive change to an employee's work
schedule (changes in starting times, days off, etc), Management agrees to
give as much advance notice of said change as possible and to give
reasonable regard to the needs of the employees to make adjustments to
their personal schedules and commitments related to the change in work
schedules.
3. Transfers
Transferring an employee to an assignment with a different work schedule
shall not be considered a change to modified work schedules and shall not
obligate Management to meet and confer over said change.
C. Seniority
Definition and Policy
In order to clarify "seniority" practices, the following definition and policy
for "seniority" determinations are adopted effective the date of this
Agreement. "Seniority" position among members belonging to the same
classification and determined prior to the date of this Agreement shall not
change, regardless of the method of determination.
a. Unless otherwise specified, for purposes of employment practices
and vacation selection in which "seniority" is a consideration,
"seniority" is defined and determined as the period of time of
continuous full time employment within a classification.
b. Determination of seniority date upon promotion or demotion of full
time employees:
38
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i. An employee promoted into any higher classification shall
obtain their seniority date based upon their date of
promotion, relative to others in the classification into which
the employee promotes.
ii. An employee who voluntarily or involuntarily demotes into
any lower classification shall retain the oldest seniority date
from any prior full time classification from which they
promoted or to which they are re- classified.
C. Part time employees have no seniority rights, and any full time
employee who resigns their full time position and accepts a part
time appointment shall forfeit any seniority, even upon re-
appointment to a full time position.
d. Nothing in this definition is intended to affect any other employment
right or consideration that may be based upon total years of
service, initial appointment date, or any other date of hire or change
in employment status.
e. In the event there is a conflict between members of a classification
hired on the same day, seniority position shall be determined by
order of hire based upon issuance of Employee ID numbers.
f. For the class of police officer, seniority is determined based upon
the date of appointment as a police officer, not date of hire as a
police recruit.
2. Nothing contained herein is intended to abridge management's right to
schedule employees to work or deny leave requests that management
feels will interfere with the efficient running of the Police Department or
present a safety hazard to employees or the community.
The Department shall continue its practice of allowing employees to sign
up for vacations, shifts and days off by seniority. The Department shall
have the right to deviate from seniority in shift preference selection as
necessary to meet training needs, train probationers, separate employees,
meet specialized qualification needs, and /or to correct experience
imbalances in accordance with existing practice. In 'the event
Management wishes to propose substantive changes to the existing
practice of sign -up for vacations, shifts and days off by seniority, it shall
give notice to the Association and meet and confer to seek mutually
agreeable solutions and /or remedies. In the event that a mutually
agreeable solution or remedy is not found, Management may deviate from
the prior seniority criteria to the extent necessary to meet operational or
safety needs.
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va
D. Grievance Procedure
1. Definition
The term "grievance" means a dispute between NBPA or any member and
the City regarding the interpretation or application of rules or regulations
governing the terms and conditions of employment, any provision of the
Employee Policy Manual, any provision of Resolution No. 7173, or this
MOU.
2. Guidelines
Any NBPA member may file a grievance without fear of retaliation or any
adverse impact on any term or condition of employment.
a. A grievance shall not be filed to establish new rules or regulations,
change prevailing ordinances or resolutions, nor circumvent
existing avenues of relief where appeal procedures have been
prescribed.
b. An employee may be self— represented or represented by one other
person.
C. An employee and any representative shall be given notice of the
time and place of any grievance proceeding, the opportunity to be
present at such proceedings, a copy of any written decision or
communication to the employee concerning the proceedings, and
any document directly relevant to the proceedings.
d. All parties shall engage in good faith efforts to promptly resolve the
grievance in an amicable manner. The time limit specified may be
extended upon mutual agreement expressed in writing.
e. The procedures in this MOU represent the sole and exclusive
method of resolving grievances.
3. Procedure for NBPA Members
Step 1 — The employee shall orally present the grievance to his or
immediate supervisor within fifteen (15) calendar days after the member
knew, or in the exercise of reasonable diligence should have known, the
act or events upon which the grievance is based. The immediate
supervisor shall conduct any appropriate investigation and meet with the
employee no more than fifteen (15) calendar days after presentation of the
grievance. The employee shall be given at least 24 hours notice of the
40
meeting. The meeting shall be informal, and the employee may have a
representative present. Any employee not satisfied with the decision of
his or her immediate supervisor may proceed to Step 2.
Step 2 — If an employee is dissatisfied with the decision of his or her
immediate supervisor, the employee may proceed to Step 2 by submitting
a written grievance to the supervising captain. Any employee dissatisfied
with the decision of his or her immediate supervisor may submit a written
grievance to the supervising Captain. The written grievance shall be filed
within seven (7) calendar days following receipt of the immediate
supervisor's decision. The written grievance must contain a complete
statement of the matters at issue, the facts upon which the grievance is
based, and the remedy requested by the employee. The supervising
Captain shall meet with the employee and any representative in an effort
to resolve the grievance. The meeting shall be scheduled no more than
fifteen (15) calendar days following receipt of the appeal unless deferred
by the consent of both parties. The Captain shall provide the employee
with a written decision on the appeal within fifteen (15) calendar days after
the meeting.
Step 3 — Appeal to Chief of Police. Any employee dissatisfied with the
decision of the supervising captain may proceed to Step 3 by submitting a
written appeal to the Chief of Police. The written appeal must be fled with
the Chief of Police within seven (7) calendar days following receipt of the
supervising captain's decision. The written appeal must contain a
complete statement of the matters at issue, the facts upon which a
grievance is based, and the remedy requested by the employee. The
Chief of Police shall meet with the employee and any representative in an
effort to resolve the grievance. The meeting shall be informal and the
discussion should focus on the issues raised by the grievance. The
meeting shall be scheduled no more than fifteen (15) calendar days
following receipt of the appeal unless deferred by the consent of both
parties. The Chief of Police shall provide the employee with a written
decision on the appeal within fifteen (15) calendar days after the meeting.
Step 4 — Appeal to City Manager. In the event the employee is
dissatisfied with the decision of the Chief of Police, the employee may
proceed to Step 4 by submitting a written appeal of the decision to the City
Manager. The written appeal must be filed within seven (7) calendar days
following receipt of the Police Chiefs decision. The written appeal shall
contain a complete statement of the matters at issue, the facts upon which
the grievance is based, the decisions of the supervising captain and Chief
of Police, and the remedy requested by the employee. The City Manager
shall meet with the employee and his or her representative in an effort to
resolve the grievance and to receive any additional information the
employee or department may have relative to the matter. The meeting
41
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shall be scheduled no more than fifteen (15) calendar d ays following
receipt of the appeal unless deferred by the consent of both parties. The
City Manager shall provide the employee with a written decision within
fifteen (15) calendar days after the meeting. The decision of the City
Manager shall be final.
4. Association Grievance
A grievance affecting more than one NBPA member may be fled by
NBPA on behalf of the affected employees with the Chief of Police. The
grievance shall contain a complete statement of the matters at issue, the
facts upon which the grievance is based, and the remedy requested by
NBPA. The Chief of Police shall meet with NBPA representatives within
fifteen (15) calendar days following receipt of the grievance and provide a
written decision on the grievance within fifteen (15) calendar days after the
meeting. In the event NBPA is dissatisfied with the decision of the Chief
of Police, it may appeal to the City Manager by following the procedures
outlined in Step 4 of the procedure applicable to individual employees.
In the event NBPA is dissatisfied with the decision of the City Manager, it
may appeal the decision to the Civil Service Board by filing a written notice
of appeal within fifteen (15) calendar days after receipt of the decision.
E. Pre - Hearing Briefs
Each party is entitled to the other party's pre- hearing brief, if any.
F. Use of Tobacco Products
All employees hired after January 1, 1999, shall not smoke or use any tobacco
products at any time while on, or off duty. Employees shall be required to sign
an agreement consistent with this section. Violation of this agreement will
subject the employee to disciplinary action. Smoking an occasional celebration
cigar (birth of a child, etc.) shall not be considered a violation of this policy.
G. Direct Deposit
All Unit employees shall participate in the City's Direct Deposit Program.
H. Compensation Study
Should the City conduct a classification /compensation study involving any police
department classifications, it will consult with the Association on all aspects of the
study, including study design, implementation, and findings. Any compensation
changes recommended by the study will be subject to the meet and confer
process.
CV:
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Contract Negotiations
The parties agree that, if NBPA submits preliminary requests for changes in
wages, fringe benefits and other terms and conditions of employment earlier than
90 days prior to expiration of this MOU (as provided in Section 18. Timetable for
Submission of Requests of the Employer - Employee Relations Resolution), the
parties will begin negotiations promptly, with the objective of reaching agreement
by July 1, 2014.
Signatures are on the next page.
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�`C
ATTEST:
m
Leilani Brown
City Clerk
Executed this _ th day of June, 2012:
APPROVED AS TO FORM:
A �-- C �y-1i �-
Aaron Harp, City Attorney
NEWPORT BEACH POLICE ASSOCIATION
m
Michael O'Bierne, President
CITY OF NEWPORT BEACH
1A
CC!
Nancy Gardner, Mayor
California Puhlic Employees' Retirement System
Actuarial Office
P.O. Box 942701
Sacramen!o, CA 94229 -2701
TTY: (916j 7953240
�11 "L'1V i888) 2257377 Phone (918) 79527nn lax
1� 1V w .catpors.ca.gov
March 1. 2012
Mr. Dan Matusiev:icz
City of Newport Beach
P.O. Box 1768
Newport Beach, Ca 92658-8915
Dear Mr. Matusiewicz:
This letter gives information on the maximum amount of employee cost share for your
Safety Plan. Current Public Employee Retirement Law allows permanent cost sharing
of the normal cost (NC) and 20 years of cost sharing due to the increase in unfunded
liability (UL) from some past amendment. The 20 years of cost sharing due to the
increase in unfunded liability begins from the effective date of the contract amendment.
The tables that follow lay out all the necessary information for the maximum amount of
cost sharing:
Remember, that these are maximum cost share amounts. Actual cast share amounts
can be anything up to the amounts listed above. Should you have any questions, I can
be reached at 916- 795-0003.
Sincerely.
Kerry Worgan, FSA, FCIA, MAAA
Senior Pension Actuary, CalPERS
EXHIBIT 11
Safety Police Plan
Amendment
3% @ 55
Effective Date
8/26/2000
NC Increase
2.142%
UL Increase
5.096%
Temporary Cost Share
7.238%
Temporary Expiration Date
8/26/2020
Permanent Cost Share
2.142%
Remember, that these are maximum cost share amounts. Actual cast share amounts
can be anything up to the amounts listed above. Should you have any questions, I can
be reached at 916- 795-0003.
Sincerely.
Kerry Worgan, FSA, FCIA, MAAA
Senior Pension Actuary, CalPERS
EXHIBIT 11