HomeMy WebLinkAbout2013-7 - Adopt Memorandum of Understanding with Newport Beach City EmployeesRESOLUTION NO. 2013 -7
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH
ADOPTING A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE
NEWPORT BEACH CITY EMPLOYEES ASSOCIATION
WHEREAS, the City Council of the City of Newport Beach previously adopted
Resolution No. 2001 -50, the "Employer- Employee Relations Resolution," to promote
improved relations and communication between the City of Newport Beach and its
employee associations; and
WHEREAS, the City of Newport Beach previously entered into a Memorandum
of Understanding with the Newport Beach City Employees Association for the period of
July 1, 2010, through June 30, 2012; and
WHEREAS, representatives from the City of Newport Beach and representatives
from the Newport Beach City Employees Association have met and conferred in good
faith and agreed to modify the current Memorandum of Understanding; and
WHEREAS, the City Council of the City of Newport Beach desires to replace the
Memorandum of Understanding between the City of Newport Beach and the Newport
Beach City Employees Association by adopting successor Memorandum of
Understanding.
NOW, THEREFORE, the City Council of the City of Newport Beach does
RESOLVE as follows:
Section 1. Wages, hours, fringe benefits and other terms and conditions
of employment of employees represented by the Newport Beach City Employees
Association shall be provided in accordance with the provisions of the attached
Memorandum of Understanding (Attachment A).
Section 2. The term of the Memorandum of Understanding shall be for 36
months, commencing retroactively to July 1, 2012, and will remain in full force and effect
through June 30, 2015.
Adopted this 22 "d day of January, 2013.
ATTEST: pp ff f
City Clerk
Mayor of the City of Newport Beach
Attachment A
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF NEWPORT BEACH AND
NEWPORT BEACH CITY EMPLOYEES ASSOCIATION
This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU ") is
entered into with reference to the following:
The Newport Beach City Employees Association ( "NBCEA "), a recognized
employee organization, affiliated with the Laborers' International Union of North
America, Local 777 (LIUNA), and the City of Newport Beach ( "City "), a municipal
corporation and charter city, have been meeting and conferring, in good faith, with
respect to wages, hours, fringe benefits and other terms and conditions of
employment.
2. NBCEA representatives and City representatives have reached a tentative
agreement as to wages, hours and other terms and conditions of employment for
the period from July 1, 2012 through June 30, 2015 and this tentative agreement
has been embodied in this MOU.
3. This MOU, upon approval by NBCEA and the Newport Beach City Council,
represents the total and complete understanding and agreement between the
parties regarding all matters within the scope of representation.
SECTION 1. — General Provisions
A. Recognition
In accordance with the provisions of the Charter of the City of Newport
Beach, the Meyers Milias Brown Act of the State of California and the
provisions of the Employer's /Employee Labor Relations Resolution No.
2001 -50, the City acknowledges that NBCEA is the majority representative
for the purpose of meeting and conferring regarding wages, hours and other
terms and conditions of employment for all employees in those
classifications specified in Exhibit "A" or as appropriately modified in
accordance with the Employer /Employee Resolution. All other
classifications and positions not specifically included within Exhibit "A" are
excluded from representation by NBCEA.
B. Duration of Memorandum
Except as specifically provided otherwise, any ordinance, resolution
or action of the City Council necessary to implement this MOU shall
be considered effective as of July 1,2012, This MOU shall remain in
full force and effect until June 30, 2015, and the provisions of this
MOU shall continue after the date of expiration of this MOU in the
event the parties are meeting and conferring on a successor MOU.
2. The terms and conditions of this MOU shall prevail over conflicting
provisions of the Newport Beach City Charter, the ordinances,
resolutions and policies of the City of Newport Beach, and federal
and state statutes, rules and regulations which either specifically
provide that agreements such as this prevail, confer rights which
may be waived by any collective bargaining agreement, or are,
pursuant to decisional or statutory law, superseded by the provisions
of an agreement similar to this MOU.
C. Release Time
Three NBCEA officers designated by the NBCEA shall collectively be
granted 150 hours paid release time maximum, annually, for the
conduct of NBCEA business. Such time shall be exclusive of actual
time spent in collective bargaining and shall be scheduled at the
discretion of the NBCEA officer. Every effort will be made to
schedule this time to avoid interference with City operations.
2. Release time designees shall be identified annually and notice shall
be provided to the City. Release time incurred shall be reported
regularly in the form and manner prescribed by the City.
3. Activities performed on release time shall include representation of
members in rights disputes; preparation for collective bargaining
activities, and distribution of NBCEA written communication in the
work place.
4. In January 2014 and 2015, the City will examine the number of
Release Time hours the Association used the preceding year. If the
Association used in excess of 75% of the hours normally granted
(150), the Association will be granted an additional 30 hours for that
year.
D. Scope
1. All present written rules and current established practices and employees'
rights, privileges and benefits that are within the scope of representation
shall remain in full force and effect during the term of this MOU unless
specifically amended by the provisions of this MOU.
2. The practical consequences of a Management Rights decision on wages,
hours, and other terms and conditions of employment shall be subject to the
grievance procedures.
3. Pursuant to this MOU, the City reserves and retains all of its inherent
exclusive and non — exclusive managerial rights, powers, functions and
authorities ( "Management Rights') as set forth in Resolution No. 2001 -50,
Management Rights include, but are not limited to, the following:
(a) the determination of the purposes and functions of City
Departments,
(b) the establishment of standards of service;
(c) to assign work to employees as deemed appropriate;
(d) the direction and supervision of its employees,
(e) the discipline of employees;
{f) the power to relieve employees from duty for lack of work or
other legitimate reasons;
(g) to maintain the efficiency of operations;
(h) to determine the methods, means and personnel by which
operations are to be conducted;
(i) the right to take all necessary actions to fulfill the
Department's responsibilities in the event of an emergency,
and
{j) the exercise of complete control and discretion over the
manner of organization, and the appropriate technology, best
suited to the performance of departmental functions.
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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. Employee Data and Access
The City shall provide NBCEA a regular list of all unit members including
name, department, and job title. NBCEA designated officers shall be
entitled to solicit membership from new employees at their work site. This
solicitation shall be made from the RELEASE TIME FOR NBCEA
OFFICERS total, and shall be scheduled in a manner that is not disruptive
to departmental operations. Department heads may determine appropriate
times for new employee contact, but they cannot reasonably deny such
contact.
F. Conclusiveness
With the exception of a separate MOU covering retirement issues, this
MOU contains all of the covenants, stipulations, and provisions agreed
upon by the parties. Therefore, for the life of this MOU, neither party shall
be compelled, and each party expressly waives its rights to request the
other to meet and confer concerning any issue within the scope of
representation except as expressly provided herein or by mutual agreement
of the parties. No representative of either party has the authority to make,
and none of the parties shall be bound by, any statement, representation or
agreement reached prior to the execution of this MOU and not set forth
herein.
As provided in the Employer- Employee Relations Resolution No. 2009 -50,
the City shall determine the manner in which City services are to be
provided, including whether the City should provide services directly or
contract out work, including work that is currently being performed by
Association members. In the event the City introduces a plan to outsource
services currently being performed by Association members to achieve
greater efficiency and /or cost savings, and upon request by the Association,
the City shall meet and confer with Association representatives to discuss
the impacts of the City's decision to contract out work. The City shall retain
sole authority to decide whether or not to contract out work, including work
that is currently being performed by Association members. This provision
shall not limit the City's authority to enter into such an agreement for any
City services.
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G
Modifications
Any agreement, alteration, understanding, variation, or waiver or
modification of any of the terms or provisions of this MOU shall not be
binding upon the parties unless contained in a written document executed
by authorized representatives of the parties.
The parties have determined certain contract provisions may be outdated or
inconsistent with policy, charter, or Federal, State or local law. Effective
during the term of the MOU City and Association representatives will review
the contract document with the intent of proposing simplified and
appropriate language, content and formatting.
Agency Shop
Unit employees, by majority vote, have elected for an Agency Shop
provision.
2. The Association shall comply with all statutory and legal
requirements regarding agency shop, should it be approved through
the election process. This will include all requisite procedures for
appeals, record - keeping, establishment of the service fee amount;
designating acceptable charities pursuant to Section 3502.5 of the
Government Code, etc.
3. Complying with agency shop provisions shall not be a condition of
employment. Enforcement shall be the responsibility of the
Association; utilizing appropriate civil procedures. The City will
cooperate with Association efforts to achieve enforcement.
4. The collection of Association dues and/or service fees shall continue
to be handled through the payroll deduction process.
5. The Association and LIUNA agree to defend, indemnify and hold
harmless the City for its action pursuant to this section.
SECTION 2. — Compensation
FA
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Salary
Effective the pay period including January 1, -2013 salaries will be
increased by an amount equal to the increase in the Consumer Price Index
(CPI) Los Angetes/Orange County Urban Wage Earners Index for the 12
month period ending on October 31, 2012 with a minimum 1.5% increase
and a maximum 2.5% increase.
Effective the pay period including January 1, 2014 salaries will be increased
by an amount equal to the increase in the Consumer Price Index (CPI) Los
Angeles/Orange County Urban Wage Earners Index for the 12 month
period ending on October 31, 2013 with a minimum 1.5% increase and a
maximum 2.25% increase.
Effective the pay period including January 1, 2015 salaries will be increased
by an amount equal to the increase in the Consumer Price Index (CPI) Los
AngeleslOrange County Urban Wage Earners Index for the 12 month
period ending on October 31, 2014 with a minimum 1.5% increase and a
maximum 2.0% increase.
Normal Overtime
Definitions
a. Miscellaneous Employee - An employee designated as a
Miscellaneous member of the Public Employees Retirement
System (PERS).
b. Normal Overtime — Normal overtime for Miscellaneous
employees is defined as any scheduled hours worked in
excess of the basic work week. For the purposes of this
section, the basic work week is 40 hours, or as determined by
the Department Director and approved by the City Manager
which occurs between a fixed and regularly recurring period of
168 hours - 7 consecutive 24 hour periods - beginning at 0001
on Saturday and ending at midnight the following Friday.
C' Hours Worked - Hours worked are defined as hours which
employees are required to be performing their regular duties
or other duties assigned by the City.
d. Incidental Overtime - Incidental overtime is any extension of
the basic work shift of less than 1/10 of an hour that is non -
recurrent.
2. Compensation
Overtime for all non - exempt employees shall be paid at one -and-
one -half (112)) times the employee's regular rate of pay. Reporting
of overtime on payroll forms will be as prescribed by the Finance
Director. Incidental overtime is not compensabee.
3. Overtime Pay Calculations During Week Including Holiday(s)
For the purpose of calculating overtime, holidays occurring during
the regular work week will count as time worked. The floating
holiday is excluded from this provision.
C. Standby Duty
1. Defined
a. To be ready to respond immediately to calls for service;
b. To be reachable by telephone;
C. To remain within a specified distance from his /her work
station; and
d. To refrain from activities which might impair the employee's
ability to perform his /her assigned duties.
2. Compensation
Standby duty shall be compensated at the rate of one (1) hour of
overtime compensation for each eight (8) hours of such duty.
Standby duty on holidays shall be compensated at the rate of two (2)
hours of overtime compensation for each (8) hours of standby duty.
Should the employee be required to return to work while on standby
status„ the provisions pertaining to compensation for call -back pay
shall apply for the actual period of time the employee is in a work
status.
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D. Call -Back Duty
1. Defined
Call -back duty requires the employee to respond to a request to
return to his /her work station after the normal work shift has been
completed and the employee has left his /her normal work station.
Those periods of overtime which had been scheduled by the
Department Director prior to the end of the normal work shift are not
considered call -back duty.
2. Compensation
All personnel eligible for overtime pay shall be guaranteed two (2)
hours pay, or pay for one - and - one -half (1 -1/2) times the number of
hours worked, whichever is greater. Reporting of overtime on payroll
forms will be prescribed by the Administrative Services Director,
E. Accumulation of Compensatory Time Off
City employees represented by the NBCEA and classified as non - exempt
may receive compensatory time off, in lieu of cash, as compensation for
overtime hours worked. Compensatory time shall be calculated at the rate
of one - and - one -half hours (1 %2) for each hour of overtime worked beyond
the 40 hour limit of the work week. Compensatory time is to be granted
only when the employer and employee agree that the application of "comp
time" is a desirable substitute for the payment of cash for overtime. Call-
back time may be converted to comp time with supervisor approval.
Employees may accumulate up to eighty (80) hours of compensatory time.
Any hours in excess of eighty (80) will be paid off. Accumulation in excess
of the eighty (80) hours may be approved at the discretion of the
Department Director.
F. Night Shift Differential
Unit members shall receive a night shift differential of $9.00 per hour,
payable for each hour worked after 5:00. Overtime worked as an extension
of an assigned day shift shall not qualify an employee for night shift
differential. The differential pay is paid only for hours actually worked.
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G. Incentive Shift for Library Members
For CEA members in the Library Services Department, the Sunday work
shift will be considered an "incentive" shift. Unit members working on
Sunday who work five hours but less than eight will be paid eight hours
incentive pay at the regular hourly rate. This article is not to be construed
as to impact on other City rules.
H. Court Time
Employees who are required to appear in Court during their off -duty hours
in connection with City business shall receive overtime compensation for
the number of hours they spend in court, with a minimum of two (2) hours of
such compensation.
Acting Pay
NBCEA employees will be eligible to receive "acting pay" only after
completing 80 consecutive hours in the higher classification. Acting pay is
107.5% of the employee's base pay rate.
Once the minimum hours requirement has been satisfied, acting pay will be
granted for all hours worked above 40 hours beginning with the 41St hour
worked in the higher classification.
J. Certificate Pay
Effective January 1, 2013, the Certificate Pay program shall be modified to
eliminate "inactive" certificates and "sunset' certain active certificates.
Employees currently receiving a "sunset" certificate are considered
grandfathered under the program, but no further employees will be eligible;
effective January 1, 2014, the pay for eligible certificates will be converted
from a percentage based benefit to a flat dollar amount. The complete list
of eligible certificates and the corresponding benefit is listed in Exhibit B.
All other procedures associated with Certificate Pay remain in effect.
Upon determination of the Department Director that an employee's ability to
speak, read and /or write in Spanish contributes to the Department providing
better service to the public, the employee shall be eligible to receive one
hundred fifty ($150.00) dollars per month in bi- lingual pay. The certification
process will confirm that the employee is fluent at the street conversational
level in speaking, reading and /or writing Spanish. Employees certified shall
receive bi- lingual pay the first full pay period following certification.
Additional languages may be certified for compensation pursuant to this
section by the Department Director with the concurrence of the Human
Resources Director.
SECTION 3, - Leaves
A. Flex Leave
Members shall accrue Flex eave at the following rates:
Maximum
Years of Continuous Hrs Accrued per Annual Allowable
Service Pay Period Days Balance (hours)
1 but less than 5
5.54
18
432.12
5 but less than 9
6.15
20
479.7
9 but less than 12
6.77
22
528.06
12 but less than 16
7.69
25
599.82
16 but less than 20
831
27
64818
20 but less than 25
8.92
29
695.76
25 and over
9.54
31
744.12
Effective the pay period including January 1, 2013, all unit members shall
accrue Flex leave at the following rates (superseding the rates listed
above):
Maximum
Years of Continuous Hrs Accrued per Annual Allowable
Service Pay Period hours Balance (hours)
1 but less than 5
6.00
156.00
468.00
5 but less than 9
6.61
171.86
515.58
9 but less than 12
723
189.98
563.94
12 but less than 16
8.15
211.90
635.70
16 but less than 20
8.77
228.02
684.06
20 but less than 25
9.38
243.88
731.64
25 and over
10.00
260.00
780.00
During the first six months of full -time employment, new employees shall
not accrue paid leave. At the completion of six months of employment, six
(6) months of accrued flex leave will be placed in the employees account.
Employees who are assigned to an 88 hour schedule per pay period will
accrue time in proportionate amounts.
Note: If an employee becomes sick in the first six months of employment,
the City will advance up to six (6) months of potentially accrued Flex Leave
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time to be used for illnesses only. If employee terminates employment prior
to six months, the employee will repay the City equivalent to the number of
Flex eave days that were advanced to the employee Any Flex Leave time
advanced during the first six months of employment will be subtracted from
the six (6) months of accrual placed in the employees account upon
completion of six months employment.
Effective January 2014 the parties agree to review, via a survey process,
the comparability of Flex leave accrual in relation to parity with other units.
1. Limit on Accumulation
Employees may accrue flex leave up to an accumulated total equal
to seventy eight (78) times the member's bi- weekly accrual rate.
Any flex leave earned in excess of this level will be paid on an hour
for hour basis in cash (spill over pay) at the employee's hourly rate of
pay. Members hired prior to July 1, 1996 shall be paid for earned flex
leave in excess of the maximum permitted accrual at the member's
hourly rate of pay provided that they have utilized at least eighty
(80) hours of flex leave the previous calendar year. Employees
accruing at the 16 years of continuous service level or above shall
be required to use 120 hours of flex leave the previous calendar
year. Employees who have not utilized the required amount of leave
the prior calendar year shall not be eligible to accrue time above the
maximum accrual limit.
Employees first hired, or rehired by the City subsequent to July 1,
1996 shall not be eligible for flex leave spill over pay and shall not be
entitled to accrue flex leave in excess of the flex leave accrual
threshold.
2. Method of Use
Flex leave may not be taken in excess of that actually accrued and in
no case, except for illness, may it be taken prior to the completion of
an employee's initial probationary period.
The Department Director shall approve all requests for flex leave
taking into consideration the needs of the Department, and
whenever possible the seniority and wishes of the employee. Flex
leave may be granted on an hourly basis. Any fraction over an hour
shall be charged to the next full hour.
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8. Vacation /Sick
Due to the full conversion of employees to the Flex leave program, former
Vacation and Sick leave provisions `B" and "C" are hereby removed and
shall referenced exclusively in prior MOUs.
C.. Holiday Leave
Subject to the provisions herein, the following days shall be observed as
paid holidays by all employees in permanent positions and other personnel
whose work assignments, in the judgment of the Department Director
require their presence on the job. For each designated holiday, except the
Floating Holiday, such excepted personnel shall receive an equivalent
number of hours of paid leave or equivalent pay whichever in the judgment
of the Department Director best serves the interest of the Department.
Independence Day
July 4
Labor Day
1st Monday in Sept.
Veteran's Day
November 11
Thanksgiving Day
e Thurs. in November
Friday following Thanksgiving
Christmas Eve
Last "/R of working day
Christmas Day
December 25
New Year's Eve
Last ' /z of working day
New Year's Day
January 1
Washington's Birthday
3` Monday in February
Memorial Day
Last Monday in May
Martin Luther King Day
Td Monday in January
Floating Holiday
July 1'� - 1 day
For 2012 only, the % day Christmas Eve and % day New Year's Eve
holidays will be considered full 8 -hour holidays.
Effective the pay period including January 1, 2013 holidays will be paid
based on the employee's regular work day schedule. For example, if an
employee is on a 9180 schedule and the holiday is observed on a day that
the employee is regularly scheduled to work 9 hours, the employee is
entitled to receive 9 hours of holiday pay. However, if an employee is on a
9180 schedule and the holiday is observed on a day that the employee is
regularly scheduled to work 8 hours, the employee is entitled to receive 8
hours of holiday pay. Employees will receive 8 hours of holiday pay
annually for the Floating Holiday.
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Holidays listed above (except the floating holiday) occurring on a Saturday
shall be observed the preceding Friday. Holidays occurring on a Sunday
shall be observed the following Monday.
Holiday pay will be paid only to employees who work their scheduled
day before and scheduled day after a holiday or are on authorized
leave (e.g, leave that has been reviewed and approved by the
Department Director).
2. Newly hired employees will be eligible to receive full pay for
scheduled holidays, without a waiting period.
D. Bereavement Leave
The necessary absence from duty by an employee having a regular or
probationary appointment, because of the death or terminal illness in
his /her Immediate Family. CEA members shall be entitled to forty (40)
hours of bereavement leave per incident (terminal illness followed by death
is considered one incident). For the purposes of this section, Immediate
Family shall mean an employee's father, mother (including step), brother,
sister, spouse /domestic partner, child, grandparents and the Employee's
spouse's /domestic partner's father, mother, brother, sister, child and
grandparents.
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
leave balance be reduced below one hundred and sixty (160) hours. Hours
sold back will be subject to the Retiree Health Savings Plan Part C
contributions, per Section 4 (F), Retiree Medical. For the term of this MOU
the Association has elected Part C contributions for Flex/Vacation at 0 %,
SECTION 4. — Fringe Benefits
A. Insurance
1. Benefits Information Committee
The City has established a Benefits Information Committee (BIC)
composed of one representative from each employee association
group and up to three City representatives. The Benefits Information
Committee has been established to allow the City to present data
regarding carrier and coverage options, the cost of those options,
appropriate coverage levels and other health programs. The
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purpose of the BIC is to provide each employee group with
information about health insurance /programs and to receive timely
input from associations regarding preferred coverage options and
levels of coverage.
2. Medical Insurance
The City has implemented an IRS qualified Cafeteria Plan. In
addition to the contribution amounts listed below, the City shall
contribute the minimum CalPERS participating employer's
contribution towards medical insurance for employee enrolled in a
CaiPERS medical plan, per Government Code Section 22892,
Employees shall have the option of allocating Cafeteria Plan
contributions towards the City's existing medical, dental and vision
insurance/programs, The City and the Newport Beach City
Employees Association will cooperate in pursuing additional optional
benefits to be available through the Cafeteria Plan.
Unused Cafeteria Plan funds shall be payable to the employee as
taxable cash back. Employees shall be allowed to change
coverages in accordance with plan rules and during regular open
enrollment periods.
Effective the first pay issue in January 2013, the City's contribution
towards the Cafeteria Plan will increase to $1,349 (plus the minimum
CalPERS participating employers contribution).
Effective the first pay issue in January 2014, the City's contribution
towards the Cafeteria Plan will increase to $1,449 (plus the minimum
CaIPERS participating employer's contribution).
Effective the first pay issue in January 2015, the City's contribution
towards the Cafeteria Plan will increase to $1,549 (plus the minimum
CalPERS participating employer's contribution).
NBCEA members who do not want to enroll in any medical plan
offered by the City must provide evidence of group medical
insurance coverage, and execute an opt -out agreement releasing
the City from any responsibility or liability to provide medical
insurance coverage on an annual basis. The maximum cafeteria
allowance provided to employees who execute an opt -out
agreement is $1,249 per month effective January 2013. Employees
hired after adoption of this 2012 -2015 MOU, and who execute an
opt -out agreement, will receive a maximum cafeteria allowance of
$800 per month.
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n
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 SIC.
4, Vision Insurance
The existing or a comparable vision plan shall be maintained as part
of the City's plan offerings as agreed upon by the SIC.
5. Healthcare Reform
The parties recognize that certain State and Federal laws, programs
and regulations, including the Affordable Care Act, may impact future
medical plan offerings. In the event reform measures alter healthcare
coverage options, cost, or other elements of healthcare services that
materially alter the provisions of this MOU, either party may request
to reopen Section 4(a )(2) regarding medical insurance for the
purpose of discussing alternative approaches and proposals to
providing healthcare coverage. in addition, should State or Federal
laws concerning taxation of healthcare benefits change, the parties
agree to meet and discuss the impact of such change.
Additional Insurance Programs
IRS Section 125 Flexible Spending Account
Section 125 of the internal Revenue Code authorizes an employee
to reduce taxable income for payment of allowable expenses such as
child care and medical expenses. An Association member may
request that medical, child care and other eligible expenses be paid
or reimbursed by the Section 125 Plan out of the employee's
account. The base salary of the employee will be reduced by the
amount designated by the employee for reimbursable expenses.
2. Disability Insurance
The City shall provide Short -term (STD) and Long -term (LTD)
disability insurance to all regular full time employees with the
following provisions:
M
Weekly Benefit 66.67% gross weekly wages
Maximum Benefit $10,0001month
Minimum Benefit $15 (STD) and $100 (LTD)
Waiting Period 30 Calendar Days (STD)
160 Calendar Days (LTD)
Employees shall not be required to exhaust accrued paid leaves
prior to receiving benefits under the disability insurance program.
Employees may not supplement the disability benefit with paid leave
once the waiting period has been exhausted.
Concurrent with the commencement of this program, employees
assumed responsibility for the payment of the disability insurance
cost in the amount of one (1.0 %) percent of base salary.
Simultaneously, the City increased base wages by one (1.0 %)
percent.
3. Life Insurance
The City shall provide life insurance for all regular full -time
employees in $1,000 increments equal to one times the employee's
annual salary up to a maximum of $50,000. At age 70 the City -paid
life insurance is reduced by 50% of the pre -70 amount. This amount
remains in effect until the employee terminates from City
employment.
C. Employee Assistance Program
City shall provide an Employee Assistance Program (EAP) through a
properly licensed provider. Association members and their family members
may access the EAP subject to provider guidelines.
D. Retirement Benefit
1. Retirement Formula
The City contracts with PERS to provide retirement benefits for its
employees. Pursuant to prior agreements and state mandated
reform, the City has implemented first, second and third tier
retirement benefits:
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Tier 1: For employees hired by the City on or before November 23,
2012, the retirement formula shall be the 2.5% @ 55 calculated on
the basis of the best/single highest year.
Tier 2: For employees first hired by the City between November 24
and December 31, 2012, or hired on or after January 1, 2013 and
are current members of the retirement system, as defined in Public
Employees Pension Reform Act, the retirement formula shall be 2%
@ 60 calculated on the average 36 highest month's salary.
Tier 3: For employees first hired by the City on or after January 1,
2013, and who do not meet the Tier 2 criteria, the retirement formula
shall be 2.0% 62 calculated on the average 36 highest month's
salary.
2. Employee Contributions
The Association has agreed to share in the rising cost of pension
obligations. Under the terms of this 2012 -15 MOU, unit members will
contribute additional amounts toward the PERS retirement benefit, to
the extent permissible by law. Should any provision be deemed
invalid, the City and Association agree to meet for the purpose of
renegotiating employee retirement contributions. At the conclusion
of this contract employees in each Tier will contribute 12.35% of
pensionable pay toward the retirement benefit, representing a nearly
50% share in the total cost.
Employee retirement contributions that are in addition to the normal
PERS Member Contribution shall be calculated on base pay, special
pays, and other pays normally reported as `PERSable"
compensation, and will be made on a pre -tax basis through payroll
deduction, to the extent allowable by the government tax code, it is
recognized that these payments will not be reported to PERS as
contributions toward either the member or employer rate and fall
outside the scope of cost- sharing" as provided under GC Section
20516(o.
Tier 1 Employees: Effective upon MOU adoption, 1) Employees will
continue to contribute 5.58% toward the Member Contribution and
2.42% toward the Employer Contribution for a total of 8 %, as
provided in prior agreement, and 2) the City will eliminate reporting
the value of the 2.42% Employer Paid Member Contribution (EPMC)
as special compensation.
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Effective the pay period including June 30, 2013, Tier 1 employees
shall contribute an additional 1.45% of pensionable pay toward
retirement costs pursuant to Government Code Section 20516 (f), for
a total of 9.45 %. Effective the pay period including June 30, 2014,
Tier 1 employees shall contribute an additional 1.45% of pensionable
pay toward retirement costs for a total of 10.90 %; effective the pay
period including June 30, 2015, Tier 1 employees shall contribute an
additional 1.45% of pensionable pay toward retirement costs, for a
total employee contribution of 12.35 %.
Tier 2 Employees: Effective upon MOU adoption, employees will
continue to contribute the full 7.0% statutory PERS Member
Contribution. Effective the pay period including June 30, 2013 Tier 2
employees shall contribute an additional 2.45% of pensionable pay
toward retirement costs pursuant to Government Code Section
20516(1), for a total of 9.45 %. Effective the pay period including
June 30, 2014, Tier 2 employees shall contribute an additional
1.45% of pensionable pay toward retirement costs; effective the pay
period including June 30, 2015, Tier 2 employees shall contribute an
additional 1.45% of pensionable pay toward retirement costs, for a
total employee contribution of 12.35 %.
Tier 3 Employees: The minimum statutory employee contribution for
employees in Tier 3 is subject to the provisions of the Public
Employees Pension Reform Act of 2012 (PEPRA) and equals 50%
of the `total normal cost". For FY12 -13, the employee rate is 6.25%
and is subject to change based on annual PERS actuarial valuations.
Effective the pay period including June 30, 2013, in addition to the
statutorily required 50% contribution of total normal costs, Tier 3
employees shall contribute an additional 3.20% of base pay toward
retirement pursuant to Government Code Section 20516(0, for a total
of 9.45 %. if the FY13 -14 member contribution rate for employees in
Tier 3 is greater or less than 6.25 %, as determined by PERS
valuation, the additional contribution made by the employee under
20516(f) will be increased or decreased accordingly, such that the
total contribution equals 9.45 %.
Effective the pay period including June 30, 2014, in addition to the
statutorily required 50% contribution of total normal costs, Tier 3
employees shall contribute an additional 4.65% of pensionable pay
toward retirement. If the FY14 -15 member contribution rate for
employees in Tier 3 is greater or less than 6.25 %, as determined by
PERS valuation, the additional contribution made by the employee
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under 20516(fJ will be increased or decreased accordingly, such that
the total contribution equals 10.9 %.
Effective the pay period including June 30, 2015, in addition to the
statutorily required 50% contribution of total normal costs, Tier 3
employees shalt contribute an additional 6.10% of pensionable pay
toward retirement. If the FY15 -16 member contribution rate for
employees in Tier 3 is greater or less than 6.25 %, as determined by
PERS valuation, the additional contribution made by the employee
under 20516(0 will be increased or decreased accordingly, such that
the total contribution equals 12.35%.
In the event pension reform is modified by State or Federal
legislation, resulting in changes to previously negotiated terms, the
parties agree to meet and confer to discuss subsequent changes to
the contract.
The City contracts with PERS for the 4h Level 1959 Survivors
Insurance Benefit, $540 Lump Sum Death Benefit, Sick Leave
Credit, Military Service Credit, 2 % Cost of Living Adjustment and the
pre - retirement option settlement 2 death benefit (Section 21548).
E. LIUNA Supplemental Pension
The City shall contribute, on behalf of each unit member, one and one half
percent (1.5 %) of base salary into the LIUNA Supplemental Pension Fund.
The City's sole obligation is to forward the agreed upon amount to the fund.
The City is not responsible for, nor does it make any representation
regarding the payment of benefits to unit members.
Effective January 1, 2007, the City increased the base salary of all
members by 1.5 %, and then deducted that same amount as a mandatory
employee contribution. For tax purposes, the contributions, although
designated employee contributions, are being paid by the employer in lieu
of contributions by the employee. The contributions are deemed "picked -up"
and treated as employer contributions, thereby excluding the employee's
gross income until distributed. Employees cannot opt out of the "pick -up, "
or receive the contributed amounts directly instead of having them paid to
the plan. Participation at the same level will continue to be mandatory for
members of the Association. In accordance with correspondence received
from a legal expert retained by the City, this amount will not be taxable,
except for Medicare. Minor changes to other compensation related items
that are calculated from base salary will also result from this administrative
change.
IR
The Association agrees with the procedural change, and acknowledges that
members who leave City employment prior to vesting in the LIUNA pension
plan will still have no right to return of amounts contributed, or other
recourse against the City concerning LIUNA.
The Association and LIUNA agree to defend, indemnify and hold harmless
the City for its actions pursuant to this section.
As of date of adoption of this MOU, pursuant to Government Code
7518.22(c) under the California Public Employees' Pension Reform Act of
2012, effective January 1, 2013, newly hired employees may be ineligible to
participate in the LIUNA Supplemental Pension Fund.
F. Retiree Medical Benefit
In 2005, the City and all Employee Associations agreed to replace the
previous "defined benefit" retiree medical program with a new "defined
contribution" program. The process of fully converting to the new program
will be ongoing for an extended period. During the transition, employees
and (then) existing retirees have been administratively classified into one of
four categories. The benefit is structured differently for each of the
categories. The categories are as follows;
a. Category 1 - Employees newly hired after January 1, 2006
b. Category 2 - Active employees hired prior to January 1, 2006,
whose age plus years of service as of January 1, 2006 was less than
50 (46 for public safety employees).
G. Category 3 - Active employees hired prior to January 1, 2006,
whose age plus years of service was 50 or greater (46 for public
safety employees) as of January 1, 2006.
d. Category 4 - Employees who had already retired from the City
prior to January 1, 2006, and were participating in the previous
retiree medical program.
2. Program Structure
This is an Integral Part Trust (IPT) RHS Retiree Health Savings (RHS) plan
(formerly the Medical Expense Reimbursement Program - "MERP ").
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a. For emolovees in Cateaory 1, the oroaram is structured as follows
Each employee will have an individual RHS account for bookkeeping
purposes, called his or her "Employee Account" This account will
accumulate contributions to be used for health care expense after
separation. All contributions to the plan are either mandatory
employee contributions or City paid employer contributions, so they
are not taxable to employees at the time of deposit. Earnings from
investment of funds in the account are not taxable when posted to the
account. Benefit payments are not taxable when withdrawn, because
the plan requires that all distributions be spent for specified health care
purposes.
Contributions will be in three parts.
Part A contributions {mandatory employee contributions): 1% of
Salary.
Part B contributions (employer contributions): $1.50 per month for
each year of service plus year of age (updated every January 1st
based on status as of December 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 RHS, on a pre-
tax basis. The remaining 50% would be paid in cash as taxable
income. Individual employees would not have the option to deviate
from this breakout.
The Association has decided to participate in Part C contributions at
the level of zero percent (0 %) Flex. This amount may be changed, on
a go forward basis, as part of a future meet and confer process.
However, the participation level must be the same for all employees
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within the Association. Additionally, the purpose and focus of these
changes should be toward long -term, trend type adjustments. Due to
IRS restrictions regarding "constructive receipt," the City will impose
restrictions against frequent spikes or drops that appear to be tailored
toward satisfying the desires of a group of imminent retirees.
Spillover pay is not eligible for Part C contributions.
Nothing in this section restricts taking leave for time off purposes.
Sick leave balances may also be included in the RHS Part C
contributions, but only to the extent and within all the numeric
parameters specified in the Employee Policy Manual, Section 11.21 of
the Manual contains a schedule, which specifies the amount of sick
leave that can be "cashed out," based on time of service. The manual
also caps the number of hours that can be "cashed out" at 800, and
specifies that sick leave hours are "cashed out" on a 2 for 1 basis (800
hours of sick leave are converted to 400 hours for cash purposes).
Sick leave participation is a separate item from vacation /flex leave
participation, and thresholds must be separately identified by the
Association.
Part A contributions may be included in PERS compensation. Part B
and Part C contributions will not be included in PERS compensation.
Part A contributions begin upon enrollment in the program and are
credited to each RHS Employee Account each pay period, Eligibility
for Part B contributions is set at five years of vested City employment.
At that time, the City will credit the first five years worth of Part B
contributions into the Employee Account (interest does not accrue
during that period). Thereafter, contributions are made bi- weekly.
Part C deposits, if any, will be made at the time of employment
separation.
Each Employee has a right to reimbursement of medical expenses (as
defined below) from the Plan until the Employee Account balance is
zero. This right is triggered upon separation. If an employee leaves
the City prior to five years employment, only the Part A contributions
and Part C leave settlement contributions, if any, will be in the RHS
Employee Account, Such an employee will not be entitled to any Part
B contributions, The exception to this is a full -time employee,
participating in the program, who leaves the City due to industrial
disability during the first five years of employment. In such cases, the
employee will receive exactly five years worth of Part B contributions,
using the employee's age and compensation at the time of separation
`x
for calculation purposes. This amount will be deposited into the
employee's RHS account at the time of separation.
Distributions from RHS Employee Accounts are restricted to use for
health insurance and medical care expenses after separation, as
defined by the Internal Revenue Code Section 213(d) (as explained in
IRS Publication 502), and specified in the Plan Document. In
accordance with current IRS regulations and practices, this generally
includes premiums for medical insurance, dental insurance, vision
insurance, supplemental medical insurance, long term care insurance,
and miscellaneous medical expenses not covered by insurance for the
employee and his or her spouse and legal dependents — again only as
permitted by IRS Publication 502. Qualification for dependency status
will be determined by guidelines in IRC 152. If used for these
purposes, distributions from the RHS accounts will not be taxable.
Cash withdrawal for any other purpose is prohibited. Under recent IRS
Revenue Ruling 2005 -24, any balance remaining in the Employee
Account after the death of the employee and his or her spouse and/or
other authorized dependents (if any) must be forfeited. That particular
RHS Employee Account will be closed, and any remaining funds will
become general assets of the plan.
The parties agree that the City's Part B contributions during active
employment constitute the minimum CalPERS participating employer's
contribution towards medical insurance after retirement. The parties
also agree that, for retirees selecting a CalPERS medical plan, or any
other plan with a similar employer contribution requirement, the
required City contribution will be withdrawn from the retiree's RHS
account.
In addition to the new plan contributions listed above, current
employees who fully convert to the new plan will also receive a one-
time City contribution to their individual RHS accounts that equates to
$100 per month for every month they contributed to the previous
"defined benefit" plan, to a maximum of 15 years (180 months). This
contribution will be made only if the employee retires from the City and
at the time of retirement. No interest will be earned in the interim.
Employees in Category 2 who had less than five years service with the
City prior to implementation of the new program will only receive Part
B contributions back to January 1, 2006 when they reach five years
total service.
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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 workforce.
Instead, the City will contribute $400 per month into each of their RHS
accounts after they retire from the City, to continue as long as the
employee or spouse is still living.
Each employee will contribute a flat $100 per month to the plan for the
duration of their employment to partially offset part of this expense to
the City. The maximum benefit provided by the City after retirement is
$4,800 per year, accruing at the rate of $400 per month. There is no
cash out option for these funds, and they may not be spent in advance
of receipt.
Employees in this category will also receive an additional one -time City
contribution of $75 per month for every month they contributed to the
previous plan prior to January 1, 2006, up to a maximum of 15 years
(180 months). This contribution will be made to the RHS account at
the time of retirement, and only if the employee retires from the City.
No interest will be earned in the interim.
be used for any IRS authorized purpose, not just City insurance
premiums.
Effective July 1, 2006, a RHS account has been opened for each
retiree in this category, and the City will contribute $400 per month to
each account as long as the retiree or spouse remains living.
3. Administration
Vendors have been selected by the City to administer the program. The
contract expense for program -wide administration by the vendor will be paid
by the City. However, specific vendor charges for Individual account
transactions that vary according to the investment actions taken by each
employee, such as fees or commissions for trades, will be paid by each
employee.
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The City's Deferred Compensation Committee, or its successor committee,
will have the authority to determine investment options that will be available
through the plan.
4. Value of Benefit
For all purposes, including compensation comparisons, the Retiree Medical
Program shall be valued at 1% of salary on which PERS retirement is based
(Part A); plus .25% of other compensation (Part B).
G. Tuition Reimbursement
NBCEA members attending accredited community colleges, colleges, trade
schools or universities, or recognized professional organizations or
agencies may apply for reimbursement of one hundred percent (100 %) of
the actual cost of tuition, books, fees or other student expenses for
approved job — related coursework, seminars or professional development
programs. Maximum tuition reimbursement for employees shall be $1,400
per fiscal year. Effective January 1, 2013, reimbursement will increase by
$100 per year, for a maximum annual benefit of $1,500 per fiscal year.
Reimbursement is contingent upon the successful completion of the course.
Successful completion means a grade of "C" or better for undergraduate
courses and a grade of "B" or better for graduate courses. All claims for
tuition reimbursement require the approval of the Human Resources
Director or designee.
SECTION 5. — Miscellaneous
A. Reductions in Force /Layoffs
The provisions of this section shall apply when the City Manager
determines that a reduction in the work force is warranted because of actual
or anticipated reductions in revenue, reorganization of the work force, a
reduction in municipal services, a reduction in the demand for service or
other reasons unrelated to the performance of duties by any specific
employee. Reductions in force are to be accomplished, to the extent
feasible, on the basis of seniority within a particular Classification or Series
and this Section should be interpreted accordingly.
DEFINITIONS
"Layoffs" or "Laid Off' shall mean the non- disciplinary termination of
employment.
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2. "Seniority" shall mean the time an employee has worked in a
Classification or Series calculated from the date on which the
employee was first granted permanent status in the current
Classification or any Classification within the Series, subject to the
following:
a. Credit shall be given only for continuous service subsequent
to the most recent appointment to permanent status in the
Classification or Series; and
b. Seniority shall include time spent on industrial leave, military
leave, and leave of absence without pay, but shall not include
time spent on any other authorized or unauthorized leave of
absence.
3. "Classification" shall mean one or more full time positions identical or
similar in duties not including part -time, seasonal or temporary
positions. Classification within a Series shall be ranked according to
pay (lowest ranking, lowest pay).
4. "Series" shall mean two or more classifications within a Department
which require the performance of similar duties with the higher
ranking classification(s) characterized by the need for less
supervision by superiors, more difficult assignments, more
supervisory responsibilities for subordinates. The City Manager shall
determine those classifications following a meet and consult process
which constitute a Series.
5. "Bumping Rights", "Bumping" or 'Bump„ shall mean (1) the right of
an employee, based upon seniority within a series to bump into a
tower ranking classification within the same series, (2) to be followed
by, an employee being permitted to bump into a classification within
a different series. The latter bumping shall be based upon unit wide
seniority and shall be limited to a classification in which the
employee previously held regular status,
No employee shall have the right to bump into a classification for
which the employee does not possess the minimum qualifications
such as specialized education, training or experience.
In the event the City Manager determines to reduce the number of
employees within a classification, the following procedures are applicable:
Temporary and probationary employees within any classification
shall, in that order, be laid off before permanent employees.
2. Employees within a classification shall be laid off in inverse order of
seniority.
3. An employee subject to layoff in one classification shall have the
right to bump a less senior employee in a lower ranking classification
within a series. An employee who has bumping rights shall notify the
Department Director within three (3) working days after notice of
layoff of his/her intention to exercise bumping rights.
4. In the event two or more employees in the same classification are
subject to layoff and have the same seniority, the employees shall be
laid off following the Department Director's consideration of
established performance evaluations.
NOTICE
Employees subject to lay -off shall be given at least thirty (30) days advance
notice of the layoff or thirty (30) days pay in lieu of notice. In addition,
employees laid off will be paid for all accumulated paid leave, holiday leave
(if any), and accumulated sick leave to the extent permitted by the
Employee Policy Manual.
Permanent and probationary employees who are laid off shall be placed on
a Department re- employment list in reverse order of layoff. The re-
employment list shall expire in eighteen (18) months. In the event a vacant
position occurs in the classification which the employee occupied at the
time of layoff, or a lower ranking classification within a series, the employee
at the top of the Department re- employment list shall have the right within
seven (7) days of written notice of appointment. Notice shall be deemed
given when personally delivered to the employee or deposited in the U.S.
Mail, first class postage prepaid, and addressed to the employee at his or
her last known address. Any employee shall have the right to refuse to be
placed on the re- employment list or the right to remove his or her name
from the re- employment list by sending written confirmation to the Human
Resources Director.
SEVERANCE
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If an employee is laid off from their job with the City, for economic reasons,
the City will grant severance pay in an amount equal to one week of pay for
every full year of continuous employment service to the City of Newport
Beach up to ten (10) weeks of pay.
B. Transfer and Reassignments
The City acknowledges that before arriving at a final decision involving the
transfer or reassignment of work schedules of those employees
represented by the NBCEA, the seniority and preference of the employee is
taken into consideration.
C. Bandin
Position vacancy announcements for available City positions shall be
distributed in a manner that reasonably assures unit members access to the
announcements. In order to select the most qualified individual for vacant
positions the City will continue its practice of banding" candidates into one
of the following ratings: Outstanding, Highly Recommended,
Recommended, and Not Recommended, during the testing process.
Department Directors review qualified candidates in band order, beginning
with the top band and are permitted to hire any eligible candidate from the
list (minimum rating of Recommended).
Where no less than 2 unit members achieve top three ranking on a certified
eligible list, selection to the position shall be made with preference given to
the unit members so qualified.
D. 9/80 (or 4/10) Scheduling Plan
The City agrees to maintain flex - scheduling where it is currently operating
successfully and additionally to put in place a 9180 (or 4/10) schedule, on a
test basis (excluding the Library) for the balance of the life of the MOU.
This test will be conducted at the discretion of the Department Director. The
program will have proven itself to be successful if it costs the same or less
than the present 5/40 program, and if the service levels for the 9/80 (or
4/10) schedules are the same or better as they are on the present 5140
program. The program will be evaluated individually by work group, and
should a problem involving service reductions or increases in cost
materialize, the Department Director will meet with the work group to
resolve the problem. if the Department Director and the work group
disagree on the solution, the City Manager will consider both sides of the
issue and resolve the dispute. Final evaluation of the success /failure of the
9/80 (or 4110) schedule test will be conducted by the Department Director,
and his /her determination shall be final.
W
Effective the pay period beginning January 15, 2011, the 9/80 flex - schedule
will be modified as follows: employees will have the option of alternating
Fridays off only. Employees currently on a 9/80 schedule with alternating
Mondays or any other day off, will convert to Fridays off beginning in
January 2011. To ensure effective coverage, employees on the 9180
schedule will be divided into groups A or B, with equal numbers of staff as
much as possible, including management and supervisory staff, off on
alternating Fridays. To ensure ongoing compliance with Fair Labor
Standards Act, and to maintain organizational efficiency, deviations from
established flex days, if legally permitted, will be considered on a case -by-
case basis.
E. Labor Management Committee
Committees shall meet quarterly on an annual schedule; names of
participating unit members shall be announced to management no less than
5 working days before the scheduled meeting; cancellation for cause shall
be rendered by the canceling party no less than 48 hours prior to the
scheduled meeting; canceled meetings shall be rescheduled to take place
within 5 working days of the canceled meeting; committees shall be
departmental; they may be combined in the interests of efficiency with other
such committees; City participants shall include appropriate department or
division heads outside the unit; the purpose of the committees shall be to
resolve conflict and exchange information; a unit staff person may attend
meetings; meetings shall be scheduled to last no less than one hour;
grievances in process shall not be subject to resolution in meetings; matters
properly dealt with in negotiations may be discussed but no agreements
shall be effected on same in committee. Meetings shall be on work time.
The Committees shall include a Library Committee with two unit members
participating; and three additional Committees, one of which shall meet in
each quarter of the year on a continuing rotational basis.
1. Building/Planning/Engineering: Minimum representation shall include
one NBCEA member and one management representative.
2. Finance: Minimum representation shall include two NBCEA
members and two management representatives.
3. AI other City departments: Minimum representation shall include
three NBCEA members and three management representatives.
The City and NBCEA agree that initial committee establishment will require
good faith effort to affect the spirit of this agreement.
P404
F. Discipline - Notice of Intent
Employees who are to be the subject of substantial punitive discipline for
any misconduct or negligence shall be entitled to prior written notice of
intent to discipline at least seven (7) calendar days prior to the imposition of
the actual penalty. This written notice shall contain a description of the
event or conduct which justifies the imposition of discipline. The notice
shall also include the specific form of a discipline intended, and the
employee shall be offered the opportunity to a hearing before their
Department Director prior to the imposition of the penalty.
This procedure will only be applied in cases of substantial punitive
discipline. It shall be understood that a disciplinary penalty equal to an
unpaid suspension of three (3) days or greater shall be substantial. All
other discipline resulting in less than a three (3) day suspension will be
considered non - substantial and will not be subject to the aforementioned
procedure.
This understanding is not intended to in any way reduce the rights of
employees to due process. Employees who have become the subject to
discipline and who believe that the penalty is not justified shalt have access
to the grievance procedure as established in the Employee - Employer
Resolution 2001 -50.
G. Grievance Procedure
Step 1: A grievance may be filed by any employee on his /her own
behalf, or jointly by a group of employees, or by a Recognized Employee
Organization.
Within ten (10) calendar days of the event giving rise to a grievance, the
grievant shall present the grievance in writing to the immediate supervisor.
Grievances not presented within the time period shall be considered
resolved.
The supervisor shall meet with the grievant to settle grievance and give a
written answer to the grievant within seven (7) calendar days from receipt of
the grievance by the supervisor. When the immediate supervisor is also the
department head the grievance shall be presented in Step 2.
Step 2: If the grievance is not resolved in Step 1, the grievant may, within
fourteen (14) calendar days from his /her receipt of the supervisor's answer,
forward the grievance to the department head for consideration. Answer to
the grievance shall be made in writing by the department head, after
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conferring with the grievant, within fourteen (14) calendar days from receipt
of the grievance.
Step 3: If the grievance is not resolved in Step 2, appeal to Step 3 may be
made by the grievant within ten (10) calendar days from the receipt of the
department heads answer, through the representative of his/her
Recognized Employee Organization who may request a meeting with the
City Representative to resolve the grievance. Following the meeting,
answer shall be made by the City Representative, in writing, to the
representative within twenty -one (21) calendar days.
Step 4: Mediation - If the grievance is not resolved after Step 3, as an
alternative to proceeding directly to Step 5, the grievance may be submitted
to mediation. A request for mediation may be presented in writing to the
Human Resources Director within seven (7) calendar days from the date a
decision was rendered at Step 3. As soon as practicable thereafter, or as
otherwise agreed to by the parties, a mediator shall hear the grievance. A
request for mediation will automatically suspend the normal processing of a
grievance until the mediation process is completed. The mediation process
shall be optional, and any opinion expressed by the mediator shall be
informal and shall be considered advisory.
Step 5: Within twenty (20) calendar days of receipt of a grievance denial at
step three, the grievant may file the grievance, in writing, with the Civil
Service Board.
At the next regularly scheduled meeting of the Civil Service Board, the
grievance shall be heard, using Civil Service Board De Novo procedures.
Within 20 calendar days of the hearing, the Civil Service Board shall issue
its findings and conclusions to the parties at interest.
Within seven (7) calendar days of the issuance of Civil Service Board
findings and conclusions, the City Manager shall affirm, modify or revoke
the Board's decision. The City Manager's decision shall be considered
exhaustive of administrative remedies.
Performance evaluation ratings and written reprimands are excluded from
this Step Four grievance process, and shall be dealt with as currently
provided in the Discipline Code.
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H. Probation
Probationary Period
Newly hired employees shall serve a twelve (12) month probationary
period. The probationary period for promoted employees shall be six
(6) months.
Newly hired employees shall become eligible for their first step
increase after twelve (12) months. All other City rules regarding step
increases shall remain unchanged.
2. Failure of Probation
(a) New Probation
An employee on new probation may be released at the sole
discretion of the City at any time without right of appeal or
hearing, except as provided in (c), below.
(b) Promotional Probation
An employee on promotional probation may be failed at any
time without right of appeal or hearing, except as provided in
(c), below, and except that failing an employee on promotional
probation must not be arbitrary, capricious or unreasonable.
An employee who fails promotional probation shall receive a
performance evaluation stating the reason for failure of
promotional probation.
When an employee fails his or her promotional probation, the
employee shall have the right to return to his or her former
class provided the employee was not in the previous class for
the purpose of training for a promotion to a higher class.
When an employee is returned to his or her former class, the
employee shall serve the remainder of any uncompleted
probationary period in the former class.
If the employee's former class has been deleted or abolished,
the employee shall have the right to return to a class in his or
her former occupational series closest to, but no higher than,
the salary range of the class which the employee occupied
immediately prior to promotion and shall serve the remainder
of any probationary period not completed in the former class.
MA
(c) Probationary Release
An employee who alleges that his or her probationary release
was based on discrimination by the City, may submit a
grievance within ten (10) days after receipt of the Notice of
Failure of Probation.
Salary on Reclassification
The City will amend its Employee Policy Manual to provide for a minimum
salary increase of five percent (5 %) upon reclassification (not to exceed the
maximum of the new salary range).
Uniforms and Safety Equipment
For assigned Park Patrol staff, uniforms shall be worn at all times during
regular business hours. Park Patrol shall be provided with City designated
shirts, shorts, pants, boots, jacket, and hat annually. Additional equipment
or supplies may be issued to employees by the Department as deemed
appropriate. If the provided winter jacket or work boots are lost, the
employee shall replace the item with one from an authorized vendor. Work
boots shall provide toe protection and meet Department safety standards.
The Department Head or designee may approve exceptions to wearing
uniforms.
The City will continue its practice of directly paying for dry cleaning for
individuals in the Park Patrol classification.
K. Service Awards
For the purpose of determining service awards, if an employee has been
employed by the City on more than one occasion, non - consecutive time will
be considered as part of total service. Prior to system implementations, an
employee is required to individually notify the awards committee of all of the
service time.
Employee Handbook
There will be a consolidation of documents to be given to each employee.
This consolidation will be comprised of Employee Policy Manual, related
Departmental Rules and Regulations; Employee /Employer Resolutions and
a copy of Memorandum of Understanding. More information may be
included.
ON
M. Direct Deposit
All employees shall participate in the payroll direct deposit system.
N. Deferred Compensation
The City agrees to, through a joint City - Employee Committee, explore the
possible addition of additional deferred compensation providers during the
term of this agreement.
Should any part of this MOU or any provision herein contained be rendered
or declared invalid, by reason of any existing or subsequently enacted
Legislation, or by decree of a Court of competent jurisdiction, such
invalidation of such part or portion of this MOU shall not invalidate the
remaining portion hereto, and same shall remain in full force and effect;
provided, however, that should provisions of this MOU relating to any
schedule adjustment be declared invalid, City agrees to provide alternative
benefits agreeable to NBCEA, to employees, which will cause such
employees to receive the same amount of money as they would have
received had such provision not been declared invalid.
P. Citywide Classification and Compensation Study
Concurrent with the adoption of this MOU, the City is undergoing a
comprehensive study of its classification and compensation structure. The
City agrees to meet with the Association during this study to discuss
preliminary findings or recommendations. The parties agree that during the
term of this MOU the City may implement the findings and
recommendations of this study regarding the compensation and
classification of employees. Prior to adopting or implementing final
recommendations, the City will meet and confer with the Association to
discuss the possible impact on its members.
Signatures are on the next page.
34
Executed this day of
r�
FOR THE NEWPORT BEACH CITY EMPLOYEES
ASSOCIATION:
0
Teresa Craiq, President
FOR THE CITY OF NEWPORT BEACH
LZA
Keith Curry, Mayor
Leilani Brown, City Clerk
APPROVED AS TO FORM:
Aaron Harp, City Attorney
t«7
EXHIBIT A
CITY EMPLOYEES ASSOCIATION REPRESENTED CLASSIFICATIONS
Administrative Assistant
Building Department Specialist
Buyer
Cultural Arts /Grant Coordinator
Department Assistant
Fiscal Clerk
Fiscal Clerk, Senior
Fiscal Operations Supervisor
Fiscal Specialist
Graphics & Printing Specialist
Harbor Resources Specialist
Inventory Analyst
Inventory Assistant
Librarian I
Librarian 11
Librarian III
Library Assistant
Library Clerk I
Library Clerk II
Library Clerk, Senior
License Inspector
License Supervisor
Mail Processing Clerk
Mail Processing Clerk, Sr.
Marketing Specialist
Office Assistant
Park Patrol Officer, Lead
Printing Services Supervisor
Public Works Specialist
Records Specialist
Recreation Coordinator
Recreation Coordinator, Assistant
Recreation Supervisor
36
City Employees Association - Eligible Certificate Pay
For the term July 1, 2012 through June 30, 2015
Certificate*
%of Base Pay
Monthly Amount (as
of 111114)
Certified Revenue Officer
2%
$85
Microsoft Certified Professional Certificate
1%
$45
Forklift Training Certificate
1 %
$45
* Only those unit members receiving the certificate pay at time of MOU adoption are eligible
for the benefit.
STATE OF CALIFORNIA }
COUNTY OF ORANGE
CITY OF NEWPORT BEACH }
1, Leilani 1. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; that the foregoing resolution, being Resolution
No. 2013 -7 was duly and regularly introduced before and adopted by the City Council of said City at a
regular meeting of said Council, duty and regularly held on the 22nd day of January, 2013, and that the
same was so passed and adopted by the following vote, to wit:
Ayes: Gardner, Petros, Hill, Selich, Henn, Daigle, Mayor Curry
Noes: None
IN WITNESS WHEREOF, 1 have hereunto subscribed my name and affixed the official seal of
said City this 23rd day of January 2013.
City Clerk
Newport Beach, California
{Seal}