Loading...
HomeMy WebLinkAboutC-2058(B) - MOU's - Newport Beach Lifeguard Management Association (NBLMA) [formerly Marine Safety Officers Association (MSOA)]SIDE LETTER OF AGREEMENT BETWEEN CITE' OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION This Side Letter of Agreement ("Agreement") is made and entered into by and between the City of Newport Beach ("City") and the Newport Beach Lifeguard Management Association ("Association") (collectively "Parties") with respect to the following: WHEREAS, on May 10, 2022, the City Council adopted Resolution No. 2022-28 approving a Memorandum of Understanding ("MOU") between the Parties with a term of January 1, 2022, through December 31, 2025; WHEREAS, to aid in the recruitment and retention of valuable employees, the Parties wish to modify the MOU; WHEREAS, on Vn , 2023, this Agreement was ratified by the Association; and WHEREAS, this Agreement will not have the effect of an agreement, and will not be binding on either party, until it is approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. Section 2, Compensation, of the MOU is amended to add the following to Subsection A, which shall read as follows: Salary Schedule Adjustment Effective the pay period which includes July 1, 2023, the City will add a new top step ("New Top Step") to the salary schedule for all represented positions, which shall be five percent (5%) more than the current top step ("Current Top Step"). The Parties acknowledge and agree that the first step for all represented positions currently in effect is not being eliminated. With the following exception, step advancement through the salary ranges is unaffected by the addition of the New Top Step: Employees who have been at the Current Top Step for longer than 12 months as of June 30, 2023, will advance to the New Top Step in the pay period which includes July 1, 2023, 2. Exhibit "A" of the MOU is replaced in its entirety with Exhibit A to this Agreement, which is attached hereto and incorporated herein by this reference. 3. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in fall force and effect. Executed this i � day of _ �\? s-1 �- _, 2023. FOR THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION: By: i ary C/ofiwell, resident FOR THE CITY OF NEWPORT BEACH: CITY OF NEWPORT BEACH APPROVED AS TO FORM: By: Aaron C. Harp, City Attorney ATTEST: BYi4 - j,')2 ?A- Leilani Brow , City Clerk Attachment: Exhibit A — Salary Schedule EXHIBIT I: Side Letter of Agreement Between the City and NBLMA The City of Newport Beach Lifeguard Management Association Salary Schedule Adjustment MOU Term: January 1, 2022 - December 31, 2025 (Exhibit A) Effective July 1, 2023 - Additional Step Lifeguard Battalion Chief 16 1 $ 48.68 $ 8,439 $ 101,265 Lifeguard Battalion Chief 16 2 $ 51.10 $ 8,857 $ 106,283 Lifeguard Battalion Chief 16 3 $ 53.65 $ 9,300 $ 111,601 Lifeguard Battalion Chief 16 4 $ 56.32 $ 9,762 $ 117,148 Lifeguard Battalion Chief 16 5 $ 59.15 $ 10,253 $ 123,041 Lifeguard Battalion Chief 16 6 $ 62.08 $ 10,760 $ 129,119 Lifeguard Battalion Chief 16 7 $ 65.19 $ 11,299 $ 135,587 Lifeguard Battalion Chief 16 8 $ 68.44 $ 11,863 $ 142,355 Lifeguard Battalion Chief 16 9 $ 71.86 $ 12,456 $ 149,473 Lifeguard Captain 11 1 $ 38.66 $ 6,701 $ 80,409 Lifeguard Captain 11 2 $ 40.58 $ 7,035 $ 84,414 Lifeguard Captain 11 3 $ 42.62 $ 7,387 $ 88,650 Lifeguard Captain 11 4 $ 44.75 $ 7,756 $ 93,070 Lifeguard Captain 11 5 $ 47.00 $ 8,147 $ 97,766 Lifeguard Captain 11 6 $ 49.37 $ 8,558 $ 102,692 Lifeguard Captain 11 7 $ 51.84 $ 8,985 $ 107,825 Lifeguard Captain 11 8 $ 54.44 $ 9,436 $ 113,235 Lifeguard Captain 11 9 $ 57.16 $ 9,908 $ 118,897 Lifeguard Captain, Training 03 1 $ 41.55 $ 7,201 $ 86,417 Lifeguard Captain, Training 03 2 $ 43.63 $ 7,562 $ 90,745 Lifeguard Captain, Training 03 3 $ 45.81 $ 7,940 $ 95,279 Lifeguard Captain, Training 03 4 $ 48.09 $ 8,335 $ 100,021 Lifeguard Captain, Training 03 5 $ 50.50 $ 8,753 $ 105,040 Lifeguard Captain, Training 03 6 $ 53.01 $ 9,189 $ 110,265 Lifeguard Captain, Training 03 7 $ 55.69 $ 9,653 $ 115,837 Lifeguard Captain, Training 03 8 $ 58.47 $ 10,135 $ 121,614 Lifeguard Captain, Training 03 9 $ 61.39 $ 10,641 $ 127,695 Lifeguard Officer P/T 01 1 $ 28.78 $ 4,988 $ 59,852 Lifeguard Officer P/T 01 2 $ 30.21 $ 5,237 $ 62,845 Lifeguard Officer P/T 01 3 $ 31.72 $ 5,498 $ 65,975 Lifeguard Officer P/T 01 4 $ 33.31 $ 5,774 $ 69,290 Lifeguard Officer P/T 01 5 $ 34.97 $ 6,062 $ 72,743 Lifeguard Officer P/T 01 6 $ 36.72 $ 6,365 $ 76,380 Lifeguard Officer P/T 01 7 $ 38.56 $ 6,683 $ 80,201 Lifeguard Officer P/T 01 8 $ 40.50 $ 7,019 $ 84,230 Lifeguard Officer P/T 01 9 $ 42.52 $ 7,370 $ 88,441 Hourly rates are rounded to the nearest hundredth. Monthly and annual salaries are rounded to the nearest whole dollar. Actual rates may vary slightly due to rounding. EXHIBIT I: Side Letter of Agreement Between the City and NBLMA The City of Newport Beach Lifeguard Management Association Salary Schedule Adjustment MOU Term: January 1, 2022 - December 31, 2025 (Exhibit A) Effective January 13, 2024 - 3% Cost -of -Living Adjustment (COLA) Lifeguard Battalion Chief 16 1 $ 50.15 $ 8,692 $ 104,303 Lifeguard Battalion Chief 16 2 $ 52.63 $ 9,123 $ 109,471 Lifeguard Battalion Chief 16 3 $ 55.26 $ 9,579 $ 114,949 Lifeguard Battalion Chief 16 4 $ 58.01 $ 10,055 $ 120,663 Lifeguard Battalion Chief 16 5 $ 60.93 $ 10,561 $ 126,733 Lifeguard Battalion Chief 16 6 $ 63.94 $ 11,083 $ 132,992 Lifeguard Battalion Chief 16 7 $ 67.14 $ 11,638 $ 139,655 Lifeguard Battalion Chief 16 8 $ 70.49 $ 12,219 $ 146,626 Lifeguard Battalion Chief 16 9 $ 74.02 $ 12,830 $ 153,957 Lifeguard Captain 11 1 $ 39.82 $ 6,902 $ 82,821 Lifeguard Captain 11 2 $ 41.80 $ 7,246 $ 86,947 Lifeguard Captain 11 3 $ 43.90 $ 7,609 $ 91,309 Lifeguard Captain 11 4 $ 46.09 $ 7,988 $ 95,862 Lifeguard Captain 11 5 $ 48.41 $ 8,392 $ 100,699 Lifeguard Captain 11 6 $ 50.85 $ 8,814 $ 105,773 Lifeguard Captain 11 7 $ 53.39 $ 9,255 $ 111,060 Lifeguard Captain 11 8 $ 56.07 $ 9,719 $ 116,632 Lifeguard Captain 11 9 $ 58.88 $ 10,205 $ 122,464 Lifeguard Captain, Training 03 1 $ 42.79 $ 7,417 $ 89,009 Lifeguard Captain, Training 03 2 $ 44.94 $ 7,789 $ 93,467 Lifeguard Captain, Training 03 3 $ 47.18 $ 8,178 $ 98,138 Lifeguard Captain, Training 03 4 $ 49.53 $ 8,585 $ 103,022 Lifeguard Captain, Training 03 5 $ 52.02 $ 9,016 $ 108,191 Lifeguard Captain, Training 03 6 $ 54.60 $ 9,464 $ 113,573 Lifeguard Captain, Training 03 7 $ 57.36 $ 9,943 $ 119,312 Lifeguard Captain, Training 03 8 $ 60.22 $ 10,439 $ 125,263 Lifeguard Captain, Training 03 9 $ 63.23 $ 10,960 $ 131,526 Lifeguard Officer P/T 01 1 $ 29.64 $ 5,137 $ 61,648 Lifeguard Officer P/T 01 2 $ 31.12 $ 5,394 $ 64,730 Lifeguard Officer P/T 01 3 $ 32.67 $ 5,663 $ 67,955 Lifeguard Officer P/T 01 4 $ 34.31 $ 5,947 $ 71,369 Lifeguard Officer P/T 01 5 $ 36.02 $ 6,244 $ 74,925 Lifeguard Officer P/T 01 6 $ 37.82 $ 6,556 $ 78,672 Lifeguard Officer P/T 01 7 $ 39.72 $ 6,884 $ 82,608 Lifeguard Officer P/T 01 8 $ 41.71 $ 7,230 $ 86,757 Lifeguard Officer P/T 01 9 $ 43.80 $ 7,591 $ 91,095 Hourly rates are rounded to the nearest hundredth. Monthly and annual salaries are rounded to the nearest whole dollar. Actual rates may vary slightly due to rounding. EXHIBIT I: Side Letter of Agreement Between the City and NBLMA The City of Newport Beach Lifeguard Management Association Salary Schedule Adjustment MOU Term: January 1, 2022 - December 31, 2025 (Exhibit A) Effective January 11, 2025 - 3% Cost -of -Living Adjustment (COLA) Lifeguard Battalion Chief 16 1 $ 51.65 $ 8,953 $ 107,432 Lifeguard Battalion Chief 16 2 $ 54.21 $ 9,396 $ 112,756 Lifeguard Battalion Chief 16 3 $ 56.92 $ 9,866 $ 118,397 Lifeguard Battalion Chief 16 4 $ 59.75 $ 10,357 $ 124,283 Lifeguard Battalion Chief 16 5 $ 62.76 $ 10,878 $ 130,535 Lifeguard Battalion Chief 16 6 $ 65.86 $ 11,415 $ 136,982 Lifeguard Battalion Chief 16 7 $ 69.16 $ 11,987 $ 143,845 Lifeguard Battalion Chief 16 8 $ 72.61 $ 12,585 $ 151,025 Lifeguard Battalion Chief 16 9 $ 76.24 $ 13,215 $ 158,576 Lifeguard Captain 11 1 $ 41.01 $ 7,109 $ 85,306 Lifeguard Captain 11 2 $ 43.06 $ 7,463 $ 89,555 Lifeguard Captain 11 3 $ 45.22 $ 7,837 $ 94,048 Lifeguard Captain 11 4 $ 47.47 $ 8,228 $ 98,738 Lifeguard Captain 11 5 $ 49.87 $ 8,643 $ 103,720 Lifeguard Captain 11 6 $ 52.38 $ 9,079 $ 108,946 Lifeguard Captain 11 7 $ 55.00 $ 9,533 $ 114,392 Lifeguard Captain 11 8 $ 57.76 $ 10,011 $ 120,131 Lifeguard Captain 11 9 $ 60.64 $ 10,511 $ 126,138 Lifeguard Captain, Training 03 1 $ 44.08 $ 7,640 $ 91,679 Lifeguard Captain, Training 03 2 $ 46.28 $ 8,023 $ 96,271 Lifeguard Captain, Training 03 3 $ 48.60 $ 8,423 $ 101,082 Lifeguard Captain, Training 03 4 $ 51.02 $ 8,843 $ 106,113 Lifeguard Captain, Training 03 5 $ 53.58 $ 9,286 $ 111,437 Lifeguard Captain, Training 03 6 $ 56.24 $ 9,748 $ 116,981 Lifeguard Captain, Training 03 7 $ 59.08 $ 10,241 $ 122,891 Lifeguard Captain, Training 03 8 $ 62.03 $ 10,752 $ 129,021 Lifeguard Captain, Training 03 9 $ 65.13 $ 11,289 $ 135,472 Lifeguard Officer P/T 01 1 $ 30.53 $ 5,291 $ 63,497 Lifeguard Officer P/T 01 2 $ 32.05 $ 5,556 $ 66,672 Lifeguard Officer P/T 01 3 $ 33.65 $ 5,833 $ 69,993 Lifeguard Officer P/T 01 4 $ 35.34 $ 6,126 $ 73,510 Lifeguard Officer P/T 01 5 $ 37.10 $ 6,431 $ 77,173 Lifeguard Officer P/T 01 6 $ 38.96 $ 6,753 $ 81,032 Lifeguard Officer P/T 01 7 $ 40.91 $ 7,090 $ 85,086 Lifeguard Officer P/T 01 8 $ 42.96 $ 7,447 $ 89,359 Lifeguard Officer P/T 01 9 $ 45.11 $ 7,819 $ 93,827 Hourly rates are rounded to the nearest hundredth. Monthly and annual salaries are rounded to the nearest whole dollar. Actual rates may vary slightly due to rounding. SIDE LETTER OF AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION This Side Letter of Agreement ("Agreement") is made and entered into this Z l day of N p f Ecn E 2022, by and between the City of Newport Beach ("City") and the Newport Beach Lifeguard Management Association ("NBLMA") (collectively "Parties") with respect to the following: WHEREAS, on May 10, 2022, the City Council adopted Resolution No. 2022-28 approving a Memorandum of Understanding ("MOU") between the Parties with a term of January 1, 2022, through December 31, 2025; WHEREAS, given increases in the cost of medical insurance and to aid in the recruitment and retention of valuable employees, the Parties wish to modify the MOU; and WHEREAS, this Agreement will not have the effect of an agreement, and will not be binding on either party, until it is ratified by the affected bargaining unit and approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. The following language in Section 4.A.2. Fringe Benefits, Insurance, City Contribution, of the MOU is amended to read as follows: 2. City Contribution a. Full-time Members: Current Language: The City's contribution towards the Cafeteria Plan is $1,645 (plus the minimum Ca1PERS participating employer's contribution). Amended Language: The City's monthly contribution towards the Cafeteria Plan is $1,645.00 (plus the minimum CaIPERS participating employee's contribution). Temporary Increase. Effective the pay period that includes January 1, 2023, the City's monthly contribution towards the Cafeteria Plan increases to $1,745.00 (plus the minimum Ca1PERS participating employer's contribution). Effective the pay period that includes January 1, 2025, the City's monthly contribution towards the Cafeteria Plan decreases to $1,645.00 (plus the minimum Ca1PERS participating employer's contribution). b. Part -Time Members: Current Language: Part-time NBLMA members receive a monthly cafeteria benefit of $601.00. For part-time employees enrolled in medical plans, the cafeteria amount is inclusive of the PERS designated minimum medical insurance contribution. Page 1 of 3 Amended Language: Part-time NBLMA members receive a monthly cafeteria benefit of $601.00. For part-time employees enrolled in medical plans, the cafeteria amount is inclusive of the PERS designated minimum medical insurance contribution. Temporary Increase. Effective the pay period that includes January 1, 2023, the City's monthly contribution towards the Cafeteria Plan increases to $637.53. For part- time employees enrolled in medical plans, the cafeteria amount is inclusive of the Ca1PERS designated minimum medical insurance contribution. Effective the pay period that includes January 1, 2025, the City's monthly contribution towards the Cafeteria Plan decreases to $601.00. For part-time employees enrolled in medical plans, the cafeteria amount is inclusive of the Ca1PERS designated minimum medical insurance contribution. 2. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in full force and effect. Signatures on the next page NBLMA Side Letter Agreement Page 2 of 3 Executed this 5 day of N vv‘VIC'2022 ATTEST: By: FOR THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION: By: -Gary C ell, Pre ent FOR THE CITY OF WPORT BEACH: By: Kevin "oon, Mayor CITY OF NEWPORT BEACH APPROVED AS TO FORM: By: aron C. Harp, City Attorney Leilani Brow r ity C1erdth NBLMA Side Letter Agreement Page 3 of 3 SIDE LETTER OF AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION This Side Letter of Agreement ("Agreement") is made and entered into this 23 day of nysc." ST 2022, by and between the City of Newport Beach ("City") and the Newport Be\tch Lifeguard Management Association ("Association") (collectively "Parties") with respect to the following: WHEREAS, on May 10, 2022, the City Council adopted Resolution No. 2022-28 approving a Memorandum of Understanding ("MOU") between the Parties with a term of January 1, 2022, through December 31, 2025; WHEREAS, given increases in the Cost -of -Living and to aid in the recruitment and retention of valuable employees, the Parties wish to modify the MOU; and WHEREAS, this Agreement will not have the effect of an agreement, and will not be binding on either party, until it is ratified by the affected bargaining unit and approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. Section 2, Compensation, Subsection A, Salary Adjustments, of the MOU is amended to read as follows: Base salary increases for all NBLMA represented classifications shall be as follows and as specified in Exhibit A: Effective the first day of the pay period following January 1, 2022, base salaries will be increased by two percent (2.0%) for all members of the bargaining unit. Individuals must be employed by the City on the first day of the pay period following City Council adoption to qualify for retroactive payment of the cost -of - living adjustment (COLA). Effective the first day of the pay period following January 1, 2023, base salaries will be increased by three percent (3.0%) for all members of the bargaining unit. Effective the first day of the pay period following January 1, 2024, base salaries will be increased by three percent (3.0%) for all members of the bargaining unit. Effective the first day of the pay period following January 1, 2025, base salaries will be increased by three percent (3.0%) for all members of the bargaining unit. 2. Exhibit A of the MOU is replaced in its entirety with Exhibit A to this Agreement, which is attached hereto and incorporated herein by this reference. 3. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in full force and effect. Signatures on the next page Executed this 23 day of AJ(,L' f , 2022 FOR THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION: Gary Co ell, President FOR THE CITY OF NEWPORT BEACH: Kevin Muldo. , Mayor CITY OF NEWPORT BEACH APPROVED AS TO FORM: By: ATTEST: Aaron C. Harp, City Attorney By: Leilani Brown, ity Clerk Attachment: Exhibit A — Salary Schedule with Cost -of -Living Adjustment EXHIBIT A RESOLUTION NO. 2022- The City of Newport Beach Lifeguard Management Association Salary Schedule Adjustment MOU Term: January 1, 2022 - December 31, 2025 (Exhibit A) Effective January 14, 2023 - 3% Cost -of -Living Adjustment !REPRESENTED POSITIONS OURLV RATE Lifeguard Battalion Chief 16 1 $ 48.68 $ 8,439 $ Lifeguard Battalion Chief 16 2 $ 51.10 $ 8,857 $ Lifeguard Battalion Chief 16 3 $ 53.65 $ 9,300 $ Lifeguard Battalion Chief 16 4 $ 56.32 $ 9,762 $ Lifeguard Battalion Chief 16 5 $ 59.15 $ 10,253 $ Lifeguard Battalion Chief 16 6 $ 62.08 $ 10,760 $ Lifeguard Battalion Chief 16 7 $ 65.19 $ 11,299 $ Lifeguard Battalion Chief 16 8 $ 68.44 $ 11,863 $ Lifeguard Captain 11 1 $ 38.66 $ 6,701 $ Lifeguard Captain 11 2 $ 40.58 $ 7,035 $ Lifeguard Captain 11 3 $ 42.62 $ 7,387 $ Lifeguard Captain 11 4 $ 44.75 $ 7,756 $ Lifeguard Captain 11 5 $ 47.00 $ 8,147 $ Lifeguard Captain 11 6 $ 49.37 $ 8,558 $ Lifeguard Captain 11 7 $ 51.84 $ 8,985 $ Lifeguard Captain 11 8 $ 54.44 $ 9,436 $ Lifeguard Captain, Training 03 1 $ 41.55 $ 7,201 $ Lifeguard Captain, Training 03 2 $ 43.63 $ 7,562 $ Lifeguard Captain, Training 03 3 $ 45.81 $ 7,940 $ Lifeguard Captain, Training 03 4 $ 48.09 $ 8,335 $ Lifeguard Captain, Training 03 5 $ 50.50 $ 8,753 $ Lifeguard Captain, Training 03 6 $ 53.01 $ 9,189 $ Lifeguard Captain, Training 03 7 $ 55.69 $ 9,653 $ Lifeguard Captain, Training 03 8 $ 58.47 $ 10,135 $ Lifeguard Officer P/T 01 1 $ 28.78 $ 4,988 $ Lifeguard Officer P/T 01 2 $ 30.21 $ 5,237 $ Lifeguard Officer P/T 01 3 $ 31.72 $ 5,498 $ Lifeguard Officer P/T 01 4 $ 33.31 $ 5,774 $ Lifeguard Officer P/T 01 5 $ 34.97 $ 6,062 $ Lifeguard Officer P/T 01 6 $ 36.72 $ 6,365 $ Lifeguard Officer P/T 01 7 $ 38.56 $ 6,683 $ Lifeguard Officer P/T 01 8 $ 40.50 $ 7,019 $ Hourly rate rounded to the hundredth. Monthly and annual salaries rounded to the nearest whole dollar. 101,265 106,283 111,601 117,148 123,041 129,119 135,587 142,355 80,409 84,414 88,650 93,070 97,766 102,692 107,825 113,235 86,417 90,745 95,279 100,021 105,040 110,265 115,837 121,614 59,852 62,845 65,975 69,290 72,743 76,380 80,201 84,230 EXHIBIT A RESOLUTION NO. 2022- The City of Newport Beach Lifeguard Management Association Salary Schedule Adjustment MOU Term: January 1, 2022 - December 31, 2025 (Exhibit A) Effective January 13, 2024 - 3% Cost -of -living Adjustment REPRESENTED POS_ITIONS Lifeguard Battalion Chief Lifeguard Battalion Chief Lifeguard Battalion Chief Lifeguard Battalion Chief Lifeguard Battalion Chief Lifeguard Battalion Chief Lifeguard Battalion Chief Lifeguard Battalion Chief Lifeguard Captain Lifeguard Captain Lifeguard Captain Lifeguard Captain Lifeguard Captain Lifeguard Captain Lifeguard Captain Lifeguard Captain Lifeguard Captain, Training Lifeguard Captain, Training Lifeguard Captain, Training Lifeguard Captain, Training Lifeguard Captain, Training Lifeguard Captain, Training Lifeguard Captain, Training Lifeguard Captain, Training Lifeguard Officer P/T Lifeguard Officer P/T Lifeguard Officer P/T Lifeguard Officer P/T Lifeguard Officer P/T Lifeguard Officer P/T Lifeguard Officer P/T Lifeguard Officer P/T 16 16 16 16 16 16 16 16 11 11 11 11 11 11 11 11 03 03 03 03 03 03 03 03 01 01 01 01 01 01 01 01 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 50.15 52.63 55.26 58.01 60.93 63.94 67.14 70.49 39.82 41.80 43.90 46.09 48.41 50.85 53.39 56.07 42.79 44.94 47.18 49.53 52.02 54.60 57.36 60.22 29.64 31.12 32.67 34.31 36.02 37.82 39.72 41.71 Hourly rate rounded to the hundredth. Monthly and annual salaries rounded to the nearest whole dollar. 8,692 9,123 9,579 10,055 10,561 11,083 11,638 12,219 6,902 7,246 7,609 7,988 8,392 8,814 9,255 9,719 7,417 7,789 8,178 8,585 9,016 9,464 9,943 10,439 5,137 5,394 5,663 5,947 6,244 6,556 6,884 7,230 104,302 109,471 114,949 120,663 126,733 132,992 139,655 146,626 82,821 86,947 91,309 95,862 100,699 105,773 111,060 116,632 89,009 93,467 98,138 103,022 108,191 113,573 119,311 125,263 61,648 64,730 67,955 71,369 74,925 78,672 82,608 86,757 EXHIBIT A RESOLUTION NO, 2022- The City of Newport Beach Lifeguard Management Association Salary Schedule Adjustment MOU Term: January 1, 2022 - December 31, 2025 (Exhibit A) Effective January 11, 2025 - 3% Cost -of -Living Adjustment (REPRESENTED POSITIONS Lifeguard Battalion Chief Lifeguard Battalion Chief Lifeguard Battalion Chief Lifeguard Battalion Chief Lifeguard Battalion Chief Lifeguard Battalion Chief Lifeguard Battalion Chief Lifeguard Battalion Chief Lifeguard Captain Lifeguard Captain Lifeguard Captain Lifeguard Captain Lifeguard Captain Lifeguard Captain Lifeguard Captain Lifeguard Captain Lifeguard Captain, Training Lifeguard Captain, Training Lifeguard Captain, Training Lifeguard Captain, Training Lifeguard Captain, Training Lifeguard Captain, Training Lifeguard Captain, Training Lifeguard Captain, Training Lifeguard Officer P/T Lifeguard Officer P/T Lifeguard Officer P/T Lifeguard Officer P/T Lifeguard Officer P/T Lifeguard Officer P/T Lifeguard Officer P/T Lifeguard Officer P/T 16 16 16 16 16 16 16 16 11 11 11 11 11 11 11 11 03 03 03 03 03 03 03 03 01 01 01 01 01 01 01 01 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 51.65 54.21 56.92 59.75 62.76 65.86 69.16 72.61 41.01 43.06 45.22 47.47 49.87 52.38 55.00 57.76 44.08 46.28 48.60 51.02 53.58 56.24 59.08 62.03 30.53 32.05 33.65 35.34 37.10 38.96 40.91 42.96 Hourly rate rounded to the hundredth. Monthly and annual salaries rounded to the nearest whole dollar. 8,953 9,396 9,866 10,357 10,878 11,415 11,987 12,585 7,109 7,463 7,837 8,228 8,643 9,079 9,533 10,011 7,640 8,023 8,423 8,843 9,286 9,748 10,241 10,752 5,291 5,556 5,833 6,126 6,431 6,753 7,091 7,447 107,431 112,756 118,397 124,283 130,535 136,982 143,845 151,025 85,305 89,555 94,049 98,738 103,720 108,946 114,392 120,131 91,680 96,271 101,082 106,113 111,437 116,981 122,891 129,021 63,497 66,672 69,993 73,510 77,173 81,032 85,086 89,359 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION January 1, 2022 through December 31, 2025 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION TABLE OF CONTENTS Preamble Section 1. General Provisions Duration of Memorandum 1 Scope 1 Conclusiveness 2 Savings 2 Other Terms and Conditions 2 Unit Classification Titles 2 Section 2. Compensation Salary Adjustments 2 One -Time Lump Sum Payment 3 Special Assignment Pay 3 Overtime 3 Uniforms 4 Call Out 4 Scholastic Achievement Pay 5 Night Standby 5 Move -up Pay 6 Move -down Pay 6 Court Standby Pay 6 Longevity Pay 7 Salary Differential 7 Section 3. Leaves Flex Leave 7 Use of Flex Leave 9 Family Sick Leave 9 Holiday Time 9 Bereavement Leave 10 Section 4. Fringe Benefits Insurance 10 Additional Health Insurance Programs 13 Employee Assistance Program 14 The Retirement Benefit 14 i Retiree Health Benefits Program (Full -Time Classifications Only) 16 Tuition Reimbursement 21 Section 5. Miscellaneous Provisions Reductions in Force/Layoffs 22 Discipline 24 Health and Fitness Evaluations 24 Provision for Sun Provision 24 Fitness Equipment and Exercise Time 24 Employee Policy Manual 25 Direct Deposit 25 Exhibit A (Represented Classifications) 27 ii MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION This Memorandum of Understanding (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE Authorized representatives of the CITY OF NEWPORT BEACH (hereinafter referred to as "CITY") and authorized representatives of the NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION (hereinafter referred to as "NBLMA") a recognized employee organization, met and conferred, exchanging various proposals concerning wages, hours, fringe benefits and other terms and conditions of employment of employees represented by NBLMA (hereinafter referred to as "EMPLOYEES") for the period of January 1, 2022 through December 31, 2025. SECTION 1. GENERAL PROVISIONS A. Duration of Memorandum The terms of this MOU are to remain in full force and effect from January 1, 2022 through December 31, 2025. B. Scope 1. All present written rules and currently established practices and employee 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, or in the case of the Department's Standard Operating Procedures (SOPs) falling within the scope of representation, the City has given notice to the Association and, upon request, met and conferred on any proposed changes which fall within the scope of representation. When the Department proposes to change any SOP departmental rule or regulation, it will provide a copy of such change to the Association no less than seven (7) days prior to implementation of the proposed change. If such proposed change materially impacts any matter within the scope of representation, then the parties agree to meet and confer over such impact. 1 NBLMA MOU 2022-2025 2. Pursuant to this MOU, the City reserves and retains all its inherent exclusive and non-exclusive managerial rights, powers, functions and authorities ("Management Rights") as set forth in Resolution No. 2001-50. C. Conclusiveness Except as provided for in this agreement, this MOU contains all the covenants, stipulations and provisions agreed upon by the parties. D. Savings 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. E. Other Terms and Conditions Except as to those matters expressly covered by this MOU, all terms and conditions of employment may be changed or amended after meeting and conferring, in good faith. Unless specifically provided in this MOU, Part-time members shall only receive those benefits in this MOU which are specifically set forth as applicable to Part- time members. F. Unit Classification Titles Unit classifications are listed in Exhibit A. For all compensation comparison purposes, actual job duties, and not classification titles, will be utilized. SECTION 2. COMPENSATION A. Salary Adjustments Base salary increases for all NBLMA represented classifications shall be as follows and as specified in Exhibit A: 2 NBLMA MOU 2022-2025 Effective the first day of the pay period following January 1, 2022, base salaries will be increased by two percent (2.0%) for all members of the bargaining unit. Individuals must be employed by the City on the first day of the pay period following City Council adoption to qualify for retroactive payment of the cost -of -living adjustment (COLA). Effective the first day of the pay period following January 1, 2023, base salaries will be increased by two percent (2.0%) for all members of the bargaining unit. Effective the first day of the pay period following January 1, 2024, base salaries will be increased by two percent (2.0%) for all members of the bargaining unit. Effective the first day of the pay period following January 1, 2025, base salaries will be increased by two percent (2.0%) for all members of the bargaining unit. B. One -Time Lump Sum Payment All bargaining unit members in paid status for the entirety of the first full pay period following the adoption of the 2022-2025 MOU by the City Council will receive a signing bonus of $2, 000. The parties intend and understand that this lump sum payment is non -pensionable and will not be reported to Ca/PERS. The parties also agree that this payment is intended to be specific to the pay period in which it is paid and is to be considered part of the FLSA regular rate for this pay period only. C. Special Assignment Pay 1. Boat Pay: Lifeguard Captains certified for and assigned to boat operations shall receive additional compensation of 2.5% of base salary for their job classification. Boat assignment pay will be assigned to a qualified Captain and compensated only when performing boat duties. D. Overtime Unit employees shall receive overtime compensation for all hours worked in excess of forty (40) in any work week. Time worked shall be rounded to the nearest quarter of an hour (seven (7) minutes or Tess round down; eight (8) minutes or more round up). Paid time off shall be considered time worked for the purposes of calculating MOU overtime. 3 NBLMA MOU 2022-2025 The rate at which MOU overtime (overtime which is in addition to that which is required by the FLSA) is paid does not include any contributions to the City's Cafeteria Plan as set forth in Section 4 - Fringe Benefits of the MOU. Unit employees shall have the option of requesting to earn compensatory time off (CTO) for all overtime, including training time, in lieu of overtime compensation. All use of compensatory time off shall be subject to existing City rules. The time during which an employee may use accrued CTO is subject to approval by the department head or their designee with due regard for the wishes of the employee and the need to provide service. However, an employee wishing to use their accrued CTO shall provide the City with reasonable notice of such request. A request to use CTO without reasonable notice may still be granted within the discretion of the supervisor or manager responsible for considering the request. Notwithstanding this paragraph, the parties agree that employees cannot use CTO from June 15 through Labor Day each year. The maximum accrual of CTO shall be eighty (80) hours. Effective January 1, 2020, an employee may only accrue up to eighty (80) hours of CTO per calendar year. E. Uniforms The City shall pay the entire cost of providing full-time and part-time NBLMA members with each component of the required NBLMA uniforms. The required NBLMA uniform includes uniform pants, uniform shirts, safety shoes, badges and insignias, uniform jackets and liners, belts, dive equipment, foul weather gear, personal floatation device and helmet. The City shall not be responsible for providing employees with socks, underwear, cap, workout shoes, or other clothing. As permissible by law and subject to the provisions and limitations under the Public Employees' Retirement Law, including restrictions on reporting uniform allowance as pensionable compensation for "non -classic" members hired after January 1, 2013, the City shall report the value of provided uniforms at $838 per year ($32.23 per pay period) in accordance with PERS requirements. The parties agree the reported value of uniforms is intended to reflect clothing such as pants, shirts, jackets, and related attire and excludes health and safety related equipment. F. Call Out Call out compensation shall be in accordance with the following provisions: 4 NBLMA MOU 2022-2025 1. All emergency call out time shall be calculated to the nearest one quarter (1/4) hour of time worked. 2. A minimum of two (2) hours (including travel time). If the two hours causes the employee to exceed forty (40) hours in the week, the rate of pay shall be at one and one half (1 1/2) times the employee's rate of pay. Employees will be considered "on duty" at the beginning of each emergency call out for a minimum of two (2) hours or until completed. Employees will not be compensated for additional call outs that occur during the initial two (2) hour response period, or during normal working hours. G. Scholastic Achievement Pay Employees in the classification of Lifeguard Captain shall receive two percent of base salary (2%) if they receive a Bachelor's Degree. Employees in the classification of Lifeguard Battalion Chief shall receive one percent (1%) of base salary if they receive a Master's Degree. A "degree" shall be 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. The parties agree that to the extent permitted by law, the Scholastic Achievement Pay in this section is special compensation and shall be reported to Ca1PERS as such pursuant to Title 2 CCR, Section 571(a)(2) and 571.1(b)(2) Educational Incentive Pay. H. Night Standby A full-time or part-time employee assigned to standby duty (as defined by Department Policy) for purposes of being on call to handle emergency situations arising at times other than during normal working hours shall be guaranteed two and a half (2.5) hours of pay at the employee's rate of pay for each calendar day of such standby duty. Employees shall have the option of receiving compensatory time off at straight time in lieu of pay for night standby. This compensatory time off is part of same bank which is subject to the maximum accrual of compensatory time off set forth in Section 2D above. 5 NBLMA MOU 2022-2025 I. Move -up Pay Temporary upgrading shall be defined as the temporary assignment of an employee to work in a job classification, which is assigned to a salary schedule higher than their regular job classification. Employees temporarily upgraded to the following job classifications and equivalent positions shall receive a five percent (5%) pay differential over their rate of pay for all time worked in the higher job classification if they are assigned to work in the higher job classification fora period of one (1) working hour or longer. Lifeguard Captain Lifeguard Battalion Chief All holiday, flex leave, and other paid leave shall be paid at the employee's rate of pay. Assignments to higher rated classifications shall be made at the sole discretion of the City. J. Move -down Pay Employees who work down - a temporary assignment of an employee to work in a job classification, which is assigned to a salary schedule lower than their regular job classification (i.e., a Battalion Chief who moves down as a Lifeguard Captain or a Lifeguard Captain who moves down as a Lifeguard Officer) shall be paid at the top step of the classification to which the employee moved down unless the top step of the moved down classification is higher than their current rate of pay. In that case, they will be paid at the regular pay rate. K. Court Standby Pay All NBLMA members who, pursuant to subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off- duty, to remain within a certain response time from court, shall be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBLMA members shall, when required to appear in court pursuant to a subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be on duty and shall be paid accordingly. Members shall 6 NBLMA MOU 2022-2025 remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. L. Longevity Pay Employees in the Unit shall receive Longevity Pay as follows: Years of Service 16 but Tess than 20 20 but less than 25 25 and over Longevity Pay 1.0% 1.5% 2.5% The parties agree that to the extent permitted by law, the Longevity Pay in this section is special compensation and shall be reported to Ca1PERS as such pursuant to Title 2 CCR, Section 571(a)(1) and 571.1(b)(1) Longevity Pay. M. Salary Differential The Training Lifeguard Captain shall be assigned to routinely and consistently train employees and oversee the Junior Lifeguard Program. Training Lifeguard Captains shall receive an additional 7.5% of base pay over Line Lifeguard Captains. Assignment as a Training Lifeguard Captain is for one year unless extended by the Assistant Chief, Lifeguard Operations. SECTION 3. LEAVES A. Flex Leave 1. Basis for Accrual Full -Time Members: Regular full-time employees enrolled in the Flex Leave program will earn leave in accordance with the following schedule: Years of Continuous Accrual per pay Maximum Hours Service in the Unit period/hrs Annual Accrual 1 but less than 5 5 but Tess than 9 5.54 288.08 6.15 319.80 7 NBLMA MOU 2022-2025 9 but less than 12 12 and over Part -Time Members: 6.77 352.04 7.69 399.88 Regular part-time employees shall be enrolled in the Flex Leave program and accrue leave time at the rate of .04 hours for each hour worked. 2. Limit on Accumulation and Cash Out of Flex Leave Employees shall be entitled to accrue flex leave up to a maximum of fifty- two (52) times the member's bi-weekly accrual rate. This limit on accumulation shall apply to both full-time and part-time members. Earned flex leave in excess of the maximum permitted is currently paid bi-weekly at the member's hourly rate of pay ("spillover pay"). Members shall be eligible for flex leave spillover pay only if they have utilized at least eighty (80) hours of flex leave the previous calendar year. Employees who have not utilized eighty (80) hours of leave for full time and sixty (60) hours for part-time the prior calendar year shall not be eligible for "spillover pay". Once an employee accrues the maximum accrual limit, theywill not accrue additional flex leave until they use leave and reduce their accrual below the accrual limit. Employees shall have the option of converting accrued Flex Leave to cash on an hour -to -hour basis subject to the following: on or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out accrued flex leave which will be earned in the following calendar year. The employee can elect to receive the cash out in the pay period which includes June 30 and the pay period which includes December 15 for those Flex Leave benefits that have been earned during that portion of the year. In no event shall the flex leave balance be reduced below on hundred and sixty (160) hours. 3. Method of Use Flex leave may not be taken in excess of that actually accrued. The Department Director or designee 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. 8 NBLMA MOU 2022-2025 B. Use of Flex Leave Level A staffing shall run from June 15th through Labor Day. During this period of time, full-time and part-time NBLMA personnel may be limited to a total of forty (40) hours usage of flex leave requiring backfill. Additional flex leave during this period may be approved if, in the opinion of management, adequate staffing levels can be maintained. C. Family Sick Leave Unit employees shall be entitled to use an amount of time equal to one-half (1/2) of their annual leave accrual for an illness of a family member as defined below which requires the presence of the employee. Such time may be taken from the employee's annual leave accrual or leave bank, at the employee's choice. Leave shall be administered in accordance with the provisions of the Employee Policy Manual (EPM) For purposes of family sick leave, family member shall mean spouse, parent, (parent shall mean biological, foster, or adoptive), child (child shall mean biological, adopted, or foster child; a stepchild; a legal ward; or a child of an employee standing in local parentis), grandchild, grandparent, sibling or as modified by State or Federal law. D. Holiday Time As described in the following paragraph, employees shall receive leave or pay for the following holidays: New Year's Day January 1 Martin Luther King Day January — 3rd Monday Washington's Birthday February— 3rd Monday Memorial Day May— Last Monday Floating Holiday* July 1 Independence Day July 4 Labor Day September— 1st Monday Veterans Day November 11 Thanksgiving Day November— 4th Thursday Friday After Thanksgiving November— 4th Friday Christmas Eve December 24 (last Y of workday) Christmas Day December 25 New Year's Eve December 31 (last % of workday) 9 NBLMA MOU 2022-2025 Full-time employees receive 96 hours of holiday time per year,1/26th (3.69 hours) per pay period which will be paid or accrued each pay period. Part-time employees receive 72 hours of holiday time per year, 1/26th (2.77 hours) per pay period which will be paid or accrued each pay period. When an employee becomes an NBLMA member, they shall select to receive either pay, leave or a combination of both pay and leave for the holidays. When a part-time employee in the unit is appointed to a full-time classification, they shall select to receive either pay, leave or a combination of both pay and leave for the additional twenty-four (24) hours. To the extent permitted by law, this holiday compensation shall be reported to PERS as special compensation for those employees who are normally required to work on an approved holiday because they work in positions that require scheduled staffing without regard to the holidays and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(5) and 571.1(b)(4) Holiday Pay. E. Bereavement Leave Bereavement Leave shall be defined as the necessary absence from duty by an employee because of the death or terminal illness in their immediate family. NBLMA full-time members shall be entitled to 40 hours bereavement leave per incident (terminal illness followed by death is considered one incident) and 32 hours bereavement leave for part-time members. Leave hours need not be used consecutively, but should occur in proximate time to the occurrence, but no more than 90 days from the date of the death of the family member. Immediate family shall mean an employee's father, stepfather, mother, stepmother, brother, sister, spouse/domestic partner, child, stepchild and grandparent, and the employee's spouse/domestic partner's father, mother, brother, sister, child, and grandparent. An employee requesting bereavement leave shall notify their supervisor as soon as possible of the need to take leave. Probationary Employees. An employee serving their initial probationary period who takes leave under this section who for any reason terminates their employment prior to the completion of such probationary period shall have their final paycheck reduced by the value of the leave taken. Section 4. FRINGE BENEFITS A. Insurance 1. Benefits Information Committee 10 NBLMA MOU 2022-2025 The City has established a Benefits Information Committee composed of one representative from each employee association 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 care issues. The purpose of this Committee is to provide each employee association with information about health care issues and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. City Contribution The City has implemented an IRS qualified Cafeteria Plan. The City contribution toward the Cafeteria Plan shall be as set forth below. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical, dental and vision insurance/programs.The City and NBLMA 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. a. Full -Time Members: The City's contribution towards the Cafeteria Plan is $1,645 (plus the minimum CaIPERS participating employer's contribution). Full time NBLMA members who do not want to enroll in any medical planoffered by the City must provide proof of minimum essential coverage ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California) and execute an opt -out agreement releasing the City from any responsibility or liability to provide medical insurance coverage on an annual basis. Employees hired prior to September 28, 2019 who elect to opt out of medicalcoverage offered by the City because they have provided proof of minimum essential coverage ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California) will receive $1,000 per month in taxable cash. For these same employees, if they elect medical coverage and spend less than the City 11 NBLMA MOU 2022-2025 contribution provided above, those unused cafeteria plan funds shall be paid to the employee as taxable cash. Employees hired on or after September 28, 2019 who elect to opt out of medical coverage offered by the City because they have provided proof of minimum essential coverage ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California) shall receive $500 per month in taxable cash. For these same employees, if they elect medical coverage and spend less than the City contribution provided above, there shall be no cash back provided. lf, prior to December 31, 2025, a court of competent jurisdiction or formal legal opinion determines that the City's cafeteria benefit plan is a bona fide plan such that the City's contributions towards medical premiums will not be included in the employee's regular rate of pay under the Fair Labor Standards Act, the City will increase the monthly contribution towards the Cafeteria Plan by a total of $200 over the remaining term of the agreement. The $200 will be prorated annually over the remaining term of the agreement, beginning with the first day of the month following the day it becomes bona fide. Example: If the cafeteria benefit plan becomes bona fide at the beginning of the third year of the agreement, the City will increase the monthly contribution by $100 per month in January of Year 3 and by an additional $100 per month (total $200) in January of Year 4. If the cafeteria benefit plan becomes bona fide at the beginning of the second year of the agreement, the $200 will be spread evenly over the remaining three years of the agreement, or at $67 per month in Year 2, another $67 per month in Year 3 and another $67 per month in Year 4. If the City's cafeteria benefit plan is not determined to be a bona fide plan as outlined above by a court of competent jurisdiction or formal legal opinion prior to December 31, 2025, this paragraph will become ineffective and the City's obligation to increase the cafeteria contribution by $200 will cease on December 31, 2025. 12 NBLMA MOU 2022-2025 b. Part -Time Members: Part-time NBLMA members receive a monthly cafeteria benefit of $601. For part-time employeesenrolled in medical plans, the cafeteria amount is inclusive of the PERSdesignated minimum medical insurance contribution. For employees who do not enroll in a medical plan there shall be no optout cafeteria benefit. Part-time time NBLMA members who do not want to enroll in any medical plan offered by the City must provide proof of minimum essential coverage ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California). 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of theCity's health plan offerings for full-time employees as agreed upon by the Benefits Information Committee. 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee for full-time employees. B. Additional Health Insurance Programs 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as childcare 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 a full-time Association membermay request that medical, childcare, 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. 2. Disability Insurance The City shall provide Short -Term (STD) and Long -Term (LTD) disability insurance to regular full-time employees with the following provisions: 13 NBLMA MOU 2022-2025 Short -Term Disability Long -Term Disability Benefit Amount 66.67% of covered 66.67% of covered Maximum Benefit $1,846 weekly $15,000 monthly Waiting Period 30 calendar days 180 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. Employees shall pay one percent (1 %) of base salary as a post -tax deduction for this benefit. Effective the first premium payment after the City Council adoption of the 2022-2025 MOU, the City will no longer require unit members to pay one percent (1%) of base salary for this benefit. 3. Life Insurance The City shall provide life insurance for 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 (i.e., a maximum of $25,000). This amount remains in effect until the employee retires from City employment. Employees may also purchase supplemental life insurance at their own cost. C. Employee Assistance Program The City shall provide an Employee Assistance Program (EAP) for Association members through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines. D. The Retirement Benefit 1. Retirement Benefit 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: Tier 1: For employees enrolled by the City of Newport Beach as Safety 14 NBLMA MOU 2022-2025 members on or before November 23, 2012, the retirement formula shall be 3%@50 calculated on the basis of the single highest year. Tier 2: For classic member (as defined in the Public Employees' Pension Reform Act) employees enrolled in CaIPERS by the City of Newport Beach as Safety members on or after November 24, 2012, the retirement formula is 2%@50. For these same employees, final compensation will be based on the highest annual average compensation earnable during the three consecutive years of employment immediately preceding the effective date of their retirement or any other three consecutive year period chosen by the employee as set forth in Government Code section 20037. Tier 3: For employees enrolled by the City of Newport Beach as Safety members on or after January 1, 2013 who are new members as defined in the Public Employees' Pension Reform Act), the retirement formula shall be 2.7%@57 provided for by the Public Employees' Retirement Law at Government Code section 7522.25(d). For these same employees, final compensation will be based on the highest annual average compensation earnable during the three consecutive years of employment immediately preceding the effective date of their retirement or any other three consecutive year period chosen by the employee as set forth in Government Code section 7522.32(a). The City's contract with PERS also provides for: a. The military buy-back provision pursuant to Section 20930.3 of the California Government Code and the highest year benefit pursuant to Section 20042. b. The Level 4 1959 Survivor Benefits c. The pre -retirement option settlement 2 death benefit (Section 21548) 2. Employee Contributions Tier 1 and 2 Employees: All unit members in Tiers 1 and 2 will pay the full 9% "safety member" contribution of PERS reportable earnings. This payment will be made on a pre-tax basis through payroll deduction pursuant to IRS Code Section 414(h)(2). This contribution will not be considered as 15 NBLMA MOU 2022-2025 part of employee's "compensation earnable" under Government Code section 20636. Unit members will, in addition to the 9% normal member contribution, contribute 4.6% of pensionable compensation toward retirement costs as permitted under Government Code §20516(f), for a total contribution of 13.6%. 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 (PEPRA) and equals 50% of the "total normal cost" as determined by PERS. The employee Safety rate is subject to change based on annual PERS actuarial valuations. In addition to the statutorily required 50% contribution of total normal costs, Tier III employees shall contribute an additional percentage of pensionable compensation toward retirement costs pursuant to Government Code § 20516((), for a total contribution of 13.6%. If future fiscal year member contribution rates for employees in Tier III change, the additional contribution made by the employee under 20516(f) will be increased or decreased accordingly so that the total employee contribution equals 13.6%, provided however, that the employee contribution shall never fall below the statutory required contribution. In the event PERS pension provisions for new or existing employees are modified by State or Federal legislation resulting in changes to previously negotiated terms, the parties agree to meet and confer to discuss appropriate changes to the MOU. E. Retiree Health Benefits Program (Full -Time Classifications Only) 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 three categories. The benefit is structured differently for each of the categories. The categories are as follows: 16 NBLMA MOU 2022-2025 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 Tess than 50 (46 for public safety employees). c. Category 3 - Active employees hired prior to January 1, 2006, whose age plus years of service was 50 or greater (46 for public safety employees) as of January 1, 2006. 2. Program Structure This is an Integral Part Trust (IPT) Retiree Health Savings (RHS) Plan (formerly the Medical Expense Reimbursement Program "MERP'? and applies only to regular full-time NBLMA employees. a. For employees in Category 1, the program is structured as follows: Each employee will have an individual RHS account for bookkeeping purposes, called "Employee Account." This account will accumulate contributions to be used for health care expenses after separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. Contributions will be in three parts. Part A contributions (mandatory employee contributions): 1 % of salary. Part B contributions (employer contributions): $2.50 per month for each year of service plus year of age (updated every January 1st based on status as of December 31 st of the prior year). Part C contributions (leave settlement as determined by Association): 17 NBLMA MOU 2022-2025 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. 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 contribution, at the level of zero percent (0%). This amount may be changed, on a going forward basis, as part of the future meet and confer process. However, the participation level must be the same for all employees within the Association. Additionally, the purpose and focus of these changes should be toward Tong -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. Part A contributions may be included in PERS compensation. Part Band Part C contributions will not be included in PERS compensation. Part A contributions begin upon enrolment 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 (i.e., five years at full time status). 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). 18 NBLMA MOU 2022-2025 Thereafter, contributions are made bi-weekly. Part C deposits, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon separation. If an employee leaves the City prior to five years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the RHS Employee Account. Such an employee will not be entitled to any Part B contributions. The exception to this is a full-time employee, participating in the program, who leaves the City due to industrial disability during the first five years of employment. In such cases, the employee will receive exactly five years' worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's RHS account at the time of separation. Distributions from RHS Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502) and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and their 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 their 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 CaIPERS participating employer's contribution (i.e., the CaIPERS statutory minimum 19 NBLMA MOU 2022-2025 amount) towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's RHS account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one- time City contribution to their individual RHS accounts that equates to $100 per month for every month they contributed to the previous "defined benefit" plan, to a maximum of 15 years (180 months). This contribution will be made only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. Employees in Category 2 who had less than five years' service with the City prior to implementation of the new program will only receive Part B contributions back to January 1, 2006, when they reach five years total service. c. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute $400 per month into each of their 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 20 NBLMA MOU 2022-2025 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. 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. F. Tuition Reimbursement Full-time and part-time NBLMA members attending accredited community colleges, colleges 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. 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. NBLMA members attending pre -approved, directly job -related classes, courses and seminars given by recognized agencies, organizations, or individuals other than accredited college institutions may apply for reimbursement of actual cost of tuition, books, fees, or other student expenses. Reimbursement is contingent upon the successful completion of the course. Successful completion means a document or certificate showing successful completion of the course or seminar. All claims for reimbursement require the approval of Fire Chief or designee before submittal to Human Resources. Maximum tuition reimbursement for full-time employees shall be $1,500 per fiscal year and the maximum reimbursement for part-time employees shall be $1,125 per fiscal year. 21 NBLMA MOU 2022-2025 SECTION 5. MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs The provisions of this section shall apply to full-time and part-time members 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, based on 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 regular status in their current Classification or any Classification within the Series, subject to the following: i. Credit shall be given only for continuous service (as described in the next paragraph) subsequent to the most recent appointment to regular status in the Classification or Series. ii. Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. c. "Classification" shall mean one or more full-time positions identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part-time, seasonal, or temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). d. In this bargaining unit, there is one Series made up of three classifications represented by the Association — Lifeguard Officer, Lifeguard Captain and Lifeguard Battalion Chief. e. "Bumping Rights", "Bumping" or "bump" shall mean the right of an employee, based upon seniority within a series, to displace a Tess senior employee in a lower Classification within the Series. 22 NBLMA MOU 2022-2025 2. Procedure In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: a. Employees within a Classification shall be laid off in inverse order of seniority. b. 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 within the bargaining unit, provided, however, that the determination of the employee to be terminated from the position shall be based on seniority within the Series. An employee who has Bumping Rights shall notify the Department Director within seven (7) working days after the notice of layoff of their intention to exercise Bumping Rights. c. 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 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 of 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). 4. Re -Employment Regular and probationary employees who are laid off shall be placed on a Department re-employment list in reverse order of layoff. The re-employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re-employment list shall have the right to appointment to the position, provided, he or she reports to work within 23 NBLMA MOU 2022-2025 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 their last known address. Any employee shall have the right to refuse to be placed on the re-employment list or the right to remove their name from the re- employment list by sending written confirmation to the Human Resources Director. 5. Severance Pay Regular 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, to a maximum of ten (10) weeks of severance pay. B. Discipline Any discipline shall be in accordance with the Department SOP and the Employee Policy Manual. C. Health and Fitness Evaluations All NBLMA members shall participate in the Department Fitness Program. D. Provision for Sun Protection 1. The first full pay period of each fiscal year the City will provide $500 to each full-time unit member and $300 to each part-time unit member for sunglasses and other sun protection materials (not restricted to use at Lifeguard Store). 2. Each unit employee shall receive an annual skin cancer screening, which will be conducted either on or off duty at the Department's discretion. Employees directed to receive this screening off duty shall receive one (1) hour of compensatory time off as compensation. E. Fitness Equipment and Exercise Time The City will provide up to $3,000 per year towards the purchase of fitness equipment to be used on duty for the intended benefit of NBLMA. The actual equipment to be purchased shall be recommended by NBLMA, and shall require the final approval of the Fire Chief. Unit employees shall be allowed up to three (3) hours per week for on duty physical fitness training. 24 NBLMA MOU 2022-2025 F. Employee Policy Manual The City and NBLMA have agreed on implementation of the City's revised 2010 Employee Policy Manual. Should additional revisions to the Manual be proposed, the City will meet and confer on applicable policy manual provisions which are within the scope of bargaining. G. Direct Deposit All Unit employees shall participate in the City's Direct Deposit Program. Signatures on the following page 25 NBLMA MOU 2022-2025 Executed this 10 day of M IW 2022: NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION By: Gary CcrGvell, President Signed in Counterpart By: Elizabeth Tourgeman, Counsel for NBLMA CITY OF NEW •RICH B Kevin '!" on ayor APPROVED AS TO FORM Charles Sakai, Special Counsel for City of Newport Beach ATTEST: By: Leilani Brown, City Clerk 26 NBLMA MOU 2022-2025 Executed this _d'ay of , 2022: NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION By: Gary Conwell, President By. ourgen 'ti, `raTisei for NBLMA CITY OF NEWPORT BEACH By: Kevin Muldoon, Mayor APPROVED AS TO FORM By: Charles Sakai, Special Counsel for City of Newport Beach ATTEST: By: Leilani Brown, City Clerk 26 NBLMA MOU 2022-2025 EXHIBIT A NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION MOU Term: January 1, 2022 - December 31, 2025 2.0% Cost of Living Adjustment Effective January 15, 2022 Represented Positions Grade Step Hourly Rate Annual Salary Lifeguard Officer (part-time) Lifeguard Captain, Training 01 1 $ 27.94 $ 58,109 2 $ 29.33 $ 61,014 3 $ 30.80 $ 64,054 4 $ 32.34 $ 67,272 5 $ 33.95 $ 70,624 6 $ 35.65 $ 74,156 7 $ 37.44 $ 77,865 8 $ 39.32 $ 81,777 03 1 $ 40.34 $ 83,900 2 $ 42.36 $ 88,102 3 $ 44.47 $ 92,504 4 $ 46.69 $ 97,108 5 $ 49.03 $ 101,981 6 $ 51.47 $ 107,054 7 $ 54.07 $ 112,462 8 $ 56.77 $ 118,072 Lifeguard Captain 11 1 $ 37.53 $ 78,067 2 $ 39.40 $ 81,956 3 $ 41.38 $ 86,068 4 $ 43.44 $ 90,359 5 $ 45.63 $ 94,918 6 $ 47.93 $ 99,701 7 $ 50.33 $ 104,685 8 $ 52.85 $ 109,937 Lifeguard Battalion Chief 16 1 $ 47.27 $ 98,315 2 $ 49.61 $ 103,187 3 $ 52.09 $ 108,350 4 $ 54.68 $ 113,736 5 $ 57.43 $ 119,458 6 $ 60.27 $ 125,358 7 $ 63.29 $ 131,638 8 $ 66.45 $ 138,209 Hourly pay rates are rounded to the nearest hundredth. Annual salary is rounded to the nearest whole dollar. 27 NBLMA MOU 2022-2025 NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION MOU Term: January 1, 2022 - December 31, 2025 2.0% Cost of Living Adjustment Effective January 14, 2023 Represented Positions Grade Step Hourly Rate Annual Salary Lifeguard Officer (part-time) Lifeguard Captain, Training 01 1 $ 28.50 $ 59,271 2 $ 29.92 $ 62,234 3 $ 31.41 $ 65,335 4 $ 32.99 $ 68,617 5 $ 34.63 $ 72,037 6 $ 36.36 $ 75,639 7 $ 38.18 $ 79,423 8 $ 40.10 $ 83,412 03 1 $ 41.14 $ 85,578 2 $ 43.20 $ 89,864 3 $ 45.36 $ 94,355 4 $ 47.62 $ 99,050 5 $ 50.01 $ 104,020 6 $ 52.50 $ 109,195 7 $ 55.15 $ 114,712 8 $ 57.90 $ 120,434 Lifeguard Captain 11 1 $ 38.28 $ 79,628 2 $ 40.19 $ 83,595 3 $ 42.21 $ 87,789 4 $ 44.31 $ 92,166 5 $ 46.55 $ 96,816 6 $ 48.89 $ 101,695 7 $ 51.34 $ 106,778 8 $ 53.91 $ 112,136 Lifeguard Battalion Chief 16 1 $ 48.21 $ 100,281 2 $ 50.60 $ 105,251 3 $ 53.13 $ 110,517 4 $ 55.77 $ 116,011 5 $ 58.58 $ 121,847 6 $ 61.47 $ 127,865 7 $ 64.55 $ 134,271 8 $ 67.78 $ 140,973 Hourly pay rates are rounded to the nearest hundredth. Annual salary is rounded to the nearest whole dollar. 28 NBLMA MOU 2022-2025 NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION MOU Term: January 1, 2022 - December 31, 2025 2.0% Cost of Living Adjustment Effective January 13, 2024 Represented Positions Grade Step Hourly Rate Annual Salary Lifeguard Officer (part-time) Lifeguard Captain, Training 01 1 $ 29.07 $ 60,456 2 $ 30.52 $ 63,479 3 $ 32.04 $ 66,641 4 $ 33.65 $ 69,990 5 $ 35.33 $ 73,478 6 $ 37.09 $ 77,152 7 $ 38.95 $ 81,011 8 $ 40.90 $ 85,080 03 1 $ 41.97 $ 87,289 2 $ 44.07 $ 91,661 3 $ 46.27 $ 96,242 4 $ 48.57 $ 101,031 5 $ 51.01 $ 106,101 6 $ 53.55 $ 111,379 7 $ 56.25 $ 117,006 8 $ 59.06 $ 122,842 Lifeguard Captain 11 1 $ 39.05 $ 81,221 2 $ 40.99 $ 85,266 3 $ 43.05 $ 89,545 4 $ 45.20 $ 94,009 5 $ 47.48 $ 98,753 6 $ 49.87 $ 103,729 7 $ 52.36 $ 108,914 8 $ 54.99 $ 114,378 Lifeguard Battalion Chief 16 1 $ 49.18 $ 102,287 2 $ 51.61 $ 107,356 3 $ 54.20 $ 112,727 4 $ 56.89 $ 118,331 5 $ 59.75 $ 124,284 6 $ 62.70 $ 130,423 7 $ 65.84 $ 136,957 8 $ 69.13 $ 143,792 Hourly pay rates are rounded to the nearest hundredth. Annual salary is rounded to the nearest whole dollar. 29 NBLMA MOU 2022-2025 NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION MOU Term: January 1, 2022 - December 31, 2025 2.0% Cost of Living Adjustment Effective January 11, 2025 Represented Positions Grade Step Hourly Rate Annual Salary Lifeguard Officer (part-time) Lifeguard Captain, Training 01 1 $ 29.65 $ 61,665 2 $ 31.13 $ 64,749 3 $ 32.68 $ 67,974 4 $ 34.32 $ 71,390 5 $ 36.03 $ 74,947 6 $ 37.83 $ 78,694 7 $ 39.73 $ 82,632 8 $ 41.72 $ 86,782 03 1 $ 42.81 $ 89,035 2 $ 44.95 $ 93,494 3 $ 47.20 $ 98,166 4 $ 49.54 $ 103,052 5 $ 52.03 $ 108,223 6 $ 54.62 $ 113,607 7 $ 57.38 $ 119,346 8 $ 60.24 $ 125,299 Lifeguard Captain 11 1 $ 39.83 $ 82,845 2 $ 41.81 $ 86,972 3 $ 43.91 $ 91,335 4 $ 46.10 $ 95,889 5 $ 48.43 $ 100,728 6 $ 50.87 $ 105,803 7 $ 53.41 $ 111,092 8 $ 56.09 $ 116,666 Lifeguard Battalion Chief 16 1 $ 50.16 $ 104,333 2 $ 52.65 $ 109,503 3 $ 55.28 $ 114,982 4 $ 58.03 $ 120,698 5 $ 60.95 $ 126,769 6 $ 63.96 $ 133,031 7 $ 67.16 $ 139,696 8 $ 70.51 $ 146,668 Hourly pay rates are rounded to the nearest hundredth. Annual salary is rounded to the nearest whole dollar. 30 NBLMA MOU 2022-2025 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION January 1, 2019 through December 31, 2021 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION TABLE OF CONTENTS Preamble Section 1. General Provisions Duration of Memorandum 1 Scope 1 Conclusiveness 2 Savings 2 Other Terms and Conditions 2 Unit Classification Titles 2 Section 2. Compensation Salary Adjustments 2 One-time Lump Sum Payment 3 Special Assignment Pay 3 Overtime 3 Uniforms 4 Call Out 4 Scholastic Achievement Pay 4 Night Standby 5 Move -up Pay 5 Move -down Pay 5 Court Standby Pay 6 Longevity Pay 6 Section 3. Leaves Flex Leave 6 Use of Flex 7 Family Sick Leave 8 Holiday Time 8 Bereavement Leave 9 Section 4. Fringe Benefits Insurance 9 Additional Health Insurance/ Programs 11 i Employee Assistance Program 12 The Retirement Benefit 12 Retiree Health Benefits Program 14 Tuition Reimbursement 17 Section 5. Miscellaneous Provisions Reduction in Force/Layoffs 18 Discipline 20 Health and Fitness Evaluations 20 Provision for Sun Protection 20 Fitness Equipment and Exercise Time 21 Employee Policy Manual 21 Direct Deposit 21 EXHIBIT A — Represented Classifications and Pay Rates 23 ii MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION This Memorandum of Understanding (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE 1. Authorized representatives of the CITY OF NEWPORT BEACH (hereinafter referred to as "CITY") and authorized representatives of the NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION (hereinafter referred to as "NBLMA") a recognized employee organization, met and conferred, exchanging various proposals concerning wages, hours, fringe benefits and other terms and conditions of employment of employees represented by NBLMA (hereinafter referred to as "EMPLOYEES") for the period of January 1, 2019 through December 31, 2021 . SECTION 1. GENERAL PROVISIONS A. Duration of Memorandum The terms of this MOU are to remain in full force and effect from January 1, 2019 through December 31, 2021. B. Scope 1. All present written rules and currently established practices and employee 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, or in the case of the Department Standard Operating Procedures (SOPs) falling within the scope of representation, the City has given notice to the Association and, upon request, met and conferred on any proposed changes which fall within the scope of representation. When the Department proposes to change any SOP departmental rule or regulation, it will provide a copy of such change to the Association no less than seven (7) days prior to implementation of the proposed change. If such proposed change materially impacts any matter within the scope of representation, then the parties agree to meet and confer over such impact. 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. NBLMA MOU 2019-21 1 C. Conclusiveness Except as provided for in this agreement, this MOU contains all of the covenants, stipulations and provisions agreed upon by the parties. D. Savings 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. E. Other Terms and Conditions Except as to those matters expressly covered by this MOU, all terms and conditions of employment may be changed or amended after meeting and conferring, in good faith. Unless specifically provided in this MOU, Part-time members shall only receive those benefits in this MOU which are specifically set forth as applicable to Part- time members. F. Unit Classification Titles Unit classifications are listed in Exhibit A. For all compensation comparison purposes, actual job duties, and not classification titles, will be utilized. SECTION 2. COMPENSATION A. Salary Adiustments Base salary increases for all NBLMA represented classifications shall be as follows and as specified in Exhibit A: Effective the pay period following City Council approval of this MOU, base salaries will be increased by one and three quarters percent (1.75%) for all members of the bargaining unit. NBLMA MOU 2019-21 2 Effective the pay period including January 1, 2020, base salaries will be increased by one and three quarters percent (1.75%) for all members of the bargaining unit. Effective the pay period including January 1, 2021, base salaries will be increased by one and three quarters percent (1.75%) for all members of the bargaining unit. B. One -Time Lump Sum Payment All members of the bargaining unit employed by the City at the beginning if the pay period following City Council approval of this 2019-2021 MOU shall receive a one- time payment (subject to tax withholdings) of one thousand five hundred dollars ($1,500.00). This payment shall be made by the beginning of the second pay period following City Council approval of this 2019-2021 MOU. This one-time payment shall not be reported to Ca1PERS as compensation earnable or pensionable compensation as it is being provided in the same fiscal year in which a base salary increase is being provided to members of this bargaining unit. C. Special Assignment Pay Boat Pay: Lifeguard Captains certified for and assigned to boat operations shall receive additional compensation of 2.5% of base salary for their job classification. Boat assignment pay will be assigned to a qualified Captain and compensated only when performing boat duties. Training Pay: The Lifeguard Captain assigned as the "Training Captain" will receive an additional 7.5% of base pay while assigned the responsibilities of training. D. Overtime Unit employees shall receive overtime compensation for all hours worked in excess of forty (40) in any work week. Time worked shall be rounded to the nearest quarter of an hour (seven (7) minutes or less round down; eight (8) minutes or more round up). Paid time off shall be considered time worked for the purposes of calculating MOU overtime. The rate at which MOU overtime (overtime which is in addition to that which is required by the FLSA) is paid does not include any contributions to the City's Cafeteria Plan as set forth in Section 4 — Fringe Benefits of the MOU. Unit employees shall have the option of requesting to earn compensatory time off (CTO) for all overtime, including training time, in lieu of overtime compensation. All use of compensatory time off shall be subject to existing City rules. The time during which an employee may use accrued CTO is subject to approval by the department head or his/her designee with due regard for the wishes of the employee and the need to provide service. However, an employee wishing to use his/her accrued CTO shall provide the City with reasonable notice of such request. A request to use CTO without reasonable notice may still be granted NBLMA MOU 2019-21 3 within the discretion of the supervisor or manager responsible for considering the request. Notwithstanding this paragraph, the parties agree that employees cannot use CTO from June 15 through Labor Day each year. The maximum accrual of CTO shall be eighty (80) hours. Effective January 1, 2020, an employee may only accrue up to eighty (80) hours of CTO per calendar year. E. Uniforms The City shall pay the entire cost of providing full-time and part-time NBLMA members with each component of the required NBLMA uniforms. The required NBLMA uniform includes uniform pants, uniform shirts, safety shoes, badges and insignias, uniform jackets and liners, belts, dive equipment, foul weather gear, personal floatation device and helmet. The City shall not be responsible for providing employees with socks, underwear, cap, workout shoes, or other clothing. As permissible by law and subject to the provisions and limitations under the Public Employees' Retirement Law, including restrictions on reporting uniform allowance as pensionable compensation for "non -classic" members hired after January 1, 2013, the City shall report the value of provided uniforms at $838 per year ($32.23 per pay period) in accordance with PERS requirements. The parties agree the reported value of uniforms is intended to reflect clothing such as pants, shirts, jackets, and related attire and excludes health and safety related equipment. F. Call Out Call out compensation shall be in accordance with the following provisions: 1. All emergency call out time shall be calculated to the nearest one quarter (1/4) hour of time worked. 2. A minimum of two (2) hours (including travel time),If the two hours causes the employee to exceed forty (40) hours in the week, the rate of pay shall be at one and one half (1 1/2) times the employee's rate of pay. Employees will be considered "on duty" at the beginning of each emergency call out for a minimum of two (2) hours or until completed. Employees will not be compensated for additional call outs that occur during the initial two (2) hour response period, or during normal working hours. G. Scholastic Achievement Pay Employees in the classification of Lifeguard Captain shall receive two percent of base salary (2°/0) if they receive a Bachelor's Degree. Employees in the classification of Lifeguard Battalion Chief shall receive one percent (1 %) of base salary if the receive a Master's Degree. NBLMA MOU 2019-21 4 A "degree" shall be 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. H. Night Standby A full-time or part-time employee assigned to standby duty (as defined by Department Policy) for purposes of being on call to handle emergency situations arising at times other than during normal working hours shall be guaranteed two and a half (2.5) hours of pay at the employee's rate of pay for each calendar day of such standby duty. Employees shall have the option of receiving compensatory time off at straight time in lieu of pay for night standby. This compensatory time off is part of same bank which is subject to the maximum accrual of compensatory time off set forth in Section 2D above. 1. Move -up Pay Temporary upgrading shall be defined as the temporary assignment of an employee to work in a job classification, which is assigned to a salary schedule higher than his/her regular job classification. Employees temporarily upgraded to the following job classifications and equivalent positions shall receive a five percent (5%) pay differential over their rate of pay for all time worked in the higher job classification if they are assigned to work in the higher job classification for a period of one (1) working hour or longer. Lifeguard Captain Lifeguard Battalion Chief All holiday, flex leave and other paid leave shall be paid at the employee's rate of pay. Assignments to higher rated classifications shall be made at the sole discretion of the City. J. Move -down Pay Employees who work down — a temporary assignment of an employee to work in a job classification, which is assigned to a salary schedule lower than his her regular job classification (i.e., a Battalion Chief who moves down as a Lifeguard Captain or a Lifeguard Captain who moves down as a Lifeguard Officer) shall be paid at the top step of the classification to which the employee moved down unless the top step of the moved down classification is higher than their current rate of pay. In that case, they will be paid at the regular pay rate. NBLMA MOU 2019-21 5 K. Court Standby Pay All NBLMA members who, pursuant to subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off —duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBLMA members shall, when required to appear in court pursuant to a subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. L. Longevity Pay Employees in the Unit shall receive Longevity Pay as follows: Years of Service 16 but less than 20 20 but less than 25 25 and over SECTION 3. LEAVES A. Flex Leave 1. Basis for Accrual Full -Time Members: Longevity Pay 1.0% 1.5% 2.5% Regular full-time employees enrolled in the Flex Leave program will earn leave in accordance with the following schedule: Years of continuous service in the unit 1 but less than 5 5 but less than 9 9 but less than 12 12 and over Part -Time Members: Accrual per pay period/hrs 5.54 6.15 6.77 7.69 Maximum Hours Annual Accrual 288.08 319.80 352.04 399.88 Regular part-time employees shall be enrolled in the Flex Leave program and accrue leave time at the rate of .04 hours for each hour worked. NBLMA MOU 2019-21 6 2. Limit on Accumulation and Cash Out of Flex Leave Employees shall be entitled to accrue flex leave up to a maximum of fifty- two (52) times the member's bi-weekly accrual rate. This limit on accumulation shall apply to both full-time and part-time members. Earned flex leave in excess of the maximum permitted is currently paid bi-weekly at the member's hourly rate of pay ("spillover pay"). Members shall be eligible for flex leave spillover pay only if they have utilized at least eighty (80) hours of flex leave the previous calendar year. Employees who have not utilized eighty (80) hours of leave for full time and sixty (60) hours for part-time the prior calendar year shall not be eligible for "spillover pay". Once an employee accrues the maximum accrual limit, he/she will not accrue additional flex leave until he/she uses leave and reduces his/her accrual below the accrual limit. Employees shall have the option of converting accrued Flex Leave to cash on an hour for hour basis subject to the following: on or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out accrued flex leave which will be earned in the following calendar year. The employee can elect to receive the cash out in the pay period which includes June 30 and the pay period which includes December 15 for those Flex Leave benefits that have been earned during that portion of the year. In no event shall the flex leave balance be reduced below one hundred and sixty (160) hours. On or before December 31, 2018, each employee shall have the one-time option of cashing out all or a portion of Flex Leave benefits credited to his/her account as of that date. However, in no event shall the flex leave balance be reduced below one hundred and sixty (160) hours when the leave is cashed out. 3. Method of Use Flex leave may not be taken in excess of that actually accrued. The Department Director or designee shall approve all requests for flex leave taking into consideration the needs of the Department, and whenever possible the seniority and wishes of the employee. Flex leave may be granted on an hourly basis. B. Use of Flex Level A staffing shall run from June 15th through Labor Day. During this period of time, full-time and part-time NBLMA personnel may be limited to a total of forty (40) hours usage of flex leave requiring backfill. Additional flex leave during this period may be approved if, in the opinion of management, adequate staffing levels can be maintained. NBLMA MOU 2019-21 C. Family Sick Leave Unit employees shall be entitled to use an amount of time equal to one-half (1/2) of their annual leave accrual for an illness of a family member as defined below which requires the presence of the employee. Such time may be taken from the employee's annual leave accrual or leave bank, at the employee's choice. Leave shall be administered in accordance with the provisions of the Employee Policy Manual (EPM). For purposes of family sick leave, family member shall mean spouse, parent, (parent shall mean biological, foster, or adoptive), child (child shall mean biological, adopted, or foster child; a stepchild; a legal ward; or a child of an employee standing in local parentis), grandchild, grandparent, sibling or as modified by State or Federal law. D. Holiday Time As described in the following paragraph, employees shall receive leave or pay for the following holidays: Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas New Year's Eve New Year's Day Martin Luther King Day Washington's Birthday Memorial Day Floating Holiday (1) July 4 1st Monday in September November 11 4th Thurs. in November Last 1/2 of working day December 25 Last 1/2 of working day January 1 3rd Monday in January 3rd Monday in February Last Monday in May For employee's birthday or other holiday. Full time employees receive 96 hours of holiday time per year, 1/26th (3.69 hours) per pay period which will be paid or accrued each pay period. Part-time employees receive 72 hours of holiday time per year, 1/26th (2.77 hours) per pay period which will be paid or accrued each pay period. When an employee becomes an NBLMA member, he/she shall select to receive either pay, leave or a combination of both pay and leave for the holidays. When a part-time employee in the unit is appointed to a full-time classification, he/she shall select to receive either pay, leave or a combination of both pay and leave for the additional twenty-four (24) hours. To the extent permitted by law, this holiday compensation shall be reported to PERS as special compensation and shall be regarded as compensation earnable as defined in Government Code Sec. 20636 (c) (6) for purposes of computing retirement benefits and contributions. NBLMA MOU 2019-21 8 E. Bereavement Leave Bereavement Leave shall be defined as the necessary absence from duty by an employee because of the death or terminal illness in his/her immediate family. NBLMA full-time members shall be entitled to 40 hours bereavement leave per incident (terminal illness followed by death is considered one incident) and 32 hours bereavement leave for part-time members. Leave hours need not be used consecutively, but should occur in proximate time to the occurrence, but no more than 90 days from the date of the death of the family member. Immediate family shall mean an employee's father, stepfather, mother, stepmother, brother, sister, spouse/domestic partner, child, stepchild and grandparent, and the employee's spouse/domestic partner's father, mother, brother, sister, child and grandparent. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. Probationary Employees. An employee serving his/her initial probationary period who takes leave under this section who for any reason terminates his/her employment prior to the completion of such probationary period shall have his/her final pay check reduced by the value of the leave taken. SECTION 4. FRINGE BENEFITS A. Insurance 1. Benefits Information Committee The City has established a Benefits Information Committee composed of one representative from each employee association 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 care issues. The purpose of this Committee is to provide each employee association with information about health care issues and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. City Contribution The City has implemented an IRS qualified Cafeteria Plan. The City contribution toward the Cafeteria Plan shall be as set forth below. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical, dental and vision insurance/programs. The City and NBLMA will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. NBLMA MOU 2019-21 9 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. a. Full -Time Members: The City's contribution towards the Cafeteria Plan is $1,624 (plus the minimum CaIPERS participating employer's contribution). Effective the pay period following City Council approval of this 2019-2021 MOU, this amount will increase to $1,645. Full time NBLMA members who do not want to enroll in any medical plan offered by the City must provide proof of minimum essential coverage ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California) and execute an opt -out agreement releasing the City from any responsibility or liability to provide medical insurance coverage on an annual basis. Employees hired prior to the first day of the pay period following City Council approval of this 2019-2021 MOU who elect to opt out of medical coverage offered by the City because they have provided proof of minimum essential coverage ("MEC') through another source (other than coverage in the individual market, whether or not obtained through Covered California) will receive $1,000 per month in taxable cash. For these same employees, if they elect medical coverage and spend less than the City contribution provided above, those unused cafeteria plan funds shall be paid to the employee as taxable cash. Employees hired on or after the first day of the pay period following City Council approval of this 2019-2021 MOU who elect to opt out of medical coverage offered by the City because they have provided proof of minimum essential coverage ("MEC') through another source (other than coverage in the individual market, whether or not obtained through Covered California) shall receive $500 per month in taxable cash. For these same employees, if they elect medical coverage and spend less than the City contribution provided above, there shall be no cash back provided. b. Part -Time Members: Part-time NBLMA members receive a monthly cafeteria benefit of $585. Effective the pay period following City Council approval of this 2019- 2021 MOU, this amount will increase to $601. For part-time employees enrolled in medical plans, the cafeteria amount is inclusive of the PERS designated minimum medical insurance contribution. For employees who do not enroll in a medical plan there shall be no opt out cafeteria benefit. Part-time time NBLMA members who do not want NBLMA MOU 2019-21 10 to enroll in any medical plan offered by the City must provide proof of minimum essential coverage ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California). 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings for full-time employees as agreed upon by the Benefits Information Committee. 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee for full-time employees. B. Additional Health Insurance/Programs 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. The City shall maintain a "reimbursable account program" in accordance with the provisions of Section 125 of the Internal Revenue Code, pursuant to which a full-time 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. 2. Disability Insurance The City shall provide Short -Term (STD) and Long -Term (LTD) disability insurance to regular full-time employees with the following provisions: Short -Term Disability Long -Term Disability Benefit Amount 66.67% of covered 66.67% of covered Maximum Benefit $1,846 weekly $15,000 monthly Waiting Period 30 calendar days 180 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. Employees shall pay one percent (1 %) of base salary as a post - tax deduction for this benefit. NBLMA MOU 2019-21 11 3. Life Insurance The City shall provide life insurance for 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 (i.e., a maximum of $25,000). This amount remains in effect until the employee retires from City employment. Employees may also purchase supplemental life insurance at their own cost. C. Employee Assistance Program City shall provide an Employee Assistance Program (EAP) for Association members through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines. D. The Retirement Benefit 1. Retirement Benefit 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: Tier 1: For employees enrolled by the City of Newport Beach as Safety members on or before November 23, 2012, the retirement formula shall be 3%@50 calculated on the basis of the single highest year. Tier 2: For classic member (as defined in the Public Employees' Pension Reform Act) employees enrolled in CaIPERS by the City of Newport Beach as Safety members on or after November 24, 2012, the retirement formula is 2%@50. For these same employees, final compensation will be based on the highest annual average compensation earnable during the three consecutive years of employment immediately preceding the effective date of his or her retirement or any other three consecutive year period chosen by the employee as set forth in Government Code section 20037. Tier 3: For employees enrolled by the City of Newport Beach as Safety members on or after January 1, 2013 who are new members as defined in the Public Employees' Pension Reform Act), the retirement formula shall be 2.7%@57 provided for by the Public Employees' Retirement Law at Government Code section 7522.25(d). For these same employees, final compensation will be based on the highest annual average compensation earnable during the three consecutive years of employment immediately preceding the effective date of his or her retirement NBLMA MOU 2019-21 12 or any other three consecutive year period chosen by the employee as set forth in Government Code section 7522.32(a). The City's contract with PERS also provides for: 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 pre -retirement option settlement 2 death benefit (Section 21548). 2. Employee Contributions Tier 1 and 2 Employees: All unit members in Tiers 1 and 2 will pay the full 9% "safety member" contribution of PERS reportable earnings. This payment will be made on a pre-tax basis through payroll deduction pursuant to IRS Code Section 414(h)(2). This contribution will not be considered as part of employee's "compensation earnable" under Government Code section 20636. Unit members will, in addition to the 9% normal member contribution, contribute 4.6% of pensionable compensation toward retirement costs as permitted under Government Code §20516(f), for a total contribution of 13.6%. 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 (PEPRA) and equals 50% of the "total normal cost" as determined by PERS. For FY17-18, the employee Safety rate is 10.5% and is subject to change based on annual PERS actuarial valuations. In addition to the statutorily required 50% contribution of total normal costs, Tier 111 employees shall contribute 3.10% of pensionable compensation toward retirement costs pursuant to Government Code § 20516(0, fora total contribution of 13.6%. If future fiscal year member contribution rates for employees in Tier 111 become greater or less than 10.5%, the additional contribution made by the employee under 20516(0 will be increased or decreased accordingly so that the total employee contribution equals 13.6%. In the event CaIPERS pension provisions for new or existing employees are modified by State or Federal legislation, resulting in changes to previously negotiated terms, the parties agree to meet and confer to discuss appropriate changes to the MOU. NBLMA MOU 2019-21 13 E. Retiree Health Benefits Program (Full -Time Classifications Only) 1. Background In 2005, the City and all Employee Associations agreed to replace the previous "defined benefit" retiree medical program with a new "defined contribution" program. The process of fully converting to the new program will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2006. b. Category 2 - Active employees hired prior to January 1, 2006, whose age plus years of service as of January 1, 2006 was less than 50 (46 for public safety employees). c. Category 3 - Active employees hired prior to January 1, 2006, whose age plus years of service was 50 or greater (46 for public safety employees) as of January 1, 2006. 2. Program Structure This is an Integral Part Trust (IPT) Retiree Health Savings (RHS) Plan (formerly the Medical Expense Reimbursement Program "MERP') and applies only to regular full-time NBLMA employees. a. For employees in Category 1, the program is structured as follows: Each employee will have an individual RHS account for bookkeeping purposes, called his or her "Employee Account." This account will accumulate contributions to be used for health care expenses after separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. Contributions will be in three parts. Part A contributions (mandatory employee contributions): 1 % of salary. Part B contributions (employer contributions): $2.50 per month for each year of service plus year of age (updated every January 1st based on status as of December 31 st of the prior year). NBLMA MOU 2019-21 14 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. 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 contribution, at the level of zero percent (0%). This amount may be changed, on a go forward basis, as part of the future meet and confer process. However, the participation level must be the same for all employees within the Association. Additionally, the purpose and focus of these changes should be toward Tong -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. 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 enrolment 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 (i.e. five years at full time status). 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 NBLMA MOU 2019-21 15 B contributions. The exception to this is a full-time employee, participating in the program, who leaves the City due to industrial disability during the first five years of employment. In such cases, the employee will receive exactly five years' worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's RHS account at the time of separation. Distributions from RHS Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and his or her spouse and legal dependents — again only as permitted by IRS Publication 502. Qualification for dependency status will be determined by guidelines in IRC 152. If used for these purposes, distributions from the RHS accounts will not be taxable. Cash withdrawal for any other purpose is prohibited. Under recent IRS Revenue Ruling 2005-24, any balance remaining in the Employee Account after the death of the employee and his or her spouse and/or other authorized dependents (if any) must be forfeited. That particular RHS Employee Account will be closed, and any remaining funds will become general assets of the plan. The parties agree that the City's Part B contributions during active employment constitute the minimum CaIPERS participating employer's contribution (i.e., the CalPERS statutory minimum amount) towards medical insurance after retirement. The parties also agree that, for retirees selecting a CalPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's RHS account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one- time City contribution to their individual RHS accounts that equates to $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 NBLMA MOU 2019-21 16 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 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. 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. F. Tuition Reimbursement Full-time and part-time NBLMA members attending accredited community colleges, colleges 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. 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 NBLMA MOU 2019-21 17 courses. All claims for tuition reimbursement require the approval of the Human Resources Director. NBLMA members attending pre -approved, directly job -related classes, courses and seminars given by recognized agencies, organizations or individuals other than accredited college institutions may apply for reimbursement of actual cost of tuition, books, fees or other student expenses. Reimbursement is contingent upon the successful completion of the course. Successful completion means a document or certificate showing successful completion of the course or seminar. All claims for reimbursement require the approval of Fire Chief or designee before submittal to Human Resources. Maximum tuition reimbursement for full-time employees shall be $1,500 per fiscal year and the maximum reimbursement for part-time employees shall be $1,125 per fiscal year. SECTION 5. MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs The provisions of this section shall apply to full-time and part-time members 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 regular status in their current Classification or any Classification within the Series, subject to the following: Credit shall be given only for continuous service (as described in the next paragraph) subsequent to the most recent appointment to regular status in the Classification or Series; ii. Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time NBLMA MOU 2019-21 18 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. In this bargaining unit, there is one Series made up of the three classifications represented by the Association — Lifeguard Officer, Lifeguard Captain and Lifeguard Battalion Chief. 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. 2. Procedures In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: a. Employees within a Classification shall be laid off in inverse order of seniority; b. An employee subject to layoff in one Classification shall have the right to Bump a Tess senior employee in a lower ranking Classification within a Series within the bargaining unit, provided, however, that the determination of the employee to be terminated from the position shall be based on seniority within the Series. An employee who has Bumping Rights shall notify the Department Director within seven (7) 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 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 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). NBLMA MOU 2019-21 19 4. Re —Employment Regular and probationary employees who are laid off shall be placed on a Department re—employment list in reverse order of layoff. The re— employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re—employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re—employment list or the right to remove his or her name from the re— employment list by sending written confirmation to the Human Resources Director. 5. Severance Pay Regular employees who are laid off shall, as of the date of lay—off, receive one week severance pay for each year of continuous service with the City of Newport Beach, to a maximum of ten (10) weeks of severance pay. B. Discipline Any discipline shall be in accordance with the Department SOP and the Employee Policy Manual. C. Health and Fitness Evaluations All NBLMA members shall participate in the Department Fitness Program. D. Provision for Sun Protection 1. The first full pay period of each fiscal year, the City will provide $400 to each full-time unit member and $300 to each part-time unit member for sunglasses and other sun protection materials (not restricted to use at Lifeguard Store). 2. Each unit employee shall receive an annual skin cancer screening, which will be conducted either on or off duty at the Department's discretion. Employees directed to receive this screening off duty shall receive one (1) hour of compensatory time off as compensation. NBLMA MOU 2019-21 20 E. Fitness Equipment and Exercise Time The City will provide up to $3,000 per year towards the purchase of fitness equipment to be used on duty for the intended benefit of NBLMA. The actual equipment to be purchased shall be recommended by NBLMA, and shall require the final approval of the Fire Chief. Unit employees shall be allowed up to three (3) hours per week for on duty physical fitness training. F Employee Policy Manual The City and NBLMA have agreed on implementation of the City's revised 2001 Employee Policy Manual. Should additional revisions to the Manual be proposed, the City will meet and confer on applicable policy manual provisions which are within the scope of bargaining. G. Direct Deposit All Unit employees shall participate in the City's Direct Deposit Program. Signatures on the following page NBLMA MOU 2019-21 21 Executed this 24 day of SEPTEMPSE R , 2019: NEWPORT BEACH LIFF.C�UARD MA ►GEMENT ASSOCIATION BY: BY: BY: Gary Co C esident Ure, Vice eP.r sident CITY OF WPORT BEAC Diane B. Dixon, Mayo CITY OF NEWPORT BEACH APPROVFbAS TO FORM ATTEST: BY: Leilani Brown, City Clerk NBLMA MOU 2019-21 22 Exhibit A City of Newport Beach LIFEGUARD MANAGEMENT ASSOCIATION SALARY SCHEDULE ADJUSTMENTS REVISION DATE: SEPTEMBER 28, 2019 1.75% COST OF LIVING ADJUSTMENT Position Title Hourly Pay Rate 1 Monthly Pay Rate 2 Min Max Min Max LIFEGUARD BATTALION CHIEF $44.76 $62.92 $7,758 $10,907 LIFEGUARD CAPTAIN $35.54 $50.05 $6,160 $8,675 LIFEGUARD CAPTAIN + 7.5%3 $38.20 $53.75 $6,621 $9,317 LIFEGUARD OFFICER (PART TIME) $26.46 $37.23 $4,586 $6,453 REVISION DATE: JUNE 20, 2020 1.75% COST OF LIVING ADJUSTMENT Position Title Hourly Pay Rate 1 Monthly Pay Rate 2 Min Max Min Max LIFEGUARD BATTALION CHIEF $45.54 $64.02 $7,894 $11,097 LIFEGUARD CAPTAIN $36.16 $50.93 $6,268 $8,827 LIFEGUARD CAPTAIN + 7.5%3 $38.87 $54.70 $6,737 $9,481 LIFEGUARD OFFICER (PART TIME) $26.92 $37.88 $4,666 $6,566 REVISION DATE: JUNE 19, 2021 1.75% COST OF LIVING ADJUSTMENT Position Title Hourly Pay Rate 1 Monthly Pay Rate 2 Min Max Min Max LIFEGUARD BATTALION CHIEF LIFEGUARD CAPTAIN LIFEGUARD CAPTAIN + 7.5% 3 LIFEGUARD OFFICER (PART TIME) $46.34 $36.80 $39.55 $27.39 1 Hourly pay rates are rounded to the nearest hundredth. 2 Monthly pay rates are rounded to the nearest whole dollar. $65.14 $51.82 $55.65 $38.54 $8,032 $6,378 $6,855 $4,747 a LIFEGUARD CAPTAIN + 7.5% includes compensation for the Lifeguard Captain responsible for training. $11,292 $8,982 $9,646 $6,681 Citywide Salary Schedule Effective June 22, 2019 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION This Memorandum of Understanding (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE 1. Authorized representatives of the CITY OF NEWPORT BEACH (hereinafter referred to as "CITY") and authorized representatives of the NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION (hereinafter referred to as "NBLMA") a recognized employee organization, met and conferred, exchanging various proposals concerning wages, hours, fringe benefits and other terms and conditions of employment of employees represented by NBLMA (hereinafter referred to as "EMPLOYEES") for the period of June 12, 2018 — December 31, 2018. SECTION 1. GENERAL PROVISIONS A. Duration of Memorandum The terms of this MOU are to remain in full force and effect from June 12, 2018 — December 31, 2018. B. Scope 1. All present written rules and currently established practices and employee 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, or in the case of the Department Standard Operating Procedures (SOPs) falling within the scope of representation, the City has given notice to the Association and, upon request, met and conferred on any proposed changes which fall within the scope of representation. When the Department proposes to change any SOP departmental rule or regulation, it will provide a copy of such change to the Association no less than seven (7) days prior to implementation of the proposed change. If such proposed change materially impacts any matter within the scope of representation, then the parties agree to meet and confer over such impact. NBLMA MOU 2018 1 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. C. Conclusiveness Except as provided for in this agreement, this MOU contains all of the covenants, stipulations and provisions agreed upon by the parties. D. Savings 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. E. Other Terms and Conditions Except as to those matters expressly covered by this MOU, all terms and conditions of employment may be changed or amended after meeting and conferring, in good faith. Unless specifically provided in this MOU, Part-time members shall only receive those benefits in this MOU which are specifically set forth as applicable to Part- time members. F. Unit Classification Titles Unit classifications are listed in Exhibit A. For all compensation comparison purposes, actual job duties, and not classification titles, will be utilized. SECTION 2. COMPENSATION A. Salary Adjustments Base salary increases for all NBLMA represented classifications shall be as follows and as specified in Exhibit A: NBLMA MOU 2018 2 Effective the pay period following City Council approval of this MOU, base salaries will be increased by one percent (1.0%) for all members of the bargaining unit. Effective the pay period following City Council approval of this MOU, base salaries will be increased by four and sixty-nine one hundredths percent (4.69%) for employees in the classification of Lifeguard Battalion Chief. Effective the pay period following City Council approval of this MOU, base salaries will be increased by two and sixty-eight one hundredths percent (2.68%) for employees in the classification of Lifeguard Captain. B. Special Assignment Pay Boat Pay: Lifeguard Captains certified for and assigned to boat operations shall receive additional compensation of 2.5% of base salary for their job classification. Boat assignment pay will be assigned to a qualified Captain and compensated only when performing boat duties. Training Pay: The Lifeguard Captain assigned as the "Training Captain" will receive an additional 7.5% of base pay while assigned the responsibilities of training. C. Overtime Unit employees shall receive overtime compensation for all hours worked in excess of forty (40) in any work week. Time worked shall be rounded to the nearest quarter of an hour (seven (7) minutes or Tess round down; eight (8) minutes or more round up). Paid time off shall be considered time worked for the purposes of calculating MOU overtime. The rate at which MOU overtime (overtime which is in addition to that which is required by the FLSA) is paid does not include any contributions to the City's Cafeteria Plan as set forth in Section 4 — Fringe Benefits of the MOU. Unit employees shall have the option of requesting to earn compensatory time off (CTO) for all overtime, including training time, in lieu of overtime compensation. All use of compensatory time off shall be subject to existing City rules. The time during which an employee may use accrued compensatory time off is subject to approval by the department head or his/her designee with due regard for the wishes of the employee and the need to provide service. However, an employee wishing to use his/her accrued compensatory time off shall provide the City with reasonable notice of such request. A request to use compensatory time off without reasonable notice may still be granted within the discretion of the supervisor or manager responsible for considering the request. The maximum accrual of CTO shall be eighty (80) hours. NBLMA MOU 2018 3 D. Uniforms The City shall pay the entire cost of providing full-time and part-time NBLMA members with each component of the required NBLMA uniforms. The required NBLMA uniform includes uniform pants, uniform shirts, safety shoes, badges and insignias, uniform jackets and liners, belts, dive equipment, foul weather gear, personal floatation device and helmet. The City shall not be responsible for providing employees with socks, underwear, cap, workout shoes, or other clothing. As permissible by law and subject to the provisions and limitations under the Public Employees' Retirement Law, including restrictions on reporting uniform allowance as pensionable compensation for "non -classic" members hired after January 1, 2013, the City shall report the value of provided uniforms at $838 per year ($32.23 per pay period) in accordance with PERS requirements. The parties agree the reported value of uniforms is intended to reflect clothing such as pants, shirts, jackets, and related attire and excludes health and safety related equipment. E. Call Out Call out compensation shall be in accordance with the following provisions: 1. All emergency call out time shall be calculated to the nearest one -quarter (1/4) hour of time worked. 2. A minimum of two (2) hours (including travel time),If the two hours causes the employee to exceed forty (40) hours in the week, the rate of pay shall be at one and one half (1 1/2) times the employee's rate of pay. Employees will be considered "on duty" at the beginning of each emergency call out for a minimum of 2 hours or until completed. Employees will not be compensated for additional call outs that occur during the initial 2-hour response period, or during normal working hours. F. Scholastic Achievement Pay Employees in the classification of Lifeguard Captain shall receive two percent of base salary (2%) if they receive a Bachelor's Degree. Employees in the classification of Lifeguard Battalion Chief shall receive one percent (1%) of base salary if they receive a Master's Degree. A "degree" shall be 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. NBLMA MOU 2018 4 G. Night Standby A full-time or part-time employee assigned to standby duty (as defined by Department Policy) for purposes of being on call to handle emergency situations arising at times other than during normal working hours shall be guaranteed two and a half (2.5) hours of pay at the employee's rate of pay for each calendar day of such standby duty. Employees shall have the option of receiving compensatory time off at straight time in lieu of pay for night standby. H. Move -up Pay Temporary upgrading shall be defined as the temporary assignment of an employee to work in a job classification, which is assigned to a salary schedule higher than his/her regular job classification. Employees temporarily upgraded to the following job classifications and equivalent positions shall receive a five percent (5%) pay differential over their rate of pay for all time worked in the higher job classification if they are assigned to work in the higher job classification for a period of one (1) working hour or longer. Lifeguard Captain Lifeguard Battalion Chief All holiday, flex leave and other paid leave shall be paid at the employee's rate of pay. Assignments to higher rated classifications shall be made at the sole discretion of the City. I. Move -down Pay Employees who work down — a temporary assignment of an employee to work in a job classification, which is assigned to a salary schedule lower than his her regular job classification (i.e., a Battalion Chief who moves down as a Lifeguard Captain or a Lifeguard Captain who moves down as a Lifeguard Officer) shall be paid at the top step of the classification to which the employee moved down unless the top step of the moved down classification is higher than their current rate of pay. In that case, they will be paid at the regular pay rate. J. Court Standby Pay All NBLMA members who, pursuant to subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off —duty, to NBLMA MOU 2018 5 remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBLMA members shall, when required to appear in court pursuant to a subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. K. Longevity Pay Employees in the Unit shall receive Longevity Pay as follows: Years of Service 16 but less than 20 20 but Tess than 25 25 and over SECTION 3. LEAVES A. Flex Leave 1. Basis for Accrual Full -Time Members: Longevity Pay 1.0% 1.5% 2.5% Regular full-time employees enrolled in the Flex Leave program will earn leave in accordance with the following schedule: Years of continuous service in the unit 1 but less than 5 5 but Tess than 9 9 but less than 12 12 and over Part -Time Members: Accrual per pay period/hrs 5.54 6.15 6.77 7.69 Maximum Hours Annual Accrual 288.08 319.80 352.04 399.88 Regular part-time employees shall be enrolled in the Flex Leave program and accrue leave time at the rate of .04 hours for each hour worked. NBLMA MOU 2018 6 2. Limit on Accumulation and Cash Out of Flex Leave Employees shall be entitled to accrue flex leave up to a maximum of fifty- two (52) times the member's bi-weekly accrual rate. This limit on accumulation shall apply to both full-time and part-time members. Earned flex leave in excess of the maximum permitted is currently paid bi-weekly at the member's hourly rate of pay ("spillover pay"). Members shall be eligible for flex leave spillover pay only if they have utilized at least eighty (80) hours of flex leave the previous calendar year. Employees who have not utilized eighty (80) hours of leave for full time and sixty (60) hours for part-time the prior calendar year shall not be eligible for "spillover pay". Once an employee accrues the maximum accrual limit, he/she will not accrue additional flex leave until he/she uses leave and reduces his/her accrual below the accrual limit. Employees shall have the option of converting accrued Flex Leave to cash on an hour for hour basis subject to the following: on or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out accrued flex leave which will be earned in the following calendar year. The employee can elect to receive the cash out in the pay period which includes June 30 and the pay period which includes December 15 for those Flex Leave benefits that have been earned during that portion of the year. In no event shall the flex leave balance be reduced below one hundred and sixty (160) hours. On or before December 31, 2018, each employee shall have the one-time option of cashing out all or a portion of Flex Leave benefits credited to his/her account as of that date. However, in no event shall the flex leave balance be reduced below one hundred and sixty (160) hours when the leave is cashed out. 3. Method of Use Flex leave may not be taken in excess of that actually accrued. The Department Director or designee shall approve all requests for flex leave taking into consideration the needs of the Department, and whenever possible the seniority and wishes of the employee. Flex leave may be granted on an hourly basis. B. Use of Flex Level A staffing shall run from June 15th through Labor Day. During this period of time, full-time and part-time NBLMA personnel may be limited to a total of forty (40) hours usage of flex leave requiring backfill. Additional flex leave during this period may be approved if, in the opinion of management, adequate staffing levels can be maintained. NBLMA MOU 2018 7 C. Family Sick Leave Unit employees shall be entitled to use an amount of time equal to one-half (1/2) of their annual leave accrual for an illness of a family member as defined below which requires the presence of the employee. Such time may be taken from the employee's annual leave accrual or leave bank, at the employee's choice. Leave shall be administered in accordance with the provisions of the Employee Policy Manual (EPM). For purposes of family sick leave, family member shall mean spouse, parent, (parent shall mean biological, foster, or adoptive), child (child shall mean biological, adopted, or foster child; a stepchild; a legal ward; or a child of an employee standing in local parentis), grandchild, grandparent, sibling or as modified by State or Federal law. D. Holiday Time As described in the following paragraph, employees shall receive leave or pay for the following holidays: Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas New Year's Eve New Year's Day Martin Luther King Day Washington's Birthday Memorial Day Floating Holiday (1) July 4 1st Monday in September November 11 4th Thurs. in November Last 1/2 of working day December 25 Last 1/2 of working day January 1 3rd Monday in January 3rd Monday in February Last Monday in May For employee's birthday or other holiday. Full time employees receive 96 hours of holiday time per year, 1/26th (3.69 hours) per pay period which will be paid or accrued each pay period. Part-time employees receive 72 hours of holiday time per year, 1/26th (2.77 hours) per pay period which will be paid or accrued each pay period. When an employee becomes an NBLMA member, he/she shall select to receive either pay, leave or a combination of both pay and leave for the holidays. When a part-time employee in the unit is appointed to a full-time classification, he/she shall select to receive either pay, leave or a combination of both pay and leave for the additional twenty-four (24) hours. NBLMA MOU 2018 8 To the extent permitted by law, this holiday compensation shall be reported to PERS as special compensation and shall be regarded as compensation earnable as defined in Government Code Sec. 20636 (c) (6) for purposes of computing retirement benefits and contributions. E. Bereavement Leave Bereavement Leave shall be defined as the necessary absence from duty by an employee because of the death or terminal illness in his/her immediate family. NBLMA full-time members shall be entitled to 40 hours bereavement leave per incident (terminal illness followed by death is considered one incident) and 32 hours bereavement leave for part-time members. Leave hours need not be used consecutively, but should occur in proximate time to the occurrence, but no more than 90 days from the date of the death of the family member. Immediate family shall mean an employee's father, stepfather, mother, stepmother, brother, sister, spouse/domestic partner, child, stepchild and grandparent, and the employee's spouse/domestic partner's father, mother, brother, sister, child and grandparent. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. Probationary Employees. An employee serving his/her initial probationary period who takes leave under this section who for any reason terminates his/her employment prior to the completion of such probationary period shall have his/her final pay check reduced by the value of the leave taken. SECTION 4. FRINGE BENEFITS A. Insurance 1. Benefits Information Committee The City has established a Benefits Information Committee composed of one representative from each employee association 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 care issues. The purpose of this Committee is to provide each employee association with information about health care issues and to receive timely input from associations regarding preferred coverage options and levels of coverage. NBLMA MOU 2018 9 2. City Contribution The City has implemented an IRS qualified Cafeteria Plan. The City contribution toward the Cafeteria Plan shall be as set forth below. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical, dental and vision insurance/programs. The City and NBLMA 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. a. Full -Time Members: The City's contribution towards the Cafeteria Plan will increase to $1,524 (plus the minimum CaIPERS participating employer's contribution). Effective the pay period including June 23, 2018, the City contribution towards the Cafeteria Plan will be $1, 624 (plus the minimum CaIPERS participating employer's contribution). Full time NBLMA members who do not want to enroll in any medical plan offered by the City must provide proof of minimum essential coverage ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California) and execute an opt -out agreement releasing the City from any responsibility or liability to provide medical insurance coverage on an annual basis. The opt -out amount for full-time employees is $1,000 per month. b. Part -Time Members: Part-time NBLMA members will receive a monthly cafeteria benefit of $585. For part-time employees enrolled in medical plans, the cafeteria amount is inclusive of the PERS designated minimum medical insurance contribution. For employees who do not enroll in a medical plan there shall be no opt out cafeteria benefit. Part-time time NBLMA members who do not want to enroll in any medical plan offered by the City must provide proof of minimum essential coverage ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California). NBLMA MOU 2018 10 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings for full-time employees as agreed upon by the Benefits Information Committee. 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee for full-time employees. B. Additional Health Insurance/Programs 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. The City shall maintain a "reimbursable account program" in accordance with the provisions of Section 125 of the Internal Revenue Code, pursuant to which a full-time 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. 2. Disability Insurance The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to regular full-time employees with the following provisions: Weekly Benefit Maximum Benefit Minimum Benefit Waiting Period 66.67% gross weekly wages $10,000/month $15 (STD) and $100 (LTD) 30 Calendar Days (STD) 180 Calendar Days (LTD) Employees shall not be required to exhaust accrued paid leaves prior to receiving benefits under the disability insurance program. Employees may NBLMA MOU 2018 11 not supplement the disability benefit with paid leave once the waiting period has been exhausted. Employees have a one (1.0%) percent base salary reduction for the cost of this benefit. 3. Life Insurance The City shall provide life insurance for 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 (i.e., a maximum of $25,000). This amount remains in effect until the employee retires from City employment. Employees may also purchase supplemental life insurance at their own cost. C. Employee Assistance Program City shall provide an Employee Assistance Program (EAP) for Association members through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines. D. The Retirement Benefit 1. Retirement Benefit 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: Tier 1: For employees enrolled by the City of Newport Beach as Safety members on or before November 23, 2012, the retirement formula shall be 3%@50 calculated on the basis of the single highest year. Tier 2: For classic member (as defined in the Public Employees' Pension Reform Act) employees enrolled in CaIPERS by the City of Newport Beach as Safety members on or after November 24, 2012, the retirement formula is 2%@50. For these same employees, final compensation will be based on the highest annual average compensation earnable during the three consecutive years of employment immediately preceding the effective date of his or her retirement or any other three consecutive year period chosen by the employee as set forth in Government Code section 20037. NBLMA MOU 2018 12 Tier 3: For employees enrolled by the City of Newport Beach as Safety members on or after January 1, 2013 who are new members as defined in the Public Employees' Pension Reform Act), the retirement formula shall be 2.7%(a�57 provided for by the Public Employees' Retirement Law at Government Code section 7522.25(d). For these same employees, final compensation will be based on the highest annual average compensation earnable during the three consecutive years of employment immediately preceding the effective date of his or her retirement or any other three consecutive year period chosen by the employee as set forth in Government Code section 7522.32(a). The City's contract with PERS also provides for: 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 pre -retirement option settlement 2 death benefit (Section 21548). 2. Employee Contributions Tier 1 and 2 Employees: All unit members in Tiers 1 and 2 will pay the full 9% "safety member" contribution of PERS reportable earnings. This payment will be made on a pre-tax basis through payroll deduction pursuant to IRS Code Section 414(h)(2). This contribution will not be considered as part of employee's "compensation earnable" under Government Code section 20636. Unit members will, in addition to the 9% normal member contribution, contribute 4.6% of pensionable compensation toward retirement costs as permitted under Government Code §20516(t), for a total contribution of 13.6%. 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 (PEPRA) and equals 50% of the "total normal cost" as determined by PERS. For FY17-18, the employee Safety rate is 10.5% and is subject to change based on annual PERS actuarial valuations. In addition to the statutorily required 50% contribution of total normal costs, Tier 111 employees shall contribute 3.10% of pensionable compensation NBLMA MOU 2018 13 toward retirement costs pursuant to Government Code § 20516(0, for a total contribution of 13.6%. If future fiscal year member contribution rates for employees in Tier Ill become greater or less than 10.5%, the additional contribution made by the employee under 20516(0 will be increased or decreased accordingly so that the total employee contribution equals 13.6%. In the event CaIPERS pension provisions for new or existing employees are modified by State or Federal legislation, resulting in changes to previously negotiated terms, the parties agree to meet and confer to discuss appropriate changes to the MOU. E. Retiree Health Benefits Program (Full -Time Classifications Only) 1. Background In 2005, the City and all Employee Associations agreed to replace the previous "defined benefit" retiree medical program with a new "defined contribution" program. The process of fully converting to the new program will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2006. b. Category 2 - Active employees hired prior to January 1, 2006, whose age plus years of service as of January 1, 2006 was less than 50 (46 for public safety employees). c. Category 3 - Active employees hired prior to January 1, 2006, whose age plus years of service was 50 or greater (46 for public safety employees) as of January 1, 2006. 2. Program Structure This is an Integral Part Trust (IPT) Retiree Health Savings (RHS) Plan (formerly the Medical Expense Reimbursement Program "MERP') and applies only to regular full-time NBLMA employees. a. For employees in Category 1, the program is structured as follows: Each employee will have an individual RHS account for bookkeeping purposes, called his or her "Employee Account." This account will accumulate contributions to be used for health care expenses after NBLMA MOU 2018 14 separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. Contributions will be in three parts. Part A contributions (mandatory employee contributions): 1 % of salary. Part B contributions (employer contributions): $2.50 per month for each year of service plus year of age (updated every January 1st based on status as of December 31st of the prior year). 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. 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 contribution, at the level of zero percent (0%). This amount may be changed, on a go forward basis, as part of the future meet and confer process. However, the participation level must be the same for all employees within the Association. Additionally, the purpose and focus of these changes should be toward long-term, trend type adjustments. Due to IRS restrictions regarding "constructive receipt," the City will impose restrictions against frequent spikes or drops that appear to be tailored toward satisfying the desires of a group of imminent retirees. Spillover pay is not eligible for Part C contributions. Nothing in this section restricts taking leave for time off purposes. Part A contributions may be included in PERS compensation. Part B and Part C contributions will not be included in PERS compensation. NBLMA MOU 2018 15 Part A contributions begin upon enrolment 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 (i.e. five years at full time status). At that time, the City will credit the first five years' worth of Part B contributions into the Employee Account (interest does not accrue during that period). Thereafter, contributions are made bi-weekly. Part C deposits, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon separation. If an employee leaves the City prior to five years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the RHS Employee Account. Such an employee will not be entitled to any Part B contributions. The exception to this is a full-time employee, participating in the program, who leaves the City due to industrial disability during the first five years of employment. In such cases, the employee will receive exactly five years' worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's RHS account at the time of separation. Distributions from RHS Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and his or her spouse and legal dependents — again only as permitted by IRS Publication 502. Qualification for dependency status will be determined by guidelines in IRC 152. If used for these purposes, distributions from the RHS accounts will not be taxable. Cash withdrawal for any other purpose is prohibited. Under recent IRS Revenue Ruling 2005-24, any balance remaining in the Employee Account after the death of the employee and his or her spouse and/or other authorized dependents (if any) must be forfeited. That particular RHS Employee Account will be closed, and any remaining funds will become general assets of the plan. The parties agree that the City's Part B contributions during active employment constitute the minimum CaIPERS participating employer's contribution (i.e., the CaIPERS statutory minimum amount) towards medical insurance after retirement. The parties also agree that, for NBLMA MOU 2018 16 retirees selecting a CaIPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's RHS account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one- time City contribution to their individual RHS accounts that equates to $100 per month for every month they contributed to the previous "defined benefit" plan, to a maximum of 15 years (180 months). This contribution will be made only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. Employees in Category 2 who had less than five years' service with the City prior to implementation of the new program will only receive Part B contributions back to January 1, 2006 when they reach five years total service. c. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute $400 per month into each of their 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. NBLMA MOU 2018 17 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. F. Tuition Reimbursement Full-time and part-time NBLMA members attending accredited community colleges, colleges 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. 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. NBLMA members attending pre -approved, directly job -related classes, courses and seminars given by recognized agencies, organizations or individuals other than accredited college institutions may apply for reimbursement of actual cost of tuition, books, fees or other student expenses. Reimbursement is contingent upon the successful completion of the course. Successful completion means a document or certificate showing successful completion of the course or seminar. All claims for reimbursement require the approval of Fire Chief or designee before submittal to Human Resources. Maximum tuition reimbursement for full-time employees shall be $1,500 per fiscal year and the maximum reimbursement for part-time employees shall be $1,125 per fiscal year. SECTION 5. MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs The provisions of this section shall apply to full-time and part-time members 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 NBLMA MOU 2018 18 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 regular status in their current Classification or any Classification within the Series, subject to the following: i. Credit shall be given only for continuous service (as described in the next paragraph) subsequent to the most recent appointment to regular status in the Classification or Series; ii. Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. c. "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part—time, seasonal or temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). d. In this bargaining unit, there is one Series made up of the three classifications represented by the Association — Lifeguard Officer, Lifeguard Captain and Lifeguard Battalion Chief. 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. 2. Procedures In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: NBLMA MOU 2018 19 a. Employees within a Classification shall be laid off in inverse order of seniority; b. 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 within the bargaining unit, provided, however, that the determination of the employee to be terminated from the position shall be based on seniority within the Series. An employee who has Bumping Rights shall notify the Department Director within seven (7) 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 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 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). 4. Re —Employment Regular and probationary employees who are laid off shall be placed on a Department re—employment list in reverse order of layoff. The re— employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re—employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re—employment list or the right to remove his or her name from the re— employment list by sending written confirmation to the Human Resources Director. NBLMA MOU 2018 20 5. Severance Pay Regular employees who are laid off shall, as of the date of lay—off, receive one week severance pay for each year of continuous service with the City of Newport Beach, to a maximum of ten (10) weeks of severance pay. B. Discipline Any discipline shall be in accordance with the Department SOP and the Employee Policy Manual. C. Health and Fitness Evaluations All NBLMA members shall participate in the Department Fitness Program. D. Provision for Sun Protection 1. The first full pay period of each fiscal year, the City will provide $400 to each full-time unit member and $300 to each part-time unit member for sunglasses and other sun protection materials (not restricted to use at Lifeguard Store). 2. Each unit employee shall receive an annual skin cancer screening, which will be conducted either on or off duty at the Department's discretion. Employees directed to receive this screening off duty shall receive one (1) hour of compensatory time off as compensation. E. Fitness Equipment and Exercise Time The City will provide up to $3,000 per year towards the purchase of fitness equipment to be used on duty for the intended benefit of NBLMA. The actual equipment to be purchased shall be recommended by NBLMA, and shall require the final approval of the Fire Chief. Unit employees shall be allowed up to three (3) hours per week for on duty physical fitness training. F Employee Policy Manual The City and NBLMA have agreed on implementation of the City's revised 2001 Employee Policy Manual. Should additional revisions to the Manual be proposed, the City will meet and confer on applicable policy manual provisions, which are within the scope of bargaining. NBLMA MOU 2018 21 G. Direct Deposit All Unit employees shall participate in the City's Direct Deposit Program. Executed this day of 776,1 Of, , 2018: NEWPORT BEACH LIFEGUARg MANAGEMENT ASSOCIATION BY: ary Cow e)J, F'fresidt BY: Brent Jacp en, Vice President CITY OF NEWPORT BEACH Duffy ueld, ayor APPROVED AS TO FORM BY: Peter J rown ATTEST. BY: Leilani Brown, City Clerk NBLMA MOU 2018 22 EXHIBIT A Newport Beach Lifeguard Management Association Represented Classifications and Pay Rates Term: June 12, 2018, to December 31, 2018 LIFEGUARD OFFICER PT 1% Cost of Living Adjustment $ 26.00 $ 36.59 $ 4,507 $ 6,342 LIFEGUARD CAPTAIN 2.68% Base Rate Adjustment 1.0% Cost of Living Adjustment $ 34.58 ' $ 48.70 $ 34.93 $ 49.19 $ 5,994 $ 8,441 $ 6,055 $ 8,526 LIFEGUARD CAPTAIN + 7.5% 2 2.68% Base Rate Adjustment 1.0% Cost of Living Adjustment $ 37.17 $ 52.31 $ 37.54 $ 52.83 $ 6,443 $ 9,067 $ 6,507 $ 9,157 LIFEGUARD BATTALION CHIEF 4.69% Base Rate Adjustment 1.0% Cost of Living Adjustment $ 43.55 $ 61.23 $ 43.99 $ 61.84 $ 7,549 $ 10,613 $ 7,625 $ 10,719 1 Monthly Pay Rates are rounded to nearest whole dollar. Z LIFEGUARD CAPTAIN +7.5% identifies and compensates the assigned "Training Captain" an additional 7.5% of base pay while assigned the training responsibilities. 23 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION This Memorandum of Understanding (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE 1. Authorized representatives of the CITY OF NEWPORT BEACH (hereinafter referred to as "CITY") and authorized representatives of the NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION (hereinafter referred to as "NBLMA") a recognized employee organization, met and conferred, exchanging various proposals concerning wages, hours, fringe benefits and other terms and conditions of employment of employees represented by NBLMA (hereinafter referred to as "EMPLOYEES") for the period of July 1, 2014 through December 31, 2017. 2. NBLMA representatives have reached an agreement as to wages, hours and other terms and conditions of employment to apply to all affected EMPLOYEES for the time period defined above. Said EMPLOYEES desire to reduce their agreement to writing, and to present such agreement, in the form of this MOU, to the City Council of the City of Newport Beach for approval. NOW, THEREFORE, this MOU is made and entered into by the parties hereto effective July 1, 2014, as follows: SECTION 1. GENERAL PROVISIONS A. Duration of Memorandum The terms of this MOU are to remain in full force and effect beginning July 1, 2014 through December 31, 2017. B. Scope 1. All present written rules and currently established practices and employee 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, or in the case of the Department Standard Operating Procedures (SOPs) falling within the scope of representation, the City has given notice to the Association and, upon request, met and conferred on any proposed changes which fall within the scope of representation. When the Department proposes to change any SOP departmental rule or regulation, it will provide a copy of such change to the Association no less NBLMA MOU 2014-2017 1 than seven (7) days prior to implementation of the proposed change. If such proposed change materially impacts any matter within the scope of representation, then the parties agree to meet and confer over such impact. 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. C. Conclusiveness Except as provided for in this agreement, this MOU contains all of the covenants, stipulations and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled and each party expressly waives its rights to request the other to meet and confer concerning any issue relating primarily to matters within the scope of representation except as expressly provided for 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. Any changes to any salaries, benefits or terms and conditions of employment within the scope of representation not embodied in this MOU shall require prior mutual agreement signed by the Mayor and the Newport Beach Lifeguard Management Association President. D. Savings 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 the provisions of this MOU relating to pay schedule adjustment increases be declared invalid, CITY agrees to provide alternate benefits agreeable to NBLMA, to EMPLOYEES to receive the same amount of money as they would have received had such provision not been declared invalid. E. Other Terms and Conditions Except as to those matters expressly covered by this MOU, all terms and conditions of employment may be changed or amended after meeting and conferring, in good faith. Benefits for part-time members of the unit shall generally be excluded, unless otherwise provided and on a pro -rated basis, based upon hours worked. NBLMA MOU 2014-2017 2 F. Unit Classification Titles Unit classifications are listed in Exhibit A. For all compensation comparison purposes, actual job duties, and not classification titles, will be utilized. SECTION 2. COMPENSATION A. Salary Adjustments Base salary increases follows and as specified Effective the pay period 2.6%. Effective the pay period 2.5%. Effective the pay period 2.5%. B. Special Assignment Pay for all NBLMA in Exhibit A: including July 1, including July 1, including July 1, represented classifications shall be as 2015, base salaries will be increased by 2016, base salaries will be increased by 2017, base salaries will be increased by Boat Pay: Lifeguard Captains certified for and assigned to boat operations shall receive additional compensation of 2.5% of base salary for their job classification. Boat assignment pay will be assigned to a qualified Captain and compensated only when performing boat duties. Training Pay: Lifeguard Captain assigned as the "Training Captain" will receive an additional 7.5% of base pay while assigned the responsibilities of training. C. Overtime Unit employees shall receive overtime compensation for all hours worked in excess of forty (40) in any work week. Paid time off shall be considered time worked for the purposes of calculating overtime. Unit employees shall have the option of requesting compensatory time off (CTO) for all overtime, including training time, during the term of this agreement. All use of compensatory time off shall be subject to existing City rules. The maximum accrual of CTO shall be eighty (80) hours. Employees shall not utilize CTO at times when backfill would be required. NBLMA MOU 2014-2017 3 D. Uniforms The City shall pay the entire cost of providing full-time and part-time NBLMA members with each component of the required NBLMA uniforms. The required NBLMA uniform includes uniform pants, uniform shirts, safety shoes, badges and insignias, uniform jackets and liners, belts, dive equipment, foul weather gear, personal floatation device and helmet. The City shall not be responsible for providing employees with socks, underwear, cap, workout shoes, or other clothing. As permissible by law and subject to the provisions and limitations under the Public Employees Retirement Law, including restrictions on reporting uniform allowance as pensionable compensation for "non classic" members hired after January 1, 2013, the City shall report the value of provided uniforms at $838 in accordance with PERS requirements. The parties agree the reported value of uniforms is intended to reflect clothing such as pants, shirts, jackets, and related attire and excludes health and safety related equipment. E. Call Out Call out compensation shall be in accordance with the following provisions: 1. All emergency call out time shall be calculated to the nearest one quarter (1/4) hour of time worked. 2. For forty (40) hour employees, a minimum of two (2) hours (including travel time) of pay at the rate of one and one half (1 1/2) times the employee's regular hourly rate of pay shall be guaranteed for each emergency call out. Employees will be considered "on duty" at the beginning of each emergency call out for a minimum of 2 hours or until completed. Employees will not be compensated for additional call outs that occur during the initial 2 hour response period, or during normal working hours. F Scholastic Achievement Pay Employees hired into a NBLMA represented classification prior to January 22, 2013 are entitled to additional compensation contingent upon scholastic achievement ("Scholastic Achievement Pay"). Full-time and part-time NBLMA members may apply for increases pursuant to this Section when eligible and scholastic achievement pay shall be included in the member's pay check for the pay period following approval by the Fire Chief. It is the responsibility of the NBLMA 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 NBLMA MOU 2014-2017 4 of service as a NBLMA member and number of units and/or degrees received by the employee. Qualifying units and/or degrees must be awarded by accredited community colleges, state colleges or universities. NBLMA members shall receive scholastic achievement pay in accordance with the following: Years of Total College % of Actual Step Service Semester Units in Job Class Range 2 or more 30 1.5% 2 or more A.A./A. S. 3.5% 3 or more 60 2.5% 3 90 3.5% 4 or more 90 3.5% 4 120 4.5% 4 B.A./B.S. 5.5% 4 M.A./M.S. 6.5% Unit members hired after January 22, 2013 shall be ineligible for any scholastic pay based upon having obtained units only. A "degree" shall be 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. G. Night Standby A full-time or part-time employee assigned to standby duty for purposes of being on call to handle emergency situations arising at times other than during normal working hours shall be guaranteed two (2 1/2) and a half hours of pay at the employee's regular hourly rate of pay for each calendar day of such standby duty. Employees shall have the option of receiving compensatory time off in lieu of pay for night standby. H. Move -up Pay Temporary upgrading shall be defined as the temporary assignment of an employee to work in a job classification, which is assigned to a salary schedule higher than his/her regular job classifications. Employees temporarily upgraded to the following job classifications and equivalent positions shall receive a five percent (5%) pay differential over their regular rate of pay for all time worked in the higher job classification if they are assigned to work in the higher job classification for a period of one (1) working hour or longer. NBLMA MOU 2014-2017 5 Lifeguard Captain Lifeguard Battalion Chief All holiday, vacation, sick leave and paid leave shall be paid at the employee's regular rate of pay. Assignments to higher rated classifications shall be made at the sole discretion of the City. I. Court Standby Pay All NBLMA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off —duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBLMA members shall, when required to appear in court pursuant to a Subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. SECTION 3. LEAVES A. Flex Leave All employees hired after July 1, 1990 will be included in the Flexible Leave Program. 1. Basis for Accrual Full -Time Members: Regular full-time employees enrolled in the Flex Leave program will earn leave in accordance with the following schedule: Years of continuous Accrual per Longevity Service pay period/hrs Pay Increase 1 but Tess than 5 5.54 0 5 but less than 9 6.15 0 9 but less than 12 6.77 0 12 but less than 16 7.69 0 16 but Tess than 20 7.69 1.0% 20 but less than 25 7.69 1.5% 25 and over 7.69 2.5% NBLMA MOU 2014-2017 6 Part -Time Members: Regular part-time employees shall be enrolled in the Flex Leave program and accrue leave time at the rate of .04 hours for each hour worked. During the first three months of employment, new employees shall not accrue paid leave. At the completion of three months of employment, three (3) months of accrued flex leave will be placed in the employees account. 2. 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. Effective January 22, 2013 members shall be entitled to accrue flex leave up to a maximum of fifty-two (52) times the member's bi-weekly accrual rate. This limit on accumulation shall apply to both full-time and part-time members. Earned flex leave in excess of the maximum permitted is currently paid bi- weekly at the member's hourly rate of pay ("spillover pay"). Members shall be eligible for flex leave spillover pay only if they have utilized at least eighty (80) hours of flex leave the previous calendar year. Employees who have not utilized the required amount of leave the prior calendar year shall not be eligible to accrue time above the maximum accrual limit. 3. Method of Use Flex leave may not be taken in excess of that actually accrued. The Department Director or designee 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. B. Use of Flex Level A staffing shall run from June 15th through Labor Day. During this period of time, full-time and part-time NBLMA personnel may be limited to a total of forty (40) hours usage of flex leave. Additional flex leave during this period may be approved if, in the opinion of management, adequate staffing levels can be maintained. The City will budget eighty (80) hours of overtime per employee per year for flex leave backfill. Concurrently, the City and NBLMA will jointly review procedures defining minimum staffing and the hours for night call out. Any changes to these areas fall within the scope of representation and will be subject to the meet and confer process. NBLMA MOU 2014-2017 7 C. Family Sick Leave Unit employees shall be entitled to use an amount of time equal to one-half (1/2) of their annual leave accrual for an illness of a dependent which requires the presence of the employee. Such time may be taken from the employee's annual leave accrual or leave bank, at the employee's choice. Leave shall be administered in accordance with the provisions of the Employee Policy Manual (EPM). The provisions of the EPM shall not be construed to affect or reduce the right of any employee to any unpaid family medical leave authorized by State or Federal law. For purposes of family sick leave, family member shall mean spouse, parent, (parent shall mean biological, foster, or adoptive), child (child shall mean biological, adopted, or foster child; a stepchild; a legal ward; or a child of an employee standing in local parentis), or as modified by State or Federal law. D. Holiday Time 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 or designee, require their presence on the job. For each designated holiday, except the Floating Holidays, personnel shall receive an equivalent number of hours of paid leave or equivalent pay, as specified below and pro -rated for part-time members, whichever in the judgment of the Department Director best serves the interest of the Department. Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas New Year's Eve New Year's Day Martin Luther King Day Washington's Birthday Memorial Day Floating Holiday (1) 1. July 4 1st Monday in September November 11 4th Thurs. in November Last 1/2 of working day December 25 Last 1/2 of working day January 1 3rd Monday in January 3rd Monday in February Last Monday in May For employee's birthday or other holiday. Eligibility and use according to Memorandum of Understanding. Part-time members will be eligible to receive a pro -rated benefit of VI (three fourths) the benefit provided to full-time members for holiday pay. NBLMA MOU 2014-2017 8 2. Holiday pay will be paid only to employees who work their scheduled day before the holiday and scheduled day after a holiday or are on authorized leave (e.g., approved vacation or flex leave that has been reviewed and approved by the Department Director). 3. Newly hired employees will be eligible to receive pay for scheduled holidays, without a waiting period. 4. "Floating Holiday" eligibility allows for newly hired employees to earn their first floating holiday credit, eight (8) hours for full-time members and six (6) hours for part-time members, at the same time as they receive their regular appointment status, upon the successful completion of their probationary period. 5. In July, 2003 all employees were provided a one-time opportunity to elect to convert all or any portion of their annual holiday benefits to cash on an annual basis. This election shall be uniform from year to year. For example, an employee electing to convert 48 of the 96 hours of the annual benefit to cash must so convert 48 hours of earned holiday benefits each year thereafter. Holiday pay will be paid bi-weekly with the regular check. Holiday leave conversion pay will not count in the total compensation formula used to adjust salaries and benefits. Employees hired after July 2003 will make this election at the time of hire. This holiday compensation shall be reported to PERS as special compensation and shall be regarded as compensation earnable as defined in Government Code Sec. 20636 (c) (6) for purposes of computing retirement benefits and contributions. E. Bereavement Leave Bereavement Leave shall be defined as the necessary absence from duty by an employee having regular or probationary appointment because of the death or terminal illness in his/her immediate family. NBLMA full-time members shall be entitled to five (5) days bereavement leave per incident (terminal illness followed by death is considered one incident) and three (3) days bereavement leave for part-time members. Leave hours need not be used consecutively, but should occur in proximate time to the occurrence. Immediate family shall mean an employee's father, stepfather, mother, stepmother, brother, sister, spouse/domestic partner, child, stepchild and grandparent, and the employee's spouse/domestic partner's father, mother, brother, sister, child and grandparent. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. Probationary Employees. An employee serving his/her initial probationary period who takes leave under this section who for any reason terminates his/her NBLMA MOU 2014-2017 9 employment prior to the completion of such probationary period shall have his/her final pay check reduced by the value of the leave taken. F. Non -Accruing Leave Bank Effective July 1, 2015, each NBLMA member on the City payroll will receive a bank of forty (40) hours of non -accruing leave (NAL) time. Effective July 1, 2016 a second deposit of 40 hours will be made for each NBLMA member on the City payroll at that time. The hours have no cash value, cannot be transferred to any other leave bank, cannot be rolled over from year to year, and there is no pro- ration for partial year employment. Usage of these hours is subject to supervisory approval. This benefit shall "sunset" on December 30, 2017 and any unused hours at that time shall expire. SECTION 4. FRINGE BENEFITS A. Insurance 1. Benefits Information Committee City has established a Benefits Information Committee composed of one representative from each employee 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 care issues. The purpose of this Committee is to provide each employee group with information about health care issues and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. City Contribution The City has implemented an IRS qualified Cafeteria Plan. NBLMA members shall participate in this plan. The City contribution toward the Cafeteria Plan shall be as set forth below. 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 Lifeguard Management Association will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. Any unused Cafeteria Plan funds shall be payable to the employee as taxable cash back. Employees shall be allowed to change coverages in accordance with plan rules and during regular open enrollment periods. NBLMA MOU 2014-2017 10 a. Full -Time Members: Effective the pay period including July 1, 2015, the City contribution towards the Cafeteria Plan will be $1,424 (plus the minimum CaJPERS participating employer's contribution). Effective the first pay issue in January 2016, the City's contribution towards the Cafeteria Plan will increase to $1,524 (plus the minimum CaIPERS participating employer's contribution). Full time NBLMA 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 current full-time employees who execute an opt -out agreement is $1,249 per month effective January 2013. Employees hired after January 22, 2013 and who execute an opt -out agreement, will receive a maximum cafeteria allowance of $600 per month. Effective the pay issue that includes January 1, 2016, the opt -out amount for full-time employees will be adjusted to $1, 000 per month. b. Part -Time Members: Effective upon adoption of this 2015-17 MOU, part-time NBLMA members will receive a monthly cafeteria benefit of $585.00 (equivalent to $4.50 per hour worked for an average of 30 hours per week). For part-time employees enrolled in medical plans, the cafeteria amount is inclusive of the PERS designated minimum medical insurance contribution. For employees who do not enroll in a medical plan there shall be no opt out cafeteria benefit. c. At the request of either party, the parties shall meet and confer in good faith to discuss possible changes to the medical benefit program, contribution levels, or other elements of healthcare services, provided, however, that any changes to the MOU only may occur by mutual agreement of the parties. 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings for full-time employees as agreed upon by the Benefits Information Committee. NBLMA MOU 2014-2017 11 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings for full-time employees as agreed upon by the Benefits Information Committee. B. Additional Health Insurance/Programs 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. The City shall maintain a "reimbursable account program" in accordance with the provisions of Section 125 of the Internal Revenue Code, pursuant to which a full-time 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. 2. Disability Insurance The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to regular full-time employees with the following provisions: Weekly Benefit Maximum Benefit Minimum Benefit Waiting Period 66.67% gross weekly wages $10,000/month $15 (STD) and $100 (LTD) 30 Calendar Days (STD) 180 Calendar Days (LTD) Employees shall not be required to exhaust accrued paid leaves prior to receiving benefits under the disability insurance program. Employees may not supplement the disability benefit with paid leave once the waiting period has been exhausted. Concurrent with the commencement of this program, employees assumed responsibility for the payment of the disability insurance cost in the amount of one (1.0%) percent of base salary. Simultaneously, the City increased base wages by one (1.0%) percent. NBLMA MOU 2014-2017 12 3. Life Insurance The City shall provide life insurance for regular full-time employees in $1,000 increments equal to one times the employee's annual salary up to a maximum of $50,000. At age 70 the City -paid life insurance is reduced by 50% of the pre-70 amount. This amount remains in effect until the employee retires from City employment. C. Employee Assistance Program City shall provide an Employee Assistance Program (EAP) for full-time and part- time employees through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines. D. The Retirement Benefit 1. Retirement Benefit 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: Tier 1: For employees enrolled as Safety members on or before November 23, 2012, the retirement formula shall be 3%@50 calculated on the basis of the best/single highest year. Tier 2: For employees enrolled as Safety members 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 the Public Employees' Pension Reform Act, the retirement formula shall be 2%@50 calculated on the average 36 highest month's salary. Tier 3: For employees enrolled as Safety members on or after January 1, 2013, and who do not meet Tier 2 criteria, the retirement formula shall be 2.7%(.57 calculated on the average 36 highest month's salary. The City's contract with PERS also provides for: 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 pre -retirement option settlement 2 death benefit (Section 21548). NBLMA MOU 2014-2017 13 2. Employee Contributions Tier 1 and 2 Employees: All unit members in Tiers 1 and 2 will pay the full 9% "safety member" contribution of PERS reportable earnings. This payment will be made on a pre-tax basis through payroll deduction pursuant to IRS Code Section 414(h)(2). This contribution will not be considered as part of employee's "compensation earnable" under Government Code section 20636. Effective the pay period that includes July 1, 2015, all unit members in Tiers 1 and 2 will contribute the full statutory member contribution, equal to 9% of pensionable compensation, plus an additional 1.6% of pensionable compensation toward retirement costs as permitted under Government Code §20516(f), for a total contribution of 10.6%. Effective the pay period that includes July 1, 2016 all unit members will, in addition to the 9% normal member contribution, contribute 3.1 % of pensionable compensation toward retirement costs as permitted under Government Code §20516(f, for a total contribution of 12.1%. Effective the pay period that includes July 1, 2017 unit members will, in addition to the 9% normal member contribution, contribute 4.6% of pensionable compensation toward retirement costs as permitted under Government Code §20516(0, for a total contribution of 13.6%. 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 (PEPRA) and equals 50% of the "total normal cost" as determined by PERS. For FY15-16, the employee Safety rate is 11.25% and is subject to change based on annual PERS actuarial valuations. Effective the pay period that includes July 1, 2015 Tier 3 members will contribute the required 11.25% member contribution. Effective the pay period that includes July 1, 2016, in addition to the statutorily required 50% contribution of total normal costs, Tier 111 employees shall contribute .85% of pensionable compensation toward retirement costs pursuant to Government Code § 20516(t), for a total contribution of 12.1%. If the FY16-17 member contribution rate for employees in Tier 111 shall become greater or less than 11.25%, the additional contribution made by the employee under 20516(0 will be increased or decreased accordingly so that the total employee contribution equals 12.1%. Effective the pay period that includes July 1, 2016, in addition to the statutorily required 50% contribution of total normal costs, Tier 111 NBLMA MOU 2014-2017 14 employees shall contribute 2.35% of pensionable compensation toward retirement costs pursuant to Government Code § 20516(f), for a total contribution of 13.6%. If the FY17-18 member contribution rate for employees in Tier 111 shall become greater or less than 11.25%, the additional contribution made by the employee under 20516(f) will be increased or decreased accordingly so that the total employee contribution equals 13.6%. In the event CaIPERS pension provisions for new or existing employees are modified by State or Federal legislation, resulting in changes to previously negotiated terms, the parties agree to meet and confer to discuss appropriate changes to the contract. E. Retiree Health Benefits Program 1. Background In 2005, the City and all Employee Associations agreed to replace the previous "defined benefit" retiree medical program with a new "defined contribution" program. The process of fully converting to the new program will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2006. b. Category 2 - Active employees hired prior to January 1, 2006, whose age plus years of service as of January 1, 2006 was Tess than 50 (46 for public safety employees). c. Category 3 - Active employees hired prior to January 1, 2006, whose age plus years of service was 50 or greater (46 for public safety employees) as of January 1, 2006. d. Category 4 - Employees who had already retired from the City prior to January 1, 2006, and were participating in the previous retiree medical program. 2. Program Structure This is an Integral Part Trust (IPT) Retiree Health Savings (RHS) Plan (formerly the Medical Expense Reimbursement Program "MERP") and applies only to regular full-time NBLMA employees. a. For employees in Category 1, the program is structured as follows: NBLMA MOU 2014-2017 15 Each employee will have an individual RHS account for bookkeeping purposes, called his or her "Employee Account." This account will accumulate contributions to be used for health care expense after separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. Contributions will be in three parts. Part A contributions (mandatory employee contributions): 1 % of Salary. Part B contributions (employer contributions): $1.50 per month for each year of service plus year of age (updated every January 1st based on status as of December 31st of the prior year). Effective January 2008, this contribution will increase to $2.50 per month. Part C contributions (leave settlement as determined by Association): The Association will determine 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 contribution, at the level of zero percent (0%). This amount may be changed, on a go forward basis, as part of the 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 NBLMA MOU 2014-2017 16 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 enrolment in the program and are credited to each RHS Employee Account each pay period. Eligibility for Part B contributions is set at five years of vested City employment. At that time, the City will credit the first five years' worth of Part B contributions into the Employee Account (interest does not accrue during that period). Thereafter, contributions are made bi-weekly. Part C deposits, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon separation. If an employee leaves the City prior to five years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the RHS Employee Account. Such an employee will not be entitled to any Part B contributions. The exception to this is a full-time employee, participating in the program, who leaves the City due to industrial disability during the first five years of employment. In such cases, the employee will receive exactly five years' worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's RHS account at the time of separation Distributions from RHS Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as NBLMA MOU 2014-2017 17 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 CaIPERS participating employer's contribution towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's RHS account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one- time City contribution to their individual RHS accounts that equates to $100 per month for every month they contributed to the previous "defined benefit" plan, to a maximum of 15 years (180 months). This contribution will be made only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. Employees in Category 2 who had less than five years' service with the City prior to implementation of the new program will only receive Part B contributions back to January 1, 2006 when they reach five years total service. c. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. NBLMA MOU 2014-2017 18 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 $4,800.00 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 RHS account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. d For employees (retirees) in Category 4, the structure is very similar to the previous retiree medical program, except that there is no cost share requirement, and the $400 City contribution after retirement can be used for any IRS authorized purpose, not just City insurance premiums. Effective July 1, 2006, a RHS account has been opened for each retiree in this category, and the City will contribute $400 per month to each account as long as the retiree or spouse remains living. 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). NBLMA MOU 2014-2017 19 F. Tuition Reimbursement Full-time and part-time NBLMA members attending accredited community colleges, colleges 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. 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. NBLMA members attending pre -approved, directly job -related classes, courses and seminars given by recognized agencies, organizations or individuals other than accredited college institutions may apply for reimbursement of actual cost of tuition, books, fees or other student expenses. Reimbursement is contingent upon the successful completion of the course. Successful completion means a document or certificate showing successful completion of the course or seminar. All claims for reimbursement require the approval of Fire Chief or designee before submittal to Human Resources. Maximum tuition reimbursement for full-time employees shall be $1,500.00 per fiscal year and the maximum reimbursement for part-time employees shall be $1,125 per fiscal year. SECTION 5. MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs The provisions of this section shall apply to full-time and part-time members 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: NBLMA MOU 2014-2017 20 i. Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status in the Classification or Series; ii. Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. c. "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part—time, seasonal or 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 Classification(s) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities for subordinates. The City Manager shall determine those Classifications, which constitute a Series. e. "Bumping Rights", "Bumping" or "bump" shall mean the right of an employee, based upon seniority within a series, to displace a less senior employee in a lower Classification within the Series. No employee shall have the right to Bump into a Classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience. 2. Procedures In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: a. Temporary and probationary employees within any Classification shall, in that order, be laid off before permanent employees. b. Employees within a Classification shall be laid off in inverse order of seniority; c. An employee subject to layoff in one Classification shall have the right to Bump a Tess senior employee in a lower ranking Classification within a Series, provided, however, that the determination of the employee to be terminated from the position shall be based on seniority within the Series. An employee who has Bumping Rights shall notify the Department Director within NBLMA MOU 2014-2017 21 seven (7) 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 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 lay—off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days' pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any), and accumulated sick leave to the extent permitted by the Personnel Resolution. 4. Re —Employment Permanent and probationary employees who are laid off shall be placed on a Department re—employment list in reverse order of layoff. The re— employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re—employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re—employment list or the right to remove his or her name from the re—employment list by sending written confirmation to the Human Resources Manager. 5. Severance Pay Permanent employees who are laid off shall, as of the date of lay—off, receive one week severance pay for each year of continuous service with the City of Newport Beach, to a maximum of ten (10) weeks of severance pay. B. Discipline Any discipline shall be in accordance with the Department SOP and the Employee Policy Manual. NBLMA MOU 2014-2017 22 C. Health and Fitness Evaluations All NBLMA members shall participate in the Department Fitness Program. D. Provision for Sun Protection 1. The first full pay period of each fiscal year, the City will provide $400 to each full-time unit member and $300 to each part-time unit member for sunglasses and other sun protection materials (not restricted to use at Lifeguard Store). 2. Each unit employee shall receive an annual skin cancer screening, which will be conducted either on or off duty at the Department's discretion. Employees directed to receive this screening off duty shall receive one (1) hour of compensatory time off as compensation. E. Fitness Equipment and Exercise Time At a time, during the life of this MOU, selected by NBLMA, the City will provide up to $3,000.00 per year towards the purchase of fitness equipment to be used on duty for the intended benefit of NBLMA for the term of this agreement. The actual equipment to be purchased shall be recommended by NBLMA, and shall require the final approval of the Fire Chief. Unit employees shall be allowed up to three (3) hours per week for physical fitness training. F. Employee Policy Manual The City and NBLMA have agreed on implementation of the City's revised 2001 Employee Policy Manual. Should additional revisions to the Manual be proposed, the City will meet and confer on applicable policy manual provisions. G. Direct Deposit All Unit employees shall participate in the City's Direct Deposit Program. H. Part -Time Conversion Part-time Lifeguard IV employees converted to full-time status in January 2000 shall utilize their original Lifeguard IV hire date as their anniversary date. Any changes resulting from this change shall be prospective only. Signatures are on the next page. NBLMA MOU 2014-2017 23 1 -V-1- Executed this day of ;JJjv 2 , 2015: NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION CITY F NEEWP T BEACH r "D. Selich, a or N BY: Edwa dL.M ).y Leilani Brown, City Clerk APPROVED AS TO FORM: Aaron Harp, City Attorney NBLMA MOU 2014-2017 24 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION This Memorandum of Understanding (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE 1. Authorized representatives of the CITY OF NEWPORT BEACH (hereinafter referred to as "CITY") and authorized representatives of the NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION (hereinafter referred to as "NBLMA") a recognized employee organization, met and conferred, exchanging various proposals concerning wages, hours, fringe benefits and other terms and conditions of employment of employees represented by NBLMA (hereinafter referred to as "EMPLOYEES") for the period of January 1, 2012 through June 30, 2014. 2. NBLMA representatives have reached an agreement as to wages, hours and other terms and conditions of employment to apply to all affected EMPLOYEES for the time period defined above. Said EMPLOYEES desire to reduce their agreement to writing, and to present such agreement, in the form of this MOU, to the City Council of the City of Newport Beach for approval. NOW, THEREFORE, this MOU is made and entered into by the parties hereto effective January 1, 2012, as follows: SECTION 1. GENERAL PROVISIONS A. Duration of Memorandum The terms of this MOU are to remain in full force and effect beginning January 1, 2012 through June 30, 2014. B. Scope 1. All present written rules and currently established practices and employee 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, or in the case of the Department Standard Operating Procedures (SOPs) falling within the scope of representation, the City has given notice to the Association and, upon request, met and conferred on any proposed changes which fall within the scope of representation. 1 When the Department proposes to change any SOP departmental rule or regulation, it will provide a copy of such change to the Association no Tess than seven (7) days prior to implementation of the proposed change. If such proposed change materially impacts any matter within the scope of representation, then the parties agree to meet and confer over such impact. 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. C. Conclusiveness Except as provided for in this agreement, this MOU contains all of the covenants, stipulations and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled and each party expressly waives its rights to request the other to meet and confer concerning any issue relating primarily to matters within the scope of representation except as expressly provided for 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. Any changes to any salaries, benefits or terms and conditions of employment within the scope of representation not embodied in this MOU shall require prior mutual agreement signed by the Mayor and the Newport Beach Lifeguard Management Association President. D. Savings 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 the provisions of this MOU relating to pay schedule adjustment increases be declared invalid, CITY agrees to provide alternate benefits agreeable to NBLMA, to EMPLOYEES to receive the same amount of money as they would have received had such provision not been declared invalid. E. Other Terms and Conditions Except as to those matters expressly covered by this MOU, all terms and conditions of employment may be changed or amended after meeting and conferring, in good faith. 2 F Unit Classification Titles Unit classifications are listed in Exhibit A. For all compensation comparison purposes, actual job duties, and not classification titles, will be utilized. SECTION 2. COMPENSATION A. Salary Adjustments 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 Angeles/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 2.0% increase. B. Special Assignment Pay Boat Pay: Lifeguard Captains certified for and assigned to boat operations shall receive additional compensation of 2.5% of base salary for their job classification. Effective upon MOU adoption, the Lifeguard Captain — Boat classification shall be "sunsetted" and the incumbent shall retain the classification and assignment pay until reassignment, promotion, or separation from employment. Subsequently, boat assignment pay will be assigned to a qualified Captain and compensated only when performing boat duties. Training Pay: Lifeguard Captain assigned as the "Training Captain" will receive an additional 7.5% of base pay while assigned the responsibilities of training. C. Overtime Unit employees shall receive overtime compensation for all hours worked in excess of forty (40) in any work period. Paid time off shall be considered time worked for the purposes of calculating overtime. Unit employees shall have the option of requesting compensatory time off (CTO) for all overtime, including training time, during the term of this agreement. All compensatory time off shall be subject to existing City rules providing for 3 maximum (CTO) accrual of eighty (80) hours at time and one half on the books or 120 actual hours. D. Uniform Allowance The City shall pay the entire cost of providing LMA members with each component of the required LMA uniforms. The required LMA uniform includes uniform pants, uniform shirts, safety shoes, badges and insignias, uniform jackets and liners, belts, dive equipment, foul weather gear, personal floatation device and helmet. The City shall not be responsible for providing employees with socks, underwear, cap, workout shoes, or other clothing. The City shall report the value of provided uniforms at $838 to PERS in accordance with PERS requirements. E. Call Out Call out compensation shall be in accordance with the following provisions: 1. All emergency call out time shall be calculated to the nearest one quarter (1/4) hour of time worked. 2. For forty (40) hour employees, a minimum of two (2) hours (including travel time) of pay at the rate of one and one half (1 1/2) times the employee's regular hourly rate of pay shall be guaranteed for each emergency call out. F Scholastic Achievement Pay Unit members whose starting date was prior to the City Council adoption of this 2012-2014 MOU are entitled to additional compensation contingent upon scholastic achievement ("Scholastic Achievement Pay"). LMA members may apply for increases pursuant to this Section when eligible and scholastic achievement pay shall be included in the member's pay check for the pay period immediately after approval by the Fire Chief. It is the responsibility of the LMA 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 full-time service as a NBLMA member and number of units and/or degrees received by the employee. Qualifying units and/or degrees must be awarded by accredited community colleges, state colleges or universities. LMA members shall receive scholastic achievement pay in accordance with the following: 4 Years of Total College % of Actual Step Service Semester Units in Job Class Range 2 or more 30 1.5% 2 or more A.A./A. S. * 3.5% 3 or more 60 2.5% 3 90 3.5% 4 or more 90 3.5% 4 120 4.5% 4 B.A./B.S. 5.5% 4 M.A./M.S. 6.5% * Effective concurrent with Council adoption of the 2012-2014 MOU. 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. A "degree" shall be 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. G. Night Standby An employee assigned to standby duty for purposes of being on call to handle emergency situations arising at times other than during normal working hours shall be guaranteed two (2 1/2) and a half hours of pay at his regular hourly rate of pay for each calendar day of such standby duty. Employees shall have the option of receiving compensatory time off in lieu of pay for night standby. H. Move -up Pay Temporary upgrading shall be defined as the temporary assignment of an employee to work in a job classification, which is assigned to a salary schedule higher than his/her regular job classifications. Employees temporarily upgraded to the following job classifications and equivalent positions shall receive a five percent (5%) pay differential over their regular rate of pay for all time worked in the higher job classification if they are assigned to work in the higher job classification for a period of one (1) working hour or longer. Lifeguard Captain Lifeguard Battalion Chief 5 All holiday, vacation, sick leave and paid leave shall be paid at the employee's regular rate of pay. Assignments to higher rated classifications shall be made at the sole discretion of the City. I. Court Standby Pay NBLMA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off —duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBLMA members shall, when required to appear in court pursuant to a Subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. J. Lifeguard Officer Adjustment Upon adoption of this 2012-14 MOU, the City will conduct a total compensation survey of the Lifeguard Officer classification. If survey results indicate Lifeguard Officer total compensation is below market median of the survey agencies, the City will provide a minimum 1.0%, to a maximum 2.0%, base salary adjustment to the Lifeguard Officer salary range, in an effort to reach market parity. In no event will the adjustment be greater than 2.0%. SECTION 3. LEAVES A. Flex Leave All employees hired after July 1, 1990 will be included in the Flexible Leave Program. Within 60 days of the signing of this Memorandum of Understanding all unit members still in the vacation/sick leave program may, collectively, elect to convert to the flex leave program. Conversion terms shall be the same as those utilized during the initial establishment of the flex leave program. 1. Basis for Accrual Permanent full-time employees enrolled in the flex leave program will earn leave in accordance with the following schedule: 6 Years of continuous Accrual per Longevity Service pay period/hrs Pay Increase 1 but less than 5 5.54 0 5 but less than 9 6.15 0 9 but less than 12 6.77 0 12 but less than 16 7.69 0 16 but less than 20 7.69 1.0% 20 but Tess than 25 7.69 1.5% 25 and over 7.69 2.5% During the first six months of employment, new regular full-time employees shall not accrue paid leave. At the completion of six months of employment six (6) months of accrued flex leave will be placed in the employees account. Note: If an employee becomes sick in the first six months of employment, the City will advance up to six (6) months of potentially accrued flex leave time to be used for illnesses only. If employee terminates employment prior to six months, the City will subtract the pay equivalent of the number of flex leave days advanced from the employee's final check. Any flex leave time advanced during the first six months of employment will be subtracted from the six (6) months of accrual placed in the employees account upon completion of six months employment. 2. 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. Effective the pay period following adoption of the 2012-14 MOU, members shall be entitled to accrue flex leave up to a maximum of fifty-two (52) times the member's bi-weekly accrual rate. Earned flex leave in excess of the maximum permitted is currently paid bi-weekly at the member's hourly rate of pay ("spillover pay').. Members shall be eligible for flex leave spillover pay only if they have utilized at least eighty (80) hours of flex leave the previous calendar year. Employees who have not utilized the required amount of leave the prior calendar year shall not be eligible to accrue time above the maximum accrual limit. 3. Method of Use Flex leave may not be taken in excess of that actually accrued and in no case, except for illness, may it be taken prior to the completion of an employee's initial probationary period. wishes of the employee. Vacation leave may be granted on an hourly basis. C. Use of Flex and Vacation Leave Level A staffing shall run from June 15th through Labor Day. During this period of time, full-time personnel may be limited to a total of forty (40) hours usage of vacation/flex leave. Additional vacation/flex leave during this period may be approved if, in the opinion of management, adequate staffing levels can be maintained. The Department shall develop a policy defining when approved vacation/flex leave times shall not be subject to cancellation. The City will budget eighty (80) hours of overtime per employee per year for vacations/flex leave backfill. Concurrently, the City and NBLMA will jointly review procedures defining minimum staffing and the hours for night call out. Any changes to these areas fall within the scope of representation and will be subject to the meet and confer process. D. Sick Leave 1. Basis for Accrual/Full-time Employees Full-time, regular employees shall accrue sick leave based on the number of hours in a normal workweek for the position to which they are assigned in accordance with the following schedules: Normal Work Week 40 hours 0- - 1 year 1-2 years 2-3 years 3-4 years 4+ years 4 hours per month 5 hours per month 6 hours per month 7 hours per month 8 hours per month After the 3rd year level, and the 5th year level, employees will be required to maintain the same number of hours as required of other permanent employees. Employees accruing sick leave hours under the above formula and enrolled in the City's Disability Program will be eligible for City -paid Disability Insurance premiums as follows: 50% at 88 hours, 100% at 208 hours. 9 2. Method of Use a. General Sick leave may not be taken in excess of that actually accrued. Except as noted, an employee serving his/her initial probation period is eligible to use his/her accumulated sick leave provided that if for any reason his/her City employment is terminated prior to the completion of such probationary period, his/her final pay check shall be reduced by the value of the sick leave he/she has taken. After completion of the initial six (6) months probation period, entry- level employees shall not have used sick leave deducted from their final pay check if they have maintained a satisfactory or higher performance evaluation rating throughout the probationary period. Sick leave may be granted on an hourly basis. b. Approval Sick leave may be granted only at the direction of or with the approval of the Department Director and only for the purposes defined in Section 11.2.A of the Employee Policy Manual. 3. Sick Leave Conversion Employees who at the end of the calendar year have an accrued level of sick leave equal to or greater than the full value of 40 months of accrued sick leave, and who have used six or less days of sick leave during the calendar year will be permitted (only once per year) to convert up to six days of sick leave to either salary or paid vacation at the value of 50% (Maximum value of 3 days per year). Eligible sick leave days converted to cash shall be at the employee's option. Eligible sick leave days converted to paid vacation shall require the approval of the Department Director. E. Family Sick Leave Unit employees shall be entitled to use an amount of time equal to one-half (1/2) of their annual sick leave accrual for an illness of a dependent which requires the presence of the employee. Such time may be taken from the employee's annual sick leave accrual or sick leave bank, at the employee's choice. Leave shall be administered in accordance with the provisions of Section 11.2 of the Employee Policy Manual. The provisions of this section shall not be construed to affect or reduce the right of any employee to any unpaid family medical leave authorized by State or Federal law. 10 For purposes of family sick leave, family member shall mean spouse, parent, (parent shall mean biological, foster, or adoptive), child (child shall mean biological, adopted, or foster child; a stepchild; a legal ward; or a child of an employee standing in local parentis). F Holiday Time Subject to the provisions herein, the following days shall be observed as paid holidays by all employees in permanent positions and other personnel whose work assignments, in the judgment of the Department Director, require their presence on the job. For each designated holiday, except the Floating Holidays, such personnel shall receive an equivalent number of hours of paid leave or equivalent pay whichever in the judgment of the Department Director best serves the interest of the Department. Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas New Year's Eve New Year's Day Martin Luther King Day Washington's Birthday Memorial Day Floating Holiday (1) July 4 1st Monday in September November 11 4th Thurs. in November Last 1/2 of working day December 25 Last 1/2 of working day January 1 3rd Monday in January 3rd Monday in February Last Monday in May For employee's birthday or other holiday. Eligibility and use according to Memorandum of Understanding. 1 Holiday pay will be paid only to employees who work their scheduled day before the holiday and scheduled day after a holiday or are on authorized leave (e.g., approved vacation, sick leave, or flex 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. 3. "Floating Holiday" eligibility allows for newly hired employees to earn their first floating holiday credit, eight (8) hours, at the same time as they receive their regular appointment status, upon the successful completion of their probationary period. 11 4. In July, 2003 all employees were provided a one-time opportunity to elect to convert all or any portion of their annual holiday benefits to cash on an annual basis. This election shall be uniform from year to year. For example, an employee electing to convert 48 of the 96 hours of the annual benefit to cash must so convert 48 hours of earned holiday benefits each year thereafter. Holiday pay will be paid bi-weekly with the regular check. Holiday leave conversion pay will not count in the total compensation formula used to adjust salaries and benefits. Employees hired after July 2003 will make this election at the time of hire. This holiday compensation shall be reported to PERS as special compensation and shall be regarded as compensation earnable as defined in Government Code Sec. 20636 (c) (6) for purposes of computing retirement benefits and contributions. G. Bereavement Leave The provisions of the Bereavement Leave Policy applicable to affected employees are as follows: Defined. The necessary absence from duty by an employee having a regular or probationary appointment, because of death or terminal illness in his/her immediate family. For the purposes of this section, immediate family shall mean father, mother, brother, sister, spouse/domestic partner, child, or grandparents and the employee's spouse's /domestic partner's father, mother, brother, sister, and child. Maximum Allowed. Such leave shall be limited to five (5) working days per calendar year per occurrence. Probationary Employees. An employee serving his/her initial probationary period who takes leave under this section who for any reason terminates his/her employment prior to the completion of such probationary period shall have his/her final pay check reduced by the value of the leave taken. H. Sick Leave Pay Out Upon paid retirement, termination in good standing or death, but not termination for cause or resignation in lieu of termination, any member or his/her estate shall be paid for a percentage of the employee's accrued but unused Sick Leave computed as follows: 12 YEARS OF SERVICE: PERCENT OF UNUSED SICK LEAVE PAID FOR: LESS THAN 10 NONE 10 BUT LESS THAN 15 25% 15 BUT LESS THAN 20 37.5% 20 OR MORE 50% Payment for accrued but unused Sick Leave shall be limited to the first 800 hours of accrued Sick Leave for Staff Employees and the first 1200 hours for Line Employees (for example if a Line Employee had accumulated 1400 hours of Sick Leave and retired after 16 years he or she would receive Terminal Sick Leave Pay in a sum equal to 109% of their base salary per hour for 450 hours of Sick Leave — 1200 hours multiplied by .375). Leave Pay -Off Payment for accrued leave will be at 100% of the base hourly rate. SECTION 4. FRINGE BENEFITS A. Insurance 1. Benefits Information Committee City has established a Medical/Dental Information Committee composed of one representative from each employee group and up to three City representatives. The Medical/Dental 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 care issues. The purpose of this Committee is to provide each employee group with information about health care issues and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. City Contribution The City has implemented an IRS qualified Cafeteria Plan. NBLMA members shall participate in this plan. The City contribution toward the Cafeteria Plan shall be as set forth below. 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 Lifeguard Management Association will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. 13 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 first pay issue in January 2013, the City's contribution towards the Cafeteria Plan will be $1,249 (plus the minimum CaIPERS participating employer's contribution). Effective the first pay issue in January 2014, the City's contribution towards the Cafeteria Plan will increase to $1,349 (plus the minimum Ca1PERS participating employer's contribution). LMA 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 current employees who execute an opt -out agreement is $1,249 per month effective January 2013. Employees hired after adoption of this 2012-2014 MOU, and who execute an opt -out agreement, will receive a maximum cafeteria allowance of $600 per month. 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. B. Additional Health Insurance/Programs 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. The City shall maintain a "reimbursable account program" in accordance with the provisions of Section 125 of the Internal Revenue Code, pursuant to which an Association member may request that medical, child care and other eligible expenses be paid or reimbursed by the City out of the employee's account. The base salary of 14 the employee will be reduced by the amount designated by the employee for reimbursable expenses. 2. Disability Insurance The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all regular full time employees with the following provisions: Weekly Benefit Maximum Benefit Minimum Benefit Waiting Period 66.67% gross weekly wages $10,000/month $15 (STD) and $100 (LTD) 30 Calendar Days (STD) 180 Calendar Days (LTD) Employees shall not be required to exhaust accrued paid leaves prior to receiving benefits under the disability insurance program. Employees may not supplement the disability benefit with paid leave once the waiting period has been exhausted. Concurrent with the commencement of this program, employees assumed responsibility for the payment of the disability insurance cost in the amount of one (1.0%) percent of base salary. Simultaneously, the City increased base wages by one (1.0%) percent. 3. Life Insurance The City shall provide life insurance for all regular full-time employees in $1,000 increments equal to one times the employee's annual salary up to a maximum of $50,000. At age 70 the City -paid life insurance is reduced by 50% of the pre-70 amount. This amount remains in effect until the employee retires from City employment. C. Employee Assistance Program City shall provide an Employee Assistance Program (EAP) through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines. 15 D. The Retirement Benefit 1. Retirement Benefit 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: Tier 1: For employees hired by the City on or before November 23, 2012, the retirement formula shall be 3%@50 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 the Public Employees Pension Reform Act, the retirement formula shall be 2%@50 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 Tier 2 criteria, the retirement formula shall be 2.7%@57 calculated on the average 36 highest month's salary. The City's contract with PERS also provides for: 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 pre -retirement option settlement 2 death benefit (Section 21548). 2. Employee Contributions Tier 1 and 2 Employees: Unit members in Tiers 1 and 2 will pay the full 9% "safety member" contribution of CaIPERS reportable earnings. This payment will be made on a pre-tax basis through payroll deduction pursuant to IRS Code Section 414(h)(2). This contribution will not be considered as part of employee's "compensation earnable" under Government Code section 20636. 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 (PEPRA) and equals 50% of the "total normal cost" 16 as determined by PERS. For FY12-13, the employee rate is 11.25% and is subject to change based on annual PERS actuarial valuations. 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. E. Retiree Health Benefits Program 1. Background In 2005, the City and all Employee Associations agreed to replace the previous "defined benefit" retiree medical program with a new "defined contribution" program. The process of fully converting to the new program will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2006. b. Category 2 - Active employees hired prior to January 1, 2006, whose age plus years of service as of January 1, 2006 was less than 50 (46 for public safety employees). c. Category 3 - Active employees hired prior to January 1, 2006, whose age plus years of service was 50 or greater (46 for public safety employees) as of January 1, 2006. d. Category 4 - Employees who had already retired from the City prior to January 1, 2006, and were participating in the previous retiree medical program. 2. Program Structure This is an Integral Part Trust (IPT) Retiree Health Savings (RHS) Plan (formerly the Medical Expense Reimbursement Program "MERP"). a. For employees in Category 1, the program is structured as follows: Each employee will have an individual RHS account for bookkeeping purposes, called his or her "Employee Account." This account will accumulate contributions to be used for health care expense after separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment 17 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. B. Vacation 1. Basis for Accrual/Full-Time Employees Employees entitled to vacation leave -with -pay shall accrue such leave based on years of continuous service and the number of hours in a normal workweek for the position to which they are assigned in accordance with the following schedule: Years of Accrual Continuous Per Service Pay Period 0 but less than 5 3.38 5 but less than 9 3.99 9 but less than 12 4.61 12 but less than 16 5.22 16 but less than 20 5.84 20 but less than 25 6.46 25 and over 7.07 2. Limit on Accumulation Accrual of vacation days in excess of those earned for two years of continuous service is not permitted past December 31 st of each year with the following exception: with approval of the Department Director, an employee may accrue vacation days in excess of the two-year limit provided all such excess accumulation is taken by March 31st of the following year. 3. Method of Use Vacation may not be taken in excess of that actually accrued and in no case, except for entry-level employees, may it be taken prior to the completion of an employee's initial probationary period. Entry level employees may use vacation after the completion of the initial six (6) months of probation. The Department Director shall schedule and approve all vacation leaves for employees taking into consideration the needs of the Department, and whenever possible, the seniority and 8 of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. Contributions will be in three parts. Part A contributions (mandatory employee contributions): 1 % of Salary. Part B contributions (employer contributions): $1.50 per month for each year of service plus year of age (updated every January 1st based on status as of December 31st of the prior year). Effective January 2008, this contribution will increase to $2.50 per month. Part C contributions (leave settlement as determined by Association): The Association will determine the level of contribution for all employees it represents, subject to the following constraints. All employees within the Association must participate at the same level, except that Safety members and Non -safety members within an Association may have different levels. The participation level should be specified as a percentage of the leave balance on hand in each employee's leave bank at the time of separation from the City. For example, if the Association wishes to specify 50% of the leave balance as the participation level, then each member leaving the City or cashing out leave at any other time, would have the cash equivalent of 50% of the amount that is cashed out added to the 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 contribution, at the level of zero percent (0%). This amount may be changed, on a go forward basis, as part of the 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 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. 18 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 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, 19 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 CaIPERS participating employer's contribution towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's RHS account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one- time City contribution to their individual RHS accounts that equates to $100 per month for every month they contributed to the previous "defined benefit" plan, to a maximum of 15 years (180 months). This contribution will be made only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. Employees in Category 2 who had less than five years service with the City prior to implementation of the new program will only receive Part B contributions back to January 1, 2006 when they reach five years total service. c. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute $400 per month into each of their 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 $4,800.00 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 RHS account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. d. For employees (retirees) in Category 4, the structure is very similar to the previous retiree medical program, except that there is no cost share requirement, and the $400 City contribution after retirement can be used for any IRS authorized purpose, not just City insurance premiums. Effective July 1, 2006, a RHS account has been opened for each retiree in this category, and the City will contribute $400 per month to each account as long as the retiree or spouse remains living. 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). 21 F Tuition Reimbursement NBLMA members attending accredited community colleges, colleges 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. 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. LMA members attending pre -approved, directly job -related classes, courses and seminars given by recognized agencies, organizations or individuals other than accredited college institutions may apply for reimbursement of actual cost of tuition, books, fees or other student expenses. Reimbursement is contingent upon the successful completion of the course. Successful completion means a document or certificate showing successful completion of the course or seminar. All claims for reimbursement require the approval of Fire Chief or designee before submittal to Human Resources. Maximum tuition reimbursement for employees shall be $1,500.00 per fiscal year. SECTION 5. MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions a. "Layoffs" or "Laid off' shall mean the non —disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted permanent status in their current Classification or any Classification within the Series, subject to the following: 22 Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status in the Classification or Series; ii. Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. c. "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part—time, seasonal or 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 Classification(s) characterized by the need for Tess 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, provided, however, that the determination of the employee to be terminated from the position of Lifeguard shall be based on seniority within the Series. An employee who has Bumping Rights shall notify the Department 23 Director within seven (7) 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 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 lay-off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any), and accumulated sick leave to the extent permitted by the Personnel Resolution. 4. Re -Employment Permanent and probationary employees who are laid off shall be placed on a Department re-employment list in reverse order of layoff. The re- employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re-employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re-employment list or the right to remove his or her name from the re-employment list by sending written confirmation to the Human Resources Manager. 5. Severance Pay Permanent employees who are laid off shall, as of the date of lay-off, receive one week severance pay for each year of continuous service with the City of Newport Beach, to a maximum of ten (10) weeks of severance pay 24 B. Discipline Any discipline shall be in accordance with the Department SOP and the Employee Policy Manual. C. Health and Fitness Evaluations All NBLMA members shall participate in the Department Fitness Program. D. Provision for Sun Protection 1. The first full pay period of each fiscal year, the City will provide $400 to each unit employee for sunglasses and other sun protection materials (not restricted to use at Lifeguard Store). 2. Each unit employee shall receive an annual skin cancer screening, which will be conducted either on or off duty at the Department's discretion. Employees directed to receive this screening off duty shall receive one (1) hour of compensatory time off as compensation. E. Fitness Equipment and Exercise Time At a time, during the life of this MOU, selected by NBLMA, the City will provide up to $3,000.00 per year towards the purchase of fitness equipment to be used on duty for the intended benefit of NBLMA for the term of this agreement. The actual equipment to be purchased shall be recommended by NBLMA, and shall require the final approval of the Fire Chief. Unit employees shall be allowed up to three (3) hours per week for physical fitness training. F. Employee Policy Manual The City and LMA have agreed on implementation of the City's revised Employee Policy Manual. G. Direct Deposit All Unit employees shall participate in the City's Direct Deposit Program. H. Part -Time Conversion Part-time Lifeguard IV employees converted to full-time status in January 2000 shall utilize their original Lifeguard IV hire date as their anniversary date. Any changes resulting from this change shall be prospective only. Signatures are on the next page. 25 ATTEST: n / BY: Executed this �o, l'i-d day of y7.1.4-4. 2013: NEWPORT BEACH L FEGUARD MANAGEMENT ASSOCIATION BY: BY: Brian O'Rourke, Vice Pre dent, CITY OF NEWPORT BEACH BY: Keith Curry, Mayor Leilani Brown, City Clerk APPROVED AS TO FORM: Aaron Harp, City Attorney VIO Ir1 26 EXHIBIT A Newport Beach Lifeguard Management Association Represented Classifications Lifeguard Officer Lifeguard Captain Lifeguard Captain - Boat Lifeguard Battalion Chief 27 SUPPLEMENTAL MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION This SUPPLEMENTAL MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "Supplemental MOU") is entered into modifying the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Lifeguard Management Association for the period of January 1, 2009 through December 31, 2011 (hereinafter "MOU"). Upon signing of this Supplemental MOU, the MOU is modified to incorporate the changes memorialized herein. No other changes are effectuated by the parties. Except as expressly stated in this Supplemental MOU all terms and conditions of the MOU remain in full force and effect. The changes referenced in this Supplemental MOU shall take effect on July 1, 2011 and shall remain in effect for the balance of the term of the MOU. SECTION 4. -FRINGE BENEFITS A. Insurance — Amended to read: 2. City Contribution The City has implemented an IRS qualified Cafeteria Plan. NBLMA members shall participate in this plan. The City contribution toward the Cafeteria Plan shall be as set forth below. 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 Lifeguard Management Association will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. Any unused Cafeteria Plan funds shall be payable to the employee as taxable cash back. Employees shall be allowed to change coverages in accordance with plan rules and during regular open enrollment periods. Effective the pay period beginning December 20, 2008, the City's contribution towards the Cafeteria Plan increases to $974 (plus the minimum CalPERS participating employer's contribution). Effective the pay period beginning December 19, 2009, the City's contribution towards the Cafeteria Plan will increase to $1049 (plus the minimum CatPERS participating employer's contribution). Effective July 2, 2011, the City's contribution towards the Cafeteria Plan will increase to $1149 per month (plus the minimum CalPERS Supplemental Memorandum Page 1 of 4 July 1, 2011 through of Understanding December 31, 2011 participating employer's contribution). LMA 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. D. The Retirement Benefit- Amended to read: Pursuant to Section 20691 of the California Government Code, the City shall pay to PERS, on behalf of all employees covered by this agreement and hired before May 25, 2010, the entire required normal "safety member" retirement contribution, but not to exceed 9% of the compensation earnable which PERS uses to calculate retirement contributions and benefits. For employees hired after May 25, 2010 the City will pay 3.5% of the member contribution. Such employees will be eligible to receive the 9% the beginning of their 6th year of uninterrupted service. In addition, the amount of this payment shall be reported to PERS as special compensation, which is part of the employee's compensation earnable, pursuant to the provisions of Section 20636 (c)(4) of the California Government Code, as amended effective July 1, 1994. This payment shall be credited to the employee's accounts maintained by PERS in accordance with Section 20691 of the California Government Code. NBLMA acknowledges that the City is making this payment pursuant to a specific request of NBLMA to do so, that the City has made significant financial commitments to NBLMA in this MOU in consideration of the members' agreement to relinquish their previously held "irrevocable right" to pay their own PERS contribution and receive a corresponding salary increase, and that the significant financial concessions to NBLMA (which included Leave Premium Pay Accounts, changes in the calculation of "hours worked" for purposes of overtime and internal salary adjustments) were made to avoid the potential for increased overtime compensation approximating $450,000 if all NBLMA members exercise their irrevocable right to make their own PERS contribution and receive a corresponding salary increase. Effective July 2, 2011, the City will no longer pay or report any portion of the normal "safety member" contribution" and the value of the "employer paid member contribution" (EPMC) will be eliminated. All unit members will pay the full 9% "safety member" contribution of CaIPERS reportable earnings. This payment will be made on a pre- tax basis through payroll deduction pursuant to IRS Code Section 414(h)(2). This contribution will not be considered as part of employee's "compensation earnable" under Government Code Supplemental Memorandum Page 2 of 4 July 1, 2011 through of Understanding December 31, 2011 section 20636. 3. The City's contract with PERS alse-prevides-fer provides the following: a. A 3% @ 50 retirement formula pursuant to the provisions of Section 21362.2 of the California Government Code. b. The military buy-back provisions pursuant to Section 21024 of the California Government Code and the highest year benefit pursuant to Section 20042. c. The Level 4 1959 Survivor Benefit. The Pre -Retirement Option Settlement 2 Death Benefit (Section 21548). e. Effective as soon as practicable after adoption of this Supplemental Memorandum of Understanding, but no sooner than July 1, 2011, the City will contract with CaIPERS to implement the '2%@50 retirement formula for all newly hired employees. The 2%@50 retirement formula "final compensation" shall be defined as set out in Government Code section 20037 and calculated based upon the average of the 36 highest paid consecutive months. 3. Effective February 27, 2010, all employees will contribute 3.5% of bacc pay tewarelcc retire ent costs This ono will be made e e tax basis through payrnu de,tu tion n nt to IRS Corte Soon., n�nitiv�� This contribution will not affect the reporting of the 9% EPMC for employees hired bcforc May 25, 2010 (Section 20636)(c)('l) of the The parties witness their agreement to the above by affixing their signatures below. Executed this day of June, 2011: Supplemental Memorandum Signatures on the following page. Page 3 of 4 July 1, 2011 through of Understanding December 31, 2011 Newport Beach Lifeguard Management Association By Brent Jaco•-en, President City of New ort Beach By )-- Michael F. Henn, Mayor APPROVED AS TO FORM: By David R. Hunt, CitAttorney ATTEST: By 1i Leilani Brown, City Clerk Supplemental Memorandum Page 4 of 4 July 1, 2011 through of Understanding December 31, 2011 Side Letter to the Memoranda of Understanding between the City of Newport Beach and Several Newport Beach Employee Associations as well as Unrepresented Employees Since 2009 the City and its employee associations agreed upon the closure of the City Hall complex during the Christmas and New Year's Holiday period. The Newport Beach employee associations and the unrepresented group listed below acknowledge the need for the City to reduce expenditures and the City's leave accrual liability. The undersigned Associations and City jointly agree to close the City Hall complex and other non- essential facilities and functions between the Christmas and New Year's Holiday period (December 24, 2011 through January 2, 2012). Facility closures shall be cost neutral to the City and will not result in additional paid days/hours off. The City and the undersigned also agree that staff located at the City Hall complex and other non -essential employees will not have the option to work during this period, unless specifically requested by Department Directors and exclusively authorized by the City Manager or designee. Emergency Conditions requiring the activation of the Emergency Operations Center shall render this agreement invalid, The following guidelines will be applied to the closure: 1. Both Christmas Eve and New Year's Eve fall on a Saturday in 2011. Per applicable Memoranda of Understanding, the City provides half -day holidays (4 hours each) for Christmas Eve and New Year's Eve, which would otherwise be observed on December 23 and December 30 respectively. Under this agreement only, the two half -day holidays will be combined into one paid 8-hour holiday and observed on Friday, December 30. In conjunction, the City Hall complex will be open a full day on Friday, December 23, 2011. 2. Christmas Day and New Year's Day fall on a Sunday in 2011. As provided for in the current Memoranda of Understanding, the holiday will be observed the following Monday. Christmas Day will be observed on December 26, 2011 and New Year's Day will be observed on January 2, 2012. This results in only 3 full days (12/27, 12/28, and 12/29) that are required for employees to use Flex Leave during holiday closure. This is a one-time exception of the existing designated holiday schedule outlined in the current Memoranda of Understanding for each Association. 3. According to the City's Employee Policy Manual, an employee must be in paid status in order to receive holiday pay. Therefore, employees must either work or use flexible leave, vacation leave, administrative leave or compensatory time the day before and the day after the holiday in order to meet this requirement. The only day employees would be eligible to take leave w/out pay and still receive holiday pay would be Wednesday, December 28. 4. Employees who have completed their initial probationary period but do not have any accrued flexible leave, vacation leave, administrative leave or compensatory time will be required to take leave without pay. 5. Employees on a flexible schedule whose regularly scheduled day off is Friday, December 30, will take their regularly scheduled day off and bank the 8 hours of holiday pay to their Comp or Flex Leave Bank. Side Letter Agreement — Holiday Closure FY2011-12 Page 2 This agreement will help lower the liability on the City's books for leave balances and provide savings of utilities and other maintenance costs for fiscal year 2011-2012. This agreement shall not apply to Public Safety or essential functions that operate on a 24/7 basis regardless of scheduled holidays designated by existing MOU's and authorized for unrepresented employee groups. Any questions or requests for information shall be addressed to the Human Resources Department. C �rl�, Executed this ( day of �1 Ct GLSt , 2011. NEWPORT BEACH EMPLOYEE ASSOCIATIONS: City Employees' Association By: J•-'� �J Teresa Craig, Presidn Firefighter's Association By: /)7d Brian McDonough, President Fire Management Association By: Charles Duncan, President Key & Management Employees By: Mike Pisani Police Management Association By: Steve Rasmussen, President Approved David' u City Attorney Newport Beach Employees' League By: G � Chris Auger, Preside Lifeguard Mana ement Association By: j-.,i 4,-1((--.� Brent Jacobs n, President Profess'onal & Technical Employees' Assoc. By: i, President mA7rd€'-53o cs Police Association By: 'n 4t David Syvock, Pr ident FOR THE CITY OF NEWPORT BEACH: By: Ct Dale-Kiff, City Manager Attest: Leilani Brown, City Clerk EXHIBIT B City of Newport Beach Holiday Closure Schedule Friday, December 24, through Friday, December 31, 2010 Department Planned Closure Administrative Services Parking meter services and parking lot operations to remain open; all other services closed. Building Residential and commercial building inspections provided on a limited basis; all other services closed. City Attorney's Office Closed. City Clerk's Office Closed. City Manager's Office Closed. Fire Fire Administration closed; fire command staff and all other fire services operational. General Services/Utilities General Services operational; select Utilities services, including Water, Sewer, and Electrical, in limited operation or staff are on -call. All other operations closed. Human Resources Closed. Library Services Offices and libraries closed beginning December 24, 2010, and will re -open on Monday, January 3, 2011. Planning Closed. Police All Police Department operations open. Public Works Public works inspections provided on a limited basis; all other services closed. Recreation & Senior Services Park Patrol operations to remain open; all offices and facilities closed. EXHIBIT A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION January 1, 2009 through December 31, 2011 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION TABLE OF CONTENTS Preamble Section 1. General Provisions Duration of Memorandum 1 Scope 1 Conclusiveness 2 Savings 2 Other Terms and Conditions 2 Unit Classification Titles 3 Section 2. Compensation Salary Adjustments 3 Special Assignment Pay 3 Overtime 3 Uniform Allowance 3 Call Out 3 Scholastic Achievement Pay 4 Night Standby 4 Move -up Pay 5 Court Standby Pay 5 Section 3. Leaves Flex Leave 5 Vacation 7 Use of Flex and Vacation Leave 8 Sick Leave 8 Family Sick Leave 10 Holiday Time 10 Bereavement Leave 11 Sick Leave Pay Out 12 Leave Pay -Off 12 Section 4. Fringe Benefits Insurance 12 Additional Health Insurance/ Programs 13 Employee Assistance Program 14 The Retirement Benefit 15 Retiree Health Benefits Program 16 Tuition Reimbursement 21 Section 5. Miscellaneous Provisions Reduction in Force/Layoffs 21 Discipline 24 Health and Fitness Evaluations 24 Provision for Sun Protection 24 Fitness Equipment and Exercise Time 24 Lifeguard Officers Schedule 24 Employee Policy Manual 24 Direct Deposit 24 Part -Time Conversion 25 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION This Memorandum of Understanding (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE Authorized representatives of the CITY OF NEWPORT BEACH (hereinafter referred to as "CITY") and authorized representatives of the NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION (hereinafter referred to as "NBLMA") a recognized employee organization, met and conferred, exchanging various proposals concerning wages, hours, fringe benefits and other terms and conditions of employment of employees represented by NBLMA (hereinafter referred to as "EMPLOYEES") for the period of January 1, 2009 through December 31, 2011. 2. NBLMA representatives have reached an agreement as to wages, hours and other terms and conditions of employment to apply to all affected EMPLOYEES for the time period defined above. Said EMPLOYEES desire to reduce their agreement to writing, and to present such agreement, in the form of this MOU, to the City Council of the City of Newport Beach for approval. NOW, THEREFORE, this MOU is made and entered into by the parties hereto effective January 1, 2009, as follows: SECTION 1. GENERAL PROVISIONS A. Duration of Memorandum The terms of this MOU are to remain in full force and effect beginning January 1, 2009 through December 31, 2011. B. Scope 1. All present written rules and currently established practices and employee 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, or in the case of the Department Standard Operating Procedures (SOPs) falling within the scope of representation, the City has given notice to the Association and, upon request, met and conferred on any proposed changes which fall within the scope of representation. 1 When the Department proposes to change any SOP departmental rule or regulation, it will provide a copy of such change to the Association no less than seven (7) days prior to implementation of the proposed change. If such proposed change materially impacts any matter within the scope of representation, then the parties agree to meet and confer over such impact. 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. C. Conclusiveness Except as provided for in this agreement, this MOU contains all of the covenants, stipulations and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled and each party expressly waives its rights to request the other to meet and confer concerning any issue relating primarily to matters within the scope of representation except as expressly provided for 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. Any changes to any salaries, benefits or terms and conditions of employment within the scope of representation not embodied in this MOU shall require prior mutual agreement signed by the Mayor and the Newport Beach Lifeguard Management Association President. D. Savings 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 the provisions of this MOU relating to pay schedule adjustment increases be declared invalid, CITY agrees to provide alternate benefits agreeable to NBLMA, to EMPLOYEES to receive the same amount of money as they would have received had such provision not been declared invalid. E. Other Terms and Conditions Except as to those matters expressly covered by this MOU, all terms and conditions of employment may be changed or amended after meeting and conferring, in good faith. 2 F. Unit Classification Titles Unit classifications are listed in Exhibit A. For all compensation comparison purposes, actual job duties, and not classification titles, will be utilized. SECTION 2. COMPENSATION A. Salary Adjustments Salaries shall remain unchanged for the term of this agreement. B. Special Assignment Pay Lifeguard Captains certified for and assigned to boat operations shall receive additional compensation of 2.5% of base salary for their job classification. C. Overtime Unit employees shall receive overtime compensation for all hours worked in excess of forty (40) in any work period. Paid time off shall be considered time worked for the purposes of calculating overtime. Unit employees shall have the option of requesting compensatory time off (CTO) for all overtime, including training time, during the term of this agreement. All compensatory time off shall be subject to existing City rules providing for maximum (CTO) accrual of eighty (80) hours at time and one half on the books or 120 actual hours. D. Uniform Allowance The City shall pay the entire cost of providing LMA members with each component of the required LMA uniforms. The required LMA uniform includes uniform pants, uniform shirts, safety shoes, badges and insignias, uniform jackets and liners, belts, dive equipment, foul weather gear, personal floatation device and helmet. The City shall not be responsible for providing employees with socks, underwear, cap, workout shoes, or other clothing. The City shall report the value of provided uniforms at $838 to PERS in accordance with PERS requirements. E. Call Out Call out compensation shall be in accordance with the following provisions: 3 1. All emergency call out time shall be calculated to the nearest one quarter (1/4) hour of time worked. 2. For forty (40) hour employees, a minimum of two (2) hours (including travel time) of pay at the rate of one and one half (1 1/2) times the employee's regular hourly rate of pay shall be guaranteed for each emergency call out. F. Scholastic Achievement Pay NBLMA members are entitled to additional compensation contingent upon scholastic achievement ("Scholastic Achievement Pay"). LMA members may apply for increases pursuant to this Section when eligible and scholastic achievement pay shall be included in the member's pay check for the pay period immediately after approval by the Fire Chief. It is the responsibility of the LMA 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 full-time service as a NBLMA member and number of units and/or degrees received by the employee. Qualifying units and/or degrees must be awarded by accredited community colleges, state colleges or universities. LMA members shall receive scholastic achievement pay in accordance with the following: Years of Total College % of Actual Step Service Semester Units in Job Class Range 2 or more 30 1.5% 3 or more 60 2.5% 3 90 3.5% 4 or more 90 3.5% 4 120 4.5% 4 B.A./B.S. 5.5% 4 M.A./M.S. 6.5% G. Night Standby An employee assigned to standby duty for purposes of being on call to handle emergency situations arising at times other than during normal working hours shall be guaranteed two (2 1/2) and a half hours of pay at his regular hourly rate of pay for each calendar day of such standby duty. Employees shall have the option of receiving compensatory time off in lieu of pay for night standby. All unit employees shall be required to maintain residency within thirty (30) minutes driving time from the Marine Safety Headquarters in order to be eligible 4 for standby duty. Driving time shall be defined as driving the most direct route at the posted speed limit. H. Move -up Pay Temporary upgrading shall be defined as the temporary assignment of an employee to work in a job classification, which is assigned to a salary schedule higher than his/her regular job classifications. Employees temporarily upgraded to the following job classifications and equivalent positions shall receive a five percent (5%) pay differential over their regular rate of pay for all time worked in the higher job classification if they are assigned to work in the higher job classification for a period of one (1) working hour or longer. Lifeguard Captain Lifeguard Battalion Chief All holiday, vacation, sick leave and paid leave shall be paid at the employee's regular rate of pay. Assignments to higher rated classifications shall be made at the sole discretion of the City. I. Court Standby Pay NBLMA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off —duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBLMA members shall, when required to appear in court pursuant to a Subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. SECTION 3. LEAVES A. Flex Leave All employees hired after July 1, 1990 will be included in the Flexible Leave Program. Within 60 days of the signing of this Memorandum of Understanding all unit members still in the vacation/sick leave program may, collectively, elect to 5 convert to the flex leave program. Conversion terms shall be the same as those utilized during the initial establishment of the flex leave program. Basis for Accrual Permanent full-time employees enrolled in the flex leave program will earn leave in accordance with the following schedule: Years of continuous Accrual per Longevity Service pay period/hrs Pay Increase 1 but less than 5 5.54 0 5 but less than 9 6.15 0 9 but less than 12 6.77 0 12 but less than 16 7.69 0 16 but less than 20 7.69 1.0% 20 but less than 25 7.69 1.5% 25 and over 7.69 2.5% During the first six months of employment, new regular full-time employees shall not accrue paid leave. At the completion of six months of employment six (6) months of accrued flex leave will be placed in the employees account. Note: If an employee becomes sick in the first six months of employment, the City will advance up to six (6) months of potentially accrued flex leave time to be used for illnesses only. If employee terminates employment prior to six months, the City will subtract the pay equivalent of the number of flex leave days advanced from the employee's final check. Any flex leave time advanced during the first six months of employment will be subtracted from the six (6) months of accrual placed in the employees account upon completion of six months employment. 2. 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 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. Members shall be eligible for flex leave spillover pay only if they have utilized at least eighty (80) hours of flex leave the previous calendar year. Employees who have not utilized the required amount of leave the prior calendar year shall not be eligible to accrue time above the maximum accrual limit. 6 Employees first hired, or rehired by the City subsequent to July 1, 1996 shall not be eligible for flex leave spillover pay and shall not be entitled to accrue flex leave in excess of the flex leave accrual threshold. 3. Method of Use Flex leave may not be taken in excess of that actually accrued and in no case, except for illness, may it be taken prior to the completion of an employee's initial probationary period. The Department Director shall approve all requests for flex leave taking into consideration the needs of the Department, and whenever possible the seniority and wishes of the employee. Flex leave may be granted on an hourly basis. Any fraction over an hour shall be charged to the next full hour. B. Vacation 1. Basis for Accrual/Full-Time Employees Employees entitled to vacation leave -with -pay shall accrue such leave based on years of continuous service and the number of hours in a normal workweek for the position to which they are assigned in accordance with the following schedule: Years of Accrual Continuous Per Service Pay Period 0 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 2. Limit on Accumulation 3.38 3.99 4.61 5.22 5.84 6.46 7.07 Accrual of vacation days in excess of those earned for two years of continuous service is not permitted past December 31 st of each year with the following exception: with approval of the Department Director, an employee may accrue vacation days in excess of the two-year limit provided all such excess accumulation is taken by March 31st of the following year. 3. Method of Use Vacation may not be taken in excess of that actually accrued and in no case, except for entry-level employees, may it be taken prior to the completion of an employee's initial probationary period. Entry level employees may use vacation after the completion of the initial six (6) months of probation. The Department Director shall schedule and approve all vacation leaves for employees taking into consideration the needs of the Department, and whenever possible, the seniority and wishes of the employee. Vacation leave may be granted on an hourly basis. C. Use of Flex and Vacation Leave Level A staffing shall run from June 15th through Labor Day. During this period of time, full-time personnel may be limited to a total of forty (40) hours usage of vacation/flex leave. Additional vacation/flex leave during this period may be approved if, in the opinion of management, adequate staffing levels can be maintained. The Department shall develop a policy defining when approved vacation/flex leave times shall not be subject to cancellation. The City will budget eighty (80) hours of overtime per employee per year for vacations/flex leave backfill. Concurrently, the City and NBLMA will jointly review procedures defining minimum staffing and the hours for night call out. Any changes to these areas fall within the scope of representation and will be subject to the meet and confer process. D. Sick Leave 1. Basis for Accrual/Full-time Employees Full-time, regular employees shall accrue sick leave based on the number of hours in a normal workweek for the position to which they are assigned in accordance with the following schedules: 0- - 1 year 1-2 years 2-3 years 3-4 years 4+ years Normal Work Week 40 hours 8 4 hours per month 5 hours per month 6 hours per month 7 hours per month 8 hours per month After the 3rd year level, and the 5th year level, employees will be required to maintain the same number of hours as required of other permanent employees. Employees accruing sick leave hours under the above formula and enrolled in the City's Disability Program will be eligible for City -paid Disability Insurance premiums as follows: 50% at 88 hours, 100% at 208 hours. 2. Method of Use a. General Sick leave may not be taken in excess of that actually accrued. Except as noted, an employee serving his/her initial probation period is eligible to use his/her accumulated sick leave provided that if for any reason his/her City employment is terminated prior to the completion of such probationary period, his/her final pay check shall be reduced by the value of the sick leave he/she has taken. After completion of the initial six (6) months probation period, entry- level employees shall not have used sick leave deducted from their final pay check if they have maintained a satisfactory or higher performance evaluation rating throughout the probationary period. Sick leave may be granted on an hourly basis. b. Approval Sick leave may be granted only at the direction of or with the approval of the Department Director and only for the purposes defined in Section 11.2.A of the Employee Policy Manual. 3. Sick Leave Conversion Employees who at the end of the calendar year have an accrued level of sick leave equal to or greater than the full value of 40 months of accrued sick leave, and who have used six or less days of sick leave during the calendar year will be permitted (only once per year) to convert up to six days of sick leave to either salary or paid vacation at the value of 50% (Maximum value of 3 days per year). Eligible sick leave days converted to cash shall be at the employee's option. Eligible sick leave days converted to paid vacation shall require the approval of the Department Director. 9 E. Family Sick Leave Unit employees shall be entitled to use an amount of time equal to one-half (1/2) of their annual sick leave accrual for an illness of a dependent which requires the presence of the employee. Such time may be taken from the employee's annual sick leave accrual or sick leave bank, at the employee's choice. Leave shall be administered in accordance with the provisions of Section 11.2 of the Employee Policy Manual. The provisions of this section shall not be construed to affect or reduce the right of any employee to any unpaid family medical leave authorized by State or Federal law. For purposes of family sick leave, family member shall mean spouse, parent, (parent shall mean biological, foster, or adoptive), child (child shall mean biological, adopted, or foster child; a stepchild; a legal ward; or a child of an employee standing in local parentis). F. Holiday Time Subject to the provisions herein, the following days shall be observed as paid holidays by all employees in permanent positions and other personnel whose work assignments, in the judgment of the Department Director, require their presence on the job. For each designated holiday, except the Floating Holidays, such personnel shall receive an equivalent number of hours of paid leave or equivalent pay whichever in the judgment of the Department Director best serves the interest of the Department. Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas New Year's Eve New Year's Day Martin Luther King Day Washington's Birthday Memorial Day Floating Holiday (1) 1. July 4 1st Monday in September November 11 4th Thurs. in November Last 1/2 of working day December 25 Last 1/2 of working day January 1 3rd Monday in January 3rd Monday in February Last Monday in May For employee's birthday or other holiday. Eligibility and use according to Memorandum of Understanding. Holiday pay will be paid only to employees who work their scheduled day before the holiday and scheduled day after a holiday or are on authorized 10 leave (e.g., approved vacation, sick leave, or flex 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. 3. "Floating Holiday" eligibility allows for newly hired employees to earn their first floating holiday credit, eight (8) hours, at the same time as they receive their regular appointment status, upon the successful completion of their probationary period. 4. In July, 2003 all employees were provided a one-time opportunity to elect to convert all or any portion of their annual holiday benefits to cash on an annual basis. This election shall be uniform from year to year. For example, an employee electing to convert 48 of the 96 hours of the annual benefit to cash must so convert 48 hours of earned holiday benefits each year thereafter. Holiday pay will be paid bi-weekly with the regular check. Holiday leave conversion pay will not count in the total compensation formula used to adjust salaries and benefits. Employees hired after July 2003 will make this election at the time of hire. This holiday compensation shall be reported to PERS as special compensation and shall be regarded as compensation earnable as defined in Government Code Sec. 20636 (c) (6) for purposes of computing retirement benefits and contributions. G. Bereavement Leave The provisions of the Bereavement Leave Policy applicable to affected employees are as follows: Defined. The necessary absence from duty by an employee having a regular or probationary appointment, because of death or terminal illness in his/her immediate family. For the purposes of this section, immediate family shall mean father, mother, brother, sister, wife, husband, child, or grandparents and the employee's spouses' father, mother, brother, sister, and child. Maximum Allowed. Such leave shall be limited to five (5) working days per calendar year per occurrence. Probationary Employees. An employee serving his/her initial probationary period who takes leave under this section who for any reason terminates his/her employment prior to the completion of such probationary period shall have his/her final pay check reduced by the value of the leave taken. 11 H. Sick Leave Pay Out Upon paid retirement, termination in good standing or death, but not termination for cause or resignation in lieu of termination, any member or his/her estate shall be paid for a percentage of the employee's accrued but unused Sick Leave computed as follows: YEARS OF SERVICE: PERCENT OF UNUSED SICK LEAVE PAID FOR: LESS THAN 10 NONE 10 BUT LESS THAN 15 25% 15 BUT LESS THAN 20 37.5% 20 OR MORE 50% Payment for accrued but unused Sick Leave shall be limited to the first 800 hours of accrued Sick Leave for Staff Employees and the first 1200 hours for Line Employees (for example if a Line Employee had accumulated 1400 hours of Sick Leave and retired after 16 years he or she would receive Terminal Sick Leave Pay in a sum equal to 109% of their base salary per hour for 450 hours of Sick Leave — 1200 hours multiplied by .375). Leave Pay -Off NBLMA members shall receive payment for any accrued leave upon termination at the rate of 109% of their base hourly rate. Effective October 1, 2010, payment for accrued leave will be at 100% of the base hourly rate. SECTION 4. FRINGE BENEFITS A. Insurance 1. Benefits Information Committee City has established a Medical/Dental Information Committee composed of one representative from each employee group and up to three City representatives. The Medical/Dental 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 care issues. The purpose of this Committee is to provide each employee group with information about health care issues and to receive timely input from associations regarding preferred coverage options and levels of coverage. 12 2. City Contribution The City has implemented an IRS qualified Cafeteria Plan. NBLMA members shall participate in this plan. The City contribution toward the Cafeteria Plan shall be as set forth below. 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 Lifeguard Management Association will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. Any unused Cafeteria Plan funds shall be payable to the employee as taxable cash back. Employees shall be allowed to change coverages in accordance with plan rules and during regular open enrollment periods. Effective the pay period beginning December 20, 2008, the City's contribution towards the Cafeteria Plan increases to $974 (plus the minimum CaIPERS participating employer's contribution). Effective the pay period beginning December 19, 2009, the City's contribution towards the Cafeteria Plan will increase to $1049 (plus the minimum CaIPERS participating employer's contribution). LMA members who do not want to enroll in any medical plan offered by the City must provide evidence of group medical insurance coverage, and execute an opt -out agreement releasing the City from any responsibility or liability to provide medical insurance coverage on an annual basis. 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. B. Additional Health Insurance/Programs 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. The City shall maintain a "reimbursable 13 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. 2. Disability Insurance The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all regular full time employees with the following provisions: Weekly Benefit 66.67% gross weekly wages Maximum Benefit $10,000/month Minimum Benefit $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. Life Insurance The City shall provide life insurance for all regular full-time employees in $1,000 increments equal to one times the employee's annual salary up to a maximum of $50,000. At age 70 the City -paid life insurance is reduced by 50% of the pre-70 amount. This amount remains in effect until the employee retires from City employment. C. Employee Assistance Program City shall provide an Employee Assistance Program (EAP) through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines. 14 The Retirement Benefit 1. Pursuant to Section 20691 of the California Government Code, the City shall pay to PERS, on behalf of all employees covered by this agreement and hired before May 25, 2010, the entire required normal "safety member" retirement contribution, but not to exceed 9% of the compensation earnable which PERS uses to calculate retirement contributions and benefits. For employees hired after May 25, 2010 the City will pay 3.5% of the member contribution. Such employees will be eligible to receive the 9% the beginning of their 6ih year of uninterrupted service. In addition, the amount of this payment shall be reported to PERS as special compensation, which is part of the employee's compensation earnable, pursuant to the provisions of Section 20636 (c)(4) of the California Government Code, as amended effective July 1, 1994. This payment shall be credited to the employee's accounts maintained by PERS in accordance with Section 20691 of the California Government Code. NBLMA acknowledges that the City is making this payment pursuant to a specific request of NBLMA to do so, that the City has made significant financial commitments to NBLMA in this MOU in consideration of the members' agreement to relinquish their previously held "irrevocable right" to pay their own PERS contribution and receive a corresponding salary increase, and that the significant financial concessions to NBLMA (which included Leave Premium Pay Accounts, changes in the calculation of "hours worked" for purposes of overtime and internal salary adjustments) were made to avoid the potential for increased overtime compensation approximating $450,000 if all NBLMA members exercise their irrevocable right to make their own PERS contribution and receive a corresponding salary increase. 2. The City's contract with PERS also provides for: a. A 3% @ 50 retirement formula pursuant to the provisions of Section 21252.01 of the California Government Code. 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 pre -retirement option settlement 2 death benefit (Section 21548). 3. Effective February 27, 2010, all employees will contribute 3.5% of base pay towards retirement costs. This payment will be made on a pre-tax basis through payroll deduction pursuant to IRS Code Section 414(h)(2). 15 This contribution will not affect the reporting of the 9% EPMC for employees hired before May 25, 2010 (Section 20636)(c)(4) of the California Government Code. E. Retiree Health Benefits Program 1. Background In 2005, the City and all Employee Associations agreed to replace the previous "defined benefit" retiree medical program with a new "defined contribution" program. The process of fully converting to the new program will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2006 b. Category 2 - Active employees hired prior to January 1, 2006, whose age plus years of service as of January 1, 2006 was less than 50 (46 for public safety employees). c. Category 3 - Active employees hired prior to January 1, 2006, whose age plus years of service was 50 or greater (46 for public safety employees) as of January 1, 2006. Category 4 - Employees who had already retired from the City prior to January 1, 2006, and were participating in the previous retiree medical program. 2. Program Structure This is an Integral Part Trust (IPT) Medical Expense Reimbursement Program Plan (MERP). a. For employees in Category 1, the program is structured as follows: Each employee will have an individual MERP account for bookkeeping purposes, called his or her "Employee Account." This account will accumulate contributions to be used for health care expense after separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan 16 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 15t based on status as of December 31st of the prior year). Effective January 2008, this contribution will increase to $2.50 per month. Part C contributions (leave settlement as determined by Association): The Association will determine the level of contribution for all employees it represents, subject to the following constraints. All employees within the Association must participate at the same level, except that Safety members and Non -safety members within an Association may have different levels. The participation level should be specified as a percentage of the leave balance on hand in each employee's leave bank at the time of separation from the City. For example, if the Association wishes to specify 50% of the leave balance as the participation level, then each member leaving the City or cashing out leave at any other time, would have the cash equivalent of 50% of the amount that is cashed out added to the MERP, on a pre-tax basis. The remaining 50% would be paid in cash as taxable income. Individual employees would not have the option to deviate from this breakout. The Association has decided to participate in Part C contribution, at the level of zero percent (0%). This amount may be changed, on a go forward basis, as part of the 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 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. 17 Sick leave balances may also be included in the MERP Part C contributions, but only to the extent and within all the numeric parameters specified in the Employee Policy Manual. Section 11.21 of the Manual contains a schedule which specifies the amount of sick leave that can be "cashed out," based on time of service. The manual also caps the number of hours that can be "cashed out" at 800, and specifies that sick leave hours are "cashed out" on a 2 for 1 basis (800 hours of sick leave are converted to 400 hours for cash purposes). Sick leave participation is a separate item from vacation/flex leave participation, and thresholds must be separately identified by the Association. Part A contributions may be included in PERS compensation. Part B and Part C contributions will not be included in PERS compensation. Part A contributions begin upon enrollment in the program and are credited to each MERP Employee Account each pay period. Eligibility for Part B contributions is set at five years of vested City employment. At that time, the City will credit the first five years worth of Part B contributions into the Employee Account (interest does not accrue during that period). Thereafter, contributions are made bi-weekly. Part C deposits, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon separation. If an employee leaves the City prior to five years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the MERP Employee Account. Such an employee will not be entitled to any Part B contributions. The exception to this is a full-time employee, participating in the program, who leaves the City due to industrial disability during the first five years of employment. In such cases, the employee will receive exactly five years worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's MERP account at the time of separation Distributions from MERP Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the 18 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 CaIPERS participating employer's contribution towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's MERP account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one- time City contribution to their individual MERP accounts that equates to $100 per month for every month they contributed to the previous "defined benefit" plan, to a maximum of 15 years (180 months). This contribution will be made only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. Employees in Category 2 who had less than five years service with the City prior to implementation of the new program will only receive Part B contributions back to January 1, 2006 when they reach five years total service. c. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute $400 per month into each of their MERP accounts after they retire from the City, to continue as long as the employee or spouse is still living. 19 Each employee will contribute a flat $100 per month to the plan for the duration of their employment to partially offset part of this expense to the City. The maximum benefit provided by the City after retirement is $4,800.00 per year, accruing at the rate of $400.00 per month. There is no cash out option for these funds, and they may not be spent in advance of receipt. Employees in this category will also receive an additional one-time City contribution of $75 per month for every month they contributed to the previous plan prior to January 1, 2006, up to a maximum of 15 years (180 months). This contribution will be made to the MERP account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. d. For employees (retirees) in Category 4, the structure is very similar to the previous retiree medical program, except that there is no cost share requirement, and the $400 City contribution after retirement can be used for any IRS authorized purpose, not just City insurance premiums. Effective July 1, 2006, a MERP account has been opened for each retiree in this category, and the City will contribute $400 per month to each account as long as the retiree or spouse remains living. 3. Administration Vendors have been selected by the City to administer the program. The contract expense for program -wide administration by the vendor will be paid by the City. However, specific vendor charges for individual account transactions that vary according to the investment actions taken by each employee, such as fees or commissions for trades, will be paid by each employee. The City's Deferred Compensation Committee, or its successor committee, will have the authority to determine investment options that will be available through the plan. 4. Value of Benefit For all purposes, including compensation comparisons, the Retiree Medical Program shall be valued at 1 % of salary on which PERS retirement is based (Part A); plus .25% of other compensation (Part B). 20 F. Tuition Reimbursement NBLMA members attending accredited community colleges, colleges 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. 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. LMA members attending pre -approved, directly job -related classes, courses and seminars given by recognized agencies, organizations or individuals other than accredited college institutions may apply for reimbursement of actual cost of tuition, books, fees or other student expenses. Reimbursement is contingent upon the successful completion of the course. Successful completion means a document or certificate showing successful completion of the course or seminar. All claims for reimbursement require the approval of Fire Chief or designee before submittal to Human Resources. Maximum tuition reimbursement for employees shall be $1,000.00 per fiscal year. Effective July 1, 2010 maximum reimbursement shall be increased to $1,500.00 per fiscal year. SECTION 5. MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions a. "Layoffs" or "Laid off' shall mean the non —disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted permanent status in their current Classification or any Classification within the Series, subject to the following: 21 Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status in the Classification or Series; ii. Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. c. "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part—time, seasonal or 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 Classification(s) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities for subordinates. The City Manager shall determine those Classifications, which constitute a Series. e. "Bumping Rights", "Bumping" or "bump" shall mean the right of an employee, based upon seniority within a series, to displace a less senior employee in a lower Classification within the Series. No employee shall have the right to Bump into a Classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience. 2. Procedures In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: a. Temporary and probationary employees within any Classification shall, in that order, be laid off before permanent employees. b. Employees within a Classification shall be laid off in inverse order of seniority; c. An employee subject to layoff in one Classification shall have the right to Bump a less senior employee in a lower ranking Classification within a Series, provided, however, that the determination of the employee to be terminated from the position of Lifeguard shall be based on seniority within the Series. An 22 employee who has Bumping Rights shall notify the Department Director within seven (7) 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 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 lay—off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any), and accumulated sick leave to the extent permitted by the Personnel Resolution. 4. Re —Employment Permanent and probationary employees who are laid off shall be placed on a Department re—employment list in reverse order of layoff. The re— employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re—employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re—employment list or the right to remove his or her name from the re—employment list by sending written confirmation to the Human Resources Manager. 5. Severance Pay Permanent employees who are laid off shall, as of the date of lay—off, receive one week severance pay for each year of continuous service with the City of Newport Beach. 23 B. Discipline Any discipline shall be in accordance with the Department SOP and the Employee Policy Manual. C. Health and Fitness Evaluations All NBLMA members shall participate in the Department Fitness Program. D. Provision for Sun Protection 1. The first full pay period of each fiscal year, the City will provide $400 to each unit employee for sunglasses and other sun protection materials (not restricted to use at Lifeguard Store). 2. Each unit employee shall receive an annual skin cancer screening, which will be conducted either on or off duty at the Department's discretion. Employees directed to receive this screening off duty shall receive one (1) hour of compensatory time off as compensation. E. Fitness Equipment and Exercise Time At a time, during the life of this MOU, selected by NBLMA, the City will provide up to $3,000.00 per year towards the purchase of fitness equipment to be used off duty for the intended benefit of NBLMA for the term of this agreement. The actual equipment to be purchased shall be recommended by NBLMA, and shall require the final approval of the Fire Chief. Unit employees shall be allowed up to three (3) hours per week for physical fitness training. F. Lifeguard Officers Schedule Lifeguard Officers shall continue to work a 4-10 schedule, unless the schedule is modified through standard departmental procedures. G. Employee Policy Manual The City and LMA have agreed on implementation of the City's revised Employee Policy Manual. H. Direct Deposit All Unit employees shall participate in the City's Direct Deposit Program. 24 I. Part -Time Conversion Part-time Lifeguard IV employees converted to full-time status in January 2000 shall utilize their original Lifeguard IV hire date as their anniversary date. Any changes resulting from this change shall be prospective only. Signatures are on the next page. 25 Executed this , day of ATTEST: AAAA'' BY: WV� Leilani Brown, City Clerk , 2010: NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION BY: BY: en, President Brian O'Rourke, Vice President CITY OF NEWP RT BEACH BY: Keith Curry, Mayor PROVED AS TO FORM: \IL S•t7-I0 Leonie Mulvihill, Acting City Attorney S717p0 26 EXHIBIT A Newport Beach Lifeguard Management Association Represented Classifications Lifeguard Officer Lifeguard Captain Lifeguard Captain - Boat Lifeguard Captain - Dive Lifeguard Battalion Chief Lifeguard Battalion Chief - Dive 27 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION This Memorandum of Understanding (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE 1. Authorized representatives of the CITY OF NEWPORT BEACH (hereinafter referred to as "CITY") and authorized representatives of the NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION (hereinafter referred to as "NBLMA") a recognized employee organization, met and conferred, exchanging various proposals concerning wages, hours, fringe benefits and other terms and conditions of employment of employees represented by NBLMA (hereinafter referred to as "EMPLOYEES") for the period of July 1, 2006 through December 31, 2008. 2. NBLMA representatives have reached an agreement as to wages, hours and other terms and conditions of employment to apply to all affected EMPLOYEES for the time period defined above. Said EMPLOYEES desire to reduce their agreement to writing, and to present such agreement, in the form of this MOU, to the City Council of the City of Newport Beach for approval. NOW, THEREFORE, this MOU is made and entered into by the parties hereto effective July 1, 2006, as follows: SECTION 1. GENERAL PROVISIONS A. Duration of Memorandum The terms of this MOU are to remain in full force and effect beginning July 1, 2006 through December 31, 2008. B. Scope 1. All present written rules and currently established practices and employee 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, or in the case of the Department SOP's falling within the scope of representation, the City has given notice to the Association and, upon request, met and conferred on any proposed changes which fall within the scope of representation. When the Department proposes to change any SOP departmental rule or regulation, it will provide a copy of such change to the Association no Tess 1 than seven (7) days prior to implementation of the proposed change. If such proposed change materially impacts any matter within the scope of representation, then the parties agree to meet and confer over such impact. 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. C. Conclusiveness Except as provided for in this agreement, this MOU contains all of the covenants, stipulations and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled and each party expressly waives its rights to request the other to meet and confer concerning any issue relating primarily to matters within the scope of representation except as expressly provided for 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. Any changes to any salaries, benefits or terms and conditions of employment within the scope of representation not embodied in this MOU shall require prior mutual agreement signed by the Mayor and the Newport Beach Lifeguard Management Association President. D. Savings 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 the provisions of this MOU relating to pay schedule adjustment increases be declared invalid, CITY agrees to provide alternate benefits agreeable to NBLMA, to EMPLOYEES to receive the same amount of money as they would have received had such provision not been declared invalid. E. Other Terms and Conditions Except as to those matters expressly covered by this MOU, all terms and conditions of employment may be changed or amended after meeting and conferring, in good faith. F. Unit Classification Titles Unit classifications are listed in Exhibit A. 2 For all compensation comparison purposes, actual job duties, and not classification titles, will be utilized. SECTION 2. COMPENSATION A. Salary Adiustments 1. Effective the pay period beginning June 23, 2007, the City shall increase base salary for all unit classifications by two percent (2%). 2. Effective the pay period beginning June 23, 2008, the City shall increase base salary for all unit classifications by three percent (3%). B. Special Assignment Pay Employees certified for boat operations or dive shall receive additional compensation of 2.5% of base salary for their job classification. C. Overtime Unit employees shall receive overtime compensation for all hours worked in excess of forty (40) in any work period. Paid time off shall be considered time worked for the purposes of calculating overtime. Unit employees shall have the option of requesting compensatory time off (CTO) for all overtime, including training time, during the term of this agreement. All compensatory time off shall be subject to existing City rules providing for maximum (CTO) accrual of eighty (80) hours at time and one half on the books or 120 actual hours. D. Uniform Allowance The City shall pay the entire cost of providing LMA members with each component of the required LMA uniforms. The required LMA uniform includes uniform pants, uniform shirts, safety shoes, badges and insignias, uniform jackets and liners, belts, dive equipment, foul weather gear, personal floatation device and helmet. The City shall not be responsible for providing employees with socks, underwear, cap, workout shoes, or other clothing. The City will shall report the value of provided uniforms at $488 to PERS in accordance with PERS requirements. E. Call Out Call out compensation shall be in accordance with the following provisions: 3 1. All emergency call out time shall be calculated to the nearest one quarter (1/4) hour of time worked. 2. For forty (40) hour employees, a minimum of two (2) hours (including travel time) of pay at the rate of one and one half (1 1/2) times the employee's regular hourly rate of pay shall be guaranteed for each emergency call out F Scholastic Achievement Pay NBLMA members are entitled to additional compensation contingent upon scholastic achievement ("Scholastic Achievement Pay"). LMA members may apply for increases pursuant to this Section when eligible and scholastic achievement pay shall be included in the member's pay check for the pay period immediately after approval by the Fire Chief. It is the responsibility of the LMA 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 full-time service as a NBLMA member and number of units and/or degrees received by the employee. Qualifying units and/or degrees must be awarded by accredited community colleges, state colleges or universities. Effective upon ratification of this agreement, LMA members shall receive scholastic achievement pay in accordance with the following: Years of Total College % of Actual Step Service Semester Units in Job Class Range 2 or more 30 1.5% 3 or more 60 2.5% 3 90 3.5% 4 or more 90 3.5% 4 120 4.5% 4 B.A./B.S. 5.5% 4 M.A./M.S. 6.5% G. Night Standby An employee assigned to standby duty for purposes of being on call to handle emergency situations arising at times other than during normal working hours shall be guaranteed two (2 1/2) and a half hours of pay at his regular hourly rate of pay for each calendar day of such standby duty. 4 All unit employees shall be required to maintain residency within thirty (30) minutes driving time from the Marine Safety Headquarters in order to be eligible for standby duty. Driving time shall be defined as driving the most direct route at the posted speed limit. H. Move -up Pay Temporary upgrading shall be defined as the temporary assignment of an employee to work in a job classification, which is assigned to a salary schedule higher than his/her regular job classifications. Employees temporarily upgraded to the following job classifications and equivalent positions shall receive a five percent (5%) pay differential over their regular rate of pay for all time worked in the higher job classification if they are assigned to work in the higher job classification for a period of one (1) working hour or longer. Lifeguard Captain Lifeguard Battalion Chief All holiday, vacation, sick leave and paid leave shall be paid at the employee's regular rate of pay. Assignments to higher rated classifications shall be made at the sole discretion of the City. I Court Standby Pay NBLMA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off —duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBLMA members shall, when required to appear in court pursuant to a Subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. SECTION 3. LEAVES A. Flex Leave All employees hired after July 1, 1990 will be included in the Flexible Leave Program. 5 1 Basis for Accrual Permanent full-time employees enrolled in the flex leave program will earn leave in accordance with the following schedule: Years of continuous Accrual per Longevity Service pay period/hrs Pay Increase 1 but less than 5 5.54 0 5 but less than 9 6.15 0 9 but less than 12 6.77 0 12 but less than 16 7.69 0 16 but less than 20 7.69 1.0% 20 but less than 25 7.69 1.5% 25 and over 7.69 2.5% During the first six months of employment, new regular full-time employees shall not accrue paid leave. At the completion of six months of employment six (6) months of accrued flex leave will be placed in the employees account. Note: If an employee becomes sick in the first six months of employment, the City will advance up to six (6) months of potentially accrued flex leave time to be used for illnesses only. If employee terminates employment prior to six months, the City will subtract the pay equivalent of the number of flex leave days advanced from the employee's final check. Any flex leave time advanced during the first six months of employment will be subtracted from the six (6) months of accrual placed in the employees account upon completion of six months employment. 2. 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 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. Members shall be eligible for flex leave spill over pay only if they have utilized at least eighty (80) hours of flex leave the previous calendar year. Employees who have not utilized the required amount of leave the prior calendar year shall not be eligible to accrue time above the maximum accrual limit. 6 Employees first hired, or rehired by the City subsequent to July 1, 1996 shall not be eligible for flex leave spill over pay and shall not be entitled to accrue flex leave in excess of the flex leave accrual threshold. 3. Method of Use Flex leave may not be taken in excess of that actually accrued and in no case, except for illness, may it be taken prior to the completion of an employee's initial probationary period. The Department Director shall approve all requests for flex leave taking into consideration the needs of the Department, and whenever possible the seniority and wishes of the employee. Flex leave may be granted on an hourly basis. Any fraction over an hour shall be charged to the next full hour. B. Vacation 1. Basis for Accrual/Full-Time Employees Employees entitled to vacation leave -with -pay shall accrue such leave based on years of continuous service and the number of hours in a normal workweek for the position to which they are assigned in accordance with the following schedule: Years of Accrual Continuous Per 40 Hour Service Pay Period 0 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 2. Limit on Accumulation 3.38 3.99 4.61 5.22 5.84 6.46 7.07 Accrual of vacation days in excess of those earned for two years of continuous service is not permitted past December 31 st of each year with the following exception: with approval of the Department Director, an employee may accrue vacation days in excess of the two-year limit provided all such excess accumulation is taken by March 31 st of the following year. 7 3. Method of Use Vacation may not be taken in excess of that actually accrued and in no case, except for entry-level employees, may it be taken prior to the completion of an employee's initial probationary period. Entry level employees may use vacation after the completion of the initial six (6) months of probation. The Department Director shall schedule and approve all vacation leaves for employees taking into consideration the needs of the Department, and whenever possible, the seniority and wishes of the employee. Vacation leave may be granted on an hourly basis. C. Use of Flex and Vacation Leave Level A staffing shall run from June 15th through Labor Day. During this period of time, full-time personnel may be limited to a total of forty (40) hours usage of vacation/flex leave. Additional vacation/flex leave during this period may be approved if, in the opinion of management, adequate staffing levels can be maintained. The Department shall develop a policy defining when approved vacation/flex leave times shall not be subject to cancellation. The City will budget eighty (80) hours of overtime per employee per year for vacations/flex leave backfill. Concurrently, the City and NBLMA will jointly review procedures defining minimum staffing and the hours for night call out. Any changes to these areas fall within the scope of representation and will be subject to the meet and confer process. D. Sick Leave 1. Basis for Accrual/Full-time Employees Full-time, regular employees shall accrue sick leave based on the number of hours in a normal workweek for the position to which they are assigned in accordance with the following schedules: 0- - 1 year 1-2 years 2-3 years 3-4 years 4+ years Normal Work Week 40 hours 8 4 hours per month 5 hours per month 6 hours per month 7 hours per month 8 hours per month After the 3rd year level, and the 5th year level, employees will be required to maintain the same number of hours as required of other permanent employees. Employees accruing sick leave hours under the above formula and enrolled in the City's Disability Program will be eligible for City -paid Disability Insurance premiums as follows: 50% at 88 hours, 100% at 208 hours. 2. Method of Use a. General Sick leave may not be taken in excess of that actually accrued. Except as noted, an employee serving his/her initial probation period is eligible to use his/her accumulated sick leave provided that if for any reason his/her City employment is terminated prior to the completion of such probationary period, his/her final pay check shall be reduced by the value of the sick leave he/she has taken. After completion of the initial six (6) months probation period, entry- level employees shall not have used sick leave deducted from their final pay check if they have maintained a satisfactory or higher performance evaluation rating throughout the probationary period. Sick leave may be granted on an hourly basis. b. Approval Sick leave may be granted only at the direction of or with the approval of the Department Director and only for the purposes defined in Section 11.2.A of the Employee Policy Manual. 3. Sick Leave Conversion Employees who at the end of the calendar year have an accrued level of sick leave equal to or greater than the full value of 40 months of accrued sick leave, and who have used six or less days of sick leave during the calendar year will be permitted (only once per year) to convert up to six days of sick leave to either salary or paid vacation at the value of 50% (Maximum value of 3 days per year). Eligible sick leave days converted to cash shall be at the employee's option. Eligible sick leave days converted to paid vacation shall require the approval of the Department Director. 9 E. Family Sick Leave Unit employees shall be entitled to use an amount of time equal to one-half (1/2) of their annual sick leave accrual for an illness of a dependent which requires the presence of the employee. Such time may be taken from the employee's annual sick leave accrual or sick leave bank, at the employee's choice. Leave shall be administered in accordance with the provisions of Section 11.2 of the Employee Policy Manual. The provisions of this section shall not be construed to affect or reduce the right of any employee to any unpaid family medical leave authorized by State or Federal law. For purposes of family sick leave, family member shall mean spouse, parent, (parent shall mean biological, foster, or adoptive), child (child shall mean biological, adopted, or foster child; a stepchild; a legal ward; or a child an employee standing in local parentis). F Holiday Time Subject to the provisions herein, the following days shall be observed as paid holidays by all employees in permanent positions and other personnel whose work assignments, in the judgment of the Department Director, require their presence on the job. For each designated holiday, except the Floating Holidays, such personnel shall receive an equivalent number of hours of paid leave or equivalent pay whichever in the judgment of the Department Director best serves the interest of the Department. Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas New Year's Eve New Year's Day Martin Luther King Day Washington's Birthday Memorial Day Floating Holiday (1) 1 July 4 1st Monday in September November 11 4th Thurs. in November Last 1/2 of working day December 25 Last 1/2 of working day January 1 3rd Monday in January 3rd Monday in February Last Monday in May For employee's birthday or other holiday. Eligibility and use according to Memorandum of Understanding. Holiday pay will be paid only to employees who work their scheduled day before the holiday and scheduled day after a holiday or are on authorized 10 leave (e.g., approved vacation, sick leave, or flex 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. 3. "Floating Holiday" eligibility allows for newly hired employees to earn their first floating holiday credit, eight (8) hours, at the same time as they receive their regular appointment status, upon the successful completion of their probationary period. 4. In July, 2003 all employees were provided a one-time opportunity to elect to convert all or any portion of their annual holiday benefits to cash on an annual basis. This election shall be uniform from year to year. For example, an employee electing to convert 48 of the 96 hours of the annual benefit to cash must so convert 48 hours of earned holiday benefits each year thereafter. Holiday pay will be paid bi-weekly with the regular check. Holiday leave conversion pay will not count in the total compensation formula used to adjust salaries and benefits. Employees hired after July 2003 will make this election at the time of hire. This holiday compensation shall be reported to PERS as special compensation and shall be regarded as compensation earnable as defined in Government Code Sec. 20636 (c) (6) for purposes of computing retirement benefits and contributions. G. Bereavement Leave The provisions of the Bereavement Leave Policy applicable to affected employees are as follows: Defined. The necessary absence from duty by an employee having a regular or probationary appointment, because of death or terminal illness in his/her immediate family. For the purposes of this section, immediate family shall mean father, mother, brother, sister, wife, husband, child, or grandparents and the employee's spouses' father, mother, brother, sister, and child. Maximum Allowed. Such leave shall be limited to five (5) working days per calendar year per occurrence. Probationary Employees. An employee serving his/her initial probationary period who takes leave under this section who for any reason terminates his/her employment prior to the completion of such probationary period shall have his/her final pay check reduced by the value of the leave taken. 11 H. Sick Leave Pay Out Upon paid retirement, termination in good standing or death, but not for cause or resignation in lieu of termination, any member or his/her be paid, at the rate of 109% of their then current base hourly rate of rate before incentives, other pays, etc.) for a percentage of the accrued but unused Sick Leave computed as follows: YEARS OF SERVICE: PERCENT OF UNUSED SICK LEAVE PAID FOR: LESS THAN 10 10 BUT LESS THAN 15 15 BUT LESS THAN 20 20 OR MORE NONE 25% 37.5% 50% termination estate shall pay (hourly employees Payment for accrued but unused Sick Leave shall be limited to the first 800 hours of accrued Sick Leave for Staff Employees and the first 1200 hours for Line Employees (for example if a Line Employee had accumulated 1400 hours of Sick Leave and retired after 16 years he or she would receive Terminal Sick Leave Pay in a sum equal to 109% of their base salary per hour for 450 hours of Sick Leave — 1200 hours multiplied by .375). I Leave Pay -Off For the term of the agreement, NBLMA members shall receive payment for any accrued leave upon termination at the rate of 109% of their base hourly rate. SECTION 4. FRINGE BENEFITS A. Insurance 1. Benefits Information Committee City has established a Medical/Dental Information Committee composed of one representative from each employee group and up to three City representatives. The Medical/Dental 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 care issues. The purpose of this Committee is to provide each employee group with information about health care issues and to receive timely input from associations regarding preferred coverage options and levels of coverage. 12 2. City Contribution The City has implemented an IRS qualified Cafeteria Plan. NBLMA members shall participate in this plan. The City contribution toward the Cafeteria Plan shall be as set forth below. 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 Marine Safety Officer 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 December 23, 2006, the City's contribution towards the Cafeteria Plan increased to $774, (plus the minimum CaIPERS participating Employer's contribution). Effective the pay period beginning December 22, 2007, the City's contribution towards the Cafeteria Plan will increase to $874, (plus the minimum CaIPERS participating employer's contribution). Effective the pay period beginning December 20, 2008, the City's contribution towards the Cafeteria Plan will increase to $974 (plus the minimum CaIPERS participating employer's contribution). LMA members who do not want to enroll in any medical plan offered by the City must provide evidence of group medical insurance coverage, and execute an opt -out agreement releasing the City from any responsibility or liability to provide medical insurance coverage on an annual basis. 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. 13 B. Additional Health Insurance/Programs 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. The City shall maintain a "reimbursable account program" in accordance with the provisions of Section 125 of the Internal Revenue Code, pursuant to which an Association member may request that medical, child care and other eligible expenses be paid or reimbursed by the City out of the employee's account. The base salary of the employee will be reduced by the amount designated by the employee for reimbursable expenses. 2. Disability Insurance The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all regular full time employees with the following provisions: Weekly Benefit 66.67% gross weekly wages Maximum Benefit $10,000/month Minimum Benefit $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. 14 C Employee Assistance Program City shall provide an Employee Assistance Program (EAP) through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines. D. The Retirement Benefit 1. Pursuant to Section 20691 of the California Government Code, the City shall pay to PERS, on behalf of all employees covered by this agreement, the entire required normal "safety member" retirement contribution, but not to exceed 9% of the compensation earnable which PERS uses to calculate retirement contributions and benefits. In addition, the amount of this payment shall be reported to PERS as special compensation, which is part of the employee's compensation earnable, pursuant to the provisions of Section 20636 (c)(4) of the California Government Code, as amended effective July 1, 1994. This payment shall be credited to the employee's accounts maintained by PERS in accordance with Section 20691 of the California Government Code. NBLMA acknowledges that the City is making this payment pursuant to a specific request of NBLMA to do so, that the City has made significant financial commitments to NBLMA in this MOU in consideration of the members' agreement to relinquish their previously held "irrevocable right" to pay their own PERS contribution and receive a corresponding salary increase, and that the significant financial concessions to NBLMA (which included Leave Premium Pay Accounts, changes in the calculation of "hours worked" for purposes of overtime and internal salary adjustments) were made to avoid the potential for increased overtime compensation approximating $450,000 if all NBLMA members exercise their irrevocable right to make their own PERS contribution and receive a corresponding salary increase. 2. The City's contract with PERS also provides for: a. A 3% @ 55 retirement formula pursuant to the provisions of Section 21252.01 of the California Government Code. 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 pre -retirement option settlement 2 death benefit (Section 21548) effective July 23, 2005. 15 3. The City will amend its PERS contract to provide for the 3% @ 50 retirement formula to be in effect no later than December 31, 2008. E. Retiree Health Benefits Program 1. Background In 2005, the City and all Employee Associations agreed to replace the previous "defined benefit" retiree medical program with a new "defined contribution" program. The process of fully converting to the new program will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2005. b. Category 2 - Active employees hired prior to January 1, 2005, whose age plus years of service as of January 1, 2005 was Tess than 50 (46 for public safety employees). c. Category 3 - Active 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). a. For employees in Category 1, the program is structured as follows: Each employee will have an individual MERP account for bookkeeping purposes, called his or her "Employee Account." This account will accumulate contributions to be used for health care expense after separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. 16 Contributions will be in three parts. Part A contributions (mandatory employee contributions): 1 % of Salary. Part B contributions (employer contributions): $1.50 per month for each year of service plus year of age (updated every January 1st based on status as of December 31st of the prior year). Effective January 2008, this contribution will increase to $2.50 per month. Part C contributions (leave settlement as determined by Association): The Association will determine the level of contribution for all employees it represents, subject to the following constraints. All employees within the Association must participate at the same level, except that Safety members and Non -safety members within an Association may have different levels. The participation level should be specified as a percentage of the leave balance on hand in each employee's leave bank at the time of separation from the City. For example, if the Association wishes to specify 50% of the leave balance as the participation level, then each member leaving the City or cashing out leave at any other time, would have the cash equivalent of 50% of the amount that is cashed out added to the MERP, on a pre-tax basis. The remaining 50% would be paid in cash as taxable income. Individual employees would not have the option to deviate from this breakout. The Association has decided to participate in Part C contribution, at the level of zero percent (0%). This amount may be changed, on a go forward basis, as part of the 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 restrictions against frequent spikes or drops that appear to be tailored toward satisfying the desires of a group of imminent retirees. Spillover pay is not eligible for Part C contributions. Nothing in this section restricts taking leave for time off purposes. Sick leave balances may also be included in the MERP Part C contributions, but only to the extent and within all the numeric 17 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 MERP Employee Account each pay period. Eligibility for Part B contributions is set at five years of vested City employment. At that time, the City will credit the first five years worth of Part B contributions into the Employee Account (interest does not accrue during that period). Thereafter, contributions are made bi-weekly. Part C deposits, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon separation. If an employee leaves the City prior to five years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the MERP Employee Account. Such an employee will not be entitled to any Part B contributions. The exception to this is a full-time employee, participating in the program, who leaves the City due to industrial disability during the first five years of employment. In such cases, the employee will receive exactly five years worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's MERP account at the time of separation Distributions from MERP Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and his or her spouse and legal dependents — again only as permitted by IRS Publication 502. Qualification for dependency status 18 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 CaIPERS participating employer's contribution towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's MERP account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one- time City contribution to their individual MERP accounts that equates to $100 per month for every month they contributed to the previous "defined benefit" plan, to a maximum of 15 years (180 months). This contribution will be made only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. Employees in Category 2 who had less than five years service with the City prior to implementation of the new program will only receive Part B contributions back to January 1, 2006 when they reach five years total service. c. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute $400 per month into each of their MERP accounts after they retire from the City, to continue as long as the employee or spouse is still living. Each employee will contribute a flat $100 per month to the plan for the duration of their employment to partially offset part of this expense to the City. The maximum benefit provided by the City after 19 retirement is $4,800.00 per year, accruing at the rate of $400.00 per month. There is no cash out option for these funds, and they may not be spent in advance of receipt. Employees in this category will also receive an additional one-time City contribution of $75 per month for every month they contributed to the previous plan prior to January 1, 2006, up to a maximum of 15 years (180 months). This contribution will be made to the MERP account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. d. For employees (retirees) in Category 4, the structure is very similar to the previous retiree medical program, except that there is no cost share requirement, and the $400 City contribution after retirement can be used for any IRS authorized purpose, not just City insurance premiums. Effective July 1, 2006, a MERP account has been opened for each retiree in this category, and the City will contribute $400 per month to each account as long as the retiree or spouse remains living. 3. Administration Vendors have been selected by the City to administer the program. The contract expense for program -wide administration by the vendor will be paid by the City. However, specific vendor charges for individual account transactions that vary according to the investment actions taken by each employee, such as fees or commissions for trades, will be paid by each employee. The City's Deferred Compensation Committee, or its successor committee, will have the authority to determine investment options that will be available through the plan. 4. Value of Benefit For all purposes, including compensation comparisons, the Retiree Medical Program shall be valued at 1% of salary on which PERS retirement is based (Part A); plus .25% of other compensation (Part B). F. Tuition Reimbursement NBLMA members attending accredited community colleges, colleges, trade schools or universities may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, books, fees or other student expenses for approved job —related courses. Maximum tuition reimbursement for employees shall be $1,000.00 per fiscal year. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Human Resources Director. SECTION 5. MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions a. "Layoffs" or "Laid off' shall mean the non —disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted permanent status in their current Classification or any Classification within the Series, subject to the following: i. Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status in the Classification or Series; ii. Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. c. "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job title authorized in 21 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 Classification(s) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities for subordinates. The City Manager shall determine those Classifications, which constitute a Series. e. "Bumping Rights", "Bumping" or "bump" shall mean the right of an employee, based upon seniority within a series, to displace a less senior employee in a lower Classification within the Series. No employee shall have the right to Bump into a Classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience. 2. Procedures In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: a. Temporary and probationary employees within any Classification shall, in that order, be laid off before permanent employees. b. Employees within a Classification shall be laid off in inverse order of seniority; c. An employee subject to layoff in one Classification shall have the right to Bump a less senior employee in a lower ranking Classification within a Series, provided, however, that the determination of the employee to be terminated from the position of Lifeguard shall be based on seniority within the Series. An employee who has Bumping Rights shall notify the Department Director within seven (7) 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 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. 22 3. Notice Employees subject to lay—off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any), and accumulated sick leave to the extent permitted by the Personnel Resolution. 4. Re —Employment Permanent and probationary employees who are laid off shall be placed on a Department re—employment list in reverse order of layoff. The re— employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re—employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re—employment list or the right to remove his or her name from the re—employment list by sending written confirmation to the Human Resources Manager. 5. Severance Pay Permanent employees who are laid off shall, as of the date of lay—off, receive one week severance pay for each year of continuous service with the City of Newport Beach. B. Discipline Any discipline shall be in accordance with the Department SOP and the Employee Policy Manual. C. Health and Fitness Evaluations All NBLMA members shall participate in the Department Fitness Program. D. D. Provision for Sun Protection 1. The first full pay period of each fiscal year, the City will provide $400 to each unit employee for sunglasses and other sun protection materials (not restricted to use at Lifeguard Store). 23 2. Each unit employee shall receive an annual skin cancer screening, which will be conducted either on or off duty at the Department's discretion. Employees directed to receive this screening off duty shall receive one (1) hour of compensatory time off as compensation. E. Fitness Equipment and Exercise Time At a time, during the life of this MOU, selected by NBLMA, the City will provide up to $3,000.00 per year towards the purchase of fitness equipment to be used off duty for the intended benefit of NBLMA for the term of this agreement. The actual equipment to be purchased shall be recommended by NBLMA, and shall require the final approval of the Fire Chief. Unit employees shall be allowed up to three (3) hours per week for physical fitness training. F. Lifeguard Officers Schedule Lifeguard Officers shall continue to work a 4-10 schedule, unless the schedule is modified through standard departmental procedures. G. Employee Policy Manual The City and LMA have agreed on implementation of the City's revised Employee Policy Manual. H. Direct Deposit All Unit employees shall participate in the City's Direct Deposit Program. I. Part -Time Conversion Part-time Lifeguard IV employees converted to full-time status in January 2000 shall utilize their original Lifeguard IV hire date as their anniversary date. Any changes resulting from this change shall be prospective only. Signatures are on the next page. 24 Executed this 1'341 , day of ire") , 2007: ATTEST: BY: NEWPORT BEA EGUARD BY: BY: 6t-x,AL a27 LaVonne Harkless, City Clerk APPROV 1 AS TO FORM: Robin ' Iauson, City Attorney RT BEACH osansky, Mayor 25 NT ASSOCIATION EXHIBIT A Newport Beach Lifeguard Management Association Represented Classifications Lifeguard Officer Lifeguard Captain Lifeguard Captain - Boat Lifeguard Captain - Dive Lifeguard Battalion Chief Lifeguard Battalion Chief - Dive 26 C ()c5 C MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION This Memorandum of Understanding (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE 1. Authorized representatives of the CITY OF NEWPORT BEACH (hereinafter referred to as "CITY") and authorized representatives of the NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION (hereinafter referred to as "NBLMA") a recognized employee organization, met and conferred, exchanging various proposals concerning wages, hours, fringe benefits and other terms and conditions of employment of employees represented by NBLMA (hereinafter referred to as "EMPLOYEES") for the period of January 1, 2005 through June 30, 2006. 2. NBLMA representatives have reached an agreement as to wages, hours and other terms and conditions of employment to apply to all affected EMPLOYEES for the time period defined above. Said EMPLOYEES desire to reduce their agreement to writing, and to present such agreement, in the form of this MOU, to the City Council of the City of Newport Beach for approval. NOW, THEREFORE, this MOU is made and entered into by the parties hereto effective January 1, 2005, as follows: SECTION 1. GENERAL PROVISIONS A. Duration of Memorandum The terms of this MOU are to remain in full force and effect beginning January 1, 2005 through June 30, 2006. B. Scope 1. All present written rules and currently established practices and employee 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, or in the case of the Department SOP's falling within the scope of representation, the City has given notice to the Association and, upon request, met and conferred on any proposed changes which fall within the scope of representation. 1 When the Department proposes to change any SOP departmental rule or regulation, it will provide a copy of such change to the Association no less than seven (7) days prior to implementation of the proposed change. If such proposed change materially impacts any matter within the scope of representation, then the parties agree to meet and confer over such impact. 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. C. Conclusiveness Except as provided for in this agreement, this MOU contains all of the covenants, stipulations and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled and each party expressly waives its rights to request the other to meet and confer concerning any issue relating primarily to matters within the scope of representation except as expressly provided for 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. Any changes to any salaries, benefits or terms and conditions of employment within the scope of representation not embodied in this MOU shall require prior mutual agreement signed by the Mayor and the Newport Beach Lifeguard Management Association President. D. Savings 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 the provisions of this MOU relating to pay schedule adjustment increases be declared invalid, CITY agrees to provide alternate benefits agreeable to NBLMA, to EMPLOYEES to receive the same amount of money as they would have received had such provision not been declared invalid. E. Other Terms and Conditions Except as to those matters expressly covered by this MOU, all terms and conditions of employment may be changed or amended after meeting and conferring, in good faith. 2 F. Unit Classification Titles Unit classifications are listed in Exhibit A. Effective with the ratification of this Memorandum of Understanding, Unit classification titles shall be modified as follows: Lifeguard Captain to Lifeguard Battalion Chief Lifeguard Lieutenant to Lifeguard Captain For all compensation comparison purposes, actual job duties, and not classification titles, will be utilized. SECTION 2. COMPENSATION A. Salary Adjustments 1. Effective December 25, 2004, the City shall increase base salary for all unit classifications by three percent (3%). 2. Effective December 25, 2004, the Lifeguard Officer classification will also receive a nine percent (9%) base salary market adjustment. 3. Effective June 24, 2006, the City shall increase base salary for all unit classifications by three percent (3%). 4. Special Adjustment: Effective the pay period beginning December 24, 2005 (concurrent with the implementation of the revised retiree medical benefit as set forth in Section 4.E.2) base salaries shall be increased by 1%. B. Special Assignment Pay Employees certified for boat operations or dive shall receive additional compensation of 2.5% of base salary for their job classification. Overtime Unit employees shall receive overtime compensation for all hours worked in excess of forty (40) in any work period. Paid time off shall be considered time worked for the purposes of calculating overtime. Unit employees shall have the option of requesting compensatory time off (CTO) for all overtime, including training time, during the term of this agreement. All compensatory time off shall be subject to existing City rules providing for 3 maximum (CTO) accrual of eighty (80) hours at time and one half on the books or 120 actual hours. D. Uniform Allowance The City shall pay the entire cost of providing LMA members with each component of the required LMA uniforms. The required LMA uniform includes uniform pants, uniform shirts, safety shoes, badges and insignias, uniform jackets and liners, belts, dive equipment, foul weather gear, personal floatation device and helmet. The City shall not be responsible for providing employees with socks, underwear, cap, workout shoes, or other clothing. The City will shall report the value of provided uniforms at $488 to PERS in accordance with PERS requirements. E. Call Out Call out compensation shall be in accordance with the following provisions: 1. All emergency call out time shall be calculated to the nearest one quarter (1/4) hour of time worked. 2. For forty (40) hour employees, a minimum of two (2) hours (including travel time) of pay at the rate of one and one half (1 1/2) times the employee's regular hourly rate of pay shall be guaranteed for each emergency call out F. Scholastic Achievement Pay NBLMA members are entitled to additional compensation contingent upon scholastic achievement ("Scholastic Achievement Pay"). LMA 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 Fire Chief. It is the responsibility of the LMA 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 number of units and/or degrees received by the employee. Qualifying units and/or degrees must be awarded by accredited community colleges, state colleges or universities. Effective upon ratification of this agreement, LMA members shall receive scholastic achievement pay in accordance with the following: 4 Years of Total College % of Actual Step Service Semester Units in Job Class Range 2 or more 30 1.5% 3 or more 60 2.5% 3 90 3.5% 4 or more 90 3.5% 4 120 4.5% 4 B.A./B.S. 5.5% 4 M.A./M.S. 6.5% G. Night Standby An employee assigned to standby duty for purposes of being on call to handle emergency situations arising at times other than during normal working hours shall be guaranteed two (2 1/2) and a half hours of pay at his regular hourly rate of pay for each calendar day of such standby duty. All unit employees shall be required to maintain residency within thirty (30) minutes driving time from the Marine Safety Headquarters in order to be eligible for standby duty. Driving time shall be defined as driving the most direct route at the posted speed limit. H. Move -up Pay Temporary upgrading shall be defined as the temporary assignment of an employee to work in a job classification, which is assigned to a salary schedule higher than his/her regular job classifications. Employees temporarily upgraded to the following job classifications and equivalent positions shall receive a five percent (5%) pay differential over their regular rate of pay for all time worked in the higher job classification if they are assigned to work in the higher job classification for a period of one (1) working hour or longer. Lifeguard Captain Lifeguard Battalion Chief All holiday, vacation, sick leave and paid leave shall be paid at the employee's regular rate of pay. Assignments to higher rated classifications shall be made at the sole discretion of the City. 5 I. Court Standby Pay NBLMA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off —duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBLMA members shall, when required to appear in court pursuant to a Subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. SECTION 3. LEAVES A. Flex Leave All employees hired after July 1, 1990 will be included in the Flexible Leave Program. 1. Basis for Accrual Effective the first full pay period following ratification of this agreement, permanent full-time employees enrolled in the flex leave program will earn leave in accordance with the following schedule: Years of continuous Accrual per Longevity Service pay period/hrs Pay Increase 1 but less than 5 5.54 0 5 but less than 9 6.15 0 9 but less than 12 6.77 0 12 but less than 16 7.69 0 16 but less than 20 7.69 1.0% 20 but less than 25 7.69 1.5% 25 and over 7.69 2.5% During the first six months of employment, new regular full-time employees shall not accrue paid leave. At the completion of six months of employment six (6) months of accrued flex leave will be placed in the employees account. Note: If an employee becomes sick in the first six months of employment, the City will advance up to six (6) months of potentially accrued flex leave time to be used for illnesses only. If employee terminates employment 6 prior to six months, the City will subtract the pay equivalent of the number of flex leave days advanced from the employee's final check. Any flex leave time advanced during the first six months of employment will be subtracted from the six (6) months of accrual placed in the employees account upon completion of six months employment. 2. 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 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. Members shall be eligible for flex leave spill over pay only if they have utilized at least eighty (80) hours of flex leave the previous calendar year. Employees who have not utilized the required amount of leave the prior calendar year shall not be eligible to accrue time above the maximum accrual limit. Employees first hired, or rehired by the City subsequent to July 1, 1996 shall not be eligible for flex leave spill over pay and shall not be entitled to accrue flex leave in excess of the flex leave accrual threshold. 3. Method of Use Flex leave may not be taken in excess of that actually accrued and in no case, except for illness, may it be taken prior to the completion of an employee's initial probationary period. The Department Director shall approve all requests for flex leave taking into consideration the needs of the Department, and whenever possible the seniority and wishes of the employee. Flex leave may be granted on an hourly basis. Any fraction over an hour shall be charged to the next full hour. B. Vacation 1. Basis for Accrual/Full-Time Employees Employees entitled to vacation leave -with -pay shall accrue such leave based on years of continuous service and the number of hours in a normal workweek for the position to which they are assigned in accordance with the following schedule: Years of Accrual 7 Continuous Per 40 Hour Service Pay Period 0 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 2. Limit on Accumulation 3.38 3.99 4.61 5.22 5.84 6.46 7.07 Accrual of vacation days in excess of those earned for two years of continuous service is not permitted past December 31 st of each year with the following exception: with approval of the Department Director, an employee may accrue vacation days in excess of the two-year limit provided all such excess accumulation is taken by March 31 st of the following year. 3. Method of Use Vacation may not be taken in excess of that actually accrued and in no case, except for entry-level employees, may it be taken prior to the completion of an employee's initial probationary period. Entry level employees may use vacation after the completion of the initial six (6) months of probation. The Department Director shall schedule and approve all vacation leaves for employees taking into consideration the needs of the Department, and whenever possible, the seniority and wishes of the employee. Vacation leave may be granted on an hourly basis. C. Use of Flexible and Vacation Leave Level A staffing shall run from June 15th through Labor Day. During this period of time, full-time personnel may be limited to a total of forty (40) hours usage of vacation/flex leave. Additional vacation/flex leave during this period may be approved if, in the opinion of management, adequate staffing levels can be maintained. The Department shall develop a policy defining when approved vacation/flex leave times shall not be subject to cancellation. The City will budget eighty (80) hours of overtime per employee per year for vacations/flex leave backfill. Concurrently, the City and NBLMA will jointly review procedures defining minimum staffing and the hours for night call out. Any 8 changes to these areas fall within the scope of representation and will be subject to the meet and confer process. D. Sick Leave 1. Basis for Accrual/Full-time Employees Full-time, regular employees shall accrue sick leave based on the number of hours in a normal workweek for the position to which they are assigned in accordance with the following schedules: Normal Work Week 40 hours 0- - 1 year 1-2 years 2-3 years 3-4 years 4+ years 4 hours per month 5 hours per month 6 hours per month 7 hours per month 8 hours per month After the 3rd year level, and the 5th year level, employees will be required to maintain the same number of hours as required of other permanent employees. Employees accruing sick leave hours under the above formula and enrolled in the City's Disability Program will be eligible for City -paid Disability Insurance premiums as follows: 50% at 88 hours, 100% at 208 hours. 2. Method of Use a. General Sick leave may not be taken in excess of that actually accrued. Except as noted, an employee serving his/her initial probation period is eligible to use his/her accumulated sick leave provided that if for any reason his/her City employment is terminated prior to the completion of such probationary period, his/her final pay check shall be reduced by the value of the sick leave he/she has taken. After completion of the initial six (6) months probation period, entry- level employees shall not have used sick leave deducted from their final paycheck if they have maintained a satisfactory or higher performance evaluation rating throughout the probationary period. Sick leave may be granted on an hourly basis. 9 b. Approval Sick leave may be granted only at the direction of or with the approval of the Department Director and only for the purposes defined in Section 11.2.A of the Employee Policy Manual. 3. Sick Leave Conversion Employees who at the end of the calendar year have an accrued level of sick leave equal to or greater than the full value of 40 months of accrued sick leave, and who have used six or less days of sick leave during the calendar year will be permitted (only once per year) to convert up to six days of sick leave to either salary or paid vacation at the value of 50% (Maximum value of 3 days per year). Eligible sick leave days converted to cash shall be at the employee's option. Eligible sick leave days converted to paid vacation shall require the approval of the Department Director. E. Family Sick Leave Unit employees shall be entitled to use an amount of time equal to one-half (1/2) of their annual sick leave accrual for an illness of a dependent which requires the presence of the employee. Such time may be taken from the employee's annual sick leave accrual or sick leave bank, at the employee's choice. Leave shall be administered in accordance with the provisions of Section 11.2 of the Employee Policy Manual. The provisions of this section shall not be construed to affect or reduce the right of any employee to any unpaid family medical leave authorized by State or Federal law. For purposes of family sick leave, family member shall mean spouse, parent, (parent shall mean biological, foster, or adoptive children, a stepchild, a legal ward, or a child of a person standing in local parentis). F. Holiday Time Subject to the provisions herein, the following days shall be observed as paid holidays by all employees in permanent positions and other personnel whose work assignments, in the judgment of the Department Director, require their presence on the job. For each designated holiday, except the Floating Holidays, such 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. 10 Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas New Year's Eve New Year's Day Martin Luther King Day Washington's Birthday Memorial Day Floating Holiday (1) July 4 1st Monday in September November 11 4th Thurs. in November Last 1/2 of working day December 25 Last 1/2 of working day January 1 3rd Monday in January 3rd Monday in February Last Monday in May For employee's birthday or other holiday. Eligibility and use according to Memorandum of Understanding. 1 Holiday pay will be paid only to employees who work their scheduled day before the holiday and scheduled day after a holiday or are on authorized leave (e.g., approved vacation, sick leave, or flex 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. 3. "Floating Holiday" eligibility allows for newly hired employees to earn their first floating holiday credit, eight (8) hours, at the same time as they receive their regular appointment status, upon the successful completion of their probationary period. 4. Effective July, 2003 all employees will be provided a one-time opportunity to elect to convert all or any portion of their annual holiday benefits to cash on an annual basis. This election shall be uniform from year to year. For example, an employee electing to convert 48 of the 96 hours of the annual benefit to cash must so convert 48 hours of earned holiday benefits each year thereafter. Holiday pay will be paid bi-weekly with the regular check. Holiday leave conversion pay will not count in the total compensation formula used to adjust salaries and benefits. Newly hired employees will make this election at the time of hire. This holiday compensation shall be reported to PERS as special compensation and shall be regarded as compensation earnable as defined in Government Code Sec. 20636 (c) (6) for purposes of computing retirement benefits and contributions. 11 G. Bereavement Leave The provisions of the Bereavement Leave Policy applicable to affected employees are as follows: Defined. The necessary absence from duty by an employee having a regular or probationary appointment, because of death or terminal illness in his/her immediate family. For the purposes of this section, immediate family shall mean father, mother, brother, sister, wife, husband, child, father-in-law, mother-in-law and grandparents. Maximum Allowed. Such leave shall be limited to five (5) working days per calendar year per occurrence. Probationary Employees. An employee serving his/her initial probationary period who takes leave under this section who for any reason terminates his/her employment prior to the completion of such probationary period shall have his/her final pay check reduced by the value of the leave taken. H. Sick Leave Pay Out Upon paid retirement, termination in good standing or death, but not termination for cause or resignation in lieu of termination, any member or his/her estate shall be paid, at the rate of 109% of their then current base hourly rate of pay (hourly rate before incentives, other pays, etc.) for a percentage of the employees accrued but unused Sick Leave computed as follows: YEARS OF SERVICE: PERCENT OF UNUSED SICK LEAVE PAID FOR: LESS THAN 10 NONE 10 BUT LESS THAN 15 25% 15 BUT LESS THAN 20 37.5% 20 OR MORE 50% Payment for accrued but unused Sick Leave shall be limited to the first 800 hours of accrued Sick Leave for Staff Employees and the first 1200 hours for Line Employees (for example if a Line Employee had accumulated 1400 hours of Sick Leave and retired after 16 years he or she would receive Terminal Sick Leave Pay in a sum equal to 109% of their base salary per hour for 450 hours of Sick Leave — 1200 hours multiplied by .375). 12 I. Leave Pay -Off For the term of the agreement, NBLMA members shall receive payment for any accrued leave upon termination at the rate of 109% of their base hourly rate. SECTION 4. FRINGE BENEFITS A. Insurance 1. Benefits Information Committee City has established a Medical/Dental Information Committee composed of one representative from each employee group and up to three City representatives. The Medical/Dental 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 care issues. The purpose of this Committee is to provide each employee group with information about health care issues and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. City Contribution The City has implemented an IRS qualified Cafeteria Plan. NBLMA members shall participate in this plan. The City contribution toward the Cafeteria Plan shall be as set forth below. 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 Marine Safety Officer 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 December 25, 2004, the City's contribution towards the Cafeteria Plan will increase to $674, (plus the minimum CaIPERS participating Employer's contribution). Effective December 24, 2005, the City's contribution towards the Cafeteria Plan will increase to $724, (plus the minimum CaIPERS participating employer's contribution). LMA 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 13 liability to provide medical insurance coverage on an annual basis. Should the City increase the Cafeteria Plan contribution for other represented employee groups in excess of the amount reflected herein, it will, upon request, reopen negotiations on the Cafeteria Plan contribution with NBLMA. 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. B. Additional Health Insurance/Programs 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. The City shall maintain a "reimbursable account program" in accordance with the provisions of Section 125 of the Internal Revenue Code, pursuant to which an Association member may request that medical, child care and other eligible expenses be paid or reimbursed by the City out of the employee's account. The base salary of the employee will be reduced by the amount designated by the employee for reimbursable expenses. 2. Disability Insurance The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all regular full time employees with the following provisions: Weekly Benefit 66.67% gross weekly wages Maximum Benefit $10,000/month Minimum Benefit $50 Waiting Period 30 Calendar Days 14 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. C Employee Assistance Program City shall provide an Employee Assistance Program (EAP) through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines. D. The Retirement Benefit 1. Pursuant to Section 20691 of the California Government Code, the City shall pay to PERS, on behalf of all employees covered by this agreement, the entire required normal "safety member" retirement contribution, but not to exceed 9% of the compensation earnable which PERS uses to calculate retirement contributions and benefits and the entire normal miscellaneous member contribution, not to exceed 7%. In addition, the amount of this payment shall be reported to PERS as special compensation, which is part of the employee's compensation earnable, pursuant to the provisions of Section 20636 (c)(4) of the California Government Code, as amended effective July 1, 1994. This payment shall be credited to the employee's accounts maintained by PERS in accordance with Section 20691 of the California Government Code. NBLMA acknowledges that the City is making this payment pursuant to a specific request of NBLMA to do so, that the City has made significant financial commitments to NBLMA in this MOU in consideration of the members' agreement to relinquish their previously held "irrevocable right" to pay their own PERS contribution and receive a corresponding salary increase, and that the significant financial concessions to NBLMA (which included Leave Premium Pay Accounts, changes in the calculation of 15 "hours worked" for purposes of overtime and internal salary adjustments) were made to avoid the potential for increased overtime compensation approximating $450,000 if all NBLMA members exercise their irrevocable right to make their own PERS contribution and receive a corresponding salary increase. 2. The City's contract with PERS shall also provides for: a. A 3% @ 55 retirement formula pursuant to the provisions of Section 21252.01 of the California Government Code. 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. 3. The City will amend its PERS contract to provide the pre -retirement option settlement 2 death benefit (Section 21548) to be effective July 23, 2005. E. Retiree Health Benefits Program 1. Prior to December 24, 2005 An employee is eligible for retiree medical benefits under this program after seven years of service to the City of Newport Beach if the employee retires from the City and is a PERS annuitant. This program is inclusive of an employee's right to medical insurance coverage under the CaIPERS medical insurance plan and the mandatory minimum employer contribution to said plan on behalf of the annuitant. a. The City has implemented a $400 per month cap for retiree medical insurance premium contributions as provided for in previous Memoranda of Understanding between the City and the NBLMA. In accordance with existing agreements, the City and active employees shall be responsible for 3/4ths (1/2 City and 1/4 actives) of retiree medical insurance premium under this program. Retirees shall be responsible for any remaining medical insurance premiums under this program to a maximum of Four Hundred ($400.00) Dollars. Retirees shall be responsible for any remaining medical insurance premiums. The employee's current share of the retirement contribution shall be $44.07 per month. Subsequent contribution levels shall be set in July per the retirement formula described above. Prior to increasing the deductions for the employee's contribution share, the City shall provide NBLMA with documentation supporting 16 the need for said increase at least 90 days in advance of the effective date of the increase. Upon request, City representatives will meet and consult with NBLMA prior to any increases in employee deduction levels. b. In order to accumulate funds to meet the potential unfunded liability in retiree medical insurance premium payments as projected by the City's actuary and in addition to the contribution described above, each NBLMA unit employee will contribute $10 per month and the City shall contribute $20 per employee per month into an interest bearing trust account. These contributions will be continued until the projected liability is satisfactorily funded (approximately 30 years), or until such time as the City and NBLMA mutually agree to end the funding on behalf of NBLMA members. Accumulated funds from the employee and employer contributions described above shall be held separate from the City's general fund. These funds shall be kept in an interest bearing account and may only be used to pay for unfunded retiree medical insurance premiums not covered by the funds collected under El D1(a) above. In the event the retiree medical insurance program described herein is discontinued, NBLMA members will receive an accounting on any remaining funds and the City will immediately meet and confer with NBLMA on the distribution of said funds back to active (not retired/full-time) City employees in the NBLMA unit. The City will provide NBLMA with an annual report certified by the City Finance Director describing the balance, interest earnings, and any expenditures of the trust account described herein. The City agrees to meet and confer with NBLMA upon request with regard to alternative programs and/or funding methods for retiree medical insurance premiums for NBLMA members, if retiree medical insurance benefits are upgraded for another bargaining unit during the term of this MOU. 2. Effective December 24, 2005 a. Overview A new Defined Contribution Plan will be established to set aside funds for employee medical expenses during retirement. This plan will replace the existing Defined Benefit Plan ("old plan"), which will be phased out. The plan will be a Medical Expense Reimbursement Plan ("MERP") funded through an Integral Part Trust (IPT). 17 b. Structure 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 retirement. 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. i. Part A contributions (mandatory employee): 1 % of Salary. ii. Part B contributions (employer for employees fully converting to new plan): $1.50 per month for each year of service plus year of age (updated every January 1st based on status as of December 31st of the prior year). iii. Part C contributions (leave settlement as determined by Association): The Association has determined that the level of contribution for all employees it represents will be 20% of sick leave. Any future changes to this level of contribution shall be subject to the following constraints. All employees within the Association must participate at the same level, except that Safety members and Non -safety members 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. The computation of the cash equivalent for leave hours to be included in the MERP will be the same as the computation used when leave is "cashed out" for other reasons. However, individual employees must not have the option of receiving compensation for the value of the same leave hours in the form of cash. For example, if the Association wishes to specify 50% of the leave balance as the participation level, then each member leaving the City would have the cash equivalent of 50% of whatever balance is in his or her leave account added to the MERP, on a pre-tax basis. The remaining 50% would be paid 18 in cash as taxable income. Again, individual employees would not have the option to deviate from this breakout. If the Association decides to participate in Part C contributions, at any level, its members will not have the right to voluntarily convert leave to cash for one full year prior to retirement, other than "spillover" of amounts above the maximum accumulation balance. However, taking leave for time off purposes would not be constrained. Sick leave balances may also be included in the MERP, 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 MERP Employee Account each pay period. Eligibility for Part B contributions is set at five years of 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 monthly. Part C deposits, if any, will be made at the time of employment termination. 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 retirement. 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. An employee who leaves City employment within the first five years will not be entitled to any Part B contributions. Distributions from MERP Employee Accounts are restricted to use for health insurance and medical care expenses after retirement, 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 19 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 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 CaIPERS participating employer's contribution towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's MERP account. c. Employee Participation i. New Employees Participation in the new plan is mandatory from the onset of employment. New employees will make no contributions to the old plan. ii. Conversion Threshold for Current Employees Members whose age plus years of service equal 45 or Tess at the time of implementation must convert to the new plan. Those with age plus years of service of 46 or more have the option of fully converting or remaining in the old plan with modified participation in the new plan. iii. Current Employees Fully Converting to New Plan 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 IPT accounts that equates to $100 per month for every month they contributed to the current plan, to a maximum of 15 years (180 months). This contribution will be made at the time of retirement, and only if 20 the employee retires from the City. No interest will be earned in the interim. Employees in this category will make no further contributions to the existing plan, and will no longer participate in it. The parties agree that this one time payment by the City satisfies the requirement in paragraph E1.b. of Section 4 (Fringe Benefits) of the previous MOUs regarding an accounting and potential distribution of contributions upon discontinuation of the previous version of the Retiree Medical Program. iv. Current Employees Continuing to Participate in Some Elements of Old Plan Employees in this category will contribute a flat $100 per month to the old plan for the duration of their employment. The maximum benefit provided by the old plan at retirement is $4800.00 per year, accruing at the current rate of $400.00 per month. City share of each retiree's cost may be used for anything authorized for the IPT program, rather than just for Insurance Premiums for one of the City plans. There is no cash out option for these funds. Employees remaining on the old plan will also participate in the IPT program, with Part A contributions being mandatory; no Part B contributions; and Part C contributions if applicable. Employees in this category will also receive an additional one- time City contribution of $75 per month for every month they contributed to the old plan prior to the date of implementation of the new program, up to a maximum of 15 years (180 months). This contribution will be made to the IPT account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. d. Retroactivity Limited retroactivity is provided for employees who retired from the City during the period covered by the contract in which this new program is implemented, but before the program is implemented. For those employees who retired under the old program during this period, the provision for increased flexibility in the use of the $4800.00 maximum (accruing at $400 per month) benefit will apply. In addition, a MERP account will be opened for each employee in this category, and a contribution of $75 per month for each month of prior contribution to the old plan will be deposited by the City. 21 No other provisions of the new program are applicable to employees in this category, and no provisions of the program are applicable to any other existing retirees. e. Administration A vendor will be selected by the City to administer the MERP. 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 acti ons taken by each employee, such as fees or commissions for trades, will be paid by each employee. The City's Deferred Compensation Committee will have the authority to determine investment options that will be available through the plan. Value of Benefit For all purposes, the MERP shall be valued at 1% of salary on which PERS retirement is based (Part A); plus .25% of other compensation (Part B). F Tuition Reimbursement NBLMA members attending accredited community colleges, colleges, trade schools or universities may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, books, fees or other student expenses for approved job —related courses. Maximum tuition reimbursement for employees shall be $1,000.00 per fiscal year. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Human Resources Director. SECTION 5. MISCELLANEOUS 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. 22 1. Definitions a. "Layoffs" or "Laid off' shall mean the non —disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted permanent status in their current Classification or any Classification within the Series, subject to the following: i. Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status in the Classification or Series; ii. Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. c. "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part—time, seasonal or 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 Classification(s) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities for subordinates. The City Manager shall determine those Classifications, which constitute a Series. e. "Bumping Rights", "Bumping" or "bump" shall mean the right of an employee, based upon seniority within a series, to displace a less senior employee in a lower Classification within the Series. No employee shall have the right to Bump into a Classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience. 2. Procedures In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: 23 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 Tess senior employee in a lower ranking Classification within a Series, provided, however, that the determination of the employee to be terminated from the position of Lifeguard shall be based on seniority within the Series. An employee who has Bumping Rights shall notify the Department Director within seven (7) 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 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 lay—off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any), and accumulated sick leave to the extent permitted by the Personnel Resolution. 4. Re —Employment Permanent and probationary employees who are laid off shall be placed on a Department re—employment list in reverse order of layoff. The re— employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re—employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re—employment list or the right to remove his or her 24 name from the re—employment list by sending written confirmation to the Human Resources Manager. 5. Severance Pay Permanent employees who are laid off shall, as of the date of lay—off, receive one week severance pay for each year of continuous service with the City of Newport Beach. B. Discipline Any discipline shall be in accordance with the Department SOP and the Employee Policy Manual. C. Health and Fitness Evaluations All NBLMA members shall participate in the Department Fitness Program. D. Provision for Sun Protection 1. The City will provide for one pair of sunglasses per year for each unit employee. The cost allowance will be determined through reference to the cost of a base line pair. 2. The City agrees to provide an additional $$300.00 (not restricted to use at Lifeguard Store) per year in sun protection materials for all unit employees. 3. Each unit employee shall receive an annual skin cancer screening will be conducted either on or off duty at the Department's discretion. Employees directed to receive this screening off duty shall receive one (1) hour of compensatory time off as compensation. E. Fitness Equipment and Exercise Time At a time, during the life of this MOU, selected by NBLMA, the City will provide up to $3,000.00 per year towards the purchase of fitness equipment to be used off duty for the intended benefit of NBLMA for the term of this agreement. The actual equipment to be purchased shall be recommended by NBLMA, and shall require the final approval of the Fire Chief. Unit employees shall be allowed up to three (3) hours per week for physical fitness training. F. Lifeguard Officers Schedule Lifeguard Officers shall continue to work a 4-10 schedule, unless the schedule is modified through standard departmental procedures. 25 G. Employee Policy Manual The City and LMA have agreed on implementation of the City's revised Employee Policy Manual. H. Direct Deposit All Unit employees shall participate in the City's Direct Deposit Program. I. Part -Time Conversion Part-time Lifeguard IV employees converted to full-time status in January 2000 shall utilize their original Lifeguard IV hire date as their anniversary date. Any changes resulting from this change shall be prospective only. Executed this l , day of ne./c , 2005: NEWPORT BEACH BY: BY: IFEGUARD MANAGEMENT ASSOCIATION CITY OF NEWPOR BEA i�-I (/J (JIj y Mayor ATTEST:: BY. �, _LG /2 /� N(19'Tk LaVonne Harkless, City Clerk APPROVE AS TO FORM: Robin Clawson, City Attorney 26 EXHIBIT A Newport Beach Lifeguard Management Association Represented Classifications Lifeguard Officer Lifeguard Captain Lifeguard Captain - Boat Lifeguard Captain - Dive Lifeguard Battalion Chief Lifeguard Battalion Chief - Dive 27 (B) MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH MARINE SAFETY OFFICERS ASSOCIATION This Memorandum of Understanding (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE 1. Authorized representatives of the CITY OF NEWPORT BEACH (hereinafter referred to as "CITY") and authorized repjesentatives of the NEWPORT BEACH MARINE SAFETY OFFICERS ASSOCIATION (hereinafter referred to as "NBMSOA") a recognized employee organization, met and conferred, exchanging various proposals concerning wages, hours, fringe benefits and other terms and conditions of employment of employees represented by NBMSOA (hereinafter referred to as "EMPLOYEES") for the period of July 1, 2002 through December 31, 2003. 2. NBMSOA representatives have reached an agreement as to wages, hours and other terms and conditions of employment to apply to all affected EMPLOYEES for the time period defined above. Said EMPLOYEES desire to reduce their agreement to writing, and to present such agreement, in the form of this MOU, to the City Council of the City of Newport Beach for approval. NOW, THEREFORE, this MOU is made and entered into by the parties hereto effective July 1, 2002 subject to approval by the City Council of the City of Newport Beach, as follows: SECTION 1. GENERAL PROVISIONS A. Duration of Memorandum The terms of this MOU are to remain in full force and effect beginning July 1, 2002 through December 31, 2003 or if after December 23, 2003, the conclusion of the meet and confer process. B. Scope 1. All present written rules and currently established practices and employee 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, or in the case of the Department SOP's falling within the scope of representation, the City has given notice to the Association and, upon request, met and conferred on any proposed changes which fall within the scope of representation. When the Department proposes to change any SOP departmental rule or regulation, it will provide a copy of such change to the Association no less than seven (7) days prior to implementation of the proposed change. If such proposed change materially impacts any matter within the scope of representation, then the parties agree to meet and confer over such impact. 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. SECTION 2. COMPENSATION A. Title and Status Changes Effective with the ratification of this Memorandum of Understanding, Unit classification titles shall be modified as follows: Lifeguard Specialist to Lifeguard Officer B. Pay for Time Worked 1. Salaries and Wages For the Willi of this agreement, salaries for Unit classifications will be as set forth below: Lifeguard Officer at 75% of Firefighter Lifeguard Lieutenant at Firefighter plus 15% Lifeguard Captain at Fire Captain plus 7.5% Additional increases: Lifeguard Officer only. July 2002 — 5% July, 2003 — 3% *After July 2003 the Lifeguard relationship to Firefighter will be 81% In addition to the amount shown above the following payments shall be made: Lifeguard Lieutenant Boat — 2.5% Lifeguard Lieutenant Dive — 2.5% Lifeguard Captain Dive — 2.5% Unit classifications are listed in Attachment A. 2 Final 2. Overtime Unit employees shall receive overtime compensation for all hours worked in excess of forty (40) in any work period. Paid time off shall be considered time worked for the purposes of calculating overtime. Unit employees shall have the option of requesting compensatory time off (CTO) for all overtime, including training time, during the term of this agreement. All compensatory time off shall be subject to existing City rules providing for maximum (CTO) accrual of eighty (80) hours at time and one half on the books or 120 actual hours. 3. Call Out Call out compensation shall be in accordance with the following provisions: a. All emergency call out time shall be calculated to the nearest one quarter (1/4) hour of time worked. b. For forty (40) hour employees, a minimum of two (2) hours (including travel time) of pay at the rate of one and one half (1 1/2) times the employee's regular hourly rate of pay shall be guaranteed for each emergency call out C. Scholastic Achievement Pay NBMSOA members are entitled to additional compensation contingent upon scholastic achievement ("Scholastic Achievement Pay"). MSOA 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 Fire Chief. It is the responsibility of the MSOA 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 number of units and/or degrees received by the employee. Qualifying units and/or degrees must be awarded by accredited community colleges, state colleges or universities. MSOA members shall receive scholastic achievement pay in accordance with the following: 3 Final Years of Total College Compensation Service Semester Units Per Month 2 or more 30 1.5% mo/top step base FF salary 3 or more 60 2.5% mo/top step base FF salary 3 90 3.5% mo/top step base FF salary 4 or more 90 3.5% mo/top step base FF salary 4 120 4.5% mo/top step base FF salary 4 B.A./B.S. 5.5% mo/top step base FF salary 4 M.A./M.S. 6.5% mo/top step base FF salary D. Court Standby Pay NBMSOA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off —duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBMSOA members shall, when required to appear in court pursuant to a Subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. K. Night Standby An employee assigned to standby duty for purposes of being on call to handle emergency situations arising at times other than during normal working hours shall be guaranteed two (2 1/2) and a half hours of pay at his regular hourly rate of pay for each calendar day of such standby duty. All unit employees shall be required to maintain residency within thirty (30) minutes driving time from the Marine Safety Headquarters in order to be eligible for standby duty. Driving time shall be defined as driving the most direct route at the posted speed limit. F. Move -up Pay Temporary upgrading shall be defined as the temporary assignment of an employee to work in a job classification, which is assigned to a salary schedule higher than his/her regular job classifications. Employees temporarily upgraded to the following job classifications shall receive a five (5%) percent pay differential over their regular rate of pay for all time worked in the higher job classification if they are assigned to work in the higher job classification for a period of four (4) working hours or longer: 4 Final Lifeguard Captain Lifeguard Lieutenant All holiday, vacation, sick leave and paid leave shall be paid at the employee's regular rate of pay. Assignments to higher rated classifications shall be made at the sole discretion of the City. SECTION 3. FRINGE BENEFITS A. Insurance 1. Health Care Plan The City has implemented an IRS qualified Cafeteria Plan. NBMSOA members shall participate in this plan. The City contribution toward the Cafeteria Plan shall be as set forth below. In addition, the City shall contribute a total of $16 towards medical insurance. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical, dental and vision insurances/programs. The City and the Newport Beach Marine Safety Officers 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 during regular open enrollment periods. Effective January 2003, the City's contribution towards the Cafeteria Plan will be $534 (plus the $16 medical contribution). NBMSOA members who do not want to enroll in any health care plan offered by the City must provide evidence of group health care insurance coverage, and execute an opt -out agreement releasing the City from any responsibility or liability to provide health care insurance coverage on an annual basis. Should the City increase the Cafeteria Plan contribution for other represented employee groups in excess of the amount reflected herein, it will, upon request, reopen negotiations on the Cafeteria Plan contribution with NBMSOA. 2. Benefits Information Committee City has established a Medical/Dental Information Committee composed of one representative from each employee group and up to three City representatives. The Medical/Dental Information Committee has been established to allow the 5 Final City to present data regarding carrier and coverage options, the cost of those options, appropriate coverage levels and other health care issues. The purpose of this Committee is to provide each employee group with information about health care issues and to receive timely input from associations regarding preferred coverage options and levels of coverage. 3. Retiree Health An employee is eligible for retiree medical benefits under this program after seven years of service to the City of Newport Beach if the employee retires from the City and is a PERS annuitant. This program is inclusive of an employee's right to medical insurance coverage under the Ca1PERS medical insurance plan and the mandatory minimum $16 per month employer contribution to said plan on behalf of the annuitant. a. The City has implemented a $400 per month cap for retiree medical insurance premium contributions as provided for in previous Memoranda of Understanding between the City and the NBMSOA. In accordance with existing agreements, the City and active employees shall be responsible for 3/4ths (1/2 City and 1/4 actives) of retiree medical insurance premium under this program. Retirees shall be responsible for any remaining medical insurance premiums under this program to a maximum of Four Hundred ($400.00) Dollars. Retirees shall be responsible for any remaining medical insurance premiums. The employee's current share of the retirement contribution shall be $34.06 per month. Subsequent contribution levels shall be set in January, annually, in accordance with the formula described above. Prior to increasing the deductions for the employee's contribution share, the City shall provide NBMSOA with documentation supporting the need for said increase at least 90 days in advance of the effective date of the increase. Upon request, City representatives will meet and consult with NBMSOA prior to any increases in employee deduction levels. The parties agree that any increase will take effect as soon as possible after January 1. b. In order to accumulate funds to meet the potential unfunded liability in retiree medical insurance premium payments as projected by the City's actuary and in addition to the contribution described above, each NBMSOA unit employee will contribute $10 per month and the City shall contribute $20 per employee per month into an interest bearing trust account. These contributions will be continued until the projected liability is satisfactorily funded (approximately 30 years), or until such time as the City and NBMSOA mutually agree to end the funding on behalf of NBMSOA members. 6 Final Accumulated funds from the employee and employer contributions described above shall be held separate from the City's general fund. These funds shall be kept in an interest bearing account and may only be used to pay for unfunded retiree medical insurance premiums not covered by the funds collected under 5a above. In the event the retiree medical insurance program described herein is discontinued, NBMSOA members will receive an accounting on any remaining funds and the City will immediately meet and confer with NBMSOA on the distribution of said funds back to active (not retired/full- time) City employees in the NBMSOA unit. The City will provide NBMSOA with an annual report certified by the City Finance Director describing the balance, interest earnings, and any expenditures of the trust account described herein. The City agrees to meet and confer with NBMSOA upon request with regard to alternative programs and/or funding methods for retiree medical insurance premiums for NBMSOA members, if retiree medical insurance benefits are upgraded for another bargaining unit during the term of this MOU. 4. Disability Insurance The City shall provide disability insurance with the following provisions: Weekly Benefit 66 2/3% gross weekly wages Maximum Benefit (mo.) $ 8,000 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. 5. Tuition Reimbursement NBMSOA members attending accredited community colleges, colleges, trade schools or universities may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, books, fees or other student expenses for approved job —related courses. Maximum tuition reimbursement for employees shall be $1,000.00 per fiscal year. Reimbursement is contingent upon the 7 Final successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Human Resources Director. SECTION 4. LEAVES A. Flexible Leave Program All employees hired after July 1, 1990 will be included in the Flexible Leave Program. Permanent full-time employees enrolled in the flex leave program will earn leave in accordance with the following schedule: Years of continuous Service Accrual per Annual pay period/hrs Days 1 but less than 5 5.54 18 5 but less than 9 6.15 20 9 but less than 12 6.77 22 12 but less than 16 7.69 25 16 but less than 20 8.31 27 20 but less than 25 8.92 29 25 and over 9.54 31 Employees hired, or rehired, by the City of Newport Beach on or after July 1, 1996, shall accrue flex leave at the following rates: Years of continuous Service Accrual per Annual pay period/hrs Days 1 but less than 5 4.92 16 5 but less than 10 5.53 18 10 but less than 15 6.46 21 15 but less than 20 7.08 23 20 and over 8.00 26 Effective January 1, 2003, employees hired, or rehired on or after July 1. 1996 shall accrue flex leave at the following rates: Years of continuous 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 Accrual per Annual pay period/hrs Days 4.92 16 5.53 18 6.77 22 7.69 25 8.31 27 8.92 29 9.54 31 During the first six months of employment, new regular full-time employees shall not accrue paid leave. At the completion of six months of employment six (6) months of accrued flex leave will be placed in the employees account. Note: If an employee becomes sick in the first six months of employment, the City will advance up to six (6) months of potentially accrued flex leave time to be used for illnesses only. If employee terminates employment prior to six months, the City will subtract the pay equivalent of the number of flex leave days advanced from the employees final check. Any flex leave time advanced during the first six months of employment will be subtracted from the six (6) months of accrual placed in the employees account upon completion of six months employment. 1. Limit on Accumulation Employees may accrue flex leave up to an accumulated total equal to seventy eight (78) times the members bi-weekly accrual rate. Any flex leave earned in excess of this level will be paid on an hour for hour basis in cash 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. Members shall be eligible for flex leave spillover pay only if they have utilized at least eighty (80) hours of flex leave the previous calendar year. Employees who have not utilized the required amount of leave the prior calendar year shall not be eligible to accrue time above the maximum accrual limit. Employees first hired, or rehired by the City subsequent to July 1, 1996 shall not be eligible for flex leave spillover pay and shall not be entitled to accrue flex leave in excess of the flex leave accrual threshold. 2. Method of Use Flex leave may not be taken in excess of that actually accrued and in no case, except for illness, may it be taken prior to the completion of an employee's initial probationary period. 9 Final 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. B. Vacation 1. Basis for Accrual/Full-Time Employees Employees entitled to vacation leave -with -pay shall accrue such leave based on years of continuous service and the number of hours in a normal workweek for the position to which they are assigned in accordance with the following schedule: Years of Accrual Continuous Per 40 Hour Service Pay Period 0 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 2. Limit on Accumulation 3.38 3.99 4.61 5.22 5.84 6.46 7.07 Accrual of vacation days in excess of those earned for two years of continuous service is not permitted past December 31 st of each year with the following exception: with approval of the Department Director, an employee may accrue vacation days in excess of the two-year limit provided all such excess accumulation is taken by March 31 st of the following year. 3. Method of Use Vacation may not be taken in excess of that actually accrued and in no case, except for entry-level employees, may it be taken prior to the completion of an employee's initial probationary period. Entry level employees may use vacation after the completion of the initial six (6) months of probation. The Department Director shall schedule and approve all vacation leaves for employees taking into consideration the needs of the Department, and whenever possible, the seniority and wishes of the employee. Vacation leave may be granted on an hourly basis. 10 Final C. Use of Flexible and Vacation Leave Level A staffing shall run from June 15th through Labor Day. During this period of time, full-time personnel may be limited to a total of forty (40) hours usage of vacation/flex leave. Additional vacation/flex leave during this period may be approved if in the opinion of management adequate staffing levels can be maintained. The Department shall develop a policy defining when approved vacation/flex leave times shall not be subject to cancellation. The City will budget eighty (80) hours of overtime per employee per year for vacations/flex leave backfill. Concurrently, the City and NBMSOA will jointly review procedures defining minimum staffing and the hours for night call out. Any changes to these areas fall within the scope of representation and will be subject to the meet and confer process. D. Holiday Leave Subject to the provisions herein, the following days shall be observed as paid holidays by all employees in permanent positions and other personnel whose work assignments, in the judgment of the Department Director require their presence on the job. For each designated holiday, except the Floating Holidays, such personnel shall receive an equivalent number of hours of paid leave or equivalent pay whichever in the judgment of the Department Director best serves the interest of the Department. Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas New Year's Eve New Year's Day Martin Luther King Day Washington's Birthday Memorial Day Floating Holiday (1) July 4 1st Monday in Sept. November 11 4th Thurs. in November Last 1/2 of working day December 25 Last 1/2 of working day January 1 3rd Monday in January 3rd Monday in February Last Monday in May For employees birthday or other holiday. Eligibility and use according to Memoranda of Understanding. 1. Holiday pay will be paid only to employees who work their scheduled day before the holiday and scheduled day after a holiday or are on authorized leave (e.g., approved vacation, sick leave, or flex leave that has been reviewed and approved by the Department Director). 11 Final 2. Newly hired employees will be eligible to receive full pay for scheduled holidays, without a waiting period. 3. "Floating Holiday" eligibility allows for newly hired employees to earn their first floating holiday credit, eight (8) hours, at the same time as they receive their regular appointment status, upon the successful completion of their probationary period. 4. Effective July, 2003 all employees will be provided a one-time opportunity to elect to convert all or any portion of their annual holiday benefits to cash on an annual basis. This election shall be uniform from year to year. For example, an employee electing to convert 48 of the 96 hours of the annual benefit to cash must so convert 48 hours of earned holiday benefits each year thereafter. Holiday pay will be paid bi-weekly with the regular check. Holiday leave conversion pay will not count in the total compensation formula used to adjust salaries and benefits. Newly hired employees will make this election at the time of hire. This holiday compensation shall be reported to PERS as special compensation and shall be regarded as compensation earnable as defined in Government Code Sec. 20636 (c) (6) for purposes of computing retirement benefits and contributions. E. Sick Leave 1. Basis for Accrual/Full-time Employees Full-time, regular employees shall accrue sick leave based on the number of hours in a normal workweek for the position to which they are assigned in accordance with the following schedules: Normal Work Week 40 hours 0 - 1 year 1-2 years 2-3 years 3-4 years 4+ years 4 hours per month 5 hours per month 6 hours per month 7 hours per month 8 hours per month After the 3rd year level, and the 5th year level, employees will be required to maintain the same number of hours as required of other permanent employees. Employees accruing sick leave hours under the above formula and enrolled in the City's Disability Program will be eligible for City -paid Disability Insurance premiums as follows: 50% at 88 hours, 100% at 208 hours. 12 Final 2. Method of Use a. General Sick leave may not be taken in excess of that actually accrued. Except as noted, an employee serving his/her initial probation period is eligible to use his/her accumulated sick leave provided that if for any reason his/her City employment is terminated prior to the completion of such probationary period, his/her final pay check shall be reduced by the value of the sick leave he/she has taken. After completion of the initial six (6) months probation period, entry-level employees shall not have used sick leave deducted from their final paycheck if they have maintained a satisfactory or higher performance evaluation rating throughout the probationary period. Sick leave may be granted on an hourly basis. b. Approval Sick leave may be granted only at the direction of or with the approval of the Department Director and only for the purposes defined in Section 11.2.A of the Employee Policy Manual. F. Sick Leave Pay Out Upon paid retirement, termination in good standing or death, but not termination for cause or resignation in lieu of termination, any member or his/her estate shall be paid, at the rate of 109% of their then current base hourly rate of pay (hourly rate before incentives, other pays, etc.) for a percentage of the employees accrued but unused Sick Leave computed as follows: YEARS OF SERVICE: PERCENT OF UNUSED SICK LEAVE PAID FOR: LESS THAN 10 NONE 10 BUT LESS THAN 15 25% 15 BUT LESS THAN 20 37.5% 20 OR MORE 50% Payment for accrued but unused Sick Leave shall be limited to the first 800 hours of accrued Sick Leave for Staff Employees and the first 1200 hours for Line Employees (for example if a Line Employee had accumulated 1400 hours of Sick Leave and retired after 16 years he or she would receive Terminal Sick Leave Pay in a sum equal to 109% of their base salary per hour for 450 hours of Sick Leave — 1200 hours multiplied by .375). 13 Final G. Family Sick Leave Unit employees shall be entitled to use an amount of time equal to one-half (1/2) of their annual sick leave accrual for an illness of a dependent which requires the presence of the employee. Such time may be taken from the employee's annual sick leave accrual or sick leave bank, at the employee's choice. Leave shall be administered in accordance with the provisions of Section 11.2 of the Employee Policy Manual. The provisions of this section shall not be construed to affect or reduce the right of any employee to any unpaid family medical leave authorized by State or Federal law. For purposes of family sick leave, family member shall mean spouse, parent, (parent shall mean biological, foster, or adoptive children, a stepchild, a legal ward, or a child of a person standing in local parentis). H. Sick Leave Conversion Employees who at the end of the calendar year have an accrued level of sick leave equal to or greater than the full value of 40 months of accrued sick leave, and who have used six or less days of sick leave during the calendar year will be permitted (only once per year) to convert up to six days of sick leave to either salary or paid vacation at the value of 50% (Maximum value of 3 days per year). Eligible sick leave days converted to cash shall be at the employee's option. Eligible sick leave days converted to paid vacation shall require the approval of the Department Director. I. Bereavement Leave The provisions of the Bereavement Leave Policy applicable to affected employees are as follows: Defined. The necessary absence from duty by an employee having a regular or probationary appointment, because of death or terminal illness in his/her immediate family. For the purposes of this section, immediate family shall mean father, mother, brother, sister, wife, husband, child, father-in-law, mother-in-law and grandparents. Maximum Allowed. Such leave shall be limited to five (5) working days per calendar year per occurrence. Probationary Employees. An employee serving his/her initial probationary period who takes leave under this section who for any reason terminates his/her employment prior to the completion of such probationary period shall have his/her final pay check reduced by the value of the leave taken. J. Leave Pay -Off For the term of the agreement, NBMSOA members shall receive payment for any accrued leave upon teiiiiination at the rate of 109% of their base hourly rate. 14 Final SECTION 5. MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs. The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions. a. "Layoffs" or "Laid off' shall mean the non —disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted permanent status in their current Classification or any Classification within the Series, subject to the following: (i) Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status in the Classification or Series; (ii) Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. c. "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part—time, seasonal or 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 Classification(s) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities for subordinates. The City Manager shall determine those Classifications, which constitute a Series. e. "Bumping Rights", "Bumping" or "bump" shall mean the right of an employee, based upon seniority within a series, to displace a less senior 15 Final 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, provided, however, that the determination of the employee to be terminated from the position of Lifeguard shall be based on seniority within the Series. An employee who has Bumping Rights shall notify the Department Director within seven (7) 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 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 lay—off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any), and accumulated sick leave to the extent permitted by the Personnel Resolution. 4. Re —Employment. Permanent and probationary employees who are laid off shall be placed on a Department re—employment list in reverse order of layoff. The re—employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, 16 Final 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 Manager. 5. Severance Pay. Permanent employees who are laid off shall, as of the date of lay—off, receive one week severance pay for each year of continuous service with the City of Newport B each. B. Health and Fitness Evaluations All NBMSOA members shall participate in the Department Fitness Program. C. Provision for Sun Protection 1. The CITY will provide for one pair of sunglasses per year for each unit employee. The cost allowance will be determined through reference to the cost of a base line pair. 2. The CITY agrees to provide an additional $100.00 per year in sun protection materials for all unit employees. 3. Each unit employee shall receive an annual skin cancer screening will be conducted either on or off duty at the Department's discretion. Employees directed to receive this screening off duty shall receive one (1) hour of compensatory time off as compensation. D. Discipline Any discipline shall be in accordance with the Department SOP and the Employee Policy Manual. E. Fitness Equipment and Exercise Time At a time, during the life of this MOU, selected by NBMSOA, the City will provide up to $3,000.00 per year towards the purchase of fitness equipment to be used off duty for the intended benefit of NBMSOA for the term of this agreement. The actual equipment to be purchased shall be recommended by NBMSOA, and shall require the final approval of the Fire Chief. Unit employees shall be allowed up to three (3) hours per week for physical fitness training. 17 Final F. Uniform Allowance The City shall pay the entire cost of providing MSOA members with each component of the required MSOA uniforms. The required MSOA uniform includes uniform pants, uniform shirts, safety shoes, badges and insignias, uniform jackets and liners, belts, dive equipment, foul weather gear, personal floatation device and helmet. The City shall not be responsible for providing employees with socks, underwear, cap, workout shoes, or other clothing. The City will report the value of provided uniforms to PERS in accordance with PERS requirements. G. Retirement The City shall maintain in effect the 3%@55 retirement program for the term of this agreement. H. Lifeguard Officers Schedule Lifeguard Officers shall continue to work a 4-10 schedule; unless the schedule is modified through standard departmental procedures. I. Employee Policy Manual The City and MSOA have agreed on implementation of the City's revised Employee Policy Manual. J. Direct Deposit All Unit employees shall participate in the City's Direct Deposit Program. K. Part -Time Conversation Part-time Lifeguard IV employees converted to full-time status in January 2000 shall utilize their original Lifeguard IV hire date as their anniversary date. Any changes resulting from this change shall be prospective only. L. Other Terms and Conditions Except as to those matters expressly covered by this MOU, all terms and conditions of employment may be changed or amended after meeting and conferring, in good faith. 18 Final M. Separability Should any part of this MOU or any provision herein contained be rendered or declared invalid, by reason of any existing or subsequently enacted Legislation, or by decree of a Court of competent jurisdiction, such invalidation of such part or portion of this MOU shall not invalidate the remaining portion hereto, and same shall remain in full force and effect; provided, however, that should the provisions of this MOU relating to pay schedule adjustment increases be declared invalid, CITY agrees to provide alternate benefits agreeable to NBMSOA, to EMPLOYEES to receive the same amount of money as they would have received had such provision not been declared invalid. Executed this ATTEST: BY: ' ;? r�1- BY: , day of , 2003: ACH MARINE SAFETY OFFICERS ASSOCIATION CT OF NE '•'TBEACH i 1 Steven Vonne Harkless, City Clerk APP VED AS TO FORM: obert H. Burnham, City Attorney 19 Final EXHIBIT A Newport Beach Marine Safety Officers Association Represented Classifications Lifeguard Officer Lifeguard Lieutenant Lifeguard Lieutenant - Boat Lifeguard Captain 20 Final MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH MARINE SAFETY OFFICERS ASSOCIATION This Memorandum of Understanding (hereinafter referred to as MOU) is entered into with reference to the following: PREAMBLE 1. Authorized representatives of the CITY OF NEWPORT BEACH (hereinafter referred to as CITY) and authorized representatives of the NEWPORT BEACH MARINE SAFETY OFFICERS ASSOCIATION (hereinafter referred to as NBMSOA) a recognized employee organization, met and conferred, exchanging various proposals concerning wages, hours, fringe benefits and other terms and conditions of employment of employees represented by NBMSOA (hereinafter referred to as EMPLOYEES) for the period of July, 1999 through June 30, 2002. 2. NBMSOA representatives have reached an agreement as to wages, hours and other terms and conditions of employment to apply to all affected EMPLOYEES for the time period defined above. Said EMPLOYEES desire to reduce their agreement to writing, and to present such agreement, in the form of this MOU, to the City Council of the City of Newport Beach for approval. NOW, THEREFORE, this MOU is made and entered into by the parties hereto effective July 1, 1999 subject to approval by the City Council of the City of Newport Beach, as follows: SECTION 1. GENERAL PROVISIONS A. Duration of Memorandum The terms of this MOU are to remain in full force and effect beginning July 1, 1999 through June 30, 2002, and, thereafter from year-to-year, unless within the time frame and in the manner designated in Section 13, Timetable for Submission of Requests of the Employer -Employee Relations Resolution, either party serves written notice upon the other of its desire to make changes in this MOU. B. Conclusiveness of Memorandum This MOU contains all the covenants, stipulations and provisions agreed upon by the parties. Therefore, except for Article II of this agreement, for the life of this MOU, neither party shall be compelled, and each party expressly waives its rights to meet and 1 Final confer with the other, concerning any issues within the scope of representation, whether or not specifically met and conferred about prior to the execution of this MOU, except by mutual agreement of the parties. No representative of either party has 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. SECTION 2. COMPENSATION A. Title and Status Changes Effective January, 2000, the Lifeguard IV classification has been retitled Lifeguard Specialist and made a full-time position, eligible for full City benefits Effective with the ratification of this Memorandum of Understanding, Unit classification titles shall be modified as follows: Lifeguard IV to Lifeguard Specialist Lifeguard Supervisor to Lifeguard Lieutenant Lifeguard Lieutenant to Lifeguard Captain B. Pay for Time Worked 1. Salaries and Wages Effective the first full pay period in July 1999, salaries for these classifications will be as set forth below: Lifeguard Specialist at 75% of Firefighter Lifeguard Lieutenant at Firefighter plus 15% Lifeguard Captain at Fire Captain plus 7.5% The City and NBMSOA agree that the salaries for each classification will be set in the salary schedule under "Attachment A." In addition, unit classifications shall also have salaries under "Attachment A" increased by an amount equivalent to that granted Fire Unit employees during the term of this agreement. 2. Overtime Unit employees shall receive overtime compensation for all hours worked in excess of forty (40) in any work period. Paid time off shall be considered time worked for the purposes of calculating overtime. 2 Final Unit employees shall have the option of requesting compensatory time off for all overtime, including training time, during the term of this agreement. All compensatory time off shall be subject to existing City rules providing for maximum CTO accrual of eighty (80) hours at time and one half on the books or 120 actual hours. 3. Call Out Call out compensation shall be in accordance with the following provisions: a. All emergency call out time shall be calculated to the nearest one quarter (1/4) hour of time worked. b. For forty (40) hour employees, a minimum of two (2) hours (including travel time) of pay at the rate of one and one half (1 1/2) times the employee's regular hourly rate of pay shall be guaranteed for each emergency call out. C. Scholastic Achievement Pay NBMSOA members are entitled to additional compensation contingent upon scholastic achievement (Scholastic Achievement Pay). MSOA 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 Fire Chief. It is the responsibility of the MSOA 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 number of units and/or degrees received by the employee. Qualifying units and/or degrees must be awarded by accredited community colleges, state colleges or universities. MSOA members shall receive scholastic achievement pay in accordance with the following: Effective the first payroll period following approval of this agreement by City Council: Years of Total College Compensation Service Semester Units Per Month 2 30 .6% mo top step base LL salary 3 30 .6% mo top step base LL salary 3 60 1.2%mo top step base LL salary 3 90 1.9%mo top step base LL salary 4 30 .6% mo top step base LL salary 4 60 1.2%mo top step base LL salary 4 90 1.9%mo top step base LL salary 4 120 2.5%mo top step base LL salary 3 Final Effective July 2001, the following table shall apply: Years of Total College Service Semester Units 2 or more 3 or more 3 4 or more 4 4 4 D. Court Standby Pay 30 60 90 90 120 B.A./B.S. M.A./M.S. Compensation Per Month 1.5% mo/top step base FF salary 2.5% mo/top step base FF salary 3.5% mo/top step base FF salary 3.5% mo/top step base FF salary 4.5% mo/top step base FF salary 5.5% mo/top step base FF salary 6.5% mo/top step base FF salary NBMSOA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off -duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBMSOA members shall, when required to appear in court pursuant to a Subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. E. Night Standby An employee assigned to standby duty for purposes of being on call to handle emergency situations arising at times other than during normal working hours shall be guaranteed two (2 1/2) and a half hours of pay at his regular hourly rate of pay for each calendar day of such standby duty. All unit employees shall be required to maintain residency within thirty (30) minutes driving time from the Marine Safety Headquarters in order to be eligible for standby duty. Driving time shall be defined as driving the most direct route at the posted speed limit. 4 Final SECTION 3. FRINGE BENEFITS A. Insurance 1. Health Care Plan The City shall make available to all NBMSOA members the PERS health insurance programs and a second health care plan. The City shall pay the health and dental premium for each NBMSOA member, up to a maximum of $400 per month. Effective January 2001, the City shall increase its contribution to $450 per month. After the January 2001 contribution increase, the City shall increase its contribution in an amount equal to any contribution increase granted to Fire Unit employees. The City, Association and other employee groups shall jointly meet to explore the implementation of a qualified cafeteria plan. The intent of the parties is to have a plan available for implementation as soon as possible. Effective July 2000, or as soon as possible thereafter, the City shall implement an IRS qualified Cafeteria Plan. The City contribution toward the Cafeteria Plan shall be the amount specified above, less the City's contribution of $16 towards PERS Healthcare. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical, dental and vision insurances/programs. The City and the Newport Beach Police Employees Association will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. Any unused funds shall be payable to the employee as taxable cash back. Employees shall be allowed to change coverages in accordance with plan rules during regular open enrollment periods. All City contribution increases set forth in this Section of the MOU shall apply to the Cafeteria Plan contributions in a like manner. 2. Dental The maximum annual benefit shall be $1,000.00. 3. Vision Care A limited vision care plan shall be part of the City's Indemnity Insurance Plan. 4. Medical Advisory Committee City has established a Medical/Dental Information Committee composed of one representative from each employee group and up to three City representatives. 5 Final The Medical/Dental 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 care issues. The purpose of this Committee is to provide each employee group with information about health care issues and to receive timely input from associations regarding preferred coverage options and levels of coverage. City shall provide information to the Committee in December, February and April of each year during the term of this MOU. 5. Retiree Health An employee is eligible for retiree medical benefits under this program after seven years of service to the City of Newport Beach if the employee retires from the City and is a PERS annuitant. This program is inclusive of an employee's right to medical insurance coverage under the Ca1PERS medical insurance plan and the mandatory minimum $16 per month employer contribution to said plan on behalf of the annuitant. a. Effective immediately, the City shall implement the $400 per month cap for retiree medical insurance premium contributions as provided for in previous Memoranda of Understanding between the City and the NBMSOA. The City and active employees shall be responsible for 3/4ths (1/2 City and 1/4 actives) of retiree medical insurance premium under this program. Retirees shall be responsible for any remaining medical insurance premiums. Concurrent with implementation of the Cafeteria Plan for NBMSOA unit employees, the current $15.12 per month employee deduction medical insurance shall be increased to $27.47 per month. This increase shall become effective on the same date as for the Miscellaneous Associations (July or later). Subsequent contribution levels shall be set as needed in the month of July, per the formula described above. Prior to increasing the deductions for the employee's contribution share, the City shall provide NBMSOA with documentation supporting the need for said increase at least 90 days in advance of the effective date of the increase. Upon request, City representatives will meet and consult with NBMSOA prior to any increases in employee deduction levels. b. In order to accumulate funds to meet the potential unfunded liability in retiree medical insurance premium payments as projected by the City's actuary and in addition to the contribution in Cl above, each NBMSOA unit employee will contribute $10 per month and the City shall contribute $20 per employee per month into an interest bearing trust account. These contributions will be continued until the projected liability is satisfactorily funded (approximately 30 years), or until such time as the City and NBMSOA mutually agree to end the funding on behalf of NBMSOA members. Deductions from each employee's salary of the above described 6 Final $10 per month shall begin concurrent with the implementation of the Cafeteria Plan. Accumulated funds from the employee and employer contributions described above shall be held separate from the City/Es general fund. These funds shall be kept in an interest bearing account and may only be used to pay for unfunded retiree medical insurance premiums not covered by the funds collected under Cl above. In the event the retiree medical insurance program described herein is discontinued, NBMSOA members will receive an accounting on any remaining funds and the City will immediately meet and confer with NBMSOA on the distribution of said funds back to active (not retired/full- time) City employees in the NBMSOA unit. The City will provide NBMSOA with an annual report certified by the City Finance Director describing the balance, interest earnings, and any expenditures of the trust account described herein. c. The City agrees to meet and confer with NBMSOA upon request with regards to alternative programs and/or funding methods for retiree medical insurance premiums for NBMSOA members. This will include but not be limited to IRS 401-A plans and/or NBMSOA sponsored variable and universal annuity type plans for individual members. 6. Medical Opt Out Employees will be allowed to opt out of the City's health plans (medical, dental and vision), and if they choose to do so they shall receive $200 per month. To qualify the employee would be required to supply evidence of alternative medical coverage, and to sign a hold harmless agreement, releasing the City from any responsibility as a health care provider. Upon implementation of the Cafeteria Plan as set forth above, payments under this section shall end. 7. Disability Insurance The City shall provide disability insurance with the following provisions: Weekly Benefit 66 2/3% gross weekly wages Maximum Benefit (mo.) $5,000 Minimum Benefit $50 Waiting Period 30 Calendar Days 7 Final 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. 8. Tuition Reimbursement NBMSOA members attending accredited community colleges, colleges, trade schools or universities may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, books, fees or other student expenses for approved job -related courses. Maximum tuition reimbursement for employees shall be $1,000.00 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 Administrative Services Director. SECTION 4. LEAVES A. Flexible Leave Program All employees hired after July 1, 1990 will be included in the Flexible Leave Program. Peiiiianent full-time employees enrolled in the flex leave program will earn leave in accordance with the following schedule: Years of continuous service Accrual per Annual pay period/hrs Days 1 but less than 5 5.54 18 5 but less than 9 6.15 20 9 but less than 12 6.77 22 12 but less than 16 7.69 25 16 but less than 20 8.31 27 20 but less than 25 8.92 29 25 and over 9.54 31 8 Final Employees hired, or rehired, by the City of Newport Beach on or after July 1, 1996, shall accrue flex leave at the following rates: Years of continuous service Accrual per Annual pay period/hrs Days 1 but less than 5 4.92 16 5 but less than 10 5.53 18 10 but less than 15 6.46 21 15 but less than 20 7.08 23 20 and over 8.00 26 During the first six months of employment, new regular full-time employees shall not accrue paid leave. At the completion of six months of employment six (6) months of accrued flex leave will be placed in the employees account. Lifeguard Specialists shall receive a lump sum flex leave credits for the period of July 1999 through December, 1999. Lifeguard Specialists shall be immediately eligible to use accrued leaves. Note: If an employee becomes sick in the first six months of employment, the City will advance up to six (6) months of potentially accrued flex leave time to be used for illnesses only. If employee terminates employment prior to six months, the City will subtract the pay equivalent of the number of flex leave days advanced from the employees final check. Any flex leave time advanced during the first six months of employment will be subtracted from the six (6) months of accrual placed in the employees account upon completion of six months employment. 1. Limit on Accumulation Employees may accrue flex leave up to an accumulated total equal to seventy eight (78) times the members bi-weekly accrual rate. Any flex leave earned in excess of this level will be paid on an hour for hour basis in cash 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. Members shall be eligible for flex leave spillover pay only if they have utilized at least eighty (80) hours of flex leave the previous calendar year. Employees who have not utilized the required amount of leave the prior calendar year shall not be eligible to accrue time above the maximum accrual limit. Employees first hired, or rehired by the City subsequent to July 1, 1996 shall not be eligible for flex leave spillover pay and shall not be entitled to accrue flex leave in excess of the flex leave accrual threshold. 9 Final 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. B. Vacation 1. Basis for Accrual/Full-Time Employees Employees entitled to vacation leave -with -pay shall accrue such leave based on years of continuous service and the number of hours in a normal work week for the position to which they are assigned in accordance with the following schedule: Years of Accrual Continuous Per 40 Hour Service Pay Period 0 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 2. Limit on Accumulation 3.38 3.99 4.61 5.22 5.84 6.46 7.07 Accrual of vacation days in excess of those earned for two years of continuous service is not permitted past December 31 st of each year with the following exception: with approval of the Department Director, an employee may accrue vacation days in excess of the two-year limit provided all such excess accumulation is taken by March 31 st of the following year. 3. Method of Use Vacation may not be taken in excess of that actually accrued and in no case, except for entry-level employees, may it be taken prior to the completion of an employee's initial probationary period. Entry level employees may use vacation after the completion of the initial six (6) months of probation. The Department Director shall schedule and approve all vacation leaves for employees taking into 10 Final consideration the needs of the Department, and whenever possible, the seniority and wishes of the employee. Vacation leave may be granted on an hourly basis. C. Use of Flexible and Vacation Leave Level A staffing shall run from June 15th through Labor Day. During this period of time, full-time personnel may be limited to a total of forty (40) hours usage of vacation/flex leave. Additional vacation/flex leave during this period may be approved if in the opinion of management adequate staffing levels can be maintained. The Department shall develop a policy defining when approved vacation/flex leave times shall not be subject to cancellation. D. Holiday Leave Subject to the provisions herein, the following days shall be observed as paid holidays by all employees in permanent positions and other personnel whose work assignments, in the judgment of the Department Director require their presence on the job. For each designated holiday, except the Floating Holidays, such personnel shall receive an equivalent number of hours of paid leave or equivalent pay whichever in the judgment of the Department Director best serves the interest of the Department. Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas New Year's Eve New Year's Day Washington's Birthday Memorial Day Floating Holiday (1) July 4 1st Monday in Sept. November 11 4th Thurs. in November Last 1/2 of working day December 25 Last 1/2 of working day January 1 3rd Monday in February Last Monday in May For employees birthday or other holiday. Eligibility and use according to Memoranda of Understanding. 1. Holiday pay will be paid only to employees who work their scheduled day before and scheduled day after a holiday or are on authorized leave (e.g., approved vacation, sick leave, or flex leave that has been reviewed and approved by the Department Director). 2. Employees will be eligible to receive holiday pay only after they have been in active paid status for 30 consecutive days. 11 Final 3. Newly hired employees will be eligible to receive full pay for scheduled holidays, without a waiting period. 4. "Floating Holiday" eligibility allows for newly hired employees to earn their first floating holiday credit, eight (8) hours, at the same time as they receive their regular appointment status, upon the successful completion of their probationary period. E. Sick Leave 1. Basis for Accrual/Full-time Employees Full-time, regular employees shall accrue sick leave based on the number of hours in a normal work week for the position to which they are assigned in accordance with the following schedules: Normal Work Week 40 hours 0 - 1 year 1-2 years 2-3 years 3-4 years 4+ years 4 hours per month 5 hours per month 6 hours per month 7 hours per month 8 hours per month After the 3rd year level, and the 5th year level, employees will be required to maintain the same number of hours as required of other permanent employees. Employees accruing sick leave hours under the above formula and enrolled in the City's Disability Program will be eligible for City -paid Disability Insurance premiums as follows: 50% at 88 hours, 100% at 208 hours. 2. Method of Use a. General Sick leave may not be taken in excess of that actually accrued. Except as noted, an employee serving his/her initial probation period is eligible to use his/her accumulated sick leave provided that if for any reason his/her City employment is terminated prior to the completion of such probationary period, his/her final paycheck shall be reduced by the value of the sick leave he/she has taken. After completion of the initial six (6) months probation period, entry-level employees shall not have used sick leave deducted from their final paycheck if they have maintained a satisfactory or higher performance evaluation rating throughout the probationary period. 12 Final Sick leave may be granted on an hourly basis. b. Approval Sick leave may be granted only at the direction of or with the approval of the Department Director and only for the purposes defined in Section 703.1 of the Personnel Rules. F. Family Sick Leave Employees are authorized to use up to 48 hours of sick leave accrual per calendar year for an illness of a dependent which requires the presence of employee. For purposes of family sick leave, family member shall mean spouse, parent, (parent shall mean biological, foster, or adoptive children, a stepchild, a legal ward, or a child of a person standing in local parentis). G. Sick Leave Conversion Employees who at the end of the calendar year have an accrued level of sick leave equal to or greater than the full value of 40 months of accrued sick leave, and who have used six or less days of sick leave during the calendar year will be permitted (only once per year) to convert up to six days of sick leave to either salary or paid vacation at the value of 50% (Maximum value of 3 days per year). Eligible sick leave days converted to cash shall be at the employee's option. Eligible sick leave days converted to paid vacation shall require the approval of the Department Director. H. Bereavement Leave The provisions of the Bereavement Leave Policy applicable to affected employees are as follows: Defined. The necessary absence from duty by an employee having a regular or probationary appointment, because of death or terminal illness in his/her immediate family. For the purposes of this section, immediate family shall mean father, mother, brother, sister, wife, husband, child, father-in-law, mother-in-law and grandparents. Maximum Allowed. Such leave shall be limited to five (5) working days per calendar year per occurrence. Probationary Employees. An employee serving his/her initial probationary period who takes leave under this section who for any reason terminates his/her employment prior to the completion of such probationary period shall have his/her final paycheck reduced by the value of the leave taken. 13 Final I. Leave Pay -Off For the term of the agreement, NBMSOA members shall receive payment for any accrued leave upon termination at the rate of 109% of their base hourly rate. SECTION 5. MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs. The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions. a. "Layoffs" or "Laid off" shall mean the non -disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted permanent status in their current Classification or any Classification within the Series, subject to the following: (i) Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status in the Classification or Series; (ii) Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. c. "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part-time, seasonal or 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 Classification(s) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities 14 Final 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, provided, however, that the determination of the employee to be terminated from the position of Lifeguard shall be based on seniority within the Series. An employee who has Bumping Rights shall notify the Department Director within seven (7) 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 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 lay-off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any), and accumulated sick leave to the extent permitted by the Personnel Resolution. 15 Final 4. Re -Employment. Permanent and probationary employees who are laid off shall be placed on a Department re-employment list in reverse order of layoff. The re-employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re-employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re- employment list or the right to remove his or her name from the re-employment list by sending written confirmation to the Human Resources Manager. 5. Severance Pay. Permanent employees who are laid off shall, as of the date of lay-off, receive one week severance pay for each year of continuous service with the City of Newport Beach. B. Health and Fitness Evaluations All NBMSOA members shall participate in the Department Fitness Program as outlined in SOP 7.D.600, Health and Fitness Evaluations. C. Provision for Sun Protection 1. The CITY will provide for one pair of sunglasses per year for each unit employee. The cost allowance will be determined through reference to the cost of a base line pair. 2. The CITY agrees to provide an additional $100.00 per year in sun protection materials for all unit employees. D. Drug Testing The CITY may drug test NBMSOA members on a random and mandatory basis only if requested by the NBMSOA and authorized by the City Council. NBMSOA also agrees to participate in an ad hoc committee to prepare a " for cause" drug testing policy. E. Discipline Any discipline shall be in accordance with Department SOP 7.C.300. 16 Final F. Fitness Equipment and Exercise Time At a time, during the life of this MOU, selected by NBMSOA, the City will provide up to $3,000.00 per year towards the purchase of fitness equipment to be used off duty for the intended benefit of NBMSOA for the term of this agreement. The actual equipment to be purchased shall be recommended by NBMSOA, and shall require the final approval of the Fire Chief. Unit employees shall be allowed up to three (3) hours per week for physical fitness training. G. Income Reporting Procedure The City will work with NBMSOA to develop a periodic routine report which will summarize all annual accounts including, but not necessarily limited to; deductions, leave balances, savings balances, and compensation reported to PERS. H. Uniform Allowance The City to pay the entire cost of providing MSOA members with each component of the required MSOA uniforms. The required MSOA uniform includes safety shoes, badges and insignias, uniform pants, uniform shirts, uniform jackets and liner, belts, and turnout safety clothing. City shall not be responsible for providing employee with socks, underwear, cap or workout shoes, or other clothing. J. Retirement The NBMSOA may reopen negotiations on the City's retirement program to meet and confer regarding the 3% at 50 or 3% at 55 PERS formula concurrent with the joint safety unit meetings on retirement. Any agreed upon changes in retirement shall be on a cost neutral basis to the City, unless otherwise agreed by the parties. K. Lifeguard Specialists Schedule Lifeguard Specialists shall continue to work a 4-10 schedule; unless the schedule is modified through standard departmental procedures. L. Other Terms and Conditions Except as to those matters expressly covered by this MOU, all terms and conditions of employment may be changed or amended after meeting and conferring, in good faith. M. Separability Should any part of this MOU or any provision herein contained be rendered or declared invalid, by reason of any existing or subsequently enacted Legislation, or by decree of a Court of competent jurisdiction, such invalidation of such part or portion of this MOU shall not invalidate the remaining portion hereto, and same shall remain in full force and 17 Final effect; provided, however, that should the provisions of this MOU relating to pay schedule adjustment increases be declared invalid, CITY agrees to provide alternate benefits agreeable to NBMSOA, to EMPLOYEES to receive the same amount of money as they would have received had such provision not been declared invalid. Executed this 2/ , day of �ra ry .e., , 2000: NEWPORT BEACH MARINERISAFETY OFFICERS ASSOCIATION BY:%2�.%l G BY: BY: ATTEST: // BY: OraU87n2J .Waif& 11 CITY OF WPORT BEACH John 4 o , "s, May' Vonne Harkless, City Clerk APP • VED AS TO FORM: ert H. Burnham, City Attorney 18 Final • • • MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH MARINE SAFETY OFFICERS ASSOCIATION This Memorandum of Understanding (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE 1. Authorized representatives of the CITY OF NEWPORT BEACH (hereinafter referred to as "CITY") and authorized representatives of the NEWPORT BEACH MARINE SAFETY OFFICERS ASSOCIATION (hereinafter referred to as "NBMSOA") a recognized employee organization, met and conferred, exchanging various proposals concerning wages, hours, fringe benefits and other terms and conditions of employment of employees represented by NBMSOA (hereinafter referred to as "EMPLOYEES") for the period of January 1, 1998 through June 30, 1999. 2. NBMSOA representatives have reached an agreement as to wages, hours and other terms and conditions of employment to apply to all affected EMPLOYEES for the time period defined above. Said EMPLOYEES desire to reduce their agreement to writing, and to present such agreement, in the form of this MOU, to the City Council of the City of Newport Beach for approval. 3. The classification of Lifeguard IV has been added to this bargaining unit. Lifeguard IV classifications are covered by all sections of this Memorandum of Understanding except the following: Section 2.A.5, Section 3 (All), Section 4 (All). NOW, THEREFORE, this MOU is made and entered into by the parties hereto effective January 1, 1998, subject to approval by the City Council of the City of Newport Beach, as follows: SECTION 1. GENERAL PROVISIONS A. Duration of Memorandum The terms of this MOU are to remain in full force and effect beginning January 1, 1998 through June 30, 1999, and, thereafter from year-to-year, unless within the time frame and in the manner designated in Section 13, Timetable for Submission of Requests of the Employer -Employee Relations Resolution, either party serves written notice upon the other of its desire to make changes in this MOU. B. Conclusiveness of Memorandum This MOU contains all the covenants, stipulations and provisions agreed upon by the parties. Therefore, except for Article II of this agreement, for the life of this MOU, neither party shall be compelled, and each party expressly waives its rights to meet and confer with the other, concerning any issues within the scope of representation, whether or not specifically met and conferred about prior to the execution of this MOU, except by mutual agreement of the parties. No representative of either party has 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. t SECTION 2. COMPENSATION A. Pay for Time Worked 1. Salaries and Wages Effective January 3, 1998, the CITY and NBMSOA agree that the salaries for each classification will be set forth in the salary schedule set forth below. In addition, unit classifications shall also have base pay increased by a percentage equivalent to that granted Fire Unit employees during the term of this agreement. The salary table below includes retitling of the former Marine Safety Officer classification to Marine Safety Supervisor. The salary further includes a change in the differential for the Marine Safety Lieutenant from 15% to 25% above Marine Safety Supervisor. This differential becomes effective April 25, 1998. In addition, Marine Safety Lieutenant shall receive a one time payment equal to 10% of base pay and paid overtime for the period from July 1, 1997 through April 24, 1998 . This payment shall be made in a lump sum, by separate check. Marine Safety Lieutenant $4146 $4353 $4571 $4800 $5040 $5292 $5557 $5835 Lifeguard IV $2823 $2964 $3112 Marine Safety Supv Dive Boat $3484 $3658 $3841 $4033 $4235 $4447 $4669 $4902 Marine Safety Supervisor w/EMT $3317 $3483 $3657 $3840 $4032 $4234 $4446 $4668 Marine Safety Supervisor Boat $3400 $3570 $3749 $3936 $4133 $4340 $4557 $4785 Marine Safety Lieutenant Dive $4251 $4464 $4687 $4921 $5167 $5425 $5696 $5981 2 Marine Safety Supv Training Coordinator $3317 $3483 $3657 $3840 $4032 $4234 $4446 $4668 Marine Safety Supervisor Dive $3400 $3570 $3749 $3936 $4133 $4340 $4557 $4785 • • • • • • 2. Overtime Unit employees shall receive overtime compensation for all hours worked in excess of forty (40) in any work period. Paid time off shall be considered time worked for the purposes of calculating overtime. Unit employees shall have the option of requesting compensatory time off for all overtime, including training time, during the term of this agreement. All compensatory time off shall be subject to existing City rules providing for maximum CTO accrual of eighty (80) hours at time and one half on the books or 120 actual hours. 3. Educational Incentive Pay Educational incentive pay shall be compensated in the following manner: Years of Service Total College Semester Units Compensation Per Month 2 30 $ 30.00 3 30 30.00 3 60 60.00 3 90 90.00 4 30 30.00 4 60 60.00 4 90 90.00 4 120 120.00 4. Court Standby Pay NBMSOA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off —duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBMSOA members shall, when required to appear in court pursuant to a Subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. 5. Call Out Call out compensation shall be in accordance with the following provisions: a. All emergency call out time shall be calculated to the nearest one quarter (1/4) hour of time worked. b. For forty (40) hour employees, a minimum of two (2) hours (including travel time) of pay at the rate of one and one half (1 1/2) times the employee's regular hourly rate of pay shall be guaranteed for each 3 emergency call out. 6. Night Standby An employee assigned to standby duty for purposes of being on call to handle emergency situations arising at times other than during normal working hours shall be guaranteed two (2 1/2) and a half hours of pay at his regular hourly rate of pay for each calendar day of such standby duty. All unit employees shall be required to maintain residency within thirty (30) minutes driving time from the Marine Safety Headquarters in order to be eligible for standby duty. Driving time shall be defined as driving the most direct route at the posted speed limit. SECTION 3. FRINGE BENEFITS A. Insurance 1. Health Care Plan The City shall make available to all NBMSOA members the PERS health insurance programs and a second health care plan. The City shall pay the health and dental premium for each NBMSOA member, up to a maximum of $400 per month. 2. Dental The maximum annual benefit shall be $1,000.00. 3. Vision Care A limited vision care plan shall be part of the City's Indemnity Insurance Plan. 4. Medical Advisory Committee City has established a Medical/Dental Information Committee composed of one representative from each employee group and up to three City representatives. The Medical/Dental 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 care issues. The purpose of this Committee is to provide each employee group with information about health care issues and to receive timely input from associations regarding preferred coverage options and levels of coverage. City shall provide information to the Committee in December, February and April of each year during the term of this MOU. 5. Retiree Health The contribution to retiree medical insurance shall be capped at $400 per month contribution with the City contributing a maximum of $267 per month and active employees contributing a maximum of $133 per month. The City and Association agree to participate in a City-wide committee to review further issues involving retiree medical insurance. 4 • • • 6. Medical Opt Out Employees will be allowed to opt out of the City's health plans (medical, dental and vision), and if they choose to do so they shall receive $200 per month. To qualify the employee would be required to supply evidence of alternative medical coverage, and to sign a hold harmless agreement, releasing the City from any responsibility as a health care provider. 7. Long/Short Term Disability Insurance (LTD/STD) The ceiling shall be $7,500/month for non -industrial disability claims. The maximum benefit will be up to $5,000 per month. Disabilities resulting from industrial injuries will be maintained at the current limit of $2,625 per month with a maximum benefit of $1,750 per month. When an employee having five years of continuous service, but less than ten with the CITY is on an approved disability leave of absence (up to a maximum of one-year), the CITY will pay one-third of the cost of the employee's insurance premiums (health, dental, life and disability); for an employee with ten years of continuous service, but less than fifteen, the CITY will pay two-thirds of the cost; the CITY will pay the entire cost for an employee with fifteen or more years of continuous service. 8. Tuition Reimbursement NBMSOA members attending accredited community colleges, colleges, trade schools or universities may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, books, fees or other student expenses for approved job —related courses. Maximum tuition reimbursement for employees shall be $1,000.00 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 Administrative Services Director. SECTION 4. LEAVES A. Flexible Leave Program All employees hired after July 1, 1990 will be included in the Flexible Leave Program. Permanent full-time employees enrolled in the flex leave program will earn leave in accordance with the following schedule: Years of continuous service Accrual per Annual pay period/hrs Days 1 but less than 5 5.54 18 5 but less than 9 6.15 20 9 but less than 12 6.77 22 12 but less than 16 7.69 25 16 but less than 20 8.31 27 20 but less than 25 8.92 29 25 and over 9.54 31 5 Employees hired, or rehired, by the City of Newport Beach on or after July 1, 1996, shall accrue flex leave at the following rates: Years of continuous Accrual per Annual service pav period/hrs Days 1 but less than 5 4.92 16 5 but less than 10 5.53 18 10 but less than 15 6.46 21 15 but less than 20 7.08 23 20 and over 8.00 26 During the first six months of employment, new regular full-time employees shall not accrue paid leave. At the completion of six months of employment six (6) months of accrued flex leave will be placed in the employees account. Note: If an employee becomes sick in the first six months of employment, the City will advance up to six (6) months of potentially accrued flex leave time to be used for illnesses only. If employee terminates employment prior to six months, the City will subtract the pay equivalent of the number of flex leave days advanced from the employees final check. Any flex leave time advanced during the first six months of' employment will be subtracted from the six (6) months of accrual placed in the employees account upon completion of six months employment. 1. Limit on Accumulation Employees may accrue flex leave up to an accumulated total equal to seventy eight (78) times the members bi-weekly accrual rate. Any flex leave earned in excess of this level will be paid on an hour for hour basis in cash 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. Effective January 1, 1997 members shall be eligible for flex leave spillover pay only if they have utilized at least eighty (80) hours of flex leave (forty (40) hours for calendar year 1996 only) 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 spillover pay and shall not be entitled to accrue flex leave in excess of the flex leave accrual threshold. 2. Method of Use Flex leave may not be taken in excess of that actually accrued and in no case, except for illness, may it be taken prior to the completion of an employee's initial probationary period. The Department Director shall approve all requests for flex leave taking into consideration the needs of the Department, and whenever possible the seniority and wishes of the employee. Flex leave may be granted on an hourly basis. Any fraction over an hour shall be charged to the next full hour. 6 • • • • B. Vacation 1. Basis for Accrual/Full-Time Employees • • Employees entitled to vacation leave -with -pay shall accrue such leave based on years of continuous service and the number of hours in a normal work week for the position to which they are assigned in accordance with the following schedule: Years of Accrual Continuous Per 40 Hour Service Pay Period 0 but less than 5 3.69 5 but Less than 9 4.30 9 but less than 12 4.92 12 but less than 16 5.53 16 but less than 20 6.15 20 but less than 25 6.77 25 and over 7.38 Effective the first payroll period in July, 1997, the vacation accrual schedule will be modified as follows: Years of Hours in Continuous Normal Work Week Service 40 0 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 2. Limit on Accumulation 3.38 3.99 4.61 5.22 5.84 6.46 7.07 Accrual of vacation days in excess of those earned for two years of continuous service is not permitted past December 31st of each year with the following exception: with approval of the Department Director, an employee may accrue vacation days in excess of the two-year limit provided all such excess accumulation is taken by March 31st of the following year. 3. Method of Use Vacation may not be taken in excess of that actually accrued and in no case, except for entry-level employees, may it be taken prior to the completion of an employee's initial probationary period. Entry level employees may use vacation after the completion of the initial six (6) months of probation. The Department Director shall schedule and approve all vacation leaves for employees taking into consideration the needs of the Department, and whenever possible, the seniority and wishes of the 7 employee. Vacation leave may be granted on an hourly basis C. HolidayLeave Subject to the provisions herein, the following days shall be observed as paid holidays by all employees in permanent positions and other personnel whose work assignments, in the judgment of the Department Director require their presence on the job. For each designated holiday, except the Floating Holidays, such excepted personnel shall receive an equivalent number of hours of paid leave or equivalent pay whichever in the judgment of the Department Director best serves the interest of the Department. Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas New Year's Eve New Year's Day Washington's Birthday Memorial Day Floating Holiday (2 (I ) July 4 1st Monday in Sept. November 11 4th Thurs. in November Last 1/2 of working day December 25 Last 1/2 of working day January 1 3rd Monday in February Last Monday in May For employees birthday or other holiday. Eligibility and use according to Memoranda of Understanding. 1. Holiday pay will be paid only to employees who work their scheduled day before and scheduled day after a holiday or are on authorized leave (e.g., approved vacation, et sick leave, or flex leave that has been reviewed and approved by the Department Director). 2. Employees will be eligible to receive holiday pay only after they have been in active paid status for 30 consecutive days. 3. Newly hired employees will be eligible to receive full pay for scheduled holidays, without a waiting period. 4. "Floating Holiday" eligibility allows for newly hired employees to earn their first floating holiday credit, eight (8) hours, at the same time as they receive their regular appointment status, which allows the successful completion of their probationary period. D. Sick Leave 1 . Basis for Accrual/Full-time Employees Full-time, regular employees shall accrue sick leave based on the number of hours in a normal work week for the position to which they are assigned in accordance with the following schedules: • • • • • • Normal Work Week 40 hours 0 - 1 year 1-2 years 2-3 years 3-4 years 4+ years 4 hours per month 5 hours per month 6 hours per month 7 hours per month 8 hours per month After the 3rd year level, and the 5th year level, employees will be required to maintain the same number of hours as required of other permanent employees. Employees accruing sick leave hours under the above formula and enrolled in the City's Disability Program will be eligible for City -paid Disability Insurance premiums as follows: 50% at 88 hours, 100% at 208 hours. 2. Method of Use a. General Sick leave may not be taken in excess of that actually accrued. Except as noted, an employee serving his/her initial probation period is eligible to use his/her accumulated sick leave provided that if for any reason his/her City employment is terminated prior to the completion of such probationary period, his/her final paycheck shall be reduced by the value of the sick leave he/she has taken. After completion of the initial six (6) months probation period, entry-level employees shall not have used sick leave deducted from their final paycheck if they have maintained a satisfactory or higher performance evaluation rating throughout the probationary period. Sick leave may be granted on an hourly basis. b. Approval Sick leave may be granted only at the direction of or with the approval of the Department Director and only for the purposes defined in Section 703.1 of the Personnel Rules. E. Family Sick Leave Employees are authorized to use five (5) eight (8) hour days of accrued sick leave per calendar year for an illness of a dependent which requires the presence of employee. The eligibility definition for family sick leave shall be defined as an immediate family member or a person for whom you are the primary contributor to their support according to IRS specifications. F. Sick Leave Conversion Employees who at the end of the calendar year have an accrued level of sick leave equal to or greater than the full value of 40 months of accrued sick leave, and who have used six or less days of sick leave during the calendar year will be permitted (only once per year) to convert up to six days of sick leave to either salary or paid vacation at the value of 50% 9 (Maximum value of 3 days per year). Eligible sick leave days converted to cash shall be at the employee's option. Eligible sick leave days converted to paid vacation shall require the approval of the Department Director. G. Bereavement Leave The provisions of the Bereavement Leave Policy applicable to affected employees are as follows: Defined. The necessary absence from duty by an employee having a regular or probationary appointment, because of death or terminal illness in his/her immediate family. For the purposes of this section, immediate family shall mean father, mother, brother, sister, wife, husband, child, father-in-law, mother-in-law and grandparents. Maximum Allowed. Such leave shall be limited to five (5) working days per calendar year per occurrence. Probationary Employees. An employee serving his/her initial probationary period who takes leave under this section who for any reason terminates his/her employment prior to the completion of such probationary period shall have his/her final paycheck reduced by the value of the leave taken. H. Leave Pay -Off For the term of the agreement, NBMSOA members shall receive payment for any accrued leave upon termination at the rate of 109% of their base hourly rate. SECTION 5. MISCELLANEOUS PROVISIONS A. Reductions in Force/Lavoffs. 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 10 • • • • Series; (ii) Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. c. "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part—time, seasonal or 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 Classification(s) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities for subordinates. The City Manager shall determine those Classifications which constitute a Series. e. "Bumping Rights", "Bumping" or "bump" shall mean the right of an employee, based upon seniority within a series, to displace a less senior employee in a lower Classification within the Series. No employee shall have the right to Bump into a Classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience. 2. Procedures. In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: a. Temporary and probationary employees within any Classification shall, in that order, be laid off before permanent employees. b. Employees within a Classification shall be laid off in inverse order of seniority; c. An employee subject to layoff in one Classification shall have the right to Bump a less senior employee in a lower ranking Classification within a Series, provided, however, that the determination of the employee to be terminated from the position of Marine Safety Officer shall be based on seniority within the Series. An employee who has Bumping Rights shall notify the Department Director within seven (7) 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 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. 11 3. Notice. Employees subject to lay—off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any), and accumulated sick leave to the extent permitted by the Personnel Resolution. 4. Re —Employment. Permanent and probationary employees who are laid off shall be placed on a Department re—employment list in reverse order of layoff. The re—employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re—employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re—employment list or the right to remove his or her name from the re—employment list by sending written confirmation to the Human Resources Manager. 5. Severance Pay. Permanent employees who are laid off shall, as of the date of lay—off, receive one week severance pay for each year of continuous service with the City of Newport Beach. B. Health and Fitness Evaluations Per Departmental SOP 105.20. C. Provision for Sun Protection 1. The CITY will provide for one pair of sunglasses per year for each unit employee. The cost allowance will be determined through reference to the cost of a base line pair. 2. The CITY agrees to provide an additional $100.00 per year in sun protection materials for all unit employees. D. Drug Testing The CITY may drug test NBMSOA members on a random and mandatory basis only if requested by the NBMSOA and authorized by the City Council. NBMSOA also agrees to participate in an ad hoc committee to prepare a "for cause" drug testing policy. E. Discipline Any discipline shall be in accordance with Department SOP 500.80. 12 • s • • • • F. Fitness Equipment and Exercise Time At a time, during the life of this MOU, selected by NBMSOA, the City will provide up to $3,000.00 per year towards the purchase of fitness equipment to be used off duty for the intended benefit of NBMSOA for the term of this agreement. The actual equipment to be purchased shall be recommended by NBMSOA, and shall require the final approval of the Fire and Marine Department Director. Unit employees shall be allowed up to three (3) hours per week for physical fitness training. G. Income Reporting Procedure The City will work with NBMSOA to develop a periodic routine report which will summarize all annual accounts including, but not necessarily limited to; deductions, leave balances, savings balances, and compensation reported to PERS. H. Uniform Allowance The City to pay the entire cost of providing MSOA members with each component of the required MSOA uniforms. The required MSOA uniform includes safety shoes, badges and insignias, uniform pants, uniform shirts, uniform jackets and liner, belts, and turnout safety clothing. City shall not be responsible for providing employee with socks, underwear, cap or workout shoes, or other clothing. I. Marine Training Coordinator The Marine Training Coordinator was reclassified to Marine Safety Supervisor; effective February 1, 1996. J. Reopeners The City and Association agree during the term of this agreement to reopen negotiations on the following topics upon the request of either or both parties. I. Long Term Disability Insurance 2. Insurance, if significant changes to insurance plans are made with other employee groups (Cafeteria Plan implementation, etc.). 3. Revised Personnel Rules and Regulations 4. Lifeguard IV classification benefits if these positions are not made full-time through the budget process for the period commencing July 1, 1998. K. Other Terms and Conditions Except as to those matters expressly covered by this MOU, all terms and conditions of employment may be changed or amended after meeting and conferring, in good faith. L. Separability Should any part of this MOU or any provision herein contained be rendered or declared invalid, by reason of any existing or subsequently enacted Legislation, or by decree of a Court of competent jurisdiction, such invalidation of such part or portion of this MOU shall not invalidate the remaining portion hereto, and same shall remain in full force and effect; provided, however, that should the provisions of this MOU relating to pay schedule 13 adjustment increases be declared invalid, CITY agrees to provide alternate benefits agreeable to NBMSOA, to EMPLOYEES to receive the same amount of money as they would have received had such provision not been declared invalid. Executed this 7' , day ofiothr^ , 1998: NEWPORT BEACH MARINE SAFETY OFFICERS ASSOCIATION BY: BY BY: ThEdwar s, Mayor ATTEST: BY: I L`71, n / 14L ` ,L -1. '7 Vonne Harkless, City Clerk APP • VED AS TO FORM: 74 rrt H. Burnham, City Attorney 14 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH MARINE SAFETY OFFICERS ASSOCIATION This Memorandum of Understanding (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE 1. Authorized representatives of the CITY OF NEWPORT BEACH (hereinafter referred to as "CITY") and authorized representatives of the NEWPORT BEACH MARINE SAFETY OFFICERS ASSOCIATION (hereinafter referred to as "NBMSOA") a recognized employee organization, met and conferred, exchanging various proposals concerning wages, hours, fringe benefits and other terms and conditions of employment of employees represented by NBMSOA (hereinafter referred to as "EMPLOYEES") for the period of January 1, 1996 through December 31, 1997. 2. NBMSOA representatives have reached an agreement as to wages, hours and other terms and conditions of employment to apply to all affected EMPLOYEES for the time period defined above. Said EMPLOYEES desire to reduce their agreement to writing, and to present such agreement, in the form of this MOU, to the City Council of the City of Newport Beach for approval. NOW, THEREFORE, this MOU is made and entered into by the parties hereto effective January 1, 1996, subject to approval by the City Council of the City of Newport Beach, as follows: SECTION 1. GENERAL PROVISIONS A. Duration of Memorandum The terms of this MOU are to remain in full force and effect beginning January 1, 1996 through December 31, 1997, and, thereafter from year-to-year, unless within the time frame and in the manner designated in Section 13, Timetable for Submission of Requests of the Employer -Employee Relations Resolution, either party serves written notice upon the other of its desire to make changes in this MOU. B . Conclusiveness of Memorandum This MOU contains all the covenants, stipulations and provisions agreed upon by the parties. Therefore, except for Article II of this agreement, for the life of this MOU, neither party shall be compelled, and each party expressly waives its rights to meet and confer with the other, concerning any issues within the scope of representation, whether or not specifically met and conferred about prior to the execution of this MOU, except by mutual agreement of the parties. No representative of either party has 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. 1 SECTION 2. COMPENSATION A. Pay for Time Worked 1. Salaries and Wages Effective July 1, 1996, the CITY and NBMSOA agree that the salaries for each classification will be set forth in the salary schedule attached hereto as Appendix "A". In addition, unit classifications shall also have base pay increased by a percentage equivalent to that granted Fire Unit employees during the term of this agreement. 2. Retirement Pick -Up Effective July 1, 1996, the City shall pay the July 1st, 1996 increase in the employer retirement rate for all NBMSOA members without any corresponding reduction in salary for any NBMSOA member. 3. Salary Steps Effective July 1, 1996, two additional steps (designated 1 and 2 with existing salary steps redesignated 3 through 8) shall be added to the compensation schedule for each classification represented by NBMSOA. The first salary step (1) shall specify a salary for the classification that is ten percent (10%) lower than the current first step in the salary range. The second additional step shall be 5% lower than the first step in the current salary range. All step advancements shall occur at 12 month intervals. All other existing salary step advancement rules shall apply. 4. Overtime Unit employees shall receive overtime compensation for all hours worked in excess of forty (40) in any work period. Paid time off shall be considered time worked for the purposes of calculating overtime. 5. Educational Incentive Pay Educational incentive pay shall be compensated in the following manner: Years of Total College Compensation Service Semester Units Per Month 2 30 $ 30.00 3 30 30.00 3 60 60.00 3 90 90.00 4 30 30.00 4 60 60.00 4 90 90.00 4 120 120.00 2 6. Salary Study The City agrees to engage an independent consultant to conduct a job audit on Marine Safety classifications. Particular emphasis will be given on comparing responsibilities and appropriate compensation relative to equivalent Firefighter classifications. The audit shall be completed by February 3, 1997 with a copy to the Association. Parties agree to reopen negotiations in January 1997 to meet and confer on appropriate salary levels for unit classifications. 7. Court Standby Pay NBMSOA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off —duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBMSOA members shall, when required to appear in court pursuant to a Subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. 8. Call Out Call out compensation shall be in accordance with the following provisions: a. All emergency call out time shall be calculated to the nearest one quarter (1/4) hour of time worked. b. For forty (40) hour employees, a minimum of two (2) hours (including travel time) of pay at the rate of one and one half (1 1/2) times the employee's regular hourly rate of pay shall be guaranteed for each emergency call out. 9. Night Standby An employee assigned to standby duty for purposes of being on call to handle emergency situations arising at times other than during normal working hours shall be guaranteed two (2 1/2) and a half hours of pay at his regular hourly rate of pay for each calendar day of such standby duty. Effective immediately, all unit employees shall be required to maintain residency within thirty (30) minutes driving time from the Marine Safety Headquarters in order to be eligible for standby duty. Driving time shall be defined as driving the most direct route at the posted speed limit. SECTION 3. FRINGE BENEFITS A. Insurance 1. Health Care Plan 3 The City shall make available to all NBMSOA members the PERS health insurance programs and a second health care plan. The City shall pay the health and dental premium for each NBMSOA member, up to a maximum of $400 per month. 2. Dental The maximum annual benefit shall be $1,000.00. 3. Vision Care A limited vision care plan shall be part of the City's Indemnity Insurance Plan. 4. Medical Advisory Committee City has established a Medical/Dental Information Committee composed of one representative from each employee group and up to three City representatives. The Medical/Dental 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 care issues. The purpose of this Committee is to provide each employee group with information about health care issues and to receive timely input from associations regarding preferred coverage options and levels of coverage. City shall provide information to the Committee in December, February and April of each year during the term of this MOU. 5. Retiree Health The contribution to retiree medical insurance shall be capped at $400 per month contribution with the City contributing a maximum of $267 per month and active employees contributing a maximum of $133 per month. The City and Association agree to participate in a City-wide committee to review further issues involving retiree medical insurance. 6. Medical Opt Out Employees will be allowed to opt out of the City's health plans (medical, dental and vision), and if they choose to do so they shall receive $200 per month. To qualify the employee would be required to supply evidence of alternative medical coverage, and to sign a hold harmless agreement, releasing the City from any responsibility as a health care provider. 7. Long/Short Term Disability Insurance (LTD/STD) The ceiling shall be $7,500/month for non -industrial disability claims. The maximum benefit will be up to $5,000 per month. Disabilities resulting from industrial injuries will be maintained at the current limit of $2,625 per month with a maximum benefit of $1,750 per month. When an employee having five years of continuous service, but less than ten with the CITY is on an approved disability leave of absence (up to a maximum of one-year), the CITY will pay one-third of the cost of the employee's insurance premiums (health, dental, life and disability); for an employee with ten years of continuous service, but less than fifteen, the CITY will pay two-thirds of the cost; the CITY will pay the entire cost for an employee 4 with fifteen or more years of continuous service. 8. Tuition Reimbursement NBMSOA members attending accredited community colleges, colleges, trade schools or universities may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, books, fees or other student expenses for approved job —related courses. Maximum tuition reimbursement for employees shall be $1,000.00 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 Administrative Services Director. SECTION 4. LEAVES A. Flexible Leave Program All employees hired after July 1, 1990 will be included in the Flexible Leave Program. Permanent full-time employees enrolled in the flex leave program will earn leave to the following schedule: Years of continuous Accrual per Annual service pay period/hrs Days 1 but less than 5 5.85 19 5 but less than 9 6.46 21 9 but less than 12 7.08 23 12 but less than 16 8.00 26 16 but less than 20 8.62 28 20 but less than 25 9.23 30 25 and over 9.85 32 Effective the first payroll period in July, 1997, these accrual rates shall be adjusted as follows: Years of continuous service Accrual per Annual pay period/hrs Days 1 but less than 5 5.54 18 5 but less than 9 6.15 20 9 but less than 12 6.77 22 12 but less than 16 7.69 25 16 but less than 20 . 8.31 27 20 but less than 25 8.92 29 25 and over 9.54 31 Employees hired, or rehired, by the City of Newport Beach on or after July 1, 1996, shall accrue flex leave at the following rates: Years of continuous Accrual per 5 Annual service pay period/hrs Days 1 but less than 5 4.92 16 5 but less than 10 5.53 18 10 but less than 15 6.46 21 15 but less than 20 7.08 23 20 and over 8.00 26 During the first six months of employment, new permanent full-time employees shall not accrue paid leave. At the completion of six months of employment six (6) months of accrued flex leave will be placed in the employees account. Note: If an employee becomes sick in the first six months of employment, the City will advance up to six (6) months of potentially accrued flex leave time to be used for illnesses only. If employee terminates employment prior to six months, the City will subtract the pay equivalent of the number of flex leave days advanced from the employees final check. Any flex leave time advanced during the first six months of employment will be subtracted from the six (6) months of accrual placed in the employees account upon completion of six months employment. 1. Limit on Accumulation Employees may accrue flex leave up to an accumulated total equal to seventy eight (78) times the members bi-weekly accrual rate. Any flex leave earned in excess of this level will be paid on an hour for hour basis in cash 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. Effective January 1, 1997, members shall be eligible for flex leave spillover pay only if they have utilized at least eighty (80) hours of flex leave (forty (40) hours for calendar year 1996 only) 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 spillover pay and shall not be entitled to accrue flex leave in excess of the flex leave accrual threshold. 2. Method of Use Flex leave may not be taken in excess of that actually accrued and in no case, except for illness, may it be taken prior to the completion of an employee's initial probationary period. The Department Director shall approve all requests for flex leave taking into consideration the needs of the Department, and whenever possible the seniority and wishes of the employee. Flex leave may be granted on an hourly basis. Any fraction over an hour shall be charged to the next full hour. 6 B . Vacation 1. Basis for Accrual/Full-Time Employees Employees entitled to vacation leave -with -pay shall accrue such leave based on years of continuous service and the number of hours in a normal work week for the position to which they are assigned in accordance with the following schedule: Years of Accrual Continuous Per 40 Hour Service Pay Period 0 but less than 5 3.69 5 but less than 9 4.30 9 but less than 12 4.92 12 but less than 16 5.53 16 but less than 20 6.15 20 but less than 25 6.77 25 and over 7.38 Effective the first payroll period in July, 1997, the vacation accrual schedule will be modified as follows: Years of Hours in Continuous Normal Work Week Service 40 0 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 2. Limit on Accumulation 3.38 3.99 4.61 5.22 5.84 6.46 7.07 Accrual of vacation days in excess of those earned for two years of continuous service is not permitted past December 31st of each year with the following exception: with approval of the Department Director, an employee may accrue vacation days in excess of the two-year limit provided all such excess accumulation is taken by March 31 st of the following year. 3. Method of Use Vacation may not be taken in excess of that actually accrued and in no case, except for entry-level employees, may it be taken prior to the completion of an employee's initial probationary period. Entry level employees may use vacation after the completion of the initial six (6) months of probation. The Department Director shall schedule and approve all vacation leaves for employees taking into consideration the needs of the Department, and whenever possible, the seniority and wishes of the employee. Vacation leave may be granted on an hourly basis. 7 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 Holidays, such excepted personnel shall receive an equivalent number of hours of paid leave or equivalent pay whichever in the judgment of the Department Director best serves the interest of the Department. Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas New Year's Eve New Year's Day Washington's Birthday Memorial Day Floating Holiday (2) July 4 1st Monday in Sept. November 11 4th Thurs. in November Last 1/2 of working day December 25 Last 1/2 of working day January 1 3rd Monday in February Last Monday in May For employees birthday or other holiday. Eligibility and use according to Memoranda of Understanding. Effective July (1st payroll period), 1996, one floating holiday shall be eliminated (leaving one floating holiday). Holiday pay will be paid only to employees who work their scheduled day before and scheduled day after a holiday or are on authorized leave (e.g., approved vacation or sick leave that has been reviewed and approved by the Department Director). 2. Employees will be eligible to receive holiday pay only after they have been in active paid status for 30 consecutive days. 3. Newly hired employees will be eligible to receive full pay for scheduled holidays, without a waiting period. 4. "Floating Holiday" eligibility allows for newly hired employees to earn their first floating holiday credit, eight (8) hours, at the same time as they receive their regular appointment status, which allows the successful completion of their probationary period. D. Sick Leave 1. Basis for Accrual/Full-time Employees Full-time, regular employees shall accrue sick leave based on the number of hours in a normal work week for the position to which they are assigned in accordance with the following schedules: 8 0 - 1 year 1-2 years 2-3 years 3-4 years 4+ years Normal Work Week 40 hours 4 hours per month 5 hours per month 6 hours per month 7 hours per month 8 hours per month After the 3rd year level, and the 5th year level, employees will be required to maintain the same number of hours as required of other permanent employees. Employees accruing sick leave hours under the above formula and enrolled in the City's Disability Program will be eligible for City -paid Disability Insurance premiums as follows: 50% at 88 hours, 100% at 208 hours. 2. Method of Use a. General Sick leave may not be taken in excess of that actually accrued. Except as noted, an employee serving his/her initial probation period is eligible to use his/her accumulated sick leave provided that if for any reason his/her City employment is terminated prior to the completion of such probationary period, his/her final paycheck shall be reduced by the value of the sick leave he/she has taken. After completion of the initial six (6) months probation period, entry-level employees shall not have used sick leave deducted from their final paycheck if they have maintained a satisfactory or higher performance evaluation rating throughout the probationary period. Sick leave may be granted on an hourly basis. b . Approval Sick leave may be granted only at the direction of or with the approval of the Department Director and only for the purposes defined in Section 703.1 of the Personnel Rules. E. Family Sick Leave Employees are authorized to use five (5) eight (8) hour days of accrued sick leave per calendar year for an illness of a dependent which requires the presence of employee. The eligibility definition for family sick leave shall be defined as an immediate family member or a person for whom you are the primary contributor to their support according to IRS specifications. F . Sick Leave Conversion Employees who at the end of the calendar year have an accrued level of sick leave equal to or greater than the full value of 40 months of accrued sick leave, and who have used six or less days of sick leave during the calendar year will be permitted (only once per year) to 9 convert up to six days of sick leave to either salary or paid vacation at the value of 50% (Maximum value of 3 days per year). Eligible sick leave days converted to cash shall be at the employee's option. Eligible sick leave days converted to paid vacation shall require the approval of the Department Director. G. Bereavement Leave The provisions of the Bereavement Leave Policy applicable to affected employees are as follows: Defined. The necessary absence from duty by an employee having a regular or probationary appointment, because of death or terminal illness in his/her immediate family. For the purposes of this section, immediate family shall mean father, mother, brother, sister, wife, husband, child, father-in-law and mother-in-law. Maximum Allowed. Such leave shall be limited to five (5) working days per calendar year. Probationary Employees. An employee serving his/her initial probationary period who takes leave under this section who for any reason terminates his/her employment prior to the completion of such probationary period shall have his/her final paycheck reduced by the value of the leave taken. H. Leave Pay -Off For the term of the agreement, NBMSOA members shall receive payment for any accrued leave upon termination at the rate of 109% of their base hourly rate. 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 10 Series; (ii) Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. c. "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part—time, seasonal or 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 Classification(s) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities for subordinates. The City Manager shall determine those Classifications which constitute a Series. e. "Bumping Rights", "Bumping" or "bump" shall mean the right of an employee, based upon seniority within a series, to displace a less senior employee in a lower Classification within the Series. No employee shall have the right to Bump into a Classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience. 2. Procedures. In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: a. Temporary and probationary employees within any Classification shall, in that order, be laid off before permanent employees. b. Employees within a Classification shall be laid off in inverse order of seniority; c. An employee subject to layoff in one Classification shall have the right to Bump a less senior employee in a lower ranking Classification within a Series, provided, however, that the determination of the employee to be terminated from the position of Marine Safety Officer shall be based on seniority within the Series. An employee who has Bumping Rights shall notify the Department Director within seven (7) 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 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. 11 3. Notice. Employees subject to lay—off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any), and accumulated sick leave to the extent permitted by the Personnel Resolution. 4. Re —Employment. Permanent and probationary employees who are laid off shall be placed on a Department re—employment list in reverse order of layoff. The re—employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re—employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re—employment list or the right to remove his or her name from the re—employment list by sending written confirmation to the Human Resources Manager. 5. Severance Pay. Permanent employees who are laid off shall, as of the date of lay—off, receive one week severance pay for each year of continuous service with the City of Newport Beach. B . Health and Fitness Evaluations Per Departmental SOP 105.20. C . Provision for Sun Protection 1. The CITY will provide for one pair of sunglasses per year. The cost allowance will be determined through reference to the cost of a base line pair. 2. The CITY agrees to provide an additional $100.00 per year in sun protection materials for each regular full-time Marine Safety Officer (MSO). D. Drug Testing The CITY may drug test NBMSOA members on a random and mandatory basis only if requested by the NBMSOA and authorized by the City Council. NBMSOA also agrees to participate in an ad hoc committee to prepare a "for cause" drug testing policy. E. Discipline Any discipline shall be in accordance with Department SOP 500.80. 12 F . Fitness Equipment and Exercise Time At a time, during the life of this MOU, selected by NBMSOA, the City will provide up to $3,000.00 per year towards the purchase of fitness equipment to be used off duty for the intended benefit of NBMSOA for the term of this agreement. The actual equipment to be purchased shall be recommended by NBMSOA, and shall require the final approval of the Fire and Marine Department Director. Unit employees shall be allowed up to three (3) hours per week for physical fitness training. G. Income Reporting Procedure The City will work with NBMSOA to develop a periodic routine report which will summarize all annual accounts including, but not necessarily limited to; deductions, leave balances, savings balances, and compensation reported to PERS. H . Uniform Allowance The City to pay the entire cost of providing MSOA members with each component of the required MSOA uniforms. The required MSOA uniform includes safety shoes, badges and insignias, uniform pants, uniform shirts, uniform jackets and liner, belts, and turnout safety clothing. City shall not be responsible for providing employee with socks, underwear, cap or workout shoes, or other clothing. I. Cost Reduction The Association has agreed to City cost reduction proposals based on the following: 1. A joint committee shall be convened to review the supplemental pension proposals. 2. This process shall include a calculation of the cost savings achieved through the Associations acceptance of City proposals. 3. Agreed upon cost savings shall be taken into consideration when reviewing the supplemental pension. 4. If Police and the Police and/or Fire Units agree on a supplemental pension, the parties shall automatically reopen negotiations on that subject. 5. If the committee reviewing the supplemental pension issues does not reach an agreement by June 30, 1997, the Association shall have the option of having this agreement expire September 30, 1997. J . Marine Training Coordinator The City and Association agree that the Marine Training Coordinator classification shall be a part of the Marine Training bargaining unit. Upon approval from PERS, the classification shall receive safety retirement. K . Other Terms and Conditions Except as to those matters expressly covered by this MOU, all terms and conditions of employment may be changed or amended after meeting and conferring, in good faith. 13 L. Separability Should any part of this MOU or any provision herein contained be rendered or declared invalid, by reason of any existing or subsequently enacted Legislation, or by decree of a Court of competent jurisdiction, such invalidation of such part or portion of this MOU shall not invalidate the remaining portion hereto, and same shall remain in full force and effect; provided, however, that should the provisions of this MOU relating to pay schedule adjustment increases be declared invalid, CITY agrees to provide alternate benefits agreeable to NBMSOA, to EMPLOYEES to receive the same amount of money as they would have received had such provision not been declared invalid. Executed this ,S , day of �'i^crgyiy , 1997: NEWPORT BEACH MARINE SAFETY OFFICJRS ASSOCIATION BY: BY: BY: ATTEST: ITY OF NEWPORT BEACH BY: l/V�"� AJ(�-1.6, LaVonne Harkless, City Clerk APP,,VED AS TO FORM: obert H. Burnham, City Attorney 14 Mayor