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HomeMy WebLinkAbout2014-3 - Adopting a Memorandum of Understanding Between the City of Newport Beach and the Part Time Employees Association of Newport BeachRESOLUTION NO. 2014 -3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADOPTING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE PART TIME EMPLOYEES ASSOCIATION OF NEWPORT BEACH WHEREAS, the City Council of the City of Newport Beach previously adopted Resolution No. 2001 -50, the "Employer- Employee Relations Resolution," to promote improved relations and communication between the City of Newport Beach and its employee associations; and WHEREAS, the Part Time Employees Association of Newport Beach was duly elected and recognized by the City of Newport Beach as the exclusive representative for certain part -time classifications on September 3, 2013; and WHEREAS, representatives from the City of Newport Beach and representatives from the Part Time Employees Association of Newport Beach have met and conferred in good faith over wages, benefits, and other conditions of employment for employees represented by PTEANB and agreed to the terms of an initial Memorandum of Understanding; and WHEREAS, the City Council of the City of Newport Beach desires to establish an initial Memorandum of Understanding with the Part Time Employees Association of Newport Beach. NOW, THEREFORE, the City Council of the City of Newport Beach does RESOLVE as follows: Section 1. Wages, hours, fringe benefits and other terms and conditions of employment of employees represented by Part Time Employees Association of Newport Beach shah be provided in accordance with the provisions of the attached Memorandum of Understanding (Exhibit A). Section 2. The term of the Memorandum of Understanding shall be for approximately twenty -two months, commencing retroactively to September 3, 2013 and will remain in full force and effect through June 30, 2015. Adopted this 28th day of January, 2014. Rush N. Hill, 11, Mayor ATTEST: , 1. Brown City Clerk 1:01i117fF-1 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE PART TIME EMPLOYEES ASSOCIATION OF NEWPORT BEACH This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU ") is entered into with reference to the following: PREAMBLE The Part Time Employees Association of Newport Beach ( "PTEANB" or "Association "), a recognized employee organization, and the City of Newport Beach ( "City "), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment. 2. PTEANB representatives and City representatives have reached an agreement as to wages, hours and other terms and conditions of employment as provided in this Memorandum of Understanding (MOU) for the period from September 3, 2013 through June 30, 2015. 3. This MOU, upon approval by PTEANB and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. Except as limited herein, the City retains all management rights as set forth in the Meyers - Milias -Brown Act and Resolution No. 2001 -50. SECTION 1. — General Provisions A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers - Milias -Brown Act of the State of California and the provisions of the Employer- Employee Relations Resolution No. 2001 -50, the City acknowledges that PTEANB is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for part-time employees in those classifications specified in Exhibit "A" and meeting the following recognition requirements. Recognition will continue for all employees recognized as of date of adoption of this MOU; thereafter, employees will become eligible for recognition after working a cumulative total of 1,000 hours in any fiscal year. 2. Once eligible for recognition, employees remain covered under the MOU regardless of the number of hours subsequently worked. 3. Employees meeting the criteria for the contract year commencing September 3, 2013 are listed in Exhibit A. B. Duration of Memorandum Except as specifically provided otherwise, any ordinance, resolution or action of the City Council necessary to implement this MOU shall be considered effective as of September 3, 2013. This MOU shall remain in full force and effect until June 30, 2015, and the terms and conditions of this MOU shall continue after the date of expiration of this MOU in the event the parties have not yet agreed upon a successor MOU. The terms and conditions of this MOU shall prevail over conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions and policies of the City of Newport Beach, and federal and state statutes, rules and regulations which either specifically provide that agreements such as this prevail, confer rights which may be waived by any collective bargaining agreement, or are, pursuant to decisional or statutory law, superseded by the provisions. of an agreement similar to this MOU. C. Employee Data and Access Upon request, each July the City shall provide PTEANB a regular list of all unit members including name, department, and job title. D. Conclusiveness This MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled to meet and confer concerning any issue contained herein. E. Modifications Any agreement, alteration, understanding, variation, or waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. F. Subcontracting As provided in the Employer- Employee Relations Resolution No. 2001 -50, the City shall determine the manner in which City services are to be provided, including whether the City should provide services directly or contract out work, including work that is currently being performed by Association members. In the event the City introduces a plan to outsource services to achieve greater efficiency and /or cost savings, and upon request by the Association, the City shall meet and confer with Association representatives to discuss the impact of the City's decision to contract out work, prior to contracting out such services. The City shall retain sole authority to decide whether or not to contract out work, including work that is currently being performed by Association members. This provision shall not limit the City's authority to enter into such an agreement for any City services. G. Savin s Should any part of this MOU be rendered or declared illegal or invalid by legislation, decree of court of competent jurisdiction or other established governmental administrative tribunal, such invalidation shall not affect the remaining portions of this MOU. SECTION 2. — Compensation A. Pay for Time Worked Salary Adiustments Effective the pay period including January 1, 2014, employee base salaries will be increased by 1.45 %. Effective the pay period including January 1, 2015, employee base salaries will be increased by 1.45 %. Effective the pay period including June 30, 2015, employee base salaries will be increased by 1.45 %. Notwithstanding the above adjustments, the top step pay rate of Police Reserve Officer shall be, at a minimum, equal to Step 1 of Police Officer. 2. Compensation for Overtime - Normal Overtime Normal overtime is defined as any scheduled hours worked in excess of the basic work week. For the purposes of this section, the basic work week is 40 hours, or as determined by the Department Director and approved by the City Manager which occurs between a fixed and regularly recurring period of 168 hours - 7 consecutive 24 hour periods - beginning at 0001 on Saturday and ending at midnight the following Friday. Definition of Hours Worked - Hours worked are defined as hours which employees are required to be performing their regular duties or other duties assigned by the City. 3 Normal overtime for all non - exempt employees shall be paid at one -and- one -half (1 -112) times the regular rate of pay, as provided under City policy and in compliance with applicable State and Federal laws or regulations. 3. Assignment Pay (New) Night Shift Differential: Unit members assigned to the Police Department who are scheduled to work shall be eligible for night shift differential.of $1.50 per hour, payable for each regularly scheduled hour worked between 6:00 p.m. and 6 :00 a.m. Additional time worked beyond 6:00 p.m. as an extension of an assigned day shift shall not qualify an employee for night shift differential. The differential pay is paid only for hours actually worked, Matron Pay: Female Police Department employees assigned matron duties shall receive one (1) hour straight time pay for each shift matron duties are performed. The employee must work a minimum shift of eight (8) hours to be eligible. Bilingual Pay: Employees certified as bilingual (Spanish) shall be eligible to receive seventy -five cents ($0.75) per hour In bilingual pay. The certification process will confirm the employee is fluent at the appropriate conversational level in speaking Spanish, Employees certified shall receive bilingual pay the first full pay period following certification. Additional languages may be considered upon Department Director determination of the benefit to the City and upon approval by the Human Resources Director. SECTION 3. — Fringe Benefits A. Cafeteria Plan The City has implemented an IRS qualified Cafeteria Plan. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical insurance as program rules allow. Employees shall be allowed to change coverages in accordance with plan rules and during regular open enrollment periods, For employees enrolled in medical plans, the cafeteria amount is inclusive of the PERS designated minimum medical insurance contribution, Unused Cafeteria Plan funds shall be payable to the employee as taxable cash back. Effective September 3, 2013, the City shall contribute $3.75 per hour worked, to a maximum of 64 hours per pay period. Employees not enrolling in medical coverage must provide proof of other group coverage in order to receive the cafeteria benefit. G! Effective the pay period including January 1, 2014, the City's contribution toward the cafeteria benefit will increase by fifty cents ($0.50) per hour worked, to $4.25 per hour, up to 64 hours per pay period. The maximum cafeteria allowance provided to employees who execute an "opt -out" agreement will remain at $3.75 per hour, effective January 2014. For employees hired after adoption of this MOU, and who do not enroll in a medical plan, there will be no cafeteria benefit. Effective the pay period including January 1, 2015, for employees enrolled in a City medical plan, the City`s contribution toward the cafeteria benefit will increase by twenty -five cents ($0.25) per hour worked, to $4.50 per hour, to a maximum of 64 hours per pay period. The City and Association acknowledge that the City's contribution to the cafeteria benefit meets the intent of the "affordability" requirements under the Affordable Care Act (ACA) for qualified employees. The City will continue to assess the cafeteria benefit to confirm ongoing compliance with the ACA. In the event the City deems the benefit level may not meet the affordability threshold, the City and PTEANB will meet to discuss compliance options. B. Pay for Leave The City implemented a Flex Leave program in which employees receive pay for leave credits for each hour worked at the rate of .04 hours for each hour worked. Credits will be placed in an individual Flex Leave bank for each employee and wilt be subject to being paid out upon b €- weekly request, only to the extent that an employee has earned such credits. The maximum accrual of pay for leave hours will be one hundred (100) hours. Once an employee reaches the maximum accrual rate, Flex Leave will stop accruing until the employee's balance falls below 100 hours. C. Jury Du PTEANB employees legally required to serve as a juror, and who provide appropriate documentation, shall be eligible for leave with pay for jury service occurring only during the employee's regularly scheduled shift, and as provided in the City of Newport Beach Employee Policy Manual. D. Retirement Benefit PERS Retirement The City contracts with the California Public Employees Retirement System (PERS) to provide retirement benefits for its Miscellaneous employees. Pursuant to prior agreements and state mandated reform, the City has implemented first, second and third tier retirement benefits: 5 Tier 1: For employees hired by the City on or before November 23, 2012, the retirement formula shall be the 2.5%(o) 55 calculated on the basis of the single highest year. Tier 2: For employees first hired by the City between November 24 and December 31, 2012, or hired on or after January 1, 2013 and are current members of the retirement system, as defined in Public Employees Pension Reform Act, the retirement formula shall be 2%(a)60 calculated on the average 36 highest months' salary. Tier 3; For employees first eligible for the PERS benefit, on or after January 1, 2013, and who do not meet the Tier 2 criteria, the retirement formula shall be 2%(a)62 calculated on the average 36 highest months' salary. 2. Employee Contributions Effective September 3, 2013, PTEANB employees will continue to pay the statutory normal member contribution. Employee retirement contributions referenced below that are in addition to the normal PIERS Member Contribution will be made on a pre -tax basis through payroll deduction, to the extent allowable by the government tax code. It is recognized that these payments will not be reported to PIERS as contributions toward either the member or employer rate and fall outside the scope of "cost - sharing," as provided under GC Section 20516 (f). Tier 1 Employees: Effective the pay period including June 30, 2014, Tier 1 employees shall contribute 8% toward the normal Member Contribution plus an additional 1.45% of pay toward retirement costs pursuant to Government Code Section 20516 (f), for a total of 9.45 %. Effective the pay period including January 1, 2015, Tier 1 employees shall contribute an additional 1.45% of pay toward retirement costs for a total of 10.90 %. Effective the pay period including June 30, 2015, Tier 1 employees shall contribute an additional 1.45% of pay toward retirement costs, for a total employee contribution of 12.35 %. Tier 2 Employees; Effective the pay period including June 30, 2014, Tier 2 employees shall contribute 7% toward the normal Member Contribution plus an additional 2.45% of pay toward retirement costs pursuant to Government Code Section 20516 (f), for a total of 9.45 %. Effective the pay period including January 1, 2015, Tier 2 employees shall contribute an additional 1.45% of pay toward retirement costs for a total of 10.90 %; and effective the pay period including June 30, 2015, Tier 2 employees shall contribute an additional 1.45% of pay toward retirement costs, for a total employee contribution of 12.35 %. M Tier 3 Employees: The minimum statutory employee contribution for employees in Tier 3 is subject to the provisions of the Public Employees Pension Reform Act of 2012 (PEPRA) and equals 50% of the "total normal cost." For FYI 3-14, the employee rate is 6.25% and is subject to change based on annual PERS actuarial valuations. Effective the pay period including June 30, 2014, Tier 3 employees shall contribute 6.25% toward the member contribution plus an additional 3.20% of pay toward retirement costs pursuant to Government Code Section 20516(f), for a total of 9.45 %. Effective the pay period Including January 1, 2015, Tier 3 employees shall contribute an additional 1.45% of pay toward retirement costs for a total of 10.90 %; and effective the pay period including June 30, 2015, Tier 3 employees shall contribute an additional 1.45% of pay toward retirement costs, for a total employee contribution of 12.35 %. The City contracts with PERS for the 4th Level 1959 Survivors Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military Service Credit, 2% Cost of Living Adjustment and the pre - retirement option settlement 2 death benefit (Section 21548). 3. PARS Retirement PTEANB employees not enrolled in the PERS retirement system will participate in the Public Agency Retirement Services (PARS) program. The City will make a matching 3.75% contribution to PARS on behalf of the employees. Employees in the classifications Police Cadet and Police Reserve Officer are excluded from membership in PERS, as provided in the contract between the City of Newport Beach and the Board of Administration of the Public Employees' Retirement System. E. Other Benefits Not Provided No other fringe benefits are provided to employees in the Part Time Unit. SECTION 4. - Miscellaneous. A. Direct Deposit All employees shall participate in the payroll direct deposit system. B. Citywide Classification and Compensation Study 7 Concurrent with the adoption of this MOU, the City is undergoing a comprehensive study of its classification and compensation structure. The City agrees to meet with the Association during this study to discuss preliminary findings or recommendations. The parties agree that during the term of this MOU the City may implement the findings and recommendations of this study regarding the compensation and classification of employees. Prior to adopting or implementing final recommendations, the City will meet and confer with the Association to discuss the possible impact on its members and for the purpose of discussing pay of part -time positions in full -time classifications. Executed this day of , 2014: ATTEST: 0 PART TIME EMPLOYEES ASSOCIATION OF NEWPORT BEACH 51 Amy Mayfield, President By: Katherine Mielke, Vice President By: Cherall Weiss, Secretary/Treasurer CITY OF NEWPORT BEACH Leilani Brown, City Clerk A ro Harp, City Atto y Rush N. Hill, it, Mayor 0 STATE OF CALIFORNIA } COUNTY OF ORANGE CITY OF NEWPORT BEACH } I, Leilani L Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing resolution, being Resolution No. 2014 -3 was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 28th day of January, 2014, and that the same was so passed and adopted by the following vote, to wit: Ayes: Gardner, Petros, Selich, Curry, Henn, Daigle, Mayor Hill Nays: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 2e day of January, 2014. r A1 Nk AM ity Clerk � C Newport Beach, California (Seal)