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HomeMy WebLinkAbout05 - MOU with Police Employees & Police Management AssociationsCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 5 September 13, 2005 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Sharon Wood, Assistant City Manager 949 - 644 -3222, swood @city.newport- beach.ca.us SUBJECT: Memoranda of Understanding with Police Employees and Police Management Associations RECOMMENDATION: Approve the Memoranda of Understanding (MOUs) with the Police Employees Association (PEA) and Police Management Association (PMA) for the two -year period of January 2005 through December 2006. DISCUSSION: Background: The MOUs with our two Police associations expired on December 31, 2004. The City's negotiating team knew, from our discussions with the associations in early 2004 to extend the previous MOU, that the single most important issue for these employee groups was an improved retiree medical program. Although staff had developed a draft of a new plan by early 2005, the complexity of the subject resulted in our not having a proposal well enough developed to present to the employees and begin negotiations until November 2004. Also due to the complexity of the retiree medical issue, it took time for the associations to understand the proposed program, become comfortable with it, and negotiate the final details of it, as well as other issues in the MOU. We have finally concluded the negotiations and reached tentative agreement with both associations, pursuant to direction from the City Council, and their members have ratified the agreements. Summary of MOU Provisions 1. Term: 2 years MOUs with Police Employees and Management Associations September 13, 2005 Page 2 2. Salary Adjustments: • 3% January 2005 • 3% January 2006, plus 1% for contribution to retiree medical Nearby cities, including Irvine, Costa Mesa and Huntington Beach, have increased police salaries and Newport Beach had fallen behind the market. With current vacancies in our Police Department resulting in the Department being down 20 officers, and the competition among agencies for well qualified candidates, it is important for Newport Beach to stay current with the market. 3. Modifications to Master Officer Recognition Program: • Eliminate requirement for 6 months in regular patrol before receiving another specialty assignment • Count two years in regular patrol as one year in specialty assignment One of the ways the Police Department is maintaining service levels despite vacancies is to hire retired Officers periodically. These individuals are not attracted by regular patrol assignments, but agree to help the Department if they can work in specialty assignments. This results in fewer specialty assignments being available for full -time Officers, and they are unable to reach the Master Officer levels as quickly as normal. These changes will restore the progression through the Master Officer program and help to retain our Officers. 4. Flex Leave: Eliminate "2nd tier" When the City was experiencing budget challenges in the 1990's as a result of ERAF I, the employee associations agreed to the reduction of flex leave accrual rates for employees hired after September 1, 1997. The lower level of leave accrual has become a recruitment problem, and has affected morale when two employees with similar experience and tenure have significantly different amounts of time off. This change would equalize flex leave accrual rates, prospectively only; it would not result in adding accrued leave for any period prior to the January 1, 2005 effective date of this MOU. 5. Health Benefit: ■ $674 per month January 2005 • $724 per month January 2006 The January 2005 increase will bring the Police employees to the same level as the non - safety employees, and the increase of $50 in the following year addresses the ongoing increases in medical insurance costs. I MOUs with Police Employees and Management Associations September 13, 2005 Page 3 6. Retiree Medical Benefit: Effective December 31, 2005, the City will provide a new retiree medical program. The City now provides a defined benefit program, with the City, active employees and retirees sharing the costs. Several years ago, we addressed the unfunded liability of this program, and the City and employees agreed to make additional contributions to begin funding that liability. We have made progress, but as health care costs have increased, PEA and PMA grew concerned about the adequacy of the $400 per month cap on the benefit as well as ongoing contributions to the City's liability for the program. The new program is a defined contribution program, through which each employee will have an account to be used for his or her medical needs during retirement. Contributions to the account will be made by both the employees and the City, and invested as determined by each employee. Employees who are closer to retirement would not be able to accumulate a sufficient amount in their accounts, so the program also provides for some employees to remain on the existing plan and the MOUs include conversion thresholds. 7. Tuition Reimbursement: Similar to flex leave, there have been two levels of tuition reimbursement for PEA employees, depending on date of hire. The proposed MOUs eliminate this difference, and provide the same benefit for sworn employees in both PEA and PMA ($1,000 per year). Non -sworn employees will continue to be eligible for a higher amount ($1,400 per year) because they do not receive scholastic achievement pay. 8. Retirement Benefit: Sworn employees in both associations received an enhancement in their retirement benefit (3 % @50) in December 2002, when they also agreed to a lower salary increase than non -sworn employees received. The non -sworn employees are now interested in the enhanced retirement programs that are available from PERS for non - safety ( "miscellaneous ") employees. The PEA MOU provides that the parties may reopen negotiations to discuss retirement after the City receives its annual actuarial valuation and rate information. Any change must be cost neutral to the City. 3 MOUs with Police Employees and Management Associations September 13, 2005 Page 4 Funding Availability: Staff estimates the cost of implementing these MOUs to be approximately $500,000 for the first six months, funds for which were available in the 2004 -05 budget. For fiscal year 2005 -06, the cost is estimated to be $1,273,000. Funds for these salary and benefit increases are included in the 2005 -06 budget. Submitted by: Sharon Wood Assistant City Manager Attachments: 1. Memorandum of Understanding between the City of Newport Beach and the Newport Beach Police Employees Association 2. Memorandum of Understanding between the City of Newport Beach and the Newport Beach Police Management Association H MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH POLICE EMPLOYEES ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU ") is entered into with reference to the following: PREAMBLE 1. The Newport Beach Police Employees Association ( "NBPEA "), 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. NBPEA representatives and City representatives have reached a tentative agreement as to wages, hours and other terms and conditions of employment for the period from January 1, 2005 to December 31, 2006 and this tentative agreement has been embodied in this MOU which has been executed concurrently. 3. This MOU, upon approval by NBPEA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. SECTION 1. — General Provisions A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers- Milias- Brown Act of the State of California and the provisions of the Employer's /Employee Labor Relations Resolution No. 7173, the City acknowledges that NBPEA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in those classifications specified in Exhibit "A" or as appropriately modified in accordance with the Employer /Employee Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBPEA. B. Duration of Memorandum -1- I I . Except as specifically provided otherwise, any ordinance, resolution or action of the City Council necessary to implement this MOU shall be considered effective as of January 1, 2005. This MOU shall remain in full force and effect until December 31, 2006, and the provisions of this MOU shall continue after the date of expiration of this MOU in the event the parties are meeting and conferring on a successor MOU. 2. The terms and conditions of this MOU shall prevail over conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions and policies of the City of Newport Beach, and federal and state statutes, rules and regulations which either specifically provide that agreements such as this prevail, confer rights which may be waived by any collective bargaining agreement, or are, pursuant to decisional or statutory law, superseded by the provisions of an agreement similar to this MOU. C. Release Time 1. NBPEA members shall be allowed to participate in the following activities during scheduled working hours without loss of pay ('Release Time "): a. attendance at off -site meetings, conferences, seminars or workshops related to matters within the scope of representation; b. to prepare for scheduled meetings between the City and NBPEA during the meet and confer process. C. i. to travel to, and attend scheduled meetings between the City and NBPEA during the meet and confer process. ii. to travel to and attend scheduled grievance and disciplinary hearings. iii. to meet, for up to one hour, with their representative prior to a hearing described in subsection C.c.ii above. 2. NBPEA shall designate certain members as those members entitled to release time. In no event shall any one designate be entitled to use more than 100 hours of Release Time (exclusive of actual time spent meeting with City representatives on matters -2- 11 relating to the scope of representation), within any calendar year. Designates must give reasonable advance notice to, and obtain permission from, their supervisor prior to use of release time, or, prior to adjusting work hours per subsection C.2.a. Requests for release time shall be granted by the supervisor unless there are specific circumstances that require the designate to remain on duty. Designates shall, to the maximum extent feasible, receive shift assignments compatible with participation in the meet and confer process. a. Any NBPEA negotiating team member may request and shall (subject to the approval process above) be granted flex work hours on any scheduled work day during which the negotiating team member is to attend a meet and confer session. Employees may flex start/finish time up to two (2) hours. 3. City grants NBPEA members the right to engage in the activities described in subsection 1(c) at any time without any reduction to City — provided Release Time or to any Release Time bank created pursuant to subsection C.S. 4. City Grants NBPEA 250 hours of Release Time per calendar year to engage in the activities described in subsection C.1.a and 1.b. (City — provided Release Time.) NBPEA may accumulate up to 300 hours of City — provided Release Time. 5. In addition to City— provided Release Time and Release Time provided pursuant to subsection C.3, NBPEA members may contribute up to two hours of earned compensatory time off ( "CTO ") to an NBPEA Release Time Bank. Members may contribute earned CTO only during the period from July 1 through August 15th during any calendar year. However, members shall not have the right to contribute CTO to the NBPEA Release Time bank if NBPEA has accumulated more than 600 hours of total Release Time. Any NBPEA member who contributes CTO to the Release Time Bank gives up any right to usage of, or payment for, the contributed CTO. Contributions may be made only in hourly increments. Contributions shall be on forms prepared by the City which shall then be submitted to the appropriate department employee. City shall advise NBPEA as to the balance of hours in the Release Time Bank upon request. For purposes of this subparagraph only, the term "compensatory time off or CTO" includes accrued flex leave, accrued vacation leave, and accrued holiday time. -3- 6. There is no entitlement to release time for any matter not set forth above. D. Scope 1. All present written rules and current established practices and employees' rights, privileges and benefits that are within the scope of representation shall remain in full force and effect during the term of this MOU unless specifically amended by the provisions of this MOU. 2. Pursuant to this MOU, the City reserves and retains all of its inherent exclusive and non —exclusive managerial rights, powers, functions and authorities ( "Management Rights ") as set forth in Resolution No. 7173. Management Rights include, but are not limited to, the following: a. the determination of the purposes and functions of the Police Department; b. the establishment of standards of service; C. to assign work to employees as deemed appropriate; d. the direction and supervision of its employees; e. the discipline of employees; f. the power to relieve employees from duty for lack of work or other legitimate reasons; g. to maintain the efficiency of operations; h. to determine the methods, means and personnel by which Police Department operations are to be conducted; i. the right to take all necessary actions to fulfill the Department's responsibilities in the event of an emergency; j. the exercise of complete control and discretion over the manner of organization, and the appropriate technology, best suited to the performance of departmental functions. k. The practical consequences of a Management Rights decision on wages, hours, and other terms and conditions of employment shall be subject to the grievance procedures. -4- lI E. Conclusiveness This MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled, and each party expressly waives its rights to request the other to meet and confer concerning any issue relating primarily to matters within the scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement which is not embodied in this MOU. This section shall not be construed to prevent the Newport Beach Police Department from giving notice to the Association and affording the Association the opportunity to meet and confer on the impact of policy changes or the exercise of management rights. However, the terms of this MOU may not be modified through the impact negotiations process; except by mutual agreement. F. Modifications Any agreement, alteration, understanding, variation, or waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. G. Bulletin Boards Space shall be provided on bulletin boards within the Police Department at their present location for the posting of notices and bulletins relating to NBPEA business, meetings, or events. All materials posted on bulletins boards shall indicate the name of the organization responsible. Material posted shall not contain personal attacks on any City official or employee, any material which constitutes harassment, discrimination or retaliation on the basis of race, gender, ethnicity, religion or other statutorily or constitutionally impermissible basis, or any pornographic or obscene material. H. No Strike The parties recognize their mutual responsibility to provide the citizens of Newport Beach with uninterrupted municipal services and, therefore, for the term of this MOU, the parties agree not to conduct concerted strike, work slowdown, sick out, withholding of services, or lockout activities. -s- I I. Savinqs 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. J. Impasse In the event of an impasse (the failure to agree on a new MOU after the express term of the existing MOU has expired), the parties may agree on mediation pursuant to the procedure outlined in Section 10 of Resolution No. 7173 or a successor resolution. SECTION 2.— Compensation A. Salary Salaries shall be subject to the following adjustments: 1. General Adjustments Effective the pay period beginning December 25, 2004, the City shall increase base salary for NBPEA employees by 3 %. Effective the pay period beginning December 24, 2005, the City shall increase base salary for the NBPEA employees by 3 %. 2. 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 4E) base salaries shall be increased by 1 %. B. Code Seven /Duty Incentive Time The City and NBPEA have agreed to eliminate entitlement to compensation for duty incentive time and Code Seven time based upon implementation of the 9/80 work schedule and a Settlement Agreement between the City and NBPEA. NBPEA and its members agree that the provisions and rules relative to entitlement to compensation for duty incentive time or Code Seven time survive the termination of this MOU, that the provisions of the settlement agreement are in full force and effect -6- 10 and that no request for compensation for duty incentive time or Code Seven time at variance with the provisions of existing rules or the settlement agreement shall be made at any time in the future by NBPEA or any of its members. C. Overtime 1. Employees shall be entitled to overtime compensation at the rate of time and one half for hours worked in excess of their regularly scheduled shift. Paid time off shall be considered time worked for overtime calculation purposes. 2. Employees shall also be entitled to overtime compensation for hours worked in excess of 2,080 hours in the 12 month period commencing January 1st of each year. These overtime payments shall be offset by Section 1 above. 3. Overtime compensation shall be in the form of compensatory time off or pay at the election the employee. Maximum compensatory time accrual shall be 91 hours. All overtime worked for employees at the CTO maximum shall be paid. 4. The Police Department has the discretion to schedule any of its employees to work a regular work day on July 4th, regardless of the day of the week or job assignment. This may include modifying work schedules and /or days off according to deployment needs. Unit employees who actually work July 4th will be compensated at their regular hourly rate, plus premium pay equal to 1/2 of the hours actually worked on that day. Employees will be provided their regular number of days off for the month of July (unless otherwise scheduled on an.overtime basis), which will be selected /assigned according to the normal practices of their particular work unit. Should the employees work an additional shift in subsequent leap years compensation shall be paid at the appropriate rate of overtime pay. 5. The City and NBPEA jointly petitioned the NLRB and were granted a 7(b) exemption of the Fair Labor Standards Act to allow for use of the overtime standards as set forth in this section. The exemption is necessary to allow continued use of the Departments alternative /semi- flexible schedule. D. Overtime Compensation - Court 1. Compensation - Employees shall receive either compensatory time or paid time at their discretion. -7- 2. On -Call - Off -duty employees on -call for court who have not been canceled prior to the scheduled standby time, shall, whether extended or not, be compensated at a rate equal to one -half the actual standby time, with a minimum of one hour. 3. Appearance - Off -duty employees who are required to appear in court shall be compensated for the actual time involved. Employees appearing in court after being on -call the same day shall be compensated from the time listed on the subpoena until released by the court. E. Master Police Officer Recognition Program The City and NBPEA agreed to institute a Master Officer Recognition Program ( "MORP ") on July 4, 1987. The intent of the MORP is to encourage NBPEA members to remain with the Newport Beach Police Department by compensating employees who have acquired special skills, training and ability through years of service. The MORP is comprised of three levels with progressively higher compensation paid as years of service increase. MORP pay shall be calculated solely on the basis of the member's salary, payment for overtime and Scholastic Achievement pay (collectively referred to as "MORP Earnings "). MORP Earnings shall not include any other form of compensation. Effective the first pay period in January 2005, two years in a regular patrol assignment at NBPD shall be equivalent to one year in any specialty assignment. MORP shall commence beginning the first full pay period after the employee qualifies for each Master Officer step. The requirements and compensation of the three levels of MORP are summarized as follows: MASTER OFFICER I Requirements: 1. Minimum service of five (5) years as a sworn Police Officer. 2. Must have obtained an intermediate POST Certificate, or the educational equivalent. 3. Must have successfully completed one year in a specialty assignment in the Newport Beach Police Department (NBPD) or -8- P1 two years in a regular patrol assignment at NBPD. 2080 hours of service as an FTO shall be considered a specialty assignment under the MORP program. 4. Must receive and maintain at least a competent rating on their most recent performance evaluation. Compensation: 5% of the member's MORP Earnings. MASTER OFFICER II Requirements: 1. Minimum service of eight (8) years as a sworn Police Officer. 2. One full year at the Master I level. 3. Must have obtained an advanced POST Certificate, or the educational equivalent. 4. Must have successfully completed a full year in a second (separate) specialty assignment in the NBPD, or have any combination of specialty and equivalent time in regular patrol assignments, or a minimum of five years total service at NBPD. 5. Must receive and maintain at least a competent rating on their most recent performance evaluation. Compensation: 10% of the member's MORP Earnings. MASTER OFFICER III, Requirements: 1. Minimum service of ten (10) years as a sworn Police Officer. 2. One full year at the Master II level. 3. Must successfully complete a full year in a third (separate) specialty assignment in the NBPD or have a combination of specialty and equivalent time in a regular patrol assignment, or a minimum of seven years service at NBPD. !7 'J 4. Must receive and maintain at least a competent rating on their most recent performance evaluation. Compensation: 15% of the member's MORP Earnings. For purposes of implementation of the changes effective January 1, 2005, employees shall receive MORP compensation for which they qualify as a result of the changes, regardless of present MORP step. For example, an officer who is currently at MORP Step 1, has one specialty, 10 years of total service and seven years of service at NBPD shall be entitled to compensation at the MORP III level. F. Scholastic Achievement Pay Sworn NBPEA members are entitled to additional compensation contingent upon scholastic achievement ( "Scholastic Achievement Pay "). Sworn NBPEA members may apply for increases pursuant to this Section when eligible and scholastic achievement pay shall be included in the member's paycheck for the pay period immediately after approval by the Chief of Police. It is the responsibility of the NBPEA member to apply for Scholastic Achievement Pay. Approval of the member's application shall not be unreasonably withheld or delayed, and the member shall not be entitled to receive scholastic achievement pay prior to the date the application is approved even though the member may have been eligible prior to approval. Scholastic achievement pay is contingent upon years of service and the number of units and /or degrees received by the employee. The Plan consists of five levels which reflect multipliers of the base monthly salary (excluding lump sum MORP payments). Qualifying units and /or degrees must be awarded by accredited community colleges, state colleges or universities. The following is a schedule of monthly payments pursuant to the Scholastic Achievement Program: Years of Service: 30 Units 60 Units 90 Units BA/BS MAIMS /JD 2 1% 1% 1% 1% 1% 3 1% 2% 3% 5.5% 5.5% 4 111% 2% 3% 5.5% 6.5% G. Non -sworn Personnel Shift Differential The night shift differential pay for non -sworn personnel shall be $1.50 per hour between the hours of 6 p.m. and 6 a.m. -i0- N H. Training Pay Police Officers assigned to Field Training Officer duties for either Regular or Reserve officers and Civilian Employees assigned to training duties for new employees are entitled to receive compensation for these extra duties. To be eligible for compensation, the employee shall have completed a 40 -hour FTO course and shall be required to complete a Daily Evaluation Report for each shift worked with a trainee. Employees assigned full training responsibilities who have not completed the FTO course shall be eligible for compensation pending course completion. Employees will be compensated for each shift worked as an FTO with a trainee at the following hourly rate per shift: Work shift Hours Multiplier per Shift 9 .375 10 .415 12 .5 The following classifications are not eligible for training pay consistent with existing department/division practice. Sr. Community Service Officer Sr. Custody Officer Sr. Animal Control Officer Sr. Police Dispatcher Sr. Crime Scene Investigator (if added) Motor Officer Pay Assigned Motor Officers are responsible for keeping the motorcycle assigned to him /her cleaned and polished at all times. This work shall be performed outside of regularly scheduled work hours; and compensated at the rate of six (6) additional hours overtime per month (six (6) hours at time and one half equals nine (9) hours compensation). J. Canine Officer Employees assigned to work as Canine Officers, (in accordance with individual signed contracts between the employees and department) shall receive additional compensation at the rate of six (6) additional hours of overtime pay per month (six hours of time and a half equals nine (9) hours of compensation). This pay is recognition of the additional hours required of employees assigned to care for a City dog. City and Association mutually agree that the additional six (6) hours pay does _11_ I� J A represent reasonable compensation for the additional tasks required. No employee shall work more than six (6) hours in performing Canine Officer duties without the express direction of their supervisor. Helicopter Pav Employees assigned to work as Helicopter Pilots shall receive additional compensation at the rate of Three Hundred and Fifty ($350.00) Dollars per month in addition to any other compensation received. L. Matron Pay M. N. Any female non -sworn employees assigned matron duties shall receive one (1) hour straight time pay for each shift matron duties are performed. Minimum Call Back The following shall determine the type of compensation for the overtime worked: a. Court (two hour minimum). b. Call Out - off duty personnel called out for a special assignment (two hour minimum). C. Payment shall not be made for employees required to return to work to correct work errors. d. Call back shall be paid only for hours not contiguous to the employees regular work schedule when they are required to physically return to work. Bilingual Pay Employees certified as bilingual (Spanish) shall be eligible to receive One Hundred Fifty ($150.00) Dollars per month in bilingual pay. The existing certification process will confirm that employees are fluent at the street conversational level in speaking, reading and writing Spanish. Employees certified shall receive bilingual pay the first full pay period following certification. Additional languages may be certified for compensation pursuant to this section by the Chief of Police. -12- (G O. Certification Pay Unit employees in Mechanic classification shall be eligible for annual certification pay as follows: 1. Smog License - $250.00 2. Fire Mechanic State Level I - $100.00 3. Fire Mechanic State Level II - $200.00 4. ASE Certification - $25.00 per certification up to a maximum of eight (8) and $100.00 for possessing a current ASE Master Truck Technician and $100.00 for possessing a current ASE Master Automobile Technician certification. 5. Commercial Drivers License, Class A - $100.00 6. Commercial Drivers License, Class B - $75.00 P. Uniform Allowance. The City reports to PERS a uniform allowance amount of $750 per year for sworn officers; $118.56 per year for non -sworn personnel. SECTION 3. —Leaves A. Flex Leave 1. Effective the first pay period in January 2005, NBPEA members hired on or after. September 1, 1997 shall accrue (prospectively) flex leave at the same rate as members hired prior to September 1, 1997. NBPEA members shall accrue Flex leave at the following rates: Years of Con't. Service: 1 but less than 5 5 but less than 9 9 but less than 12 12 but less than 16 16 but less than 20 20 but less than 25 25 and over Adjusted Accrual Per Pay Period: 5.85 6.46 7.08 7.70 8.31 8.92 9.54 -13- i 2. NBPEA and the City acknowledge that employees assigned the 9181 work schedule accrue one (1) additional hour per pay period in addition to the accrual levels set forth above. 3. The Flex leave program shall be administered as follows: a. NBPEA members shall not accrue flex leave until continuously employed by the Newport Beach Police Department for a period of six (6) months provided, however, if a member on the flex leave program becomes sick during the first six months of employment, the City will advance up to thirteen (13) pay periods of paid leave time for use by the member to recover from illness. In the event the City advances paid leave time and the employee is terminated or resigns before completing six months of continuous employment, the member's final check shall be reduced by an amount equal to the number of flex leave hours advanced multiplied by the member's hourly rate of pay. b. NBPEA members shall accrue thirteen pay periods of flex leave immediately upon completion of six (6) months continuous employment with the Newport Beach Police Department, provided however, this amount shall be reduced by any flex leave time advanced during the first six months of employment. C. Members employed by the City prior to initiation of the flex leave program have had then current accrued vacation time converted to flex leave on an hour for hour basis with then current sick leave placed in a bank to be used as provided in Section 11.2 of the City of Newport Beach Employee Policy Manual. Members entitled to use sick leave pursuant to Section 11.2A of the Employee Policy Manual must notify appropriate department personnel of their intention to access the sick •leave bank and, in the absence of notification, absences will be charged to the member's flex leave account. Members who wish to convert an absence from flex leave to sick leave must submit a written request to the Chief of Police within twenty (20) days after the absence (20 days from the last absence in the event the member was continuously absent for more than one day) specifying the nature of the illness and the person notified of the intent to use sick leave, or the reasons for the failure to notify appropriate department personnel. The Chief of Police shall grant the request for conversion if the member submits a written statement signed by his or her attending physician -14- p l (; confirming the illness and the Police Chief determines that the member's failure to notify appropriate departmental personnel was reasonable under the circumstances. d. NBPEA members shall be entitled to accrue flex leave up to seventy (70) times the members bi- weekly flex leave accrual rate (Flex Leave Accrual Threshold). NBPEA members first hired by the City prior to September 1, 1997, shall be paid for all flex leave that accrues in excess of the flex leave accrual threshold (Flex Leave Spillover Pay). Flex Leave Spillover Pay will be paid at the member's regular hourly rate of pay. Effective during the first pay period of January, 1998, NBPEA members who have not utilized at least 80 hours of flex leave during the prior calendar year shall not accrue flex leave in excess of the Flex Leave Accrual Threshold and shall not be entitled to Flex Leave Spillover Pay. NBPEA members first hired, or rehired by the City subsequent to September 1, 1997, shall not be eligible for Flex Leave Spillover Pay and shall not be entitled to accrue flex leave in excess of the Flex Leave Accrual Threshold. e. All requests for scheduled flex leave shall be submitted to appropriate department personnel. Flex leave may be granted on an hourly basis. In no event shall a member take or request flex leave in excess of the amount accrued. f. Members shall be paid for all accrued flex leave at their then current hourly rate of pay upon termination of the employment relationship. g. Should approved leave be canceled due to the needs of the City, a reasonable extension of time (up to 90 days) will be granted for employees to reschedule the leave without the loss of spillover or leave accrual. h. Employees actually working 2088 hours per year shall be credited with two hours holiday pay per quarter worked on the 12 hour schedule. B. Holiday Time NBPEA members shall accrue holiday time at the rate of 96 hours per fiscal year (July 1 through June 30th), and at the rate of 3.7 hours per pay period. -15- Option 1 (Default): Effective July 2005, and unless otherwise irrevocably elected by the employee, holiday compensation shall be paid in cash along with the employee's regular bi- weekly check, and will be reported to PERS as special compensation in addition to the employee's bi- weekly base salary. Option 2: Within 60 days of NBPEA membership or 60 days from the execution of this MOU, NBPEA members may irrevocably elect to have all or any portion of the 3.7 hours of accrued holiday compensation added to the member's flex leave bank on a bi- weekly basis in lieu of a cash payment. Once holiday time is accrued to the member's flex leave bank, all rules and opportunities concerning the flex leave program (described elsewhere in this MOU and in the Employee Policy Manual) will apply (e.g. usage, maximum balance, spillover, periodic payout, etc). Pay for any time taken from the flex leave bank, and any spillover pay or other payout for flex leave, will not be reported to PERS as special compensation. C. Leave Pay Off For the term of this agreement, NBPEA members shall receive paymentfor any accrued leave upon termination at the rate of 109% of their base hourly rate. D. Bereavement Leave Bereavement Leave shall be defined as the necessary absence from duty by employee having regular or probationary appointment because of the death or terminal illness in his /her immediate family. NBPEA members shall be entitled to forty (40) hours of bereavement leave per incident (terminal illness followed by death is considered one incident). Immediate family shall mean father, mother, brother, sister, wife, husband, child, father -in -law, mother -in -law, and grandparents. E. Leave Sellback Twice annually, employees shall have the option of selling back, on an hour for hour basis, accrued flex or vacation leave. In no event shall the flex or vacation leave balance be reduced below one hundred and sixty (160) hours. F. Worker's Compensation Leave 1. Sworn Members —16— c'� 'J 2 Any NBPEA member who is a sworn peace officer and incapacitated by reason of any injury or illness which has been determined to have arisen out of or in the course of his or her employment shall receive compensation in accordance with the provisions of Section 4850 et. seq. of the Labor Code of the State of California. Non —sworn Members Any employee incapacitated by reason of any injury or illness which has been determined to have arisen out of or in the course of his or her employment shall receive, in addition to temporary disability compensation pursuant to the laws of the State of California, an additional sum which, when added to temporary disability payments, provides the injured employee with regular compensation. Regular compensation is defined as the salary for the position and step occupied by the employee on the date of the job — related illness or injury. Payment shall commence with the first day of approved absence and end with the termination of temporary disability, or the expiration of six (6) months, whichever occurs first. G. Scheduling of Medical Treatmentfor Industrial Injuries Time spent by an employee receiving medical attention during the employee's normal working hours is considered hours worked and compensable, when the City or its representative schedules the appointment. When an employee is temporarily totally disabled due to an industrial injury, and is unable to perform even limited duty in the workplace, all appointments, whether arranged by the City or the employees, shall be considered as occurring during normal working hours. The employee shall not be entitled to any additional compensation, regardless of the employee's regular work schedule or the type of compensation currently received, except as otherwise required by law. When an employee has been released to either full or limited duty and has returned to the workplace, time spent receiving ongoing medical treatment, such as physical therapy or follow -up visits that are not scheduled by the City, is not considered hours worked and therefore, is not compensable. To avoid disruption in the workplace, an employee shall schedule such appointments to occur during off duty hours whenever possible. In the event such scheduling is not available, employee may be allowed to attend an appointment during their regularly scheduled duty shift with prior supervisory approval. Regular recurring appointments (i.e., weekly physical therapy) must be scheduled off duty. -17- a SECTION 4. —Fringe Benefits A. Insurance 1. Benefits Information Committee City has established a Benefits Information Committee (BIC) composed of one representative from each employee association group and up to three City representatives. The Benefits Information Committee has been established to allow the City to present data regarding carrier and coverage options, the cost of those options, appropriate coverage levels and other health programs. The purpose of the BIC is to provide each employee group with information about health insurance /programs and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. Medical Insurance The City has implemented an IRS qualified Cafeteria Plan. Effective the pay period beginning December 25, 2004, the City contribution toward the Cafeteria Plan shall be $674. In addition, the City shall contribute the minimum CalPERS participating employer's contribution towards medical insurance. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical, dental and vision insurance /programs. The City and the Newport Police Employees Association will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. Any unused Cafeteria Plan funds shall be payable to the employee as taxable cash back. Employees shall be allowed to change coverages in accordance with plan rules and during regular open enrollment periods. Effective the pay period beginning December 24, 2005, the City's contribution towards the Cafeteria Plan will increase to $724 (plus the minimum CalPERS participating employer's contribution). NBPEA 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. C,,; 3. Ell 5. 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. 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. Changes in Insurance Carriers and Coverages There shall be no change in Insurance carriers or coverages during the term of this agreement unless the City has given prior notice to the Association and, upon request, met and conferred. B. Additional Insurance /Programs 1 E 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. Disability Insurance The City shall provide disability insurance to following provisions: Weekly Benefit Maximum Benefit Minimum Benefit Short-term (STD) and Long -term (LTD) all regular full time employees with the -19- 66.67% gross weekly wages $10,000 1month M 1 r. J 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. 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. The City shall pay each member's required PERS retirement contribution (9% of salary for sworn employees and 7% for non — sworn employees). City payments pursuant to this Section shall be deemed to be member contributions under the Public Employees Retirement System and recoverable by the member as such in accordance with the rules and regulations promulgated by PERS. These amounts will be reported to PERS as special compensation for retirement purposes. 2. Non -Sworn Members The City has amended its contract with the Public Employees' Retirement System to implement the 2% at 55 Retirement Program. The ongoing cost of this retirement change shall be borne by the C ity. -20- c H 3. Sworn Members The City has amended its contract with the Public Employees' Retirement System to implement the 3% at 50 Retirement Program. The on -going cost of this retirement change shall be borne by the City. 4. The City has amended its contract with PERS to provide the Level 4 1959 Survivor Benefit for Miscellaneous and Safety members. 5. Effective July 2005 the City amended its PERS contract to provide the pre- retirement option settlement 2 death benefit (Section 21548). Effective the first pay period of July 2005, the following maximum tuition reimbursements will apply irrespective of hire date. The maximum tuition reimbursement for sworn personnel shall be $1,000 per fiscal year. The maximum tuition reimbursement for non -sworn employees shall be $1,400 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 approval. E. Retiree Medical Benefit 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 CalPERS medical insurance plan and the mandatory minimum of $16 per month employer contribution to said plan on behalf of the annuitant. a. The City has implemented the $400 per month cap for retiree medical insurance premium contributions as agreed to by the City and the Newport Beach Police Employees Association. The City and active employees shall be responsible for 3 /4ths (112 City and 114 actives) of retiree medical insurance premium under this program to a maximum of $400. Retirees shall be responsible for any remaining medical insurance premiums. For NBPEA unit -zi- employees, the per month employee deduction for retiree medical insurance shall be $44.07 per month. 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 NBPEA 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 NBPEA 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 (a) above; each NBPEA 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 NBPEA mutually agree to end the funding on behalf of NBPEA 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 C1 above. In the event the retiree medical insurance program described herein is discontinued, NBPEA members will receive an accounting on any remaining funds and the City will immediately meet and confer with NBPEA on the distribution of said funds back to active (not retired /full -time) City employees in the NBPEA unit. The City will provide NBPEA with an annual report certified by the City Finance Director describing the balance, interest earnings, and any expenditures of the trust account described herein. -22- 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). 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 15' based on status as of December 3151 of the prior year). iii. Part .0 contributions (leave settlement as determined by Association): No later than November 30, 2005, 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 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 -23- 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 herleave account added to the MERP, on a pre -tax basis. The remaining 50% would be paid 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, -24- 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 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 CalPERS participating employer's contribution towards medical insurance after retirement. The parties also agree that, for retirees selecting a CalPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's MERP account. -25- 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 Sworn Members: Members whose age plus years of service equal 45 or less 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. Non -Sworn Members: Members whose age plus years of service equal 49 or less at the time of implementation must convert to the new plan. Those with age plus years of service of 50 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 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. iv. Current Employees Remaining on 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 -26- '. 7 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. 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 actions taken by each employee, such as fees or commissions for trades, will be paid by each employee. -27- The City's Deferred Compensation Committee will have the authority to determine investment options that will be available through the plan. f. 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 NBPEA 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 sworn personnel shall be $885.00 per fiscal year. Maximum tuition reimbursement for non —sworn members shall be $2,213.00 per year. Sworn employees hired subsequent to September 1, 1997 shall have a maximum tuition reimbursement of $400 per fiscal year. Maximum tuition reimbursement for non -sworn employees hired after September 1, 1997 shall be $1,000 per fiscal year. Effective the first pay period of July 2005, the following maximum tuition reimbursements will apply irrespective of hire date. The maximum tuition reimbursement for sworn employees shall be $1,000 per fiscal year, and the maximum tuition reimbursement for non -sworn employees shall be $1,400 per fiscal year. G. Physical Conditioning Equipment/Apparel City has acquired fitness equipment for use by members in maintaining physical fitness. City shall budget $5,000.00 per each calendar year for the maintenance, repair, improvement, or replacement of fitness equipment. Any purchase of new equipment shall be subject to the concurrence of the Department. All exercise facilities and equipment will be available to all members of the department. SECTION 5. — Miscellaneous Provisions A. Reductions in Force /Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions a. "Layoffs" or "Laid off' shall mean the non — disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted permanent status in their current Classification or any Classification within the Series, subject to the following: 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. -29- 2. Procedures In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: a. Temporary and probationary employees within any Classification shall, in that order, be laid off before permanent employees. b. Employees within a Classification shall be laid off in inverse order of seniority; C. An employee subject to layoff in one Classification shall have the right to Bump a less senior employee in a lower ranking Classification within a Series. An employee who has Bumping Rights shall notify the Department Director within three (3) working days after notice of layoff of his /her intention to exercise Bumping Rights. d. In the event two or more employees in the same Classification are subject to layoff and have the same seniority, the employees shall be laid off in inverse order of their position on the eligibility list or 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 Employee Policy Manual. 4. Re— Employment Permanent and probationary employees who are laid off shall be placed on a Department re— employment list in reverse order of layoff. The 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 -30- J ' or her last known address. Any employee shall have the right to refuse to be placed on the reemployment list or the right .to remove his or her name from the re— employment list by sending written confirmation to the Personnel Director. 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. Work Schedules Nothing contained herein is intended to abridge management's right to schedule work to meet the Police Department's needs of providing services in an efficient and safe manner. Management recognizes its obligations under the Meyers - Milias -Brown Act to meet and confer before making any substantive changes to work schedules that impact an employee's conditions of employment. 1. Substantive Work Schedule Modifications Newport Beach Police Department currently has available a variety of work schedules including 5/8, 3/12, 9/81 and 4/10 schedules. Except in the case of emergency, prior to moving any employee or group of employees from one work schedule to another (for example from a 9/81 to a 3/12 schedule), the Department shall notify, and upon request, meet and confer with the Association in advance of any schedule change. If an emergency prohibits meeting and conferring prior to the schedule change, the Department shall meet and confer with the Association as soon as is reasonably possible after the schedule change. 2. Non - Substantive Schedule Modifications In the event of any non - substantive change to an employee's work schedule (changes in starting times, days off, etc), Management agrees to give as much advance notice of said change as possible and to give due regard to the needs of the employees to make adjustments to their personal schedules and commitments related to the change in work schedules. 3. Transfers Transferring an employee to an assignment with a different work schedule shall not be considered a change to modified work schedules and shall not obligate Management to meet and confer over said change. -31- C. Seniority 1. Definition and Policy In order to clarify "seniority" practices, the following definition and policy for "seniority' determinations are adopted effective the date of this Agreement. "Seniority" position among members belonging to the same classification and determined prior to the date of this Agreement shall not change, regardless of the method of determination. a. Unless otherwise specified, for purposes of employment practices and vacation selection in which "seniority" is a consideration, "seniority' is defined and determined as the period of time of continuous full time employment within a classification. b. Determination of seniority date upon promotion or demotion of full time employees: i. An employee promoted into any higher classification shall obtain their seniority date based upon their date of promotion, relative to others in the classification into which the employee promotes. ii. An employee who voluntarily or involuntarily demotes into any lower classification, shall retain the oldest seniority date from any prior full time classification from which they promoted or to which they are re- classified. c. Part time employees have no seniority rights, and any full time employee who resigns their full time position and accepts a part time appointment shall forfeit any seniority, even upon re- appointment to a full time position. d. Nothing in this definition is intended to affect any other employment right or consideration that may be based upon total years of service, initial appointment date, or any other date of hire or change in employment status. e. In the event there is a conflict between members of a classification hired on the same day, seniority position shall be determined by order of hire based upon issuance of Employee ID numbers. f. For the class of police officer, seniority is determined based upon the date of appointment as a police officer, not date of hire as a police recruit. 2. Nothing contained herein is intended to abridge management's right to schedule employees to work or deny leave requests that management -32- feels will interfere with the efficient running of the Police Department or present a safety hazard to employees or the community. The Department shall continue its practice of allowing employees to sign up for vacations, shifts and days off by seniority. The Department shall have the right to deviate from seniority in shift preference selection as necessary to meet training needs, train probationers, separate employees, meet specialized qualification needs, and /or to correct experience imbalances in accordance with existing practice. In the event Management wishes to propose substantive changes to the existing practice of sign -up for vacations, shifts and days off by seniority, it shall give notice to the Association and meet and confer to seek mutually agreeable solutions and /or remedies. In the event that a mutually agreeable solution or remedy is not found, Management may deviate from the prior seniority criteria to the extent necessary to meet operational or safety needs. D. Grievance Procedure 1. Definition The term "grievance" means a dispute between NBPEA or any member and the City regarding the interpretation or application of rules or regulations governing the terms and conditions of employment, any provision of the Employee Policy Manual, any provision of Resolution No. 7173, or this MOU. 2. Guidelines Any NBPEA member may file a grievance without fear of retaliation or any adverse impact on any term or condition of employment. a. A grievance shall not be filed to establish new rules or regulations, change prevailing ordinances or resolutions, nor circumvent existing avenues of relief where appeal procedures have been prescribed. b. An employee may be self — represented or represented by one other person. C. An employee and any representative shall be given notice of the time and place of any grievance proceeding, the opportunity to be present at such proceedings, a copy of any written decision or communication to the employee concerning the proceedings, and any document directly relevant to the proceedings. -33- i d. All parties shall engage in good faith efforts to promptly resolve the grievance in an amicable manner. The time limit specified may be extended upon mutual agreement expressed in writing. e. The procedures in this MOU represent the sole and exclusive method of resolving grievances. 3. Procedure for NBPEA Members Step 1 — The employee shall orally present the grievance to his or immediate supervisor within ten (10) working days after the member knew, or in the exercise of reasonable diligence should have known, the act or events upon which the grievance is based. The immediate supervisor shall conduct any appropriate investigation and meet with the employee no more than ten (10) working days after presentation of the grievance. The employee shall be given at least 24 hours notice of the meeting. The meeting shall be informal, and the employee may have a representative present. Any employee not satisfied with the decision of his or her immediate supervisor may proceed to Step 2. Step 2 — If an employee is dissatisfied with the decision of his or her immediate supervisor, the employee may proceed to Step 2 by submitting a written grievance to the supervising captain. Any employee dissatisfied with the decision of his or her immediate supervisor may submit a written grievance to the supervising Captain. The written grievance shall be filed within five (5) days following receipt of the immediate supervisor's decision. The written grievance must contain a complete statement of the matters at issue, the facts upon which the grievance is based, and the remedy requested by the employee. The supervising Captain shall meet with the employee and any representative in an effort to resolve the grievance. The meeting shall be scheduled no more than ten (10) days following receipt of the appeal unless deferred by the consent of both parties. The Captain shall provide the employee with a written decision on the appeal within ten (10) working days after the meeting. Step 3 — Appeal to Chief of Police. Any employee dissatisfied with the decision of the supervising captain may proceed to Step 3 by submitting a written appeal to the Chief of Police. The written appeal must be filed with the Chief of Police within five (5) days following receipt of the supervising captain's decision. The written appeal must contain a complete statement of the matters at issue, the facts upon which a grievance is based, and the remedy requested by the employee. The Chief of Police shall meet with the employee and any representative in an effort to resolve the grievance. The meeting shall be informal and the discussion should focus on the issues raised by the grievance. The meeting shall be scheduled no more than ten (10) days following receipt of the appeal unless deferred by the -34- consent of both parties. The Chief of Police shall provide the employee with a written decision on the appeal within ten (10) working days after the meeting. Step 4 — Appeal to City Manager. In the event the employee is dissatisfied with the decision of the Chief of Police, the employee may proceed to Step 4 by submitting a written appeal of the decision to the City Manager. The written appeal must be filed within five (5) days following receipt of the Police Chiefs decision. The written appeal shall contain a complete statement of the matters at issue, the facts upon which the grievance is based, the decisions of the supervising captain and Chief of Police, and the remedy requested by the employee. The City Manager shall meet with the employee and his or her representative in an effort to resolve the grievance and to receive any additional information the employee or department may have relative to the matter. The meeting shall be scheduled no more than ten (10) days following receipt of the appeal unless deferred by the consent of both parties. The City Manager shall provide the employee with a written decision within ten (10) working days after the meeting. The decision of the City Manager shall be final. 4. General Grievance A general grievance affecting more than one NBPEA member may be filed by NBPEA on behalf of the affected employees with the Chief of Police. The grievance shall contain a complete statement of the matters at issue, the facts upon which the grievance is based, and the remedy requested by NBPEA. The Chief of Police shall meet with NBPEA representatives within ten (10) days following receipt of the grievance and provide a written decision on the grievance within ten (10) working days after the meeting. In the event NBPEA is dissatisfied with the decision of the Chief of Police, it may appeal to the City Manager by following the procedures outlined in Step 4 of the procedure applicable to employees. In the event NBPEA is dissatisfied with the decision of the City Manager, it may appeal the decision to the Civil Service Board by filing a written notice of appeal within fifteen (15) days.after receipt of the decision. E. Pre- Hearinq-Briefs Each party is entitled to the other party's pre- hearing brief. F. Use of Tobacco Products All employees hired after January 1, 1999, shall not smoke or use any tobacco products at any time while on, or off duty. Employees shall be required to sign an agreement consistent with this section. Violation of this agreement will -35- subject the employee to disciplinary action. Smoking an occasional celebration cigar (birth of a child, etc.) shall not be considered a violation of this policy. G. Direct Deposit All Unit employees shall participate in the City's Direct Deposit Program. H. Re— opener The parties agree to reopen negotiations on a possible retirement plan enhancement for non -sworn employees after receipt of retirement rates for the period beginning July 2006. Any negotiated change must be cost neutral to the City. Contract Negotiations The parties agree that, if NBPEA submits preliminary requests for changes in wages, fringe benefits and other terms and conditions of employment earlier than 90 days prior to expiration of this MOU (as provided in Section 18. Timetable for Submission of Requests of the Employer - Employee Relations Resolution), the parties will begin negotiations promptly, with the objective of reaching agreement by December 31, 2006. Executed this day of , 2005: NEWPORT BEACH POLICE EMPLOYEES ASSOCIATION M Steve Martinez 0 Vlad Anderson -36- CITY OF NEWPORT BEACH By: John Heffernan Mayor ATTEST: By: LaVonne Harkless City Clerk APPROVED AS TO FORM: Robin Clauson, City Attorney -37- q� MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU ") is entered into with reference to the following: PREAMBLE 1. The Newport Beach Police Management Association ( "NBPMA "), 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. NBPMA representatives and City representatives have reached a tentative agreement as to wages, hours and other terms and conditions of employment for the period from January 1, 2005 to December 31, 2006 and this agreement has been embodied in this MOU. 3. This MOU, upon approval by NBPMA represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. SECTION 1. — GENERAL PROVISIONS A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers- Milias -Brown Act of the State of California and the provisions of the Employer /Employee Relations Resolution No. 2001 -50, the City acknowledges that NBPMA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in the classifications listed in Exhibit A or as appropriately modified in accordance with the Employer /Employee Relations Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBPMA. - 1 - L )J 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 January 1, 2005. This MOU shall remain in full force and effect until December 31, 2006, and the provisions of this MOU shall continue after the date of expiration of this MOU in the event the parties are meeting and conferring on a successor MOU. C. Release Time 1. NBPMA members shall be allowed to participate in the following activities during .scheduled working hours without loss of pay ('Release Time "): a. Attendance at meetings, conferences, seminars or workshops related to matters within the scope of representation; b. To prepare for, travel to, and attend scheduled meetings between the City and NBPMA during the meet and confer process. C. To travel to and attend scheduled grievance and disciplinary hearings. d. To meet, for up to one hour, with their representative prior to a hearing described in (d) above. 2. City grants NBPMA 100 hours of Release Time per calendar year to engage in the activities described in subsection 1(a). NBPMA may accumulate up to 300 hours of City — provided Release Time. 3. City grants NBPMA members the right to engage in the activities described in subsections 1(b), (c), and (d) at any time without reduction to the Release Time granted in subsection 2. 4. NBPMA shall designate certain members as those members entitled to release time. In no event shall any one designate be entitled to use more than 100 hours of Release Time (exclusive of actual time spent meeting with City representatives on matters relating to the scope of representation), within any calendar year. Designates must give reasonable advance notice to, and obtain permission from, their supervisor prior to use of release time, or prior to adjusting work hours per subsection 4 (a). Requests for release time shall be granted by the supervisor unless there are Li i specific circumstances that require the designate to remain on duty. Designates shall, to the maximum extent feasible, receive shift assignments compatible with participation in the meet and confer process. a. Any NBPMA negotiating team member may request and shall (subject to the approval process above) be granted flex work hours on any scheduled workday during which the negotiating team member is to attend a meet and confer session. Employees may flex start/finish time up to two (2) hours. D. Scope 1. 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. 2. All present written rules and current established practices and employees' rights, privileges and benefits that are within the scope of representation shall remain in full force and effect during the term of this MOU unless specifically amended by the provisions of this MOU. 3. Pursuant to this MOU, the City reserves and retains all of its inherent exclusive and non - exclusive managerial rights, powers, functions and authorities ( "Management Rights ") as set forth in Resolution No. 2661 -56. Management Rights include, but are not limited to, the following: a. The determination of the purposes and functions of the Police Department; b. The establishment of standards of service; C. To assign work to employees as deemed appropriate; d. The direction and supervision of its employees; e. The discipline of employees; - 3 - 1 f. The power to relieve employees from duty for lack of work or other legitimate reasons; g. To maintain the efficiency of operations; h. To determine the methods, means and personnel by which Police Department operations are to be conducted; i. The right to take all necessary actions to fulfill the Departments responsibilities in the event of an emergency; j. The exercise of complete control and discretion over the manner of organization, and the appropriate technology, best suited to the performance of departmental functions. The practical consequences of a Management Rights decision on wages, hours, and other terms and conditions of employment shall be subject to the grievance procedures. E. Conclusiveness This MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled, and each party expressly waives its rights to request the other to meet and confer concerning any issue within the scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herein. F. Modifications Any agreement, alteration, understanding, variation, or waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. G. Bulletin Boards Space shall be provided on bulletin boards within the Police Department at their present location for the posting of notices and bulletins relating to NBPMA business, meetings, or events. All materials posted on bulletins boards shall indicate the name of the organization responsible. Material posted shall not contain personal attacks on any City official or employee, any material which constitutes harassment, discrimination or retaliation on - 9 - the basis of race, gender, ethnicity, religion or other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. H. No Strike The parties recognize their mutual responsibility to provide the citizens of Newport Beach with uninterrupted municipal services and, therefore, for the term of this MOU, the parties agree not to conduct concerted strike, work slowdown, sick -out, withholding of services, or lockout activities. Savings 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. J. Impasse In the event of an impasse (the failure to agree on a new MOU after the express term of the existing MOU has expired), the parties may agree on mediation pursuant to the procedure outlined in Section 16 of Resolution No. 2001 -50 or a successor resolution. SECTION 2. — COMPENSATION A. Salary Salaries shall be subject to the following adjustments: 1. Effective the pay period beginning December 25, 2004, the City shall increase base salary for the NBPMA employees by three (3 %) percent, 2. Effective the pay period beginning December 24, 2005, the City shall increase base salary for all NBPMA employees by three (3 %) percent. 3. Effective the pay period beginning December24, 2005 (concurrent with the implementation of the revised retirement program as set forth in Section 4F) base salaries shall be increased by 1 %. - 5 - B. Code Seven /Duty Incentive Time The City and NBPMA have agreed to entitlement to compensation for duty incentive time and Code Seven time based upon implementation of the 9/80 work schedule (since modified to 3 -12, with concurrence of NBPMA) and a settlement agreement between the City and NBPMA. NBPMA and its members agree that the provisions and rules relative to entitlement to compensation for duty incentive time or Code Seven time survive the termination of this MOU, that the provisions of the settlement agreement are in full force and effect, and that no request for compensation for duty incentive time or Code Seven time at variance with the provisions of existing rules or the settlement agreement shall be made at any time in the future by NBPMA or any of its members. C. Overtime 1. Employees shall be entitled to overtime compensation at the rate of time and one half for hours worked in excess of their regularly scheduled shift. Paid time off shall be considered time worked for overtime calculation purposes. 2. Overtime compensation shall be in the form of compensatory time off or pay at the election of the employee. Maximum compensatory time accrual shall be 91 hours. All overtime worked for employees at the CTO maximum shall be paid. The parties agree that the current practice of accruing and utilizing CTO is reasonable and shall continue for the term of this agreement. 3. NBPMA members occupying the position of Captain shall not be entitled to compensatory time off for overtime. City and NBPMA agree that the position of Captain is properly considered exempt from the overtime requirements of FLSA. However, NBPMA members occupying the position of Captain shall be eligible for up to 80 hours of administrative leave per calendar year. The precise amount of administrative leave granted each Captain shall be based upon the recommendation of the Police Chief and approved by the City Manager. Administrative leave may not be carried forward from one calendar year to the next. 4. With the approval of the Division Commander, NBPMA members assigned to non -shift assignments may work certain holidays if they occur on regularly scheduled work days. - 6 - D. Uniform Allowance The City will report to PERS a uniform allowance amount of $1,000 per year. E. Scholastic Achievement PaV Sworn NBPMA members are entitled to additional compensation contingent upon scholastic achievement ( "Scholastic Achievement Pay "). Sworn NBPMA members may apply for increases pursuant to this Section when eligible and scholastic achievement pay shall be included in the member's paycheck for the pay period immediately after approval by the Chief of Police. It is the responsibility of the NBPMA member to apply for Scholastic Achievement Pay. Approval of the member's application shall not be unreasonably withheld or delayed, and the member shall not be entitled to receive scholastic achievement pay prior to the date the application is approved even though the member may have been eligible prior to approval. Scholastic achievement pay is contingent upon years of service and the number of units and /or degrees received by the employee. Qualifying units and /or degrees must be awarded by accredited community colleges, state colleges or universities. The following is a schedule of monthly payments pursuant to the Scholastic Achievement Program: Years of Service: 60 Units: 90 Units: BA/BS MA/MS /JD: 2 1% 1% 1% 1% 3 2% 3% 5.5% 6.5% 4 2% 3% 5.5% 6.5% Educational incentive payments shall be made only for units /degrees above the minimum qualifications called out in the job descriptions. Individuals receiving pay in this category (minimum units /degrees) as of January 1999 shall retain the compensation, however. F. Holiday Time NBPMA members shall accrue holiday time at the rate of 96 hours per fiscal year (July 1 through June 30th), and at the rate of 3.7 hours per pay period. - 7 - r;^� Option 1 (Default): Effective July 2005, and unless otherwise irrevocably elected by the employee, holiday compensation shall be paid in cash along with the employee's regular bi- weekly check, and will be reported to PERS as special compensation in addition to the employee's bi- weekly base salary. Option 2: Within 60 days of NBPMA membership or 60 days from the execution of this MOU, NBPMA members may irrevocably elect to have all or any portion of the 3.7 hours of accrued holiday compensation added to the member's flex leave bank on a bi- weekly basis in lieu of a cash payment Once holiday time is accrued to the member's flex leave bank, all rules and opportunities concerning the flex leave program (described elsewhere in this MOU and in the Employee Policy Manual) will apply (e.g. usage, maximum balance, spillover, periodic payout, etc). Pay for any time taken from the flex leave bank, and any spillover pay or other payout for flex leave, will not be reported to PERS as special compensation. G. Leave Pay -Off For the term of the agreement, NBPMA members shall receive payment for any accrued leave upon termination at the rate of 109% of their base hourly rate. H. July 4th The Police Department has the discretion to schedule any of its employees to work a regular work day on July 4th, regardless of the day of the week or job assignment. This may include modifying work schedules and /or days off according to deployment needs. Unit members who actually work July 4th will be compensated at their regular hourly rate, plus premium pay equal to 1/2 of the hours actually worked on that day. Employees will be provided their regular number of days off for the month of July (unless otherwise scheduled on an overtime basis), which will be selected /assigned according to the normal practices of their particular work unit. Bilingual Pay Employees certified as bilingual (Spanish) shall be eligible to receive One Hundred Fifty ($150.00) Dollars per month in bilingual pay. The existing certification process will confirm that employees are fluent at the street conversational level in speaking, reading and writing Spanish. Employees certified shall receive bilingual pay the first full pay period following certification. - 8 - Additional languages may be certified for compensation pursuant to this Section by the Chief of Police. Section 3. — LEAVES A. Flex Leave 1. Effective the first pay period in January 2005, NBPMA members hired on or after September 1, 1997 shall accrue (prospectively) flex leave at the same rate as members hired prior to September 1, 1997. NBPMA members shall accrue Flex leave at the following rates: Years of Adjusted Accrual Longevity Pay Continuous Service Per Pay Period Increase 112 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 5.23077 5.84616 6.46152 7.07696 7.07696 .77% 7.07696 1.54% 7.07696 2.3% 2. NBPMA and the City acknowledge that employees assigned the 9181 work schedule accrue one (1) additional hour per pay period in addition to the accrual levels set forth in subsections 1(a) and 1(b) above. 3. The Flex leave program shall be administered as follows: a. NBPMA members shall not accrue flex leave until continuously employed by the Newport Beach Police Department for a period of six (6) months provided, however, if a member on the flex leave program becomes sick during the first six months of employment, the City will advance up to thirteen (13) pay periods of paid leave time for use by the member to recover from illness. In the event the City advances paid leave time and the employee is terminated or resigns before completing six months of continuous employment, the member's final check shall be reduced by an amount equal to the number of flex leave hours advanced multiplied by the member's hourly rate of pay. - 9 - b. NBPMA members shall accrue thirteen pay periods of flex leave immediately upon completion of six (6) months continuous employment with the Newport Beach Police Department, provided however, this amount shall be reduced by any flex leave time advanced during the first six months of employment. C. Members employed by the City prior to initiation of the flex leave program have had then current accrued vacation time converted to flex leave on an hour for hour basis with then current sick leave placed in a bank to be used as provided in Section 11.2 of the City of Newport Beach Employee Policy Manual. Members entitled to use sick leave pursuant to Section 11.2A of the Employee Policy Manual must notify appropriate department personnel of their intention to access the sick leave bank and, in the absence of notification, absences will be charged to the member's flex leave account. Members who wish to convert an absence from flex leave to sick leave must submit a written request to the Chief of Police within twenty (20) days after the absence (20 days from the last absence in the event the member was continuously absent for more than one day) specifying the nature of the illness and the person notified of the intent to use sick leave, or the reasons for the failure to notify appropriate department personnel. The Chief of Police shall grant the request for conversion if the member submits a written statement signed by his or her attending physician confirming the illness and the Police Chief determines that the member's failure to notify appropriate departmental personnel was reasonable under the circumstances. d. NBPMA members shall be entitled to accrue flex leave up to seventy -eight (78) times the members bi- weekly flex leave accrual rate (Flex Leave Accrual Threshold). NBPMA members first hired by the City prior to July 1, 1996, shall be paid for all flex leave that accrues in excess of the flex leave accrual threshold (Flex Leave Spillover Pay). Flex Leave Spillover Pay will be paid at the member's regular hourly rate of pay. NBPMA members who have not utilized at least 80 hours. of flex leave during the prior calendar year shall not accrue flex leave in excess of the Flex Leave Accrual Threshold and shall not be entitled to Flex Leave Spillover Pay. NBPMA members first hired, or rehired by the City subsequent to July 1, 1996, shall not be eligible for Flex - 10 - �1 Leave Spillover Pay and shall not be entitled to accrue flex leave in excess of the Flex Leave Accrual Threshold. e. All requests for scheduled flex leave shall be submitted to appropriate department personnel. Flex leave may be granted on an hourly basis. In no event shall a member take or request flex leave in excess of the amount accrued. f. Members shall be paid for all accrued flex leave at their then current hourly rate of pay upon termination of the employment relationship. B. 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. NBPMA members shall be entitled to 40 hours of bereavement leave per incident (terminal illness followed by death is considered one incident). Immediate family shall mean father, mother, brother, sister, wife, husband, child, and grandparent. Parents and siblings of spouses shall be considered part of the immediate family for the purposes of this section. C. Workers Compensation Leave In accordance with Section 4850 of the Labor Code, unit employees shall be entitled to leave of absence while disabled without loss of salary for the period of the disability, not to exceed one year. D. Scheduling of Medical Treatment for Industrial Iniuries 1. Time spent by an employee receiving medical attention during the employee's normal working hours is considered hours worked and compensable, when the City or its representative schedules the appointment 2. When an employee is temporarily totally disabled due to an industrial injury, and is unable to perform even limited duty in the workplace, all appointments, whether arranged by the City or the employees, shall be considered as occurring during normal working hours. The employee shall not be entitled to any additional compensation, regardless of the employee's regular work schedule or the type of compensation currently received, except as otherwise required by law. 3. When an employee has been released to either full or limited duty and has returned to the workplace, time spent receiving ongoing �J medical treatment, such as physical therapy or follow -up visits that are not scheduled by the City, is not considered hours worked and therefore is not compensable. To avoid disruption in the workplace, an employee shall schedule such appointments to occur during off duty hours whenever possible. In the event such scheduling is not available, the employee may be allowed to attend an appointment during their regularly scheduled duty shift with prior supervisory approval. Regular recurring appointments (i.e., weekly physical therapy) must be scheduled off duty. SECTION 4. — FRINGE BENEFITS A. Health 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. Medical Insurance The City has implemented an IRS qualified Cafeteria Plan. Effective the first pay period beginning December 25, 2004, the City contribution toward the Cafeteria Plan shall be $674. In addition, the City shall contribute the minimum CalPERS participating employer's contribution towards medical insurance. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical, dental and vision insurance /programs. The City and the Newport Beach Police 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 coverage in accordance with plan rules and during regular open enrollment periods. - 12 - Effective the pay period beginning December 24, 2005, the City's contribution towards the Cafeteria Plan will increase to $724, (plus the minimum CalPERS participating employer's contribution). NBPMA 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 Insurance/ Programs 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income by City payment of allowable expenses such as childcare and medical expenses. City shall maintain a "reimbursable account program" in accordance with the provisions of Section 125 of the Internal Revenue Code, pursuant to which an NBPMA member may request that medical, child care and other eligible expenses be paid or reimbursed by the City out of the employee's account, with the base salary of the employee reduced by the amount designated by the employee to be placed into that account. The City's obligation to establish a reimbursable account program is contingent upon the City incurring no cost or potential liability relative to the plan or its administration. City shall cooperate to the fullest extent of the law provided, however, City may require the plan to contain provisions that authorize the administrator to pay allowable expenses only upon submittal of a demand from the City. Any "reduction" in salary pursuant to this Section and /or the Section 125 Plan established by the City, shall not affect any other provision of this MOU. - 13 - c iJ C 2. Disability Insurance The City shall provide disability insurance to following provisions: Weekly Benefit Maximum Benefit Minimum Benefit Waiting Period Short-term (STD) and Long -term (LTD) all regular full time employees with the 66.67% gross weekly wages $10,000 /month $50 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. Employee Assistance Program City shall provide an Employee Assistance Program through a properly licensed provider. NBPMA members and their family members may access the Employee Assistance Program at no cost subject to provider guidelines. Retirement Benefits 1. The City shall pay each member's required PERS retirement contribution (9% of salary for sworn employees). City payments pursuant to this Section shall be deemed to be member contributions under the Public Employees Retirement System and recoverable by the member as such in accordance with the rules and regulations promulgated by PERS. These amounts will be reported to PERS monthly as special compensation for retirement purposes. z. The City has amended its contract with the Public Employees' Retirement System to implement the 3% at 50 Retirement Program. - 14 - The ongoing cost of this retirement change shall be borne by the City. 3. The City has implemented the Level 4 1959 survivor's benefits for NBPMA members. 4. Effective July 2005, the City has amended its PERS contract to provide the Pre - Retirement Option 2 Death Benefit (Section 21548). E. Retiree Medical Benefit 1. Prior to December24, 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 CalPERS medical insurance plan and the mandatory minimum of $16 per month employer contribution to said plan on behalf of the annuitant. a. The City has implemented the $400 per month cap for retiree medical insurance premium contributions as agreed to by the City and the Newport Beach Police Management Association. The City and active employees shall be responsible for 314ths (112 City and 114 actives) of retiree medical insurance premium under this program to a maximum of $400. Retirees shall be responsible for any remaining medical insurance premiums. For NBPMA unit employees, employee deduction for retiree medical insurance shall be $44.07 per month. 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 NBPMA 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 NBPMA 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 (a) above; each NBPMA 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 - 15 - �I years), or until such time as the City and NBPMA mutually agree to end the funding on behalf of NBPMA 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 C1 above. In the event the retiree medical insurance program described herein is discontinued, NBPMA members will receive an accounting on any remaining funds and the City will immediately meet and confer with NBPMA on the distribution of said funds back to active (not retired /full -time) City employees in the NBPMA unit. The City will provide NBPMA with an annual report certified by the City Finance Director describing the balance, interest earnings, and any expenditures of the trust account described herein. 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 new plan will be a Medical Expense Reimbursement Plan ( "MERP ") funded through an Integral Part Trust (IPT). 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. - 16 - J� i. Part A contributions (mandatory employee): 1 % of Salary. ii. Part 8 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 15t based on status as of December 31St of the prior year). Part C contributions (leave settlement as determined by Association): No later than November 30, 2005, the Association will determine the level of contribution for all employees it represents, subject to the following constraints. All employees within each 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. 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 herleave account added to the MERP, on a pre -tax basis. The remaining 50% would be paid 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. - 17 - 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 includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, andmiscellaneous 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 C. 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 CalPERS participating employer's contribution towards medical insurance after retirement. The parties also agree that, for retirees selecting a CalPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's MERP account. 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 less 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 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. - 19 - iv. Current Employees Remaininq on 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 $4,800.00 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 $4,800.00 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. 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. - 20 - e. Administration A vendor will be selected by the City to administer the entire Retiree Medical 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 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 will have the authority to determine investment options that will be available through the plan. f. Value of Benefit For all purposes, the Retiree Medical Plan shall be valued at 1% salary on which PERS retirement is based (Part A); plus .25% of other compensation (Part B). F. Tuition Reimbursement NBPMA 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 sworn personnel shall be $600.00 per fiscal year. Effective the first full pay period in July 2005, the maximum tuition reimbursement shall be $1,000 per fiscal year. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Chief of Police and 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 - 21 - J 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: 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. - 22 - . JJ 2. Procedures In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: a. Temporary and probationary employees within any Classification shall, in that order, be laid off before permanent employees. b. Employees within a Classification shall be laid off in inverse order of seniority; C. An employee subject to layoff in one Classification shall have the right to Bump a less senior employee in a lower ranking Classification within a Series. An employee who has Bumping Rights shall notify the Department Director within three (3) working days after notice of layoff of his /her intention to exercise Bumping Rights. d. In the event two or more employees in the same Classification are subject to layoff and have the same seniority, the employees shall be laid off in inverse order of their position on the eligibility list or 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 Employee Policy Manual. 4. Re- Employment Permanent and probationary employees who are laid off shall be placed on a Department re -employment list in reverse order of layoff. The 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, - 23 - r `.i provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re- employment list or the right to remove his or her name from the re- employment list by sending written confirmation to the Human Resources Director. 5. Severance Pay Permanent employees who are laid off shall, as of the date of lay- off, receive one -week severance pay for each year of continuous service with the City of Newport Beach. B. Schedule 1. Employees currently work a variety of alternative work schedules (some trial) as approved by the Chief of Police. They include 3112 and 4110. The basic work schedule shall be considered the 9181 for the term of this MOU. Subject to the right to re -open as specified in this subparagraph, 9181 shall be the standard work schedule for the term of this MOU. The 9181 schedule will be structured to allow for 130 days off during the calendar year. NBPMA members shall be entitled to eleven (11) days off for ten months of the year and ten (10) days off during two months of the year. The Chief of Police shall determine the months during which NBPMA members shall receive ten days off. The Chief of Police shall also have the right to alter the work schedule of any NBPMA member assigned to any multi- agency or regional task force. Upon notice, the parties shall meet and confer, in good faith, regarding the appropriate work schedule(s) for NBPMA members. 2. City shall have the right to designate a 14 day or 28 day work period pursuant to Section 29 U.S.C. 507(k) (7 K Exemption "), provided, however, the 7 K Exemption shall not affect the City's obligation to pay overtime pursuant to provisions of this MOU including the provisions of Section 2C. 3. The parties agree that the following procedures are consistent with good police practices, provide each NBPMA member with ample time to perform all required duties, and comply with the Fair Labor Standards Act: - 24 - a. All Patrol Supervisors are required to report to work 15 minutes early; b. All Patrol Supervisors acknowledge and agree that normally, they are to leave at the end of their shift, that they shall not routinely perform duties beyond the end of their shift, that the 15 minutes allotted for briefing preparation is adequate, and they will comply with an order issued by the Chief of Police consistent with this MOU; C. The 15 minutes per shift shall be converted to compensatory time on a straight time basis and placed in a compensatory time off bank, which the member may use as flex leave, vacation leave or sick leave, but for which the member would not be paid at any time. C. Grievance Procedure 1. Definition. The term "grievance" means a dispute between NBPMA or any member and the City regarding the interpretation or application of rules or regulations governing the terms and conditions of employment, any provision of the Employee Policy Manual, any provision of Resolution No. 2001 -50, or this MOU. 2. Guidelines Any NBPMA member may file a grievance without fear of retaliation or any adverse impact on any term or condition of employment. a. A grievance shall not be filed to establish new rules or regulations, change prevailing ordinances or resolutions, nor circumvent existing avenues of relief where appeal procedures have been prescribed. b. A member may be self - represented or represented by one other person. C. A member and any representative shall be given notice of the time and place of any grievance proceeding, the opportunity to be present at such proceedings, a copy of any written decision or communication to the employee concerning the proceedings, and any document directly relevant to the proceedings. - 25 - d. All parties shall engage in good faith efforts to promptly resolve the grievance in an amicable manner. The time limit specified may be extended upon mutual agreement expressed in writing. e. The procedures in this MOU represent the sole and exclusive method of resolving grievances. 3. Procedure a. Steps NBPMA members occupying the position of Sergeant or Lieutenant shall present any grievance to the supervising Captain, and may appeal the decision of the supervising Captain to the Chief of Police and City Manager by complying with the procedures in this subsection. Any member occupying the position of Captain shall present any grievance to the Chief of Police, and may appeal the decision to the City Manager by following the procedures outlined in this subsection. The decision of the City Manager shall be final. b. Written Notice All grievances shall be submitted in writing. The grievance shall be submitted within ten (10) working days after the member knew, or in the exercise of reasonable diligence should have known, of the act or events upon which the grievance is based. The grievance shall contain a complete statement of the matters at issue, the facts upon which the grievance is based, and the remedy requested by the member. All appeals shall be in writing and, in addition to the matters which must be stated in any grievance, shall specify the decision or decisions which form the basis of the appeal. Grievances and appeals shall be deemed submitted when personally delivered to the appropriate supervisor or the Chief of Police. C. Hearings /Meetings The appropriate supervisor, Chief of Police or City Manager shall meet with the member and any representative in an effort to resolve the grievance. The meeting shall be conducted within ten (10) working days after the appeal or grievance is served. The meeting shall be informal and the - 26 - discussion should focus on the issues raised by the grievance. Written decisions on the grievance or appeal shall be served on the employee within ten (10) working days after the meeting. 4. General Grievance A general grievance affecting more than one NBPMA member may be filed by NBPMA on behalf of the affected employees with the Chief of Police. The grievance shall contain a complete statement of the matters at issue, the facts upon which the grievance is based, and the remedy requested by NBPMA. The Chief of Police shall meet with NBPMA representatives within ten (10) days following receipt of the grievance and provide a written decision on the grievance within ten (10) working days after the meeting. In the event NBPMA is dissatisfied with the decision of the Chief of Police, it may appeal to the City Manager by following the procedures outlined in Step 4 of the procedure applicable to employees. In the event NBPMA is dissatisfied with the decision of the City Manager, it may appeal the decision to the Civil Service Board by filing a written notice of appeal within fifteen (15) days after receipt of the decision. D. Direct Deposit All Unit employees shall participate in the City's Direct Deposit Program. E. Contract Negotiations The parties agree that, if NBPMA submits preliminary requests for changes in wages, fringe benefits and other terms and conditions of employment earlier than 90 days prior to expiration of this MOU (as provided in Section 18. Timetable for Submission of Requests of the Employer - Employee Relations Resolution), the parties will begin negotiations promptly, with the objective of reaching agreement by December 31, 2006 Executed this day of 2005: NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION 0 John Desmond - 27 - (/n q ATTEST: m CITY OF NEWPORT BEACH By: John Heffernan, Mayor LaVonne Harkless, City Clerk APPROVED AS TO FORM: Robin Clauson, City Attorney