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HomeMy WebLinkAbout11 - Marine Safety Officers Association MOUCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 11 March 25, 2003 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Sharon Wood, Assistant City Manager 644 -3222, swood @city.newport- beach.ca.us SUBJECT: Memorandum of Understanding with Marine Safety Officers Association ISSUE: Approval of 18 -month Memorandum of Understanding (MOU) with Marine Safety Officers Association (MSOA). RECOMMENDATION: Approve and authorize Mayor and City Clerk to execute MOU. DISCUSSION: Background: The MOU with MSOA expired on June 30, 2002, but the MOU contains an "evergreen" clause, providing that it remains in effect until either party requests changes. The Association did not make a proposal for a new MOU to the City until August, because they were waiting for the outcome of our negotiations with the Firefighters and Fire Management Associations, and for a cost analysis of an enhanced retirement benefit, 3% @ 50. During the course of negotiations, MSOA dropped their request to consider the 3% @ 50 retirement benefit, and the main issues of negotiation were salary and health insurance, with flex leave, the Martin Luther King holiday and retiree medical insurance as minor issues. Memorandum of Understanding with MSOA March 25, 2003 Page 2 Sala y. The current MOU includes a matrix that ties marine safety salaries to those of Firefighter. This solution was devised when a salary study was inconclusive because of the small number of agencies with which to compare. Because of this matrix and the "evergreen" clause in the MOU, MSOA employees received the same salary increases as Firefighters and Fire Management employees: 8% in January 2002 and 3% in January 2003. MSOA proposed to retain this matrix while the City proposed to eliminate it, following the same principle that had been used in recent negotiations with police and fire employees. We would still compare responsibilities and salaries of marine safety and firefighter positions, as well as compensation in other lifeguard agencies. As in our 1999 negotiations, salary survey information was inconclusive because of the small number of comparison agencies and the differences in job titles and duties among agencies. The City and MSOA agreed that updating and revising lifeguard job specifications has been pending for some time, and needs to be resolved before we can agree on a long -term MOU. Based on direction from the City Council, the City's negotiating team and MSOA have agreed on an 18 -month MOU that retains the matrix for the time being, increases Lifeguard Specialist by 5% retroactive to June 30, 2002, and another 3% in July 2003, and commits the parties to resolving job specifications by December 31, 2003, when this MOU expires. Health Insurance: The proposed MOU maintains contributions equal to those for Firefighters. It also includes a reopener provision if the City decides to provide higher contributions to other bargaining groups during calendar year 2003. Flex Leave Through labor negotiations during the mid- 1990's, when the City was facing budget difficulties, all employee associations agreed to reduce the amount of leave that would be given to new hires. During negotiations with the Firefighters Association in early 2002, we learned that Newport Beach has fallen behind other agencies in terms of leave time, and their new MOU provides that all employees with 9 years of service will receive the same amount of flex leave, regardless of their hire date. The proposed MOU makes the same provision for MSOA. Martin Luther King Holiday: All MOUs approved by the City Council in the past year (City Employees Association, Professional and Technical Employees Association, Employees League, Firefighters Memorandum of Understanding with MSOA March 25, 2003 Page 3 Association and Fire Management Association) have added Martin Luther King's birthday as a holiday. The proposed MOU provides this holiday for MSOA. Submitted by: Sharon Wood Assistant City Manager Attachment: Memorandum of Understanding MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH MARINE SAFETY OFFICERS ASSOCIATION This Memorandum of Understanding (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE Authorized representatives of the CITY OF NEWPORT BEACH (hereinafter referred to as "CITY ") and authorized representatives of the NEWPORT BEACH MARINE SAFETY OFFICERS ASSOCIATION (hereinafter referred to as "NBMSOA ") a recognized employee organization, met and conferred, exchanging various proposals concerning wages, hours, fringe benefits and other terms and conditions of employment of employees represented by NBMSOA (hereinafter referred to as `EMPLOYEES ") for the period of July 1, 2002 through December 31, 2003. 2. NBMSOA representatives have reached an agreement as to wages, hours and other terms and conditions of employment to apply to all affected EMPLOYEES for the time period defined above. Said EMPLOYEES desire to reduce their agreement to writing, and to present such agreement, in the form of this MOU, to the City Council of the City of Newport Beach for approval. NOW, THEREFORE, this MOU is made and entered into by the parties hereto effective July 1, 2002 subject to approval by the City Council of the City of Newport Beach, as follows: SECTION 1. GENERAL PROVISIONS A. Duration of Memorandum The terms of this MOU are to remain in full force and effect beginning July 1, 2002 through December 31, 2003 or if after December 23, 2003, the conclusion of the meet and confer process. B. Scone All present written rules and currently established practices and employee rights, privileges and benefits that are within the scope of representation shall remain in full force and effect during the term of this MOU unless specifically amended by the provisions of this MOU, or in the case of the Department SOP's falling within the scope of representation, the City has given notice to the Association and, upon request, met and conferred on any proposed changes which fall within the scope of representation. 1 Final When the Department proposes to change any SOP departmental rule or regulation, it will provide a copy of such change to the Association no less than seven (7) days prior to implementation of the proposed change. If such proposed change materially impacts any matter within the scope of representation, then the parties agree to meet and confer over such impact. 2. Pursuant to this MOU, the City reserves and retains all of its inherent exclusive and non - exclusive managerial rights, powers, functions and authorities ( "Management Rights ") as set forth in Resolution No. 2001 -50. SECTION 2. COMPENSATION A. Title and Status Changes Effective with the ratification of this Memorandum of Understanding, Unit classification titles shall be modified as follows: Lifeguard Specialist to Lifeguard Officer B. Pay for Time Worked Salaries and Wages For the term of this agreement, salaries for Unit classifications will be as set forth below: Lifeguard Officer at 75% of Firefighter Lifeguard Lieutenant at Firefighter plus 15% Lifeguard Captain at Fire Captain plus 7.5% Additional increases: Lifeguard Officer only. July 2002 — 5% July, 2003 — 3% *After July 2003 the Lifeguard relationship to Firefighter will be 81% The City and NBMSOA agree that the salaries for each classification will be set in the salary schedule under "Attachment A ". In addition, unit classifications shall also have salaries under "Attachment A" increased by an amount equivalent to that granted Fire Unit employees during the term of this agreement. 2. Overtime Unit employees shall receive overtime compensation for all hours worked in excess of forty (40) in any work period. Paid time off shall be considered time worked for the purposes of calculating overtime. 2 Final C Unit employees shall have the option of requesting compensatory time off (CTO) for all overtime, including training time, during the term of this agreement. All compensatory time off shall be subject to existing City rules providing for maximum (CTO) accrual of eighty (80) hours at time and one half on the books or 120 actual hours. 3. Call Out Call out compensation shall be in accordance with the following provisions: a. All emergency call out time shall be calculated to the nearest one quarter (1/4) hour of time worked. b. For forty (40) hour employees, a minimum of two (2) hours (including travel time) of pay at the rate of one and one half (1 1/2) times the employee's regular hourly rate of pay shall be guaranteed for each emergency call out Scholastic Achievement Pay NBMSOA members are entitled to additional compensation contingent upon scholastic achievement ( "Scholastic Achievement Pay "). MSOA members may apply for increases pursuant to this Section when eligible and scholastic achievement pay shall be included in the member's paycheck for the pay period immediately after approval by the Fire Chief. It is the responsibility of the MSOA member to apply for Scholastic Achievement Pay. Approval of the member's application shall not be unreasonably withheld or delayed, and the member shall not be entitled to receive scholastic achievement pay prior to the date the application is approved even though the member may have been eligible prior to approval. Scholastic achievement pay is contingent upon years of service and number of units and/or degrees received by the employee. Qualifying units and/or degrees must be awarded by accredited community colleges, state colleges or universities. MSOA members shall receive scholastic achievement pay in accordance with the following: Years of Total College Compensation Service Semester Units Per Month 2 or more 30 1.5% mo /top step base FF salary 3 or more 60 2.5% mo /top step base FF salary 3 90 3.5% mo /top step base FF salary 4 or more 90 3.5% mo /top step base FF salary 4 120 4.5% mo /top step base FF salary 4 B.A. /B.S. 5.5% mo /top step base FF salary 4 M.A./M.S. 6.5% mo /top step base FF salary 3 Final D. Court Standby Pay NBMSOA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off -duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBMSOA members shall, when required to appear in court pursuant to a Subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. E. Night Standby An employee assigned to standby duty for purposes of being on call to handle emergency situations arising at times other than during normal working hours shall be guaranteed two (2 1/2) and a half hours of pay at his regular hourly rate of pay for each calendar day of such standby duty. All unit employees shall be required to maintain residency within thirty (30) minutes driving time from the Marine Safety Headquarters in order to be eligible for standby duty. Driving time shall be defined as driving the most direct route at the posted speed limit. F. Move -up Pay Temporary upgrading shall be defined as the temporary assignment of an employee to work in a job classification, which is assigned to a salary schedule higher than his/her regular job classifications. Employees temporarily upgraded to the following job classifications shall receive a five (5 %) percent pay differential over their regular rate of pay for all time worked in the higher job classification if they are assigned to work in the higher job classification for a period of four (4) working hours or longer: Lifeguard Captain Lifeguard Lieutenant All holiday, vacation, sick leave and paid leave shall be paid at the employee's regular rate of pay. Assignments to higher rated classifications shall be made at the sole discretion of the City. 4 Final SECTION 3. FRINGE BENEFITS A. Insurance Health Care Plan The City has implemented an IRS qualified Cafeteria Plan. NBMSOA members shall participate in this plan. The City contribution toward the Cafeteria Plan shall be as set forth below. In addition, the City shall contribute a total of $16 towards medical insurance. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical, dental and vision insurances /programs. The City and the Newport Beach Marine Safety Officers Association will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. Any unused Cafeteria Plan funds shall be payable to the employee as taxable cash back. Employees shall be allowed to change coverages in accordance with plan rules during regular open enrollment periods. Effective January 2003, the City's contribution towards the Cafeteria Plan will be $534 (plus the $16 medical contribution). NBMSOA members who do not want to enroll in any health care plan offered by the City must provide evidence of group health care insurance coverage, and execute an opt -out agreement releasing the City from any responsibility or liability to provide health care insurance coverage on an annual basis. Should the City increase the Cafeteria Plan contribution for other represented employee groups in excess of the amount reflected herein, it will, upon request, reopen negotiations on the Cafeteria Plan contribution with NBMSOA. 2. Benefits Information Committee City has established a Medical/Dental Information Committee composed of one representative from each employee group and up to three City representatives. The Medical/Dental Information Committee has been established to allow the City to present data regarding carrier and coverage options, the cost of those options, appropriate coverage levels and other health care issues. The purpose of this Committee is to provide each employee group with information about health care issues and to receive timely input from associations regarding preferred coverage options and levels of coverage. 3. Retiree Health An employee is eligible for retiree medical benefits under this program after seven years of service to the City of Newport Beach if the employee retires from the City and is a PERS annuitant. This program is inclusive of an employee's S Final right to medical insurance coverage under the Ca1PERS medical insurance plan and the mandatory minimum $16 per month employer contribution to said plan on behalf of the annuitant. a. The City has implemented a $400 per month cap for retiree medical insurance premium contributions as provided for in previous Memoranda of Understanding between the City and the NBMSOA. In accordance with existing agreements, the City and active employees shall be responsible for 3 /4ths (1/2 City and 1/4 actives) of retiree medical insurance premium under this program. Retirees shall be responsible for any remaining medical insurance premiums under this program to a maximum of Four Hundred ($400.00) Dollars. Retirees shall be responsible for any remaining medical insurance premiums. The employee's current share of the retirement contribution shall be $34.06 per month. Subsequent contribution levels shall be set in January, annually, in accordance with the formula described above. Prior to increasing the deductions for the employee's contribution share, the City shall provide NBMSOA with documentation supporting the need for said increase at least 90 days in advance of the effective date of the increase. Upon request, City representatives will meet and consult with NBMSOA prior to any increases in employee deduction levels. The parties agree that any increase will take effect as soon as possible after January 1. b. In order to accumulate funds to meet the potential unfunded liability in retiree medical insurance premium payments as projected by the City's actuary and in addition to the contribution described above, each NBMSOA unit employee will contribute $10 per month and the City shall contribute $20 per employee per month into an interest bearing trust account. These contributions will be continued until the projected liability is satisfactorily funded (approximately 30 years), or until such time as the City and NBMSOA mutually agree to end the funding on behalf of N13MSOA 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 as described above. In the event the retiree medical insurance program described herein is discontinued, NBMSOA members will receive an accounting on any remaining funds and the City will immediately meet and confer with NBMSOA on the distribution of said funds back to active (not retired/full- time) City employees in the NBMSOA unit. 6 Final The City will provide NBMSOA with an annual report certified by the City Finance Director describing the balance, interest earnings, and any expenditures of the trust account described herein. 4. Disability Insurance The City shall provide disability insurance with the following provisions: Weekly Benefit 662/3% gross weekly wages Maximum Benefit (mo.) $ 8,000 Minimum Benefit $50 Waiting Period 30 Calendar Days Employees shall not be required to exhaust accrued paid leaves prior to receiving benefits under the disability insurance program. Employees may not supplement the disability benefit with paid leave once the waiting period has been exhausted. 5. Tuition Reimbursement NBMSOA members attending accredited community colleges, colleges, trade schools or universities may apply for reimbursement of one hundred percent (100 %) of the actual cost of tuition, books, fees or other student expenses for approved job — related courses. Maximum tuition reimbursement for employees shall be $1,000.00 per fiscal year. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Human Resources Director. SECTION 4. LEAVES A. Flexible Leave Program All employees hired after July 1, 1990 will be included in the Flexible Leave Program. Permanent full -time employees enrolled in the flex leave program will earn leave in accordance with the following schedule: 7 Final Years of continuous Accrual per Annual Service pay period/hrs Days 1 but less than 5 5.54 18 5 but less than 9 6.15 20 9 but less than 12 6.77 22 12 but less than 16 7.69 25 16 but less than 20 8.31 27 20 but less than 25 8.92 29 25 and over 9.54 31 Employees hired, or rehired, by the City of Newport Beach on or after July 1, 1996, shall accrue flex leave at the following rates: Years of continuous Accrual per Annual Service pay period/hrs Days 1 but less than 5 4.92 16 5 but less than 10 5.53 18 10 but less than 15 6.46 21 15 but less than 20 7.08 23 20 and over 8.00 26 Effective January 1, 2003, employees hired, or rehired on or after July 1. 1996 shall accrue flex leave at the following rates: Years of continuous Accrual per Annual Service pay period/hrs Days 1 but less than 5 4.92 16 5 but less than 9 5.53 18 9 but less than 12 6.77 22 12 but less than 16 7.69 25 16 but less than 20 8.31 27 20 but less than 25 8.92 29 25 and over 9.54 31 During the first six months of employment, new regular full -time employees shall not accrue paid leave. At the completion of six months of employment six (6) months of accrued flex leave will be placed in the employees account. Note: If an employee becomes sick in the first six months of employment, the City will advance up to six (6) months of potentially accrued flex leave time to be used for illnesses only. If employee terminates employment prior to six months, the City will subtract the pay equivalent of the number of flex leave days advanced from the employees final check. Any flex leave time advanced during the first six months of 8 Final employment will be subtracted from the six (6) months of accrual placed in the employees account upon completion of six months employment. 1. Limit on Accumulation Employees may accrue flex leave up to an accumulated total equal to seventy eight (78) times the members bi- weekly accrual rate. Any flex leave earned in excess of this level will be paid on an hour for hour basis in cash at the employee's hourly rate of pay. Members hired prior to July 1, 1996 shall be paid for earned flex leave in excess of the maximum permitted accrual at the member's hourly rate of pay. Members shall be eligible for flex leave spillover pay only if they have utilized at least eighty (80) hours of flex leave the previous calendar year. Employees who have not utilized the required amount of leave the prior calendar year shall not be eligible to accrue time above the maximum accrual limit. Employees first hired, or rehired by the City subsequent to July 1, 1996 shall not be eligible for flex leave spillover pay and shall not be entitled to accrue flex leave in excess of the flex leave accrual threshold. 2. Method of Use Flex leave may not be taken in excess of that actually accrued and in no case, except for illness, may it be taken prior to the completion of an employee's initial probationary period. The Department Director shall approve all requests for flex leave taking into consideration the needs of the Department, and whenever possible the seniority and wishes of the employee. Flex leave may be granted on an hourly basis. Any fraction over an hour shall be charged to the next full hour. B. Vacation Basis for Accrual/Full -Time Employees Employees entitled to vacation leave- with -pay shall accrue such leave based on years of continuous service and the number of hours in a normal workweek for the position to which they are assigned in accordance with the following schedule: 9 Final Years of Accrual Continuous Per 40 Hour Service Pay Period 0 but less than 5 3.38 5 but less than 9 3.99 9 but less than 12 4.61 12 but less than 16 5.22 16 but less than 20 5.84 20 but less than 25 6.46 25 and over 7.07 2. Limit on Accumulation Accrual of vacation days in excess of those earned for two years of continuous service is not permitted past December 31st of each year with the following exception: with approval of the Department Director, an employee may accrue vacation days in excess of the two -year limit provided all such excess accumulation is taken by March 31 st of the following year. 3, Method of Use Vacation may not be taken in excess of that actually accrued and in no case, except for entry-level employees, may it be taken prior to the completion of an employee's initial probationary period. Entry level employees may use vacation after the completion of the initial six (6) months of probation. The Department Director shall schedule and approve all vacation leaves for employees taking into consideration the needs of the Department, and whenever possible, the seniority and wishes of the employee. Vacation leave may be granted on an hourly basis. C. Use of Flexible and Vacation Leave Level A staffing shall run from June 15th through Labor Day. During this period of time, full -time personnel may be limited to a total of forty (40) hours usage of vacation/flex leave. Additional vacation/flex leave during this period may be approved if in the opinion of management adequate staffing levels can be maintained. The Department shall develop a policy defining when approved vacation/flex leave times shall not be subject to cancellation. The City will budget eighty (80) hours of overtime per employee per year for vacations /flex leave backfill. Concurrently, the City and NBMSOA will jointly review procedures defining minimum staffing and the hours for night call out. Any changes to these areas fall within the scope of representation and will be subject to the meet and confer process. 10 Final E. Holiday Leave Subject to the provisions herein, the following days shall be observed as paid holidays by all employees in permanent positions and other personnel whose work assignments, in the judgment of the Department Director require their presence on the job. For each designated holiday, except the Floating Holidays, such personnel shall receive an equivalent number of hours of paid leave or equivalent pay whichever in the judgment of the Department Director best serves the interest of the Department. Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas New Year's Eve New Year's Day Martin Luther King Day Washington's Birthday Memorial Day Floating Holiday (1) July 4 1 st Monday in Sept. November 11 4th Thurs. in November Last 1/2 of working day December 25 Last 1/2 of working day January 1 3`a Monday in January 3rd Monday in February Last Monday in May For employees birthday or other holiday. Eligibility and use according to Memoranda of Understanding. Holiday pay will be paid only to employees who work their scheduled day before the holiday and scheduled day after a holiday or are on authorized leave (e.g., approved vacation, sick leave, or flex leave that has been reviewed and approved by the Department Director). 2. Newly hired employees will be eligible to receive full pay for scheduled holidays, without a waiting period. 3. "Floating Holiday" eligibility allows for newly hired employees to earn their first floating holiday credit, eight (8) hours, at the same time as they receive their regular appointment status, upon the successful completion of their probationary period. Sick Leave Basis for Accrual /Full -time Employees Full -time, regular employees shall accrue sick leave based on the number of hours in a normal workweek for the position to which they are assigned in accordance with the following schedules: 11 Final 2. Normal Work Week 40 hours 0 - 1 year 4 hours per month 1 -2 years 5 hours per month 2 -3 years 6 hours per month 3 -4 years 7 hours per month 4+ years 8 hours per month After the 3rd year level, and the 5th year level, employees will be required to maintain the same number of hours as required of other permanent employees. Employees accruing sick leave hours under the above formula and enrolled in the City's Disability Program will be eligible for City -paid Disability Insurance premiums as follows: 50% at 88 hours, 100% at 208 hours. Method of Use a. General Sick leave may not be taken in excess of that actually accrued. Except as noted, an employee serving his/her initial probation period is eligible to use his/her accumulated sick leave provided that if for any reason his/her City employment is terminated prior to the completion of such probationary period, his/her final pay check shall be reduced by the value of the sick leave he /she has taken. After completion of the initial six (6) months probation period, entry-level employees shall not have used sick leave deducted from their final paycheck if they have maintained a satisfactory or higher performance evaluation rating throughout the probationary period. Sick leave may be granted on an hourly basis. b. Approval Sick leave may be granted only at the direction of or with the approval of the Department Director and only for the purposes defined in Section 11.2.A of the Employee Policy Manual. F. Sick Leave Pay Out Upon paid retirement, termination in good standing or death, but not termination for cause or resignation in lieu of termination, any member or his/her estate shall be paid, at the rate of 109% of their then current base hourly rate of pay (hourly rate before incentives, other pays, etc.) for a percentage of the employees accrued but unused Sick Leave computed as follows: 12 Final G. In I. YEARS OF SERVICE LESS THAN 10 10 BUT LESS THAN 15 15 BUT LESS THAN 20 20 OR MORE PERCENT OF UNUSED SICK LEAVE PAID FOR: NONE 25% 37.5% 50% Payment for accrued but unused Sick Leave shall be limited to the first 800 hours of accrued Sick Leave for Staff Employees and the first 1200 hours for Line Employees (for example if a Line Employee had accumulated 1400 hours of Sick Leave and retired after 16 years he or she would receive Terminal Sick Leave Pay in a sum equal to 109% of their base salary per hour for 450 hours of Sick Leave — 1200 hours multiplied by .375). Family Sick Leave Unit employees shall be entitled to use one -half (1/2) of their annual sick leave accrued for an illness of a dependent which requires the presence of the employee. Leave shall be administered in accordance with the provisions of Section 11.2 of the Employee Policy Manual. The provisions of this section shall not be construed to affect or reduce the right of any employee to any unpaid family medical leave authorized by State or Federal law. For purposes of family sick leave, family member shall mean spouse, parent, (parent shall mean biological, foster, or adoptive children, a stepchild, a legal ward, or a child of a person standing in local parentis). Sick Leave Conversion Employees who at the end of the calendar year have an accrued level of sick leave equal to or greater than the full value of 40 months of accrued sick leave, and who have used six or less days of sick leave during the calendar year will be permitted (only once per year) to convert up to six days of sick leave to either salary or paid vacation at the value of 50% (Maximum value of 3 days per year). Eligible sick leave days converted to cash shall be at the employee's option. Eligible sick leave days converted to paid vacation shall require the approval of the Department Director. Bereavement Leave The provisions of the Bereavement Leave Policy applicable to affected employees are as follows: Defined. The necessary absence from duty by an employee having a regular or probationary appointment, because of death or terminal illness in his/her immediate family. For the purposes of this section, immediate family shall mean father, mother, brother, sister, wife, husband, child, father -in -law, mother -in -law and grandparents. 13 Final Maximum Allowed. Such leave shall be limited to five (5) working days per calendar year per occurrence. Probationary Employees. An employee serving his/her initial probationary period who takes leave nmder this section who for any reason terminates his/her employment prior to the completion of such probationary period shall have his/her final pay check reduced by the value of the leave taken. J. Leave Pay -Off For the term of the agreement, NBMSOA members shall receive payment for any accrued leave upon termination at the rate of 109% of their base hourly rate. SECTION 5. MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. Definitions a. "Layoffs" or "Laid off' shall mean the non — disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted permanent status in their current Classification or any Classification within the Series, subject to the following: (i) Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status in the Classification or Series; (ii) Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. C. "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part—time, seasonal or temporary positions. 14 Final Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). d. "Series" shall mean two or more Classifications within a Department which require the performance of similar duties with the higher ranking Classification(s) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities for subordinates. The City Manager shall determine those Classifications, which constitute a Series. e. "Bumping Rights ", 'Bumping" or "bump" shall mean the right of an employee, based upon seniority within a series, to displace a less senior employee in a lower Classification within the Series. No employee shall have the right to Bump into a Classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience. 2. Procedures In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: a. Temporary and probationary employees within any Classification shall, in that order, be laid off before permanent employees. b. Employees within a Classification shall be laid off in inverse order of seniority; C. An employee subject to layoff in one Classification shall have the right to Bump a less senior employee in a lower ranking Classification within a Series, provided, however, that the determination of the employee to be terminated from the position of Lifeguard shall be based on seniority within the Series. An employee who has Bumping Rights shall notify the Department Director within seven (7) working days after notice of layoff of his/her intention to exercise Bumping Rights. d. In the event two or more employees in the same Classification are subject to layoff and have the same seniority, the employees shall be laid off in inverse order of their position on the eligibility list or lists from which they were appointed. In the event at least one of the employees was not appointed from an eligibility list, the Department Director shall determine the employee(s) to be laid off. 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, 15 Final employees laid off will be paid for all accumulated paid leave, holiday leave (if any), and accumulated sick leave to the extent permitted by the Personnel Resolution. 4. Re— Employment Permanent and probationary employees who are laid off shall be placed on a Department re— employment list in reverse order of layoff. The re —employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re— employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re- employment list or the right to remove his or her name from the re— employment list by sending written confirmation to the Human Resources Manager. 5. Severance Pay Permanent employees who are laid off shall, as of the date of lay —off, receive one week severance pay for each year of continuous service with the City of Newport Beach. B. Health and Fitness Evaluations All NBMSOA members shall participate in the Department Fitness Program. C. Provision for Sun Protection 1. The CITY will provide for one pair of sunglasses per year for each unit employee. The cost allowance will be determined through reference to the cost of a base line pair. 2. The CITY agrees to provide an additional $100.00 per year in sun protection materials for all unit employees. 3. Each unit employee shall receive an annual skin cancer screening will be conducted either on or off duty at the Department's discretion. Employees directed to receive this screening off duty shall receive one (1) hour of compensatory time off as compensation. 16 Final D. Discipline Any discipline shall be in accordance with the Department SOP and the Employee Policy Manual. E. Fitness Equipment and Exercise Time At a time, during the life of this MOU, selected by NBMSOA, the City will provide up to $3,000.00 per year towards the purchase of fitness equipment to be used off duty for the intended benefit of NBMSOA for the term of this agreement. The actual equipment to be purchased shall be recommended by NBMSOA, and shall require the final approval of the Fire Chief. Unit employees shall be allowed up to three (3) hours per week for physical fitness training. F. Uniform Allowance The City shall pay the entire cost of providing MSOA members with each component of the required MSOA uniforms. The required MSOA uniform includes uniform pants, uniform shirts, safety shoes, badges and insignias, uniform jackets and liners, belts, dive equipment, foul weather gear, personal floatation device and helmet. The City shall not be responsible for providing employees with socks, underwear, cap, workout shoes, or other clothing. The City will report the value of provided uniforms to PERS in accordance with PERS requirements. G. Retirement The City shall maintain in effect the 3 % @55 retirement program for the term of this agreement. H. Lifeguard Officers Schedule Lifeguard Officers shall continue to work a 4 -10 schedule; unless the schedule is modified through standard departmental procedures. I. Employee Policy Manual The City and MSOA have agreed on implementation of the City's revised Employee Policy Manual. I Direct Deposit All Unit employees shall participate in the City's Direct Deposit Program. 17 Final K. Other Terms and Conditions Except as to those matters expressly covered by this MOU, all terms and conditions of employment may be changed or amended after meeting and conferring, in good faith. L. Separability Should any part of this MOU or any provision herein contained be rendered or declared invalid, by reason of any existing or subsequently enacted Legislation, or by decree of a Court of competent jurisdiction, such invalidation of such part or portion of this MOU shall not invalidate the remaining portion hereto, and same shall remain in full force and effect; provided, however, that should the provisions of this MOU relating to pay schedule adjustment increases be declared invalid, CITY agrees to provide alternate benefits agreeable to NBMSOA, to EMPLOYEES to receive the same amount of money as they would have received had such provision not been declared invalid. Executed this , day of , 2003: NEWPORT BEACH MARINE CITY OF NEWPORT BEACH SAFETY OFFICERS ASSOCIATION MN "I 18 Final BY: Steven Bromberg, Mayor ATTEST: BY: LaVonne Harkless, City Clerk APPROVED AS TO FORM: BY: Robert H. Burnham, City Attorney