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HomeMy WebLinkAboutC-2932 - MOU, Side Letters "Police Management Association"SIDE LETTER OF AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND THE NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION This Side Letter of Agreement ("Agreement") is made and entered into by and between the City of Newport Beach ("City") and the Newport Beach Police Management Association ("Association") (collectively "Parties") with respect to the following: WHEREAS, on June 28, 2022, the City Council adopted Resolution No. 2022-44 approving a Memorandum of Understanding ("MOU") between the Parties with a term of July 1, 2022, through June 30, 2026; WHEREAS, to aid in the recruitment and retention of valuable employees, the Parties wish to modify the MOU; WHEREAS, on Mack -f- , 2023, this Agreement was ratified by the Association; and WHEREAS, this Agreement will not have the effect of an agreement, and will not be binding on either party, until it is approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. Section 2, Compensation, of the MOU is amended to add the following to Subsection A, which shall read as follows: Salary Schedule Adjustment Effective the pay period which includes July 1, 2023, the City will add a new top step ("New Top Step") to the salary schedule for all represented positions, which shall be five percent (5%) more than the current top step ("Current Top Step"). The Parties acknowledge and agree that the first step for all represented positions currently in effect is not being eliminated. With the following exception, step advancement through the salary ranges is unaffected by the addition of the New Top Step: Employees who have been at the Current Top Step for longer than 12 months as of June 30, 2023, will advance to the New Top Step in the pay period which includes July 1, 2023. 2. Exhibit "A" of the MOU is replaced in its entirety with Exhibit A to this Agreement, which is attached hereto and incorporated herein by this reference. 3. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in fiill force and effect. Signatures on the next page NBPMA Side Letter Agreement — July 2023 Executed this � � day of A F R 1 L , 2023. FOR THE NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION: By: '64i Eric Little, President FOR THE CITY OF NEWPORT BEACH: U11 Y Ur NEWFOKI' BEACH APPROVED AS TO FORM: By: r,, ( . Aaron C. Harp, City Attorney ATTEST: Po� By: A&4*2 Leilani Brow City Clerk gLrFO'�� Attachment: Exhibit A — Salary Schedule NBPMA Side Letter Agreement — July 2023 EXHIBIT F: Side Letter of Agreement Between the City and NBPMA The City of Newport Beach Police Management Association Salary Schedule Adjustment MOU Term: July 1, 2022 - June 30, 2026 (Exhibit A) Effective July 1, 2023 - Additional Step Police Lieutenant 65 1 $ 60.04 $ 10,407 $ 124,887 Police Lieutenant 65 2 $ 63.06 $ 10,930 $ 131,155 Police Lieutenant 65 3 $ 66.20 $ 11,474 $ 137,692 Police Lieutenant 65 4 $ 69.49 $ 12,046 $ 144,547 Police Lieutenant 65 5 $ 72.98 $ 12,649 $ 151,794 Police Lieutenant 65 6 $ 76.63 $ 13,282 $ 159,383 Police Lieutenant 65 7 $ 80.46 $ 13,947 $ 167,365 Police Lieutenant 65 8 $ 84.49 $ 14,645 $ 175,738 Police Lieutenant 65 9 $ 88.71 $ 15,377 $ 184,525 Police Sergeant 40 1 $ 51.08 $ 8,855 $ 106,256 Police Sergeant 40 2 $ 53.65 $ 9,299 $ 111,593 Police Sergeant 40 3 $ 56.35 $ 9,767 $ 117,200 Police Sergeant 40 4 $ 59.15 $ 10,252 $ 123,026 Police Sergeant 40 5 $ 62.10 $ 10,764 $ 129,172 Police Sergeant 40 6 $ 65.20 $ 11,301 $ 135,610 Police Sergeant 40 7 $ 68.47 $ 11,868 $ 142,417 Police Sergeant 40 8 $ 71.87 $ 12,458 $ 149,492 Police Sergeant 40 9 $ 75.46 $ 13,081 $ 156,967 Hourly rates are rounded to the nearest hundredth. Monthly and annual salaries are rounded to the nearest whole dollar. Actual rates may vary slightly due to rounding. EXHIBIT F: Side Letter of Agreement Between the City and NBPMA The City of Newport Beach Police Management Association Salary Schedule Adjustment MOU Term: July 1, 2022 - June 30, 2026 (Exhibit A) Effective July 15, 2023 - 3% Cost -of -Living Adjustment (COLA) Police Lieutenant 65 1 $ 61.84 $ 10,719 $ 128,634 Police Lieutenant 65 2 $ 64.95 $ 11,257 $ 135,089 Police Lieutenant 65 3 $ 68.18 $ 11,819 $ 141,822 Police Lieutenant 65 4 $ 71.58 $ 12,407 $ 148,883 Police Lieutenant 65 5 $ 75.17 $ 13,029 $ 156,348 Police Lieutenant 65 6 $ 78.93 $ 13,680 $ 164,165 Police Lieutenant 65 7 $ 82.88 $ 14,365 $ 172,386 Police Lieutenant 65 8 $ 87.02 $ 15,084 $ 181,010 Police Lieutenant 65 9 $ 91.38 $ 15,838 $ 190,061 Police Sergeant 40 1 $ 52.62 $ 9,120 $ 109,444 Police Sergeant 40 2 $ 55.26 $ 9,578 $ 114,941 Police Sergeant 40 3 $ 58.04 $ 10,060 $ 120,716 Police Sergeant 40 4 $ 60.92 $ 10,560 $ 126,717 Police Sergeant 40 5 $ 63.96 $ 11,087 $ 133,047 Police Sergeant 40 6 $ 67.15 $ 11,640 $ 139,679 Police Sergeant 40 7 $ 70.52 $ 12,224 $ 146,689 Police Sergeant 40 8 $ 74.03 $ 12,831 $ 153,977 Police Sergeant 40 9 $ 77.73 $ 13,473 $ 161,676 Hourly rates are rounded to the nearest hundredth. Monthly and annual salaries are rounded to the nearest whole dollar. Actual rates may vary slightly due to rounding. EXHIBIT F: Side Letter of Agreement Between the City and NBPMA The City of Newport Beach Police Management Association Salary Schedule Adjustment MOU Term: July 1, 2022 - June 30, 2026 (Exhibit A) Effective July 13, 2024 - 3% Cost -of -Living Adjustment (COLA) Police Lieutenant 65 1 $ 63.70 $ 11,041 $ 132,493 Police Lieutenant 65 2 $ 66.90 $ 11,595 $ 139,142 Police Lieutenant 65 3 $ 70.23 $ 12,173 $ 146,077 Police Lieutenant 65 4 $ 73.73 $ 12,779 $ 153,350 Police Lieutenant 65 5 $ 77.42 $ 13,420 $ 161,038 Police Lieutenant 65 6 $ 81.29 $ 14,091 $ 169,090 Police Lieutenant 65 7 $ 85.36 $ 14,796 $ 177,557 Police Lieutenant 65 8 $ 89.63 $ 15,537 $ 186,441 Police Lieutenant 65 9 $ 94.12 $ 16,314 $ 195,763 Police Sergeant 40 1 $ 54.20 $ 9,394 $ 112,727 Police Sergeant 40 2 $ 56.92 $ 9,866 $ 118,389 Police Sergeant 40 3 $ 59.78 $ 10,361 $ 124,337 Police Sergeant 40 4 $ 62.75 $ 10,877 $ 130,519 Police Sergeant 40 5 $ 65.88 $ 11,420 $ 137,038 Police Sergeant 40 6 $ 69.17 $ 11,989 $ 143,869 Police Sergeant 40 7 $ 72.64 $ 12,591 $ 151,090 Police Sergeant 40 8 $ 76.25 $ 13,216 $ 158,596 Police Sergeant 40 9 $ 80.06 $ 13,877 $ 166,526 Hourly rates are rounded to the nearest hundredth. Monthly and annual salaries are rounded to the nearest whole dollar. Actual rates may vary slightly due to rounding. EXHIBIT F: Side Letter of Agreement Between the City and NBPMA The City of Newport Beach Police Management Association Salary Schedule Adjustment MOU Term: July 1, 2022 - June 30, 2026 (Exhibit A) Effective July 12, 2025 - 3% Cost -of -Living Adjustment (COLA) Police Lieutenant 65 1 $ 65.61 $ 11,372 $ 136,468 Police Lieutenant 65 2 $ 68.90 $ 11,943 $ 143,316 Police Lieutenant 65 3 $ 72.34 $ 12,538 $ 150,459 Police Lieutenant 65 4 $ 75.94 $ 13,163 $ 157,950 Police Lieutenant 65 5 $ 79.74 $ 13,822 $ 165,869 Police Lieutenant 65 6 $ 83.73 $ 14,514 $ 174,162 Police Lieutenant 65 7 $ 87.93 $ 15,240 $ 182,884 Police Lieutenant 65 8 $ 92.32 $ 16,003 $ 192,034 Police Lieutenant 65 9 $ 96.94 $ 16,803 $ 201,636 Police Sergeant 40 1 $ 55.82 $ 9,676 $ 116,109 Police Sergeant 40 2 $ 58.63 $ 10,162 $ 121,941 Police Sergeant 40 3 $ 61.57 $ 10,672 $ 128,067 Police Sergeant 40 4 $ 64.63 $ 11,203 $ 134,434 Police Sergeant 40 5 $ 67.86 $ 11,762 $ 141,149 Police Sergeant 40 6 $ 71.24 $ 12,349 $ 148,185 Police Sergeant 40 7 $ 74.82 $ 12,969 $ 155,623 Police Sergeant 40 8 $ 78.54 $ 13,613 $ 163,354 Police Sergeant 40 9 $ 82.46 $ 14,293 $ 171,522 Hourly rates are rounded to the nearest hundredth. Monthly and annual salaries are rounded to the nearest whole dollar. Actual rates may vary slightly due to rounding. SIDE LETTER OF AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND THE NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION This Side Letter of Agreement ("Agreement") is made and entered into this 21 day of Nov vvtB c& 2022, by and between the City of Newport Beach ("City") and the Newport Beach Police Management Association ("NBPMA") (collectively "Parties") with respect to the following: WHEREAS, on June 28, 2022, the City Council adopted Resolution No. 2022-44 approving a Memorandum of Understanding ("MOU") between the Parties with a term of July 1, 2022, through June 30, 2026; WHEREAS, given increases in the cost of medical insurance and to aid in the recruitment and retention of valuable employees, the Parties wish to modify the MOU; and WHEREAS, this Agreement will not have the effect of an agreement, and will not be binding on either party, until it is ratified by the affected bargaining unit and approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. The following language in Section 4.A.2. Fringe Benefits, Health Insurance, Medical Insurance, of the MOU is amended to read as follows: 2. Medical Insurance b. City Contribution Current Language: i. The City's monthly contribution towards the Cafeteria Plan is $1,524.00 (plus the minimum CalPERS participating employer contribution as outlined in Government Code §22892.) Amended Language: i. The City's monthly contribution towards the Cafeteria Plan is $1,524.00 (plus the minimum Ca1PERS participating employer's contribution as outlined in Government Code §22892.) Temporary Increase. Effective the pay period that includes January 1, 2023, the City's monthly contribution towards the Cafeteria Plan increases to $1,624.00 (plus the minimum Ca1PERS participating employer's contribution as outlined in Government Code §22892). Effective the pay period that includes January 1, 2025, the City's monthly contribution towards the Cafeteria Plan decreases to $1,524.00-(plus the minimum CaIPERS participating employer's contribution as outlined in Government Code §22892). NBPMA Side Letter Agreement Page 1 of 3 2. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in full force and effect. Signatures on the next page NBPMA Side Letter Agreement Page 2 of 3 Executed this day of , 2022 FOR THE NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION: By: Gczz,Qo Eric Little, President FOR THE CITY OF NEWPORT BEACH: By. Kevin Muld • : ; ayor CITY OF NEWPORT BEACH APPROVED AS TO FORM: By: ., c Aaron C. Harp, City Attorney ATTEST: By: Leilani Bro NBPMA Side Letter Agreement Page 3 of 3 SIDE LETTER OF AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND THE NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION This Side Letter of Agreement ("Agreement") is made and entered into this 2.3 day of A u l.V S"t' 2022, by and between the City of Newport Beach ("City") and the Newport Beach Police Management Association ("Association") (collectively "Parties") with respect to the following: WHEREAS, on June 28, 2022, the City Council adopted Resolution No. 2022-44 approving a Memorandum of Understanding ("MOU") between the Parties with a term of July 1, 2022, through June 30, 2026; WHEREAS, given increases in the Cost -of -Living and to aid in the recruitment and retention of valuable employees, the Parties wish to modify the MOU; and WHEREAS, this Agreement will not have the effect of an agreement, and will not be binding on either party, until it is ratified by the affected bargaining unit and approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. Section 2, Compensation, Subsection A, Salary Adjustments — this MOU Period, of the MOU is amended to read as follows: Base salary increases for all NBPMA represented classifications shall be as follows and as specified in Exhibit A: 1. Effective the first day of the pay period following July 1, 2022, there shall be a base salary increase of two percent (2.0%) for all classifications in the bargaining unit. Individuals must be employed by the City on the first day of the pay period following City Council adoption to qualify for retroactive payment of the COLA. 2. Effective the first day of the pay period following July 1, 2023, there shall be a base salary increase of three percent (3.0%) for all classifications in the bargaining unit. 3. Effective the first day of the pay period following July 1, 2024, there shall be a base salary increase of three percent (3.0%) for all classifications in the bargaining unit. 4. Effective the first day of the pay period following July 1, 2025, there shall be a base salary increase of three percent (3.0%) for all classifications in the bargaining unit. 2. Exhibit A of the MOU is replaced in its entirety with Exhibit A to this Agreement, which is attached hereto and incorporated herein by this reference. 3. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in full force and effect. Signatures on the next page Executed this 13 day of Fl v (.,V S'f , 2022 FOR THE NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION: By: Eric Little, President FOR THE CITY OF NEWPORT BEACH: By: Kevin Md1doon, Mayor CITY OF NEWPORT BEACH APPROVED AS TO FORM: By: ATTEST: By: Dei Leilani Brown, City Crlerk 0...........—. C. 4.0.0-4.---' Aar n C. Harp, City Attorney Attachment: Exhibit A — Salary Schedule with Cost -of -Living Adjustment EXHIBIT A RESOLUTION NO. 2022- The City of Newport Beach Police Management Association Salary Schedule Adjustment MOU Term: July 1, 2022 - June 30, 2026 (Exhibit A) Effective July 15, 2023 - 3% Cost -of -Living Adjustment Police Lieutenant 65 1 $ 61.84 $ 10,719 $ Police Lieutenant 65 2 $ 64.95 $ 11,257 $ Police Lieutenant 65 3 $ 68.18 $ 11,819 $ Police Lieutenant 65 4 $ 71.58 $ 12,407 $ Police Lieutenant 65 5 $ 75.17 $ 13,029 $ Police Lieutenant 65 6 $ 78.93 $ 13,680 $ Police Lieutenant 65 7 $ 82.88 $ 14,365 $ Police Lieutenant 65 8 $ 87.02 $ 15,084 $ Police Sergeant 40 1 $ 52.62 $ 9,120 $ Police Sergeant 40 2 $ 55.26 $ 9,578 $ Police Sergeant 40 3 $ 58.04 $ 10,060 $ Police Sergeant 40 4 $ 60.92 $ 10,560 $ Police Sergeant 40 5 $ 63.96 $ 11,087 $ Police Sergeant 40 6 $ 67.15 $ 11,640 $ Police Sergeant 40 7 $ 70.52 $ 12,224 $ Police Sergeant 40 8 $ 74.03 $ 12,831 $ Hourly rates are rounded to the nearest hundredth. Monthly and annual rates are rounded to the nearest whole dollar. 128,634 135,090 141,822 148,883 156,348 164,165 172,386 181,010 109,444 114,941 120,716 126,717 133,047 139,679 146,689 153,977 Police Lieutenant Police Lieutenant Police Lieutenant Police Lieutenant Police Lieutenant Police Lieutenant Police Lieutenant Police Lieutenant Police Sergeant Police Sergeant Police Sergeant Police Sergeant Police Sergeant Police Sergeant Police Sergeant Police Sergeant EXHIBIT A RESOLUTION NO. 2022- The City of Newport Beach Police Management Association Salary Schedule Adjustment MOU Term: July 1, 2022 -June 30, 2026 (Exhibit A) Effective July 13, 2024 - 3% Cost -of -Living Adjustment 65 65 65 65 65 65 65 65 40 40 40 40 40 40 40 40 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 63.70 66.90 70.23 73.73 77.42 81.29 85.36 89.63 54.20 56.92 59.78 62.75 65.88 69.17 72.64 76.25 11,041 11,595 12,173 12,779 13,420 14,091 14,796 15,537 9,394 9,866 10,361 10,877 11,420 11,989 12,591 13,216 Hourly rates are rounded to the nearest hundredth. Monthly and annual rates are rounded to the nearest whole dollar. 132,493 139,142 146,077 153,350 161,038 169,090 177,557 186,441 112,727 118,389 124,337 130,519 137,038 143,869 151,090 158,596 .REPRESENTED POSITIONS EXHIBIT A RESOLUTION NO. 2022- The City of Newport Beach Police Management Association Salary Schedule Adjustment MOU Term: July 1, 2022 - June 30, 2026 (Exhibit A) Effective July 12, 2025 - 3% Cost -of -Living Adjustment HOURLY RATE Police Lieutenant 65 1 $ 65.61 $ 11,372 $ Police Lieutenant 65 2 $ 68.90 $ 11,943 $ Police Lieutenant 65 3 $ 72.34 $ 12,538 $ Police Lieutenant 65 4 $ 75.94 $ 13,163 $ Police Lieutenant 65 5 $ 79.74 $ 13,822 $ Police Lieutenant 65 6 $ 83.73 $ 14,514 $ Police Lieutenant 65 7 $ 87.93 $ 15,240 $ Police Lieutenant 65 8 $ 92.32 $ 16,003 $ Police Sergeant 40 1 $ 55.82 $ 9,676 $ Police Sergeant 40 2 $ 58.63 $ 10,162 $ Police Sergeant 40 3 $ 61.57 $ 10,672 $ Police Sergeant 40 4 $ 64.63 $ 11,203 $ Police Sergeant 40 5 $ 67.86 $ 11,762 $ Police Sergeant 40 6 $ 71.24 $ 12,349 $ Police Sergeant 40 7 $ 74.82 $ 12,969 $ Police Sergeant 40 8 $ 78.54 $ 13,613 $ Hourly rates are rounded to the nearest hundredth. Monthly and annual rates are rounded to the nearest whole dollar. 136,468 143,317 150,459 157,950 165,869 174,163 182,884 192,034 116,109 121,941 128,067 134,434 141,149 148,185 155,623 163,354 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION July 1, 2022 through June 30, 2026 TABLE OF CONTENTS Preamble Section 1. General Provisions Recognition 1 Term 1 Release Time 2 Scope 3 Conclusiveness 4 Modifications 4 Bulletin Boards 4 No Strike 4 Savings 4 Impasse 5 Section 2. Compensation Salary Adjustments 5 Code Seven/Duty Incentive Time 5 Overtime 6 Uniform Allowance 8 Scholastic Achievement Pay 8 Special Leadership Compensation 9 Longevity Pay 9 July 4 10 Bilingual Pay 10 Motorcycle Assignment 10 Section 3. Leaves Flex Leave 11 Holiday Time 13 Bereavement Leave 13 Leave Sellback 14 Scheduling of Medical Treatment for Industrial Injuries 14 Non -Accruing Leave Bank 15 Section 4. Fringe Benefits Health Insurance 15 Additional Insurance/Programs 18 Employee Assistance Program 19 Retirement Benefits 19 Retiree Medical Benefit 21 Deferred Compensation 26 Tuition Reimbursement 26 Physical Fitness Qualifier 26 Section 5. Miscellaneous Provisions Reduction in Force/Layoffs 27 Schedule 29 Grievance Procedure 30 Direct Deposit 33 Contract Negotiations 33 Recoupment of Overpayments 33 Funeral Expenses 33 Exhibit A - Represented Classifications and Pay Rates... 35 Exbibit B - Physical Fitness Qualifier 39 ii 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" or "Association"), a recognized employee organization, and the City of Newport Beach ("City"), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment. 2. This MOU, upon approval by NBPMA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters set forth herein. SECTION 1. - General Provisions A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers- Milias-Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No.2001-50, the City acknowledges that 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 classification of Police Sergeant and Police Lieutenant B. Term Except as specifically provided otherwise, any ordinance, resolution or action of the City Council necessary to implement this MOU shall be considered effective as of July 1, 2022. This MOU shall remain in full force and effect until June 30, 2026, 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. 1 NBPMA MOU 2022-2026 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 (1) hour, with their representative prior to a hearing described in (c) above. 2. City grants NBPMA one hundred (100) hours of Release Time per calendar year to engage in the activities described in subsection 1 (a). NBPMA may accumulate up to three hundred (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 one hundred (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 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. 2 NBPMA MOU 2022-2026 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.2001-50. 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; The right to take all necessary actions to fulfill the Police 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. The practical consequences of a Management Rights decision on wages, hours, and other terms and conditions of employment shall be subject to the grievance procedures. 3 NBPMA MOU 2022-2026 E. Conclusiveness This MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the term 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 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 bulletin boards by the NBPMA shall indicate that the NBPMA posted it. 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 any protected class under the law 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. I. Savings If any provision of this MOU shall be held invalid by any court of competent jurisdiction, or if compliance with or enforcement of any provision shall be restrained by court action, or other established governmental administrative tribunal, the remainder of this MOU shall 4 NBPMA MOU 2022-2026 not be affected, and the parties shall enter into negotiations for the sole purpose of arriving at a mutually satisfactory replacement for such provision or provisions. 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 Adjustments — this MOU Period Base salary increases for all NBPMA represented classifications shall be as follows and as specified in Exhibit A: 1. Effective the first day of the pay period following July 1, 2022, there shall be a base salary increase of two percent (2.0%) for all classifications in the bargaining unit. Individuals must be employed by the City on the first day of the pay period following City Council adoption to qualify for retroactive payment of the COLA. 2. Effective the first day of the pay period following July 1, 2023, there shall be a base salary increase of two percent (2.0%) for all classifications in the bargaining unit. 3. Effective the first day of the pay period following July 1, 2024, there shall be a base salary increase of two percent (2.0%) for all classifications in the bargaining unit. 4. Effective the first day of the pay period following July 1, 2025, there shall be a base salary increase of two percent (2.0%) for all classifications in the bargaining unit. B. Code Seven/Duty Incentive Time Employees in the Unit receive a paid meal period (aka "Code Seven" time). By being paid for a meal period, each employee in the unit must be available to respond to any work -related request, emergency or call for service during his/her meal period. 5 NBPMA MOU 2022-2026 C. Overtime 1. All employees in both classifications in the unit shall earn overtime. For Lieutenants, overtime is earned per this MOU For Sergeants who qualify for FLSA overtime they shall receive both FLSA (as specifically provided by the FLSA) and MOU overtime. The overtime compensation provided to all employees in the unit shall be at the rate of time and one half (1.5) at the applicable (FLSA or MOU) rate of pay for hours worked in excess of their regularly scheduled shift. Paid time off shall be considered time worked for MOU overtime calculation purposes. No individual rights under the FLSA are waived by this provision. 2. The rate at which Contract (i.e., MOU) Overtime is calculated shall not include the City's Cafeteria Plan Allowance, the opt -out Cafeteria Plan Allowance, or any cash back an employee may receive from the Cafeteria Plan Allowance as set forth in Section 4, by choosing benefits which cost less than the Allowance. 3. 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 one hundred twenty (120) hours. All overtime worked for employees at the CTO maximum shall be paid. a. If the IRS or a court of competent jurisdiction provides guidance concerning recognition of constructive receipt based on the earning of CTO, this MOU will reopen on the issue of CTO and the parties will meet and confer over elimination of constructive receipt. The parties understand that, if the IRS determines there is additional tax liability, that liability will be the responsibility of the individual taxpayers (employees). b. Effective the first full pay period following City Council adoption in FY 2021-22, CTO will be maintained in two banks (one for FLSA Overtime and one for MOU Overtime). When paid out, CTO earned on MOU overtime will be paid out at the MOU overtime rate and CTO earned on FLSA overtime will be paid out at the regular rate. 4. An employee wishing to use his/her accrued compensatory time off shall provide the City with reasonable notice. Reasonable notice is defined as at least two (2) weeks. If reasonable notice is provided, the employee's request may not be denied unless it is unduly disruptive to the department to grant the request. A request to use compensatory time off without reasonable notice may still be granted within the discretion of the supervisor or manager responsible for considering the request. 6 NBPMA MOU 2022-2026 5. Overtime Compensation — Court a. Compensation - Employees shall receive either compensatory time (subject to the maximum accrual of 120 hours addressed in subsection C2 above) or paid time at their discretion. b. On -Call - Off -duty employees on call for court who have not been cancelled prior to the scheduled standby time shall, whether extended or not, be compensated at a rate equal to the actual standby time, with a minimum of one (1) hour paid at time and one-half (1.5) at the MOU overtime rate of pay. c. Appearance - Off -duty employees who are required to appear in court shall be compensated for the actual time involved with a minimum of four (4) hours paid at time and one-half the FLSA rate of pay. This minimum four (4) hour payment assumes that the time the employee who is required to appear in court is outside his/her regular work hours. If the time the employee is in court overlaps any part of the employee's regular work hours, the employee will receive his/her regular pay plus any additional overtime compensation (at time and one half) for hours which fell outside regular work hours. 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. Compensation for hours worked begins when the employee starts driving to court. However, when the employee is called on the same day and directed to leave his/her location to come to court, compensation for hours worked begins when the employee receives the call. Compensation for hours worked ends when the employee has completed the time in court. d. Cancellation — Off -duty employees whose court appearance is cancelled with less than twelve (12) hours notice shall receive a payment for one (1) hour of straight time at the MOU overtime rate of pay. 6. 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. 7. Employees in the unit must affirmatively account for their time by specifically accounting for each days' work with the specific number of hours worked, including the use of appropriate payroll codes for leave, overtime and other purposes. 7 NBPMA MOU 2022-2026 D. Uniform Allowance As permissible by law and subject to the provisions and limitations under the Public Employees Retirement Law, including restrictions on reporting uniform allowance as pensionable compensation for "non classic" members hired after January 1, 2013, the City shall report biweekly the value of provided uniforms at One Thousand Three Hundred Fifty Dollars ($1,350) per year, in accordance with Ca/PERS requirements. The parties agree the reported value of uniforms is intended to reflect clothing such as pants, shirts, jackets, and related attire and excludes health and safety related equipment. Ca/PERS Reporting of Uniform Allowance - To the extent permitted by law, the City shall report to CaIPERS the uniform allowance for each classification as special compensation in accordance with Title 2, California Code of Regulation, Section 571 (a)(5). Notwithstanding the previous sentence, for "new members" as defined by the Public Employees' Pension Reform Act of 2013, the uniform allowance will not be reported as pensionable compensation to CaIPERS. E. Scholastic Achievement Pay 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. NBPMA members shall receive Scholastic Achievement Pay regardless of years of service and in accordance with the City's evaluation and approval process. The number of units and/or degrees received from an accredited college or other approved institution will be paid biweekly as follows: 60 Units 2% 90 Units 3% BA/BS 7% MA/MS/JD 8.5% 8 NBPMA MOU 2022-2026 The pays are not cumulative. For example, if a member is receiving seven percent (7%) Scholastic Pay for a bachelor's degree and earns a master's degree, said member shall earn a total of eight- and one-half percent (8.5%) for the higher -level master's degree, not a total of fifteen and one-half percent (15.5%). Any unit members hired by the City on and after September 12, 2012 shall be ineligible for any Scholastic Achievement Pay based upon having obtained units only. Police Sergeants hired by the City before September 12, 2012 can qualify for the pay above for having obtained either 60 or 90 units. Police Lieutenants hired by the City before September 12, 2012 can qualify for the pay above for having obtained 90 units (but not 60 units). The parties agree that to the extent permitted by law, the Scholastic Achievement Pay in this section is special compensation and shall be reported to CaIPERS as such pursuant to Title 2 CCR, Section 571(a)(2) and 571.1(b)(2), Educational Incentive Pay. F. Special Leadership Compensation (SLC) Effective the first pay period following July 1, 2022, individuals who have completed the California Post Supervisory Leadership Institute ("SLI"), Post Command College, the FBI National Academy or Executive Leadership Institute will receive biweekly payments of an additional two percent (2%) of base pay. Effective the first pay period following July 1, 2023, SLC will be increased to three percent (3%) of base pay. Effective the first pay period following July 1, 2024, SLC will be increased to four percent (4.0%) of base pay. The parties agree that to the extent permitted by law, the Special Leadership Compensation in this section is special compensation and shall be reported to Ca1PERS as such pursuant to Title 2 CCR, Section 571(a)(2) and 571.1(b)(2) Educational Incentive Pay. G. Longevity Pay NBPMA members shall earn longevity pay based on the greater of their total continuous years of full-time service with the City of Newport Beach, or their total full-time employment as a sworn law enforcement officer, including up to a maximum of six (6) months' time employed as a police recruit or similar classification in a police training academy as follows and paid biweekly: At least 12 years of service but Tess than 16 years of service At least 16 years of service but less than 20 years of service At least 20 years of service but less than 25 years of service At least 25 years of service and more 0.75% 1.50% 2.25% 3.00% 9 NBPMA MOU 2022-2026 The parties agree that to the extent permitted by law, the longevity pay in this section is special compensation and shall be reported to CaIPERS as such pursuant to Title 2 CCR, Section 571(a)(1) and Section 571.1(b)(1) Longevity Pay. 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. All unit members who actually work July 4th will be compensated at the FLSA rate, plus premium pay equal to half (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. Therefore, if an employee is required to work on July 4 and it is not his/her regular work day, the employee will be scheduled to be off on another day within the work period. I. Bilingual Pay Employees certified as bilingual (Spanish) shall be eligible to receive Two Hundred Dollars ($200) per month (paid each pay period) 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. The parties agree that to the extent permitted by law, the Bilingual pay in this section is special compensation and shall be reported to CalPERS as such pursuant to Title 2 CCR, Section 571(a)(4) and 571.1(b)(3) Bilingual Premium. J. Motorcycle Assignment 1. Employees assigned to work as motor officers are entitled to compensation for the off -duty maintenance and servicing of their motorcycles. The Parties acknowledge that the Fair Labor Standards Act (FLSA), which governs the entitlement to compensation for off -duty motorcycle duties, entitles the Parties to agree to a reasonable number of hours per month for such duties. The FLSA also allows the Parties to agree on appropriate compensation for the performance of such off -duty 10 NBPMA MOU 2022-2026 motorcycle duties. It is the intent of the Parties through this Subsection (J) to fully comply with the requirements of the FLSA and that such provisions do comply with the FLSA. 2. The Chief of Police, at his or her sole discretion, shall determine the number of unit positions assigned to motor officer duties. At any time this number may decrease or increase depending on the decision of the Chief of Police. 3. Employees assigned as motor officers shall receive an additional six (6) hours of straight time compensation per month, paid at one and one-half (1.5) times their FLSA rate of pay. This pay is compensation for the off -duty maintenance and servicing of the motorcycle. The Parties agree the additional compensation is for the performance of off -duty work and does not meet the definition of compensation earnable under Government Code Section 20636, and will therefore not be reported to Ca/PERS. SECTION 3. - Leaves A. Flex Leave NBPMA members shall accrue (prospectively) flex leave based on the greater of their total continuous years of full-time service with the City of Newport Beach, or their total full-time employment as a sworn law enforcement officer, including up to a maximum of six (6) months of time employed as a police recruit or similar classification in a police training academy. Flex time is accrued while an employee is in paid status, including paid leave time. The Flex Leave accrual rate and caps shall be: Years of Continuous Service Accrual Per Pay Period Maximum Accrual Less than 5 5.69 443.82 5 but less than 9 6.31 492.18 9 but less than 12 6.92 539.76 12 but less than 25 8.16 636.48 25 and over 10.00 700.00 11 NBPMA MOU 2022-2026 2. The Flex leave program shall be administered as follows: a. NBPMA members shall accrue three (3) months (i.e. 36.99 hours) of flex leave (as provided in the chart in paragraph At above) upon completion of three (3) 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 three (3) months of employment. b. 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 the City of Newport Beach Employee Policy Manual. Members entitled to use sick leave pursuant to 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. c. 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 base hourly rate of pay. Effective during the first pay period of January, 1998, NBPMA members who have not utilized at least eighty (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 Leave Spillover Pay and shall not be entitled to accrue flex leave in excess of the Flex Leave Accrual Threshold. 12 NBPMA MOU 2022-2026 d. 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. e. Members shall be paid for all accrued flex leave at their then current hourly rate of pay upon termination of the employment relationship. B. Holiday Time NBPMA members shall accrue holiday in lieu time at the rate of ninety-six (96) hours per fiscal year (July 1 through June 30th), and at the rate of three point seven (3.7) hours per pay period. Option 1 (Default): Unless otherwise irrevocably elected by the employee, holiday compensation shall be paid in cash along with the employee's regular bi-weekly check. The parties agree, to the extent permitted by law, the compensation in this section is special compensation for those employees who are normally required to work on an approved holiday because they work in positions that require scheduled staffing without regard to holidays and shall be reported as such pursuant to Title 2 CCR, Section 571 (a)(5) and Section 571.1(b)(4) Holiday Pay. Option 2: Within sixty (60) days of NBPMA membership, NBPMA members may irrevocably elect to have all or any portion of the three point seven (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 Ca/PERS as special compensation. C. Bereavement Leave Bereavement Leave shall be defined as the necessary absence from duty by an employee because of the death or terminal illness in his/her immediate family. NBPMA members shall be entitled to forty (40) hours of bereavement leave per incident (terminal illness followed by death is considered one (1) incident). Leave hours need not be used consecutively, but should occur in proximate time to the occurrence. Immediate family shall mean an employee's father, mother, stepfather, stepmother, brother, sister, 13 NBPMA MOU 2022-2026 spouse/domestic partner, child, stepchild or grandparent, and the employee's spouse/domestic partner's father, mother, brother, sister, child or grandparent. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. D. Leave Sellback Employees shall have the option of converting accrued Flex Leave to cash on an hour for hour basis subject to the following: On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out accrued flex leave which will be earned in the following calendar year. The employee can elect to receive the cash out in the pay period which includes June 30 and/or the pay period which includes December 15 for those Flex Leave benefits that have been earned during that portion of the year. In no event shall the flex leave balance be reduced below one hundred and sixty (160) hours. E. Scheduling of Medical Treatment for Industrial Injuries 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 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 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. 14 NBPMA MOU 2022-2026 F. Non -Accruing Leave Bank Effective on July 1 of each year, employees in the unit shall receive a bank of thirty-three (33) hours of non -accruing leave to use within that fiscal year. The hours have no cash value and cannot be transferred to any other leave bank. Hours used are subject to supervisory approval and must be used within that fiscal year or be forfeited. Non - accruing leave cannot be carried into the next fiscal year. Section 4. — Fringe Benefits A. Health 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 BIC 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 association with information about health insurance/programs and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. Medical Insurance a. The City has implemented an IRS qualified Cafeteria Plan. In addition to the amounts listed below, the City shall contribute the minimum CaIPERS 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. b. City Contribution i. The City's monthly contribution towards the Cafeteria Plan is $1,524.00 (plus the minimum Ca1PERS participating employer contribution as outlined in Government Code §22892.) ii. If, prior to June 30, 2026, a court of competent jurisdiction or formal legal opinion determines that the City's cafeteria benefit plan is a bona fide plan such that the City's contributions towards medical 15 NBPMA MOU 2022-2026 premiums will not be included in the employee's regular rate of pay under the Fair Labor Standards Act, the City will increase the monthly contribution towards the Cafeteria Plan by a total of $200 over the remaining term of the agreement. The $200 will be prorated annually over the remaining term of the agreement (full years only), beginning with the first day of the next plan year. Examples: If the cafeteria benefit plan becomes bona fide during December of 2023, the City will increase the monthly contribution by $100 per month in January of 2024 (Year 3) and by an additional $100 per month (total $200) in January of 2025 (Year 4). If the cafeteria benefit plan becomes bona fide in March of 2022, the $200 will be spread evenly over the remaining complete plan years of the agreement, or at $67 per month beginning in January of 2023 (Year 2), another $67 per month in Year 3 and another $67 per month in Year 4. If the City's cafeteria benefit plan is not determined to be a bona fide plan as outlined above by a court of competent jurisdiction or formal legal opinion prior to the expiration of this MOU, this paragraph will become ineffective and the City's obligation to increase the cafeteria contribution by $200 will cease at the expiration of the MOU. c. Cash Back i. Subject to the terms and conditions below, for members employed in either this unit or the Newport Beach Police Association unit prior to December 18, 2021, 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. ii. Unit members whose actual start state in either this unit or the Newport Beach Police Association unit occurred prior to December 18, 2021, and who elect to opt out of medical coverage offered by the City because they have proof of minimum essential coverage ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California) will receive $1,000 per month in taxable cash paid bi- weekly. For these same employees, if they elect medical coverage and spend less than the City contribution provided above, those unused cafeteria plan funds shall be paid to the employee as taxable cash biweekly. 16 NBPMA MOU 2022-2026 iii. Newly appointed unit members whose actual start date in either this unit or the Newport Beach Police Association unit occurred on or after December 18, 2021, and who elect to opt out of medical coverage offered by the City because they have provided proof of MEC through another source (other an coverage in the individual market, whether or not obtained through Covered California) shall receive $500 per month in taxable cash. For these same employees, if they elect medical coverage and spend less than the City contribution provided above, there shall be no cash back provided. This paragraph shall not apply to an employee who received a condition offer letter prior to adoption of this MOU which referenced the pre-existing "opt out" and cafeteria cash provisions. 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. The preceding language as applied to the following scenarios: 1. Part-time employee hired by the City prior to MOU adoption but not appointed as a full-time employee into the NBPA or NBPMA until on or after December 18, 2021 - this employee is subject to the $500 opt -out amount and does not receive cash back if the medical coverage elected is less than the City contribution. Full-time employee hired by the City prior to December 18, 2021 who later drops down to part-time and then is reappointed to the unit as a full-time employee — this employee is subject to the $500 opt -out amount and does not receive cash back if the medical coverage elected is less than the City contribution. 3. Full-time employee hired by the City prior to December 18, 2021 who later transfers into the unit from another unit — if the employee was not subject to the $500 opt -out amount and/or no cash back in the unit from which they are transferring, they will receive the benefit of $1,000 opt -out and/or cash back if the medical coverage elected is less than the City contribution. 17 NBPMA MOU 2022-2026 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 BIC. 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 BIC. 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 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. 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. 2. Disability Insurance The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all regular full-time employees with the following provisions: Weekly Benefit 66.67% gross weekly wages Maximum Benefit $15,000/month 18 NBPMA MOU 2022-2026 Minimum Benefit $15 (STD) and $100 (LTD) Waiting Period 30 Calendar Days (STD) 180 Calendar Days (LTD) Employees shall pay one percent (1 %) of base salary as a post -tax deduction for this benefit. The City will pay the full premium for this benefit effective the later of the first premium payment following the City Council adoption of this MOU, or the first premium payment after July 1, 2022. 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. 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. NBPMA members and their family members may access the EAP at no cost subject to provider guidelines. D. Retirement Benefits 1. Retirement Formula The City contracts with the California Public Employees Retirement System ("CaIPERS" or "PERS") to provide retirement benefits for its employees. Pursuant to prior agreements and state mandated reform, the City has implemented first, second and third tier retirement benefits as follows: 19 NBPMA MOU 2022-2026 Tier I ("Legacy"): Foremployees hired by the City on or before November 23, 2012, the retirement formula for safety members shall be 3%@50, calculated on the basis of the highest consecutive 12-month period. Tier II ("Classic"): For employees first hired by the City between November 24 and December 31, 2012, or hired on or after January 1, 2013 and who are current members of the retirement system or a reciprocal retirement system, as defined in Public Employees Pension Reform Act (PEPRA), the retirement formula for safety members shall be 3%@55, calculated on the basis of the highest consecutive 36 month period. Tier III ("PEPRA"): For employees first hired by the City on or after January 1, 2013, and who do not meet the Tier II criteria, the safety retirement formula shall be 2.7%@57, calculated on the basis of the highest consecutive 36-month period. 2. Other Contract Provisions The City's contract with Ca1PERS shall also provide for: a. The military buy-back provisions pursuant to Section 20930.3 of the California Government Code and the highest year benefit pursuant to California Government Code Section 20042. b. The Level 4 1959 Survivors Benefits. c. The Ca/PERS pre -retirement option settlement 2 death benefit (Section 21548) for miscellaneous and safety members. 3. Employee Contributions Unit members shall contribute additional amounts toward the Ca/PERS retirement benefit, to the extent permissible by law, as set forth below. Employee retirement contributions that are in addition to the normal Ca1PERS Member Contribution shall be calculated on base pay, special pays, and other pays normally reported as pensionable compensation, and will be made on a pre-tax basis through payroll deduction provided under 414(h)(2). 20 NBPMA MOU 2022-2026 Tiers I and II: NBPMA Tier I and II members will contribute the full statutory member contribution, equal to 9% of pensionable compensation, plus an additional 5.6% of pensionable compensation toward retirement costs as permitted under Government Code §20516(f), for a total contribution of 14.6%. Tier III: In addition to the statutorily required 50% contribution of total normal costs ("member contribution rate"), Tier III members shall contribute an additional amount of pensionable compensation toward retirement costs pursuant to Government Code § 20516(f), so that their contribution equals a total contribution of 14.6% of pensionable compensation. If in future fiscal years the member contribution rate for employees in Tier III shall become greater or less, as determined by CaIPERS valuations, the additional contribution made by the employee under 20516(f) will be increased or decreased accordingly so that the total employee contribution equals 14.6% of pensionable compensation. Provided however, that the employee contribution shall never fall below the statutorily required contribution. E. Retiree Medical Benefit 21 This is an Integral Part Trust (IPT) RHS Retiree Health Savings (RHS) plan (formerly the Medical Expense Reimbursement Program - "MERP"). Each member has an individual RHS account ("Account"), which accumulates based on the category they fall under. Funds from the Account may be used for eligible health care expenses after separation, retirement or a change in personnel status to a position that does not receive the RHS benefit. These changes in personnel status will activate the Account and allow funds to be withdrawn until the Account balance is depleted. Since the plan restricts all distributions to be spent for health insurance premiums and health care expenses, as defined by the Internal Revenue Code Publication 502, § 213(d) and the Plan document the contributions, fund investment earnings and benefit payments (when withdrawn from the Account) are not taxable when posted. Additionally, certain contributions may only be deposited upon retirement from the City. The categories are provided below. NBPMA MOU 2022-2026 1. Background In 2005, the City and NBPMA agreed to replace the previous "defined benefit" retiree medical program with a new "defined contribution" program. The process of fully converting to the new program is ongoing for an extended period. During the transition, employees and (then) existing retirees were administratively classified into different categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees who become eligible for the benefit after January 1, 2006. This may include new hires, rehires and part-time employees appointing to full-time status. b. Category 2 - Employees who were active and enrolled in the previous defined benefit as of December 31, 2005, eligible for the new defined contribution program as of January 1, 2006 and whose age plus years of service as of January 1, 2006 was less than 46 for public safety employees. c. Category 3 - Employees who were active and enrolled in the previous defined benefit as of December 31, 2005, eligible for the new defined contribution program as of January 1, 2006 and whose age plus years of service as of January 1, 2006 was 46 or greater for public safety employees. d. Category 4 — Employees who had already retired from the City prior to January 1, 2006, and were participating in the previous medical program. 2. Eligibility All NBPMA members are eligible for the RHS benefit. However, if a member separates or changes positions to a bargaining unit which does not offer this benefit, the member is no longer eligible for any contributions to the plan and their Account will be activated for use and withdrawal of funds by the employee (or former employee). This means if a unit member subsequently reappoints to a position which offers the RHS benefit, they will be enrolled in "Category 1" and must revest in the program. Any remaining balance deposited during prior eligibility will remain in the Account. Employees who become ineligible (no longer covered by a City employee association, union or plan offering the RHS benefit) before vesting forfeit the City's Part B contribution. Said employee will only receive Part A and Part C contributions. The only exception is an active employee who separates before vesting due to an approved 22 NBPMA MOU 2022-2026 industrial disability. In such case, the employee will receive exactly five years' worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's Account at the time of separation. 3. Account Contributions Account contributions are categorized as Part A, Part B and Part C. Part A contributions are a mandatory, automatic 1% employee contribution deducted each pay period and deposited into the Account through payroll. Deductions begin the pay period in which the employee becomes eligible and are reported to Ca1PERS as pensionable. Part B contributions require a five-year vesting period which begins when the employee becomes eligible for the RHS benefit. At the conclusion of the vesting period, the City will credit the first five years' worth of Part B contributions into the Account (interest does not accrue during that period and the contributions are calculated at $2.50 per month for each year of the employee's full-time service plus age) and begin to contribute $2.50 per month for each year of the employee's full-time service plus age (e.g. 30 years old and five years of service would be a factor of 35. $2.50 x 35 = $87.50 per month). This factor is updated annually in the pay period including January 1. Part B contributions are not reported to Ca1PERS as pensionable. The parties agree that the City's Part B contributions during active employment constitute the minimum CaIPERS participating employer's contribution (i.e., the Ca1PERS statutory minimum amount) towards medical insurance after retirement. The parties also agree that, for retirees selecting a Ca1PERS medical plan, or any other plan with a similar employer contribution requirement, the required employer contribution will be deducted from the employer's contribution to the retiree's account. Part C contributions are determined by NBPMA election and deposited into the Account when flex leave hours are converted to taxable cash through leave cash -out or at the time of separation or status change. Spillover pay does not qualify for Part C contributions. Part C contributions are not reported to Ca1PERS as pensionable. The Association determines the level of contribution for all unit members, subject to the following constraints. All employees within the Association must participate at the same level. The participation level shall be specified as a percentage of the flex leave 23 NBPMA MOU 2022-2026 balance available in each employee's leave bank at the time of separation from the City, or status change, or as a percentage of the flex leave balance being cashed out. For example, if the Association wishes to elect 30% Part C contributions, then each member leaving the City, or cashing out eligible leave at any other time, would have the cash equivalent of 30% of the amount that is cashed out deposited to their RHS Account on a pre-tax basis. The remaining 70% would be paid in cash as taxable income. Individual employees do not have the option to deviate from this breakout. The Association may change the Part C contribution amount as part of a meet and confer process. The purpose and focus of these changes should be toward long-term, trend type adjustments. Due to IRS restrictions regarding "constructive receipt," the City will impose restrictions against frequent spikes or drops that appear to be tailored toward satisfying the desires of a group of imminent retirees. The Association has decided to participate in Part C contributions at the level of zero percent (0%) flex leave. Nothing in this section restricts taking leave for time off purposes. 4. Benefit a. Category 1: Employees in this category make Part A and receive Part B contributions (subject to vesting) automatically each pay period through payroll deductions. Part C contributions are received through cash outs. No contributions are made to Category 1 participants after separation. b. Category 2: Employees in this category make Part A and receive Part B contributions (subject to vesting) automatically each pay period through payroll deductions. Part C contributions are received through cash outs. No contributions are made to Category 2 participants after separation. If a Category 2 participant retires from the City with a minimum of 5 consecutive years of full-time service, the City will contribute to the participant's Account a one-time contribution equal to $100 per month for every month the participant contributed to the previous "defined benefit" plan up to a maximum of 15 years (180 months). This contribution is deposited into the Account at the time of retirement, and only if the employee retires from the City and becomes a CaIPERS annuitant of the City of Newport Beach. No interest will be earned in the interim. 24 NBPMA MOU 2022-2026 Category 2 participants with less than five years of continuous contributions into the prior defined benefit plan as of January 1, 2006: only the years of service after January 1, 2006 count towards Part B contributions upon vesting. Contributions in years before 2006 will be paid out as stated in the above paragraph. c. Category 3: Employees in this category make Part A contributions automatically each pay period through payroll deductions. Category 3 participants do not receive any Part 8 contributions. Part C contributions are received through cash outs. If an eligible Category 3 participant retires from the City of Newport Beach, the City will deposit $400 per month into the Account upon retirement, up to a maximum of $4, 800 per year, less the CaIPERS minimum required employer contribution as determined by CaIPERS annually, which shall continue as long as the employee or surviving spouse/qualified dependent is still living. To offset this expense to the City, active Category 3 participants will contribute an additional $100 per month to the plan until retirement. There is no cash out option for these funds and they cannot be spent in advance of receipt. Category 3 participants also receive an additional one-time City contribution of $75 per month for every month they contributed to the previous plan prior to January 1, 2006, up to a maximum of 15 years (180 months). This contribution is deposited into the Account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. Contributions are contingent upon remaining a CaIPERS annuitant of the City. d. Category 4: For employees (retirees) in this category, there is no cost share requirement. The monthly City contribution of $450 after retirement can be used for any IRS authorized purpose, not just City insurance premiums. The City will contribute Four Hundred and Fifty Dollars ($450) per month to each account as long as the retiree or spouse remain living. For each retiree in this category, the NBPMA shall reimburse the City $25 per month. Each quarter, the City will provide an invoice to the NBPMA for each retiree for the previous three months, for a total of Seventy -Five Dollars ($75.00). 5. Administration Vendors have been selected by the City to administer the program. The contract expense for program -wide administration by the vendor will be paid by the City. 25 NBPMA MOU 2022-2026 However, specific vendor charges for individual account transactions that vary according to the investment actions taken by each employee, such as fees or commissions for trades, will be paid by each employee. The City's Deferred Compensation Committee, or its successor committee, will have the authority to determine investment options that will be available through the plan. F. Deferred Compensation Each employee shall have a deferred compensation account set up by the City and subject to the rules of IRS Code section 457 to which they may make contributions. The City shall contribute to each employee's deferred compensation account each pay period as follows: 1. The City shall contribute a total of two percent (2%) of base salary to each employee's deferred compensation account. Under federal law, there is an annual maximum contribution which may be made to an employee's IRS Code section 457 account. Although the City will be making contributions to employees' accounts each pay period, it is the employees' responsibility to track their total contribution amount. If an employee's account contributions reach the annual 457 maximum, the City will stop making contributions for the remainder of the calendar year and will not owe the employee any additional compensation related to this section. G. 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. The maximum tuition reimbursement for all employees in the Unit shall be One Thousand Four Hundred Dollars ($1,400) per fiscal year. H. Physical Fitness Qualifier The Physical Fitness Qualifier (PFQ) is offered to police officers twice annually. Fitness benchmarks have been established and are outlined in Exhibit B. Officers who rank 1st Class, 2nd Class or 3rd Class as set forth in Exhibit B are awarded leave time depending upon achieved rank. Within two weeks of PFQ completion, the department will create a personnel action form indicating the rank and number of leave time hours awarded for each sworn police officer. The awarded hours will be placed in the police officer's 26 NBPMA MOU 2022-2026 individual Comp Time bank (at the straight time rate), which is subject to a 120-hour maximum balance. If the employee later chooses to have the leave time "paid out," payment will be at the employee's MOU overtime rate. SECTION 5. - Miscellaneous Provisions A. Reductions in Force/Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions a. "Layoffs" or "Laid off' shall meant the non -disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted regular status in their current Classification or any Classification within the Series, subject to the following: Credit shall be given only for continuous service (as described in the next paragraph) subsequent to the most recent appointment to regular status in the Classification or Series; ii. Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time 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). 27 NBPMA MOU 2022-2026 d. In this bargaining unit, there is one "Series" made up of the two classifications represented by the Association - Police Sergeant, and Police Lieutenant. e. "Bumping Rights", "Bumping" or "bump" shall mean the right of an employee, based upon seniority within a series, to displace a Tess senior employee in a lower Classification within the Series. 2. Procedures In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: a. Employees within a Classification shall be laid off in inverse order of seniority; b. An employee subject to layoff in one (1) Classification shall have the right to Bump a less senior employee in a lower ranking Classification within the Series within the bargaining unit. 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. c. In the event two (2) 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 (1) of the employees was not appointed from an eligibility list, the Department Director shall determine the employee(s) to be laid off. 3. Notice Employees subject to layoff shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days' pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave and holiday leave (if any). 4. Re -Employment Regular and probationary employees who are laid off shall be placed on a Department re-employment list in reverse order of layoff. The re-employment list shall remain in effect until exhausted by removal of all names on the list. In the 28 NBPMA MOU 2022-2026 event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re-employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re-employment list or the right to remove his or her name from the re-employment list by sending written confirmation to the Human Resources Director. 5. Severance Pay Regular employees who are laid off shall, as of the date of layoff, receive one (1) week severance pay for each year of continuous service with the City of Newport Beach, but in no case to exceed ten (10) weeks of severance compensation. B. Schedule 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 to meet and confer before making any substantive changes to work schedules that impact an employee's conditions of employment. 1. Employees currently work either the 3/11. 42 or 4/10 work schedules. The Chief of Police shall have the right to alter the work schedule of any NBPMA member assigned to any multi -agency or regional task force. If the City wants to utilize a work schedule other than the 4/10 or 3/11. 42 for this unit, it will notify the NBPMA and the parties shall promptly meet and confer, in good faith, regarding the appropriate work schedule(s) for NBPMA members. 2. The employees in the unit are subject to the twenty-eight (28) day FLSA work period pursuant to Section 29 U.S.C. 207(k) ("?k Exemption"), provided, however, the 7k Exemption shall not affect the City's obligation to pay overtime pursuant to provisions of this MOU. 3. Patrol Supervisor Pre -Briefing Time: The parties agree that the following procedures are consistent with good police practices, provide each NBPMA 29 NBPMA MOU 2022-2026 member with ample time to perform all required duties, and comply with the Fair Labor Standards Act: a. All Patrol Supervisors are required to report to work fifteen (15) minutes early to prepare for briefing; b. The fifteen (15) minutes per shift which is paid to prepare for briefing will be paid as compensatory time off and credited to each employee's compensatory time off bank. The pre -briefing time worked shall be considered as hours worked for purposes of calculating FLSA overtime for Police Sergeants. For Police Lieutenants it is also considered hours worked. 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. An employee may be self -represented or represented by one (1) 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. 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. 30 NBPMA MOU 2022-2026 e. The procedures in this MOU represent the sole and exclusive method of resolving grievances. 3. Procedure a. Steps Step 1 - An employee who files a grievance shall present it in writing to an Assistant Chief of Police within ten (10) working days after the employee knew, or in the exercise of reasonable diligence should have known, the act or events upon which the grievance is based. 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 Assistant Chief of Police will confer with the Human Resources Director regarding the grievance. The Assistant Chief of Police shall meet with the employee and any representative in an effort to resolve the grievance. The Assistant Chief of Police shall provide the employee with a written decision on the appeal within fifteen (15) calendar days after the meeting. Upon receipt of a decision from an Assistant Chief of Police Any employee not satisfied with the decision of his or her immediate supervisor may proceed to Step 2. Step 2 -Appeal to Chief of Police. Any employee dissatisfied with the decision of an Assistant Chief of Police may proceed to Step 2 by submitting a written appeal to the Chief of Police. The written appeal must be filed with the Chief of Police within seven (7) calendar days following receipt of the Assistant Chief of Police'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 fifteen (15) calendar days following receipt of the appeal unless deferred by the consent of both parties. The Chief of Police shall provide the employee with a written decision on the appeal within fifteen (15) calendar days after the meeting. Step 3 — 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 3 by submitting a written appeal of the decision to the City Manager. The written appeal must be filed within seven (7) calendar days following receipt of the Police Chiefs decision. The written appeal shall contain a complete statement 31 NBPMA MOU 2022-2026 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 fifteen (15) calendar 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 fifteen (15) calendar days after the meeting. The decision of the City Manager shall be final. The City and the grievant may agree to extend any of the timelines in the grievance procedure. Absent a mutual agreement between the City and the grievant to extend the timelines, if the City representative does not respond within the time lines set forth for a response at Steps 1 and 2 of the above grievance procedure, the grievant can move the grievance to the next step. 4. General Grievance A grievance affecting more than one (1) NBPMA member may be filed by NBPMA on behalf of the affected employees with the Chief of Police. The Association must present the grievance to the Chief of Police within ten (10) working days after an Association Board member knew, or in the exercise of reasonable diligence should have known, the act or events upon which the grievance is based. This provision is the sole and exclusive method by which the Association may challenge a provision of this MOU 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 fifteen (15) calendar days following receipt of the grievance and provide a written decision on the grievance within fifteen (15) calendar 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 3 of the procedure applicable to individual employees set forth above. 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) calendar days after receipt of the decision. 32 NBPMA MOU 2022-2026 D. Direct Deposit All Unit employees shall participate in the City's Direct Deposit Program. E. Contract Negotiations The parties agree that either side requests to meet and confer in good faith for a successor MOU within 120 days of the expiration of the MOU, the parties agree to begin negotiations with the mutual objective of reaching an agreement prior to the expiration of the term of the MOU. F. Recoupment of Overpayments Employees will be notified by Payroll or Human Resources prior to the recovery of overpayments on paychecks. Recovery of more than 15% of net pay will be subject to a repayment schedule established by the appointing authority under guidelines issued by the Finance Department or Human Resources. Such recovery shall not exceed 15% per month of disposable earnings, as defined by State law, except a mutually agreed upon accelerated payment plan for faster recovery. Recoupments under this section shall be limited to forty-eight (48) months. However, nothing in this section is intended to preclude the City from seeking recoupment of overpayments due to fraud or other knowing concealment through any available legal forum. G. Funeral Expenses Consistent with California Labor Code Section 4701, if an employee covered by the MOU is killed in the line of duty, the City will reimburse the employee's designated beneficiary up to $10,000 to offset reasonable burial expenses. Signatures are on the next page 33 NBPMA MOU 2022-2026 Executed this Z S day of i L) N 2022 NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION By: 6cc. .t��I. Eric Litt e, President ATTEST By: CITY OF NEWPORT BEACH By: Kevin Muldoci, Mayor CITY OF NEWPORT BEACH APPROVED AS TO FORM By: Leilani Brown City Clerk Charles Sakai, Special Counsel Attachments: Exhibit "A" NBPMA Salary Schedules Exhibit "B" NBPMA PFQ Qualifier 34 NBPMA MOU 2022-2026 EXHIBIT A NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION MOU Term: July 1, 2022 - June 30, 2026 2.0% Cost of Living Adjustment Effective: July 2, 2022 (pay period following July 1) Represented Positions Grade Step Hourly Rate Monthly Rate Annual Salary Police Lieutenant Police Sergeant 65 1 2 3 4 5 6 7 8 60.04 $ 10,407 $ 124,887 63.06 $ 10,930 $ 131,155 66.20 $ 11,474 $ 137,692 69.49 $ 12,046 $ 144,547 72.98 $ 12,649 $ 151,794 76.63 $ 13,282 $ 159,383 80.46 $ 13,947 $ 167,365 84.49 $ 14,645 $ 175,738 40 1 $ 51.08 $ 8,855 $ 106,256 2 $ 53.65 $ 9,299 $ 111,593 3 $ 56.35 $ 9,767 $ 117,200 4 $ 59.15 $ 10,252 $ 123,026 5 $ 62.10 $ 10,764 $ 129,172 6 $ 65.20 $ 11,301 $ 135,610 7 $ 68.47 $ 11,868 $ 142,417 8 $ 71.87 $ 12,458 $ 149,492 Hourly rates are rounded the nearest hundredth. Monthly and annual salary are rounded to the nearest whole dollar. 35 NBPMA MOU 2022-2026 EXHIBIT A NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION MOU Term: July 1, 2022 - June 30, 2026 2.0% Cost of Living Adjustment Effective: July 15, 2023 (pay period following July 1) Represented Positions Grade Step Hourly Rate Monthly Rate Annual Salary Police Lieutenant Police Sergeant 65 1 2 3 4 5 6 7 8 61.24 $ 10,615 $ 127,385 64.32 $ 11,148 $ 133,778 67.52 $ 11,704 $ 140,446 70.88 $ 12,286 $ 147,438 74.44 $ 12,902 $ 154,830 78.16 $ 13,548 $ 162,571 82.07 $ 14,226 $ 170,712 86.18 $ 14,938 $ 179,253 40 1 $ 52.11 $ 9,032 $ 108,381 2 $ 54.72 $ 9,485 $ 113,825 3 $ 57.47 $ 9,962 $ 119,544 4 $ 60.33 $ 10,457 $ 125,487 5 $ 63.34 $ 10,980 $ 131,755 6 $ 66.50 $ 11,527 $ 138,323 7 $ 69.84 $ 12,105 $ 145,265 8 $ 73.31 $ 12,707 $ 152,482 Hourly rates are rounded the nearest hundredth. Monthly and annual salary are rounded to the nearest whole dollar. 36 NBPMA MOU 2022-2026 EXHIBIT A NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION MOU Term: July 1, 2022 - June 30, 2026 2.0% Cost of Living Adjustment Effective: July 13, 2024 (pay period following July 1) Represented Positions Grade Step Hourly Rate Monthly Rate Annual Salary Police Lieutenant Police Sergeant 65 1 $ 62.47 $ 10,828 $ 129,933 2 $ 65.60 $ 11,371 $ 136,453 3 $ 68.87 $ 11,938 $ 143,254 4 $ 72.30 $ 12,532 $ 150,387 5 $ 75.93 $ 13,161 $ 157,926 6 $ 79.72 $ 13,819 $ 165,822 7 $ 83.71 $ 14,511 $ 174,127 8 $ 87.90 $ 15,236 $ 182,838 40 1 $ 53.15 $ 9,212 $ 110,549 2 $ 55.82 $ 9,675 $ 116,101 3 $ 58.62 $ 10,161 $ 121,935 4 $ 61.54 $ 10,666 $ 127,996 5 $ 64.61 $ 11,199 $ 134,390 6 $ 67.83 $ 11,757 $ 141,089 7 $ 71.24 $ 12,348 $ 148,170 8 $ 74.77 $ 12,961 $ 155,532 Hourly rates are rounded the nearest hundredth. Monthly and annual salary are rounded to the nearest whole dollar. 37 NBPMA MOU 2022-2026 EXHIBIT A NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION MOU Term: July 1, 2022 - June 30, 2026 2.0% Cost of Living Adjustment Effective: July 12, 2025 (pay period following July 1) Represented Positions Grade Step Hourly Rate Monthly Rate Annual Salary Police Lieutenant Police Sergeant 65 1 2 3 4 5 6 7 8 63.72 $ 11,044 $ 132,531 66.91 $ 11,599 $ 139,183 70.25 $ 12,177 $ 146,119 73.75 $ 12,783 $ 153,394 77.44 $ 13,424 $ 161,085 81.32 $ 14,095 $ 169,139 85.39 $ 14,801 $ 177,609 89.66 $ 15,541 $ 186,495 40 1 $ 54.21 $ 9,397 $ 112,760 2 $ 56.93 $ 9,869 $ 118,423 3 $ 59.79 $ 10,364 $ 124,373 4 $ 62.77 $ 10,880 $ 130,556 5 $ 65.90 $ 11,423 $ 137,078 6 $ 69.19 $ 11,993 $ 143,911 7 $ 72.66 $ 12,594 $ 151,134 8 $ 76.27 $ 13,220 $ 158,642 Hourly rates are rounded the the nearest hundredth. Monthly and annual salary are rounded to the nearest whole dollar. 38 NBPMA MOU 2022-2026 EXHIBIT B Aqe Physical Fitness Qualifier "PFQ" Required Minimum Acceptable Performance Pull-ups Push-ups Crunches 1.5 Mile Run 21-30 8 50 50 14:00 31-40 6 45 45 14:30 41-50+ 4 40 40 15:00 Required Minimum Qualifications Scores Aqe 3rd Class 2nd Class 1st Class 21-30 235 275 325 31-40 210 250 300 41-50+ 185 225 275 Compensatory Time Classifications: 1st Class — 9 hours 2nd Class — 6 hours 3rd Class — 3 hours The purpose of the Physical Fitness Qualifier "PFQ" is to maintain and encourage high levels of overall physical fitness for police officers. The PFQ consists of four fitness categories: pull-ups, push-ups, crunches, and a 1.5-mile run. The PFQ is divided into three age groups: 21 to 30, 31 to 40, and 41 to 50+ years. The PFQ allows officers to accumulate points towards compensatory time. Each age group has three compensatory time award classifications: 1st Class - 9 hours, 2nd Class — 6 hours, and 3rd Class — 3 hours. For example, a 35-year-old officer who accumulates 250 points will be classified 2nd Class and earn 6 hours of compensatory time. At a minimum, officers will be required to meet the standard number in the fitness category for their corresponding age group. If he/she only meets the required minimum qualification score for their age group for any of the four fitness categories, he/she will not earn the minimum amount needed to receive compensatory time. However, the scoring system allows for an officer to compensate for a lower score in one category by scoring higher in other categories. 39 NBPMA MOU 2022-2026 EXHIBIT B Physical Fitness Qualifier Point Chart Points Pullups Pushups Situps 1.5 Mile Run Points Pullups Pushups Situps 1.5 Mile Run 100 99 98 97 96 20 100 99 98 97 96 100 99 98 97 96 9:00 9:05 9:10 9:15 9:20 50 49 48 47 46 10 50 49 48 47 46 50 49 48 47 46 13:10 13:15 13:20 13:25 13:30 95 94 93 92 91 19 95 94 93 92 91 95 94 93 92 91 9:25 9:30 9:35 9:40 9:45 45 44 43 42 41 9 45 44 43 42 41 45 44 43 42 41 13:35 13:40 13:45 13:50 13:55 90 89 88 87 86 18 90 89 88 87 86 90 89 88 87 86 9:50 9:55 10:00 10:05 10:10 40 39 38 37 36 8 40 39 38 37 36 40 39 38 37 36 14:00 14:05 14:10 14:15 14:20 85 84 83 82 81 17 85 84 83 82 81 85 84 83 82 81 10:15 10:20 10:25 10:30 10:35 35 34 33 32 31 7 35 34 33 32 31 35 34 33 32 31 14:25 14:30 14:35 14:40 14:45 80 79 78 77 76 16 80 79 78 77 76 80 79 78 77 76 10:40 10:45 10:50 10:55 11:00 30 29 28 27 26 6 30 29 28 27 26 30 29 28 27 26 14:50 14:55 15:00 15:05 15:10 75 74 73 72 71 15 75 74 73 72 71 75 74 73 72 71 11:05 11:10 11:15 11:20 11:25 25 24 23 22 21 5 25 24 23 22 21 25 24 23 22 21 15:15 15:20 15:25 15:30 15:35 70 69 68 67 66 14 70 69 68 67 66 70 69 68 67 66 11:30 11:35 11:40 11:45 11:50 20 19 18 17 16 4 20 19 18 17 16 20 19 18 17 16 15:40 15:45 15:50 15:55 16:00 65 64 63 62 61 13 65 64 63 62 61 65 64 63 62 61 11:55 12:00 12:05 12:10 12:15 15 14 13 12 11 3 15 14 13 12 11 15 14 13 12 11 16:05 16:10 16:15 16:20 16:25 60 59 58 57 56 12 60 59 58 57 56 60 59 58 57 56 12:20 12 25 12:30 12:35 12:40 10 9 8 7 6 2 10 9 8 7 6 10 9 8 7 6 16:30 16:35 16:40 16 45 16:50 55 54 53 52 51 11 55 54 53 52 51 55 54 53 52 51 12:45 12 50 12:55 13:00 13:05 5 4 3 2 1 1 5 4 3 2 1 5 4 3 2 1 16:55 17:00 17:05 17:10 17:15 40 NBPMA MOU 2022-2026 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION March 30, 2019 through June 30, 2022 TABLE OF CONTENTS Preamble Section 1. General Provisions Recognition 1 Term 1 Release Time 2 Scope 3 Conclusiveness 4 Modifications 4 Bulletin Boards 4 No Strike 4 Savings 5 Impasse 5 Section 2. Compensation Salary Adjustments 5 Code Seven/Duty Incentive Time 5 Overtime 5 Uniform Allowance 7 Scholastic Achievement Pay 8 Special Leadership Compensation 8 Longevity Pay 8 July 4. 9 Bilingual Pay 9 Motorcycle Assignment 9 Section 3. Leaves Flex Leave 10 Holiday Time 12 Bereavement Leave 12 Leave Sellback 13 Scheduling of Medical Treatment for Industrial Injuries 13 Non -Accruing Leave Bank 14 Section 4. Fringe Benefits Health Insurance 14 Additional Insurance/Programs 15 Employee Assistance Program 17 Retirement Benefits 17 i Retiree Medical Benefit 18 Deferred Compensation 23 Tuition Reimbursement 24 Section 5. Miscellaneous Provisions Reduction in Force/Layoffs 24 Schedule 26 Grievance Procedure 27 Direct Deposit 29 Contract Negotiations 30 Exhibit A - Represented Classifications and Pay Rates 32 ii 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" or "Association"), a recognized employee organization, and the City of Newport Beach ("City"), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment. 2. This MOU, upon approval by NBPMA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters set forth herein. SECTION 1. — General Provisions A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers-Milias-Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No. 2001-50, the City acknowledges that 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 classification of Police Sergeant and Police Lieutenant B. Term 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 March 30, 2019. This MOU shall remain in full force and effect until June 30, 2022, 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 (1) hour, with their representative prior to a hearing described in (c) above. 2. City grants NBPMA one hundred (100) hours of Release Time per calendar year to engage in the activities described in subsection 1(a). NBPMA may accumulate up to three hundred (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 one hundred (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 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 work day during which the negotiating team member is to attend a meet and confer NBPMA MOU 2019-2022 2 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. 2001-50. 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; NBPMA MOU 2019-2022 3 The right to take all necessary actions to fulfill the Police 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. 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 term 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 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 bulletin boards by the NBPMA shall indicate that the NBPMA posted it. 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 any protected class under the law 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 NBPMA MOU 2019-2022 -4- term of this MOU, the parties agree not to conduct concerted strike, work slowdown, sick out, withholding of services, or lockout activities. Savings If any provision of this MOU shall be held invalid by any court of competent jurisdiction, or if compliance with or enforcement of any provision shall be restrained by court action, or other established governmental administrative tribunal, the remainder of this MOU shall not be affected, and the parties shall enter into negotiations for the sole purpose of arriving at a mutually satisfactory replacement for such provision or provisions. 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 Adjustments — this MOU Period Base salary increases for all NBPMA represented classifications shall be as follows and as specified in Exhibit A: Effective March 30, 2019, base salaries will be increased by 2.0%. Effective the pay period including April 1, 2020, base salaries will be increased by 2.0%. Effective the pay period including April 1, 2021, base salaries will be increased by 2.0%. B. Code Seven/Duty Incentive Time Employees in the Unit receive a paid meal period (aka "Code Seven" time). By being paid for a meal period, each employee in the unit must be available to respond to any work -related request, emergency or call for service during his/her meal period. C. Overtime 1. All employees in both classifications in the unit shall earn overtime. For Lieutenants, overtime is earned per this MOU. For Sergeants who qualify for FLSA overtime they shall receive both FLSA (as NBPMA MOU 2019-2022 -5- specifically provided by the FLSA) and MOU overtime. The overtime compensation provided to all employees in the unit shall be at the rate of time and one half (1.5) the regular rate of pay for hours worked in excess of their regularly scheduled shift. Paid time off shall be considered time worked for overtime calculation purposes. No individual rights under the FLSA are waived by this provision. The rate at which Contract (i.e., MOU) Overtime is calculated shall not include the City's Cafeteria Plan Allowance, the opt -out Cafeteria Plan Allowance, or any cash back an employee may receive from the Cafeteria Plan Allowance as set forth in Section 4, by choosing benefits which cost less than the Allowance. 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 one hundred twenty (120) hours. All overtime worked for employees at the CTO maximum shall be paid. An employee wishing to use his/her accrued compensatory time off shall provide the City with reasonable notice. Reasonable notice is defined as at least two (2) weeks. If reasonable notice is provided, the employee's request may not be denied unless it is unduly disruptive to the department to grant the request. A request to use compensatory time off without reasonable notice may still be granted within the discretion of the supervisor or manager responsible for considering the request. 3. Overtime Compensation — Court a. Compensation - Employees shall receive either compensatory time (subject to the maximum accrual of 120 hours addressed in subsection C2 above) or paid time at their discretion. b. On -Call - Off -duty employees on call for court who have not been cancelled prior to the scheduled standby time shall, whether extended or not, be compensated at a rate equal to the actual standby time, with a minimum of one (1) hour paid at time and one-half (1.5) the employee's regular rate of pay. c. Appearance - Off -duty employees who are required to appear in court shall be compensated for the actual time involved with a minimum of four (4) hours paid at time and one-half the employee's regular rate of pay. This minimum four (4) hour payment assumes that the time the employee who is required to appear in court is outside his/her regular work hours. If the time the employee is in court overlaps any part of the employee's NBPMA MOU 2019-2022 - 6 regular work hours, the employee will receive his/her regular pay plus any additional overtime compensation (at time and one half) for hours which fell outside regular work hours. 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. Compensation for hours worked begins when the employee starts driving to court. However, when the employee is called on the same day and directed to leave his/her location to come to court, compensation for hours worked begins when the employee receives the call. Compensation for hours worked ends when the employee has completed the time in court. d. Cancellation — Off -duty employees whose court appearance is cancelled with Tess than twelve (12) hours notice shall receive a payment for one (1) hour at the employee's regular rate of pay. 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. 5. Employees in the unit must affirmatively account for their time by specifically accounting for each days' work with the specific number of hours worked, including the use of appropriate payroll codes for leave, overtime and other purposes. D. Uniform Allowance As permissible by law and subject to the provisions and limitations under the Public Employees Retirement Law, including restrictions on reporting uniform allowance as pensionable compensation for "non classic" members hired after January 1, 2013, the City shall report the value of provided uniforms at One Thousand Three Hundred Fifty Dollars ($1,350) per year, in accordance with PERS requirements. The parties agree the reported value of uniforms is intended to reflect clothing such as pants, shirts, jackets, and related attire and excludes health and safety related equipment. PERS Reporting of Uniform Allowance - To the extent permitted by law, the City shall report to the California Public Employees' Retirement System (CaIPERS) the uniform allowance for each classification as special compensation in accordance with Title 2, California Code of Regulation, Section 571(a)(5). Notwithstanding the previous sentence, for "new members" as defined by the Public Employees' Pension Reform Act of NBPMA MOU 2019-2022 -7- 2013, the uniform allowance will not be reported as pensionable compensation to Ca1PERS. E. Scholastic Achievement Pay 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 the number of units and/or degrees received by the employee. The Scholastic Achievement Pay schedule is as follows, and is regardless of years of service: 60 Units 90 Units BA/BS MA/MS/JD 2% 3% 7% 8.5% Any unit members hired by the City on and after September 12, 2012 shall be ineligible for any Scholastic Achievement Pay based upon having obtained units only. Police Sergeants hired by the City before September 12, 2012 can qualify for the pay above for having obtained either 60 or 90 units. Police Lieutenants hired by the City before September 12, 2012 can qualify for the pay above for having obtained 90 units (but not 60 units). F. Special Leadership Compensation Individuals who have completed the California Post Supervisory Leadership Institute ("SLI"), Post Command College, or the FBI National Academy will receive an additional one percent (1 %) of base pay. G. Longevity Pay NBPMA members shall earn longevity pay based on the greater of their total continuous years of full-time service with the City of Newport Beach, or their total full-time employment as a sworn law enforcement officer, including up to a maximum of six (6) months time employed as a police recruit or similar classification in a police training academy as follows: NBPMA MOU 2019-2022 - 8 - At least 12 years of service but less than 16 years of service — 0.75% At least 16 years of service but less than 20 years of service — 1.50% At least 20 years of service but less than 25 years of service — 2.25% At least 25 years of service and more - 3.00% 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. All Unit members who actually work July 4th will be compensated at their regular hourly rate, plus premium pay equal to half (%) 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. Therefore, if an employee is required to work on July 4 and it is not his/her regular workday, the employee will be scheduled to be off on another day within the work period. I. Bilingual Pay Employees certified as bilingual (Spanish) shall be eligible to receive Two Hundred Dollars ($200) per month (paid each pay period) 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. The parties agree that to the extent permitted by law, the Bilingual pay in this section is special compensation and shall be reported to Ca1PERS as such pursuant to Title 2 CCR, Section 571(a)(4) Bilingual Premium. J. Motorcycle Assignment 1. Employees assigned to work as motor officers are entitled to compensation for the off duty maintenance and servicing of their motorcycles. The Parties acknowledge that the Fair Labor Standards Act (FLSA), which governs the entitlement to compensation for off -duty motorcycle duties, entitles the Parties to agree to a reasonable number of hours per month for such duties. The FLSA also allows the Parties to agree on appropriate compensation for the performance of such off -duty motorcycle duties. It is the intent of the Parties through this Subsection NBPMA MOU 2019-2022 - 9 (J) to fully comply with the requirements of the FLSA and that such provisions do comply with the FLSA. 2. The Chief of Police, at his or her sole discretion, shall determine the number of unit positions assigned to motor officer duties. At any time this number may decrease or increase depending on the decision of the Chief of Police. 3. Employees assigned as motor officers shall receive an additional six (6) hours of straight time compensation per month, paid at one and one-half (1.5) times their regular hourly rate of pay. This pay is compensation for the off -duty maintenance and servicing of the motorcycle. The Parties agree the additional compensation is for the performance of off -duty work and does not meet the definition of compensation earnable under Government Code Section 20636, and will therefore not be reported to PERS. SECTION 3. — Leaves A. Flex Leave 1. NBPMA members shall accrue (prospectively) flex leave based on the greater of their total continuous years of full-time service with the City of Newport Beach, or their total full-time employment as a sworn law enforcement officer, including up to a maximum of six (6) months time employed as a police recruit or similar classification in a police training academy as follows: Yrs of Service Accrual Per Maximum Pay Period Accrual Less than 5 5 but less than 9 9 but less than 12 12 or more 5.69 6.31 6.92 8.16 443.82 492.18 539.76 636.48 2. The Flex leave program shall be administered as follows: a. NBPMA members shall accrue three (3) months (i.e. 36.99 hours) of flex leave (as provided in the chart in paragraph Al above) upon completion of three (3) 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 three (3) months of employment. NBPMA MOU 2019-2022 - 10 - b. 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 the City of Newport Beach Employee Policy Manual. Members entitled to use sick leave pursuant to 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. c. 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. Effective during the first pay period of January, 1998, NBPMA members who have not utilized at least eighty (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 Leave Spillover Pay and shall not be entitled to accrue flex leave in excess of the Flex Leave Accrual Threshold. d. 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. NBPMA MOU 2019-2022 - 11 - e. Members shall be paid for all accrued flex leave at their then current hourly rate of pay upon termination of the employment relationship. B. Holiday Time NBPMA members shall accrue holiday in lieu time at the rate of ninety-six (96) hours per fiscal year (July 1 through June 30th), and at the rate of three point seven (3.7) hours per pay period. Option 1 (Default): Unless otherwise irrevocably elected by the employee, holiday compensation shall be paid in cash along with the employee's regular bi-weekly check. The parties agree, to the extent permitted by law, the compensation in this section is special compensation for those employees who are normally required to work on an approved holiday because they work in positions that require scheduled staffing without regard to holidays and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(5) Holiday Pay. Option 2: Within sixty (60) days of NBPMA membership, NBPMA members may irrevocably elect to have all or any portion of the three point seven (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. Bereavement Leave Bereavement Leave shall be defined as the necessary absence from duty by an employee because of the death or terminal illness in his/her immediate family. NBPMA members shall be entitled to forty (40) hours of bereavement leave per incident (terminal illness followed by death is considered one (1) incident). Leave hours need not be used consecutively, but should occur in proximate time to the occurrence. Immediate family shall mean an employee's father, mother, stepfather, stepmother, brother, sister, spouse/domestic partner, child, stepchild or grandparent, and the employee's spouse/domestic partner's father, mother, brother, sister, child or grandparent. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. NBPMA MOU 2019-2022 - 12 - D. Leave Sellback Employees shall have the option of converting accrued Flex Leave to cash on an hour for hour basis subject to the following: On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out accrued flex leave which will be earned in the following calendar year. The employee can elect to receive the cash out in the pay period which includes June 30 and/or the pay period which includes December 15 for those Flex Leave benefits that have been earned during that portion of the year. In no event shall the flex leave balance be reduced below one hundred and sixty (160) hours. On or before December 31, 2019, each employee shall have the one-time option of cashing out all or a portion of Flex Leave benefits credited to his/her account as of that date. However, in no event shall the flex leave balance be reduced below one hundred and sixty (160) hours when the leave is cashed out. E. Scheduling of Medical Treatment for Industrial Injuries 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 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 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. NBPMA MOU 2019-2022 - 13 - F. Non-Accruinq Leave Bank Effective March 30, 2019, employees in the unit, shall receive a bank of forty-one and one quarter (41.25) hours of non -accruing leave to use between March 30, 2019 and June 30, 2020. Effective July 1, 2020, and on July 1 of each year thereafter, employees in the unit, shall receive a bank of thirty-three (33) hours of non -accruing leave to use within that fiscal year. The hours have no cash value and cannot be transferred to any other leave bank. Hours used are subject to supervisory approval and must be used within that fiscal year or be forfeited. Non -accruing leave cannot be carried into the next fiscal year. SECTION 4. — Fringe Benefits A. Health 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 BIC 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 association with information about health insurance/programs and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. Medical Insurance - City Contribution The City has implemented an IRS qualified Cafeteria Plan. In addition to the amounts listed below, the City shall contribute the minimum CaIPERS 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. 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. • The City's monthly contribution towards the Cafeteria Plan is $1,524.00 (plus the minimum CaIPERS participating employer contribution as outlined in Government Code §22892.) NBPMA MOU 2019-2022 - 14 - At the request of either party, the parties shall meet and confer in good faith to discuss possible changes to the medical benefit program, contribution levels, or other elements of healthcare services as a result of the Affordable Healthcare Act (ACA) or changes in law, provided, however, that any changes to the MOU only may occur by mutual agreement of the parties. 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. Employees electing to opt out of medical coverage offered by the City because they have provided proof of minimum essential coverage ("MEC') through another source (other than coverage in the individual market, whether or not obtained through Covered California) will receive a maximum cafeteria allowance of $1,000.00 per month. 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings as agreed upon by the BIC. 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 BIC. 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 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. NBPMA MOU 2019-2022 - 15 - 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. 2. Disability Insurance The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all regular full time employees with the following provisions: Weekly Benefit 66.67% gross weekly wages Maximum Benefit $15,000/month Minimum Benefit $15 (STD) and $100 (LTD) Waiting Period 30 Calendar Days (STD) 180 Calendar Days (LTD) Employees shall pay one percent (1 %) of base salary as a post -tax deduction for this benefit. 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. 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. NBPMA MOU 2019-2022 - 16 - C. Employee Assistance Program City shall provide an Employee Assistance Program ("EAP") through a properly licensed provider. NBPMA members and their family members may access the EAP at no cost subject to provider guidelines. D. Retirement Benefits 1. Retirement Formula The City contracts with the California Public Employees Retirement System ("CaIPERS" or "PERS") to provide retirement benefits for its employees. Pursuant to prior agreements and state mandated reform, the City has implemented first, second and third tier retirement benefits as follows: Tier I ("Legacy"): For employees hired by the City on or before November 23, 2012, the retirement formula for safety members shall be 3%@50, calculated on the basis of the highest consecutive 12 month period. Tier II ("Classic"): For employees first hired by the City between November 24 and December 31, 2012, or hired on or after January 1, 2013 and who are current members of the retirement system or a reciprocal retirement system, as defined in Public Employees Pension Reform Act (PEPRA), the retirement formula for safety members shall be 3%@55, calculated on the basis of the highest consecutive 36 month period. Tier III ("PEPRA"): For employees first hired by the City on or after January 1, 2013, and who do not meet the Tier II criteria, the safety retirement formula shall be 2.7%@57, calculated on the basis of the highest consecutive 36 month period. 2. Other Contract Provisions The City's contract with PERS shall also provide for: a. The military buy-back provisions pursuant to Section 20930.3 of the California Government Code and the highest year benefit pursuant to California Government Code Section 20042. b. The Level 4 1959 Survivors Benefits. NBPMA MOU 2019-2022 - 17 - c. The PERS pre -retirement option settlement 2 death benefit (Section 21548) for miscellaneous and safety members. 3. Employee Contributions Unit members shall contribute additional amounts toward the PERS retirement benefit, to the extent permissible by law, as set forth below. Employee retirement contributions that are in addition to the normal PERS Member Contribution shall be calculated on base pay, special pays, and other pays normally reported as pensionable compensation, and will be made on a pre-tax basis through payroll deduction provided under 414(h)(2). Tiers I and II: NBPMA Tier I and II members will contribute the full statutory member contribution, equal to 9% of pensionable compensation, plus an additional 5.6% of pensionable compensation toward retirement costs as permitted under Government Code §20516(f), for a total contribution of 14.6%. Tier III: In addition to the statutorily required 50% contribution of total normal costs ("member contribution rate" which in FY18-19 is 10.5% of pensionable compensation), Tier III members shall contribute 4.10% of pensionable compensation toward retirement costs pursuant to Government Code § 20516(f), for a total contribution of 14.6%. If in future fiscal years the member contribution rate for employees in Tier III shall become greater or less than 10.5%, the additional contribution made by the employee under 20516(f) will be increased or decreased accordingly so that the total employee contribution is the same percentage contribution made by Tier I and II members, a total contribution of 14.6%. E. Retiree Medical Benefit 1. Background In 2005, the City and all Employee Associations agreed to replace the previous "defined benefit" retiree medical program with a new "defined contribution" program. The process of fully converting to the new program will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is NBPMA MOU 2019-2022 - 18 - structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2005. b. Category 2 - Active employees hired prior to January 1, 2005, whose age plus years of service as of January 1, 2005 was less than 50 (46 for public safety employees). c. Category 3 - Active employees hired prior to January 1, 2005, whose age plus years of service was fifty (50) or greater (forty- six (46) for public safety employees) as of January 1, 2005. d. Category 4 - Employees who had already retired from the City prior to January 1, 2005, and were participating in the previous retiree medical program. 2. Program Structure This is an Integral Part Trust (IPT) Retirement Health Savings Plan (RHS) (formerly the Medical Expense Reimbursement Program Plan MERP). a. For employees in Category 1, the program is structured as follows: Each employee will have an individual RHS account for bookkeeping purposes, called his or her "Employee Account." This account will accumulate contributions to be used for health care expenses after separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. Contributions will be in three parts. Part A contributions (mandatory employee contributions): one percent (1 %) of Salary. Part B contributions (employer contributions): Two Dollars and Fifty Cents ($2.50) per month for each year of service plus year of age (updated every January 1st based on status as of December 31 st of the prior year). NBPMA MOU 2019-2022 - 1 9 - Part C contributions (leave settlement as determined by Association): The Association will determine the level of contribution for all employees it represents, subject to the following constraints. All employees within the Association must participate at the same level. The participation level should be specified as a percentage of the leave balance on hand in each employee's leave bank at the time of separation from the City. For example, if the Association wishes to specify fifty percent (50%) of the leave balance as the participation level, then each member leaving the City, or cashing out leave at any other time, would have the cash equivalent of fifty percent (50%) of the amount that is cashed out added to the RHS, on a pre-tax basis. The remaining fifty percent (50%) would be paid in cash as taxable income. Individual employees would not have the option to deviate from this breakout. The Association has decided to participate in Part C contributions by not contributing any Flex Leave. This may be changed, on a going forward basis, as part of a future meet and confer process. However, the participation level must be the same for all employees within the Association. Additionally, the purpose and focus of these changes should be toward long-term, trend type adjustments. Due to IRS restrictions regarding "constructive receipt," the City will impose restrictions against frequent spikes or drops that appear to be tailored toward satisfying the desires of a group of imminent retirees. Spillover pay and Compensatory Time are not eligible for Part C contributions. Nothing in this section restricts taking leave for time off purposes. Part A contributions may be included in PERS compensation. Part B and Part C contributions will not be included in PERS compensation. Part A contributions begin upon enrollment in the program and are credited to each RHS Employee Account each pay period. Eligibility for Part B contributions is set at five (5) years of vested City employment. At that time, the City will credit the first five (5) years' worth of Part B contributions into the Employee Account (interest does not accrue during that period). Thereafter, contributions are NBPMA MOU 2019-2022 - 20 - made bi-weekly. Part C deposits, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero (0). This right is triggered upon separation. If an employee leaves the City prior to five (5) years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the RHS Employee Account. Such an employee will not be entitled to any Part B contributions. The exception to this is a full- time employee, participating in the program, who leaves the City due to industrial disability during the first five (5) years of employment. In such cases, the employee will receive exactly five (5) years' worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's RHS account at the time of separation. Distributions from RHS Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and his or her spouse and legal dependents — again only as permitted by IRS Publication 502. Qualification for dependency status will be determined by guidelines in IRC 152. If used for these purposes, distributions from the RHS accounts will not be taxable. Cash withdrawal for any other purpose is prohibited. Under recent IRS Revenue Ruling 2005-24, any balance remaining in the Employee Account after the death of the employee and his or her spouse and/or other authorized dependents (if any) must be forfeited. That particular RHS Employee Account will be closed, and any remaining funds will become general assets of the plan. The parties agree that the City's Part B contributions during active employment constitute the minimum CaIPERS participating employer's contribution (i.e., the CaIPERS statutory minimum amount) towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's RHS account. NBPMA MOU 2019-2022 - 21 - b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one- time City contribution to their individual RHS accounts that equates to One Hundred Dollars ($100) per month for every month they contributed to the previous "defined benefit" plan, to a maximum of fifteen (15) years (one hundred eighty (180) months). This contribution will be made only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. Employees in Category 2 who had less than five (5) years' service with the City prior to implementation of the new program will only receive Part B contributions back to January 1, 2006 when they reach five (5) years total service. c. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute Four Hundred Dollars ($400) per month into each of their RHS accounts after they retire from the City, to continue as long as the employee or spouse is still living. Each employee will contribute a flat One Hundred Dollars ($100) per month to the plan for the duration of their employment to partially offset part of this expense to the City. The maximum benefit provided by the City after retirement is Four Thousand Eight Hundred Dollars ($4,800) per year, accruing at the rate of Four Hundred Dollars ($400) per month. There is no cash out option for these funds, and they may not be spent in advance of receipt. Employees in this category will also receive an additional one-time City contribution of Seventy -Five Dollars ($75) per month for every month they contributed to the previous plan prior to January 1, 2006, up to a maximum of fifteen (15) years (one hundred eighty (180) months). This contribution will be made to the RHS account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. d. For employees (retirees) in Category 4, the structure is very similar to the previous retiree medical program, except that there is no cost share requirement, and the Four Hundred and Fifty Dollar ($450) City contribution after retirement can be NBPMA MOU 2019-2022 - 22 - used for any IRS authorized purpose, not just City insurance premiums. An RHS account has been and will be opened for each retiree in this category, and the City will contribute Four Hundred and Fifty Dollars ($450) per month to each account as long as the retiree or spouse remains living. For each retiree in this category, the NBPMA shall reimburse the City $25 per month. Each quarter the City will provide an invoice to the NBPMA for each retiree for the previous three months for seventy-five dollars ($75.00). 3. Administration Vendors have been selected by the City to administer the program. The contract expense for program -wide administration by the vendor will be paid by the City. However, specific vendor charges for individual account transactions that vary according to the investment actions taken by each employee, such as fees or commissions for trades, will be paid by each employee. The City's Deferred Compensation Committee, or its successor committee, will have the authority to determine investment options that will be available through the plan. F. Deferred Compensation Each employee shall have a deferred compensation account set up by the City and subject to the rules of IRS Code section 457 to which s/he may make contributions. The City shall contribute to each employee's deferred compensation account each pay period as follows: 1. Effective March 30, 2019, the City shall contribute one percent (1 %) of base salary to each employee's deferred compensation account. 2. Effective the first day of the pay period which includes April 1, 2020, the City shall contribute an additional one half of one percent (5%) for a total of one and one half percent (1.5%) of base salary to each employee's deferred compensation account. 3. Effective the first day of the pay period which includes April 1, 2021 and each year thereafter in the pay period which includes April 1, the City shall contribute an additional one half of one percent (5%) for a total of two percent (2%) of base salary to each employee's deferred compensation account. NBPMA MOU 2019-2022 - 23 - Under federal law, there is an annual maximum contribution which may be made to an employee's IRS Code section 457 account. Although the City will be making contributions to employees' accounts each pay period, it is the employees' responsibility to track their total contribution amount. If an employee's account contributions reach the annual 457 maximum, the City will stop making contributions for the remainder of the calendar year and will not owe the employee any additional compensation related to this section. G. 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. The maximum tuition reimbursement for all employees in the Unit shall be One Thousand Four Hundred Dollars ($1,400) per fiscal year. SECTION 5. — Miscellaneous Provisions A. Reductions in Force/Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions a. "Layoffs" or "Laid off' shall mean the non —disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted regular status in their current Classification or any Classification within the Series, subject to the following: Credit shall be given only for continuous service (as described in the next paragraph) subsequent to the most recent appointment to regular status in the Classification or Series; NBPMA MOU 2019-2022 - 24 - ii. Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. c. "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part—time, seasonal or temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). d. In this bargaining unit, there is one "Series" made up of the two classifications represented by the Association — Police Sergeant, and Police Lieutenant. e. "Bumping Rights", "Bumping" or "bump" shall mean the right of an employee, based upon seniority within a series, to displace a less senior employee in a lower Classification within the Series. 2. Procedures In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: a. Employees within a Classification shall be laid off in inverse order of seniority; b. An employee subject to layoff in one (1) Classification shall have the right to Bump a less senior employee in a lower ranking Classification within the Series within the bargaining unit. 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. c. In the event two (2) 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 (1) of the employees was not appointed from an eligibility list, the Department Director shall determine the employee(s) to be laid off. 3. Notice Employees subject to layoff shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days' pay in lieu of notice. In addition, NBPMA MOU 2019-2022 - 25 - employees laid off will be paid for all accumulated paid leave and holiday leave (if any). 4. Re —Employment Regular and probationary employees who are laid off shall be placed on a Department re—employment list in reverse order of layoff. The re- employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re—employment list shall have the right to appointment to the position, provided, he or she reports to work within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, certified, return receipt requested, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re— employment list or the right to remove his or her name from the re— employment list by sending written confirmation to the Human Resources Director. 5. Severance Pay Regular employees who are laid off shall, as of the date of layoff, receive one (1) week severance pay for each year of continuous service with the City of Newport Beach, but in no case to exceed ten (10) weeks of severance compensation. B. Schedule 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 to meet and confer before making any substantive changes to work schedules that impact an employee's conditions of employment. 1. Employees currently work either the 3/11.42 or 4/10 work schedules. The Chief of Police shall have the right to alter the work schedule of any NBPMA member assigned to any multi —agency or regional task force. If the City wants to utilize a work schedule other than the 4/10 or 3/11.42 for this unit, it will notify the NBPMA and the parties shall promptly meet and confer, in good faith, regarding the appropriate work schedule(s) for NBPMA members. NBPMA MOU 2019-2022 - 26 - 2. The employees in the unit are subject to the twenty-eight (28) day FLSA work period pursuant to Section 29 U.S.C. 207(k) ("7k Exemption"), provided, however, the 7k Exemption shall not affect the City's obligation to pay overtime pursuant to provisions of this MOU. 3. Patrol Supervisor Pre-Briefinq Time: 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: a. All Patrol Supervisors are required to report to work fifteen (15) minutes early to prepare for briefing; b. The fifteen (15) minutes per shift which is paid to prepare for briefing will be paid as compensatory time off and credited to each employee's compensatory time off bank. The pre -briefing time worked shall be considered as hours worked for purposes of calculating FLSA overtime for Police Sergeants. For Police Lieutenants it is also considered hours worked. 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. An employee may be self —represented or represented by one (1) 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 NBPMA MOU 2019-2022 - 27 - communication to the employee concerning the proceedings, and any document directly relevant to the proceedings. 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 Step 1 — An employee who files a grievance shall present it in writing to an Assistant Chief of Police within ten (10) working days after the employee knew, or in the exercise of reasonable diligence should have known, the act or events upon which the grievance is based. 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 Assistant Chief of Police will confer with the Human Resources Director regarding the grievance. The Assistant Chief of Police shall meet with the employee and any representative in an effort to resolve the grievance. The Assistant Chief of Police shall provide the employee with a written decision on the appeal within fifteen (15) calendar days after the meeting. Upon receipt of a decision from an Assistant Chief of Police Any employee not satisfied with the decision of his or her immediate supervisor may proceed to Step 2. Step 2 — Appeal to Chief of Police. Any employee dissatisfied with the decision of an Assistant Chief of Police may proceed to Step 2 by submitting a written appeal to the Chief of Police. The written appeal must be filed with the Chief of Police within seven (7) calendar days following receipt of the Assistant Chief of Police'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 fifteen (15) calendar days following receipt of the appeal unless deferred by the consent of both parties. The Chief of Police shall provide the employee with a written decision on the appeal within fifteen (15) calendar days after the meeting. Step 3 — 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 3 by NBPMA MOU 2019-2022 - 28 - submitting a written appeal of the decision to the City Manager. The written appeal must be filed within seven (7) calendar days following receipt of the Police Chief's 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 fifteen (15) calendar 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 fifteen (15) calendar days after the meeting. The decision of the City Manager shall be final. The City and the grievant may agree to extend any of the timelines in the grievance procedure. Absent a mutual agreement between the City and the grievant to extend the timelines, if the City representative does not respond within the time lines set forth for a response at Steps 1 and 2 of the above grievance procedure, the grievant can move the grievance to the next step. 4. General Grievance A grievance affecting more than one (1) NBPMA member may be filed by NBPMA on behalf of the affected employees with the Chief of Police. The Association must present the grievance to the Chief of Police within ten (10) working days after an Association Board member knew, or in the exercise of reasonable diligence should have known, the act or events upon which the grievance is based. This provision is the sole and exclusive method by which the Association may challenge a provision of this MOU. 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 fifteen (15) calendar days following receipt of the grievance and provide a written decision on the grievance within fifteen (15) calendar 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 3 of the procedure applicable to individual employees set forth above. 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) calendar days after receipt of the decision. D. Direct Deposit All Unit employees shall participate in the City's Direct Deposit Program. NBPMA MOU 2019-2022 - 29 - E. Contract Negotiations The parties agree that either side requests to meet and confer in good faith for a successor MOU within 120 days of the expiration of the MOU, the parties agree to begin the negotiations with the mutual objective of reaching an agreement prior to the expiration of the term of the MOU. Signatures are on the next page. NBPMA MOU 2019-2022 - 30 - ATTEST: By: Executed this 2TN day of f E$RVt<1Q`f Leilani Brown City Clerk , 2019: NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION By: 1 Eric Little, President CITY OF NEWPOR EACH By: Diane Dixon, ayor CITY OF NEWPORT BEACH APPROVER AS TO FORM: By: •664, Peter Brown, Special Counsel Attachments: Exhibit "A" NBPMA Pay Rates NBPMA MOU 2019-2022 - 31 - EXHIBIT A NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION Represented Positions and Pay Rate Adjustments MOU TERM: MARCH 30, 2019 - JUNE 30, 2022 Represented Classification Hourly Pay Rate 1 Minimum Maximum Monthly Pay Rate 2 Minimum Maximum Effective March 30, 2019 (2.0% Adjustment) Police Sergeant $48.14 $67.73 $8,344 $11,739 Police Lieutenant $56.58 $79.62 $9,807 $13,800 Effective March 28, 2020 (2.0% Adjustment) Police Sergeant $49.10 $69.08 $8,511 $11,974 Police Lieutenant $57.71 $81.21 $10,003 $14,076 Effective March 27, 2021 (2.0% Adjustment) Police Sergeant $50.08 $70.46 $8,681 $12,213 Police Lieutenant $58.87 $82.83 $10,203 $14,358 1 Hourly pay rates are rounded to the nearest hundredth. 2 Monthly pay rates are rounded to the nearest whole dollar. NBPMA MOU 2019-2022 - 32 - Side Letter to the 2015-18 Memorandum of Understanding Between the City of Newport Beach and the Newport Beach Police Management Association Establishing Motor Officer Compensation This Side Letter of Agreement ("Side Letter") between the City of Newport Beach and the Newport Beach Police Management Association ("NBPMA"), together are the "Parties", is entered into with respect to the following: RECITALS A. The City of Newport Beach and the Newport Beach Police Management Association (NBPMA) entered into a Memorandum of Understanding (MOU) regarding wages, benefits and other terms and conditions of employment for employees represented by NBPMA, for the period January 1, 2015 through June 30, 2018. B. Employees in the unit working as motor officers routinely service and maintain their motorcycle after work hours. C. The purpose of this Side Letter is to establish the terms, conditions and compensation for motor officers. TERMS AND CONDITIONS 1. All of the foregoing Recitals are true and correct and are incorporated herein as part of the Side Letter for all purposes. 2. Section 2, Compensation, of the MOU, is hereby amended to include the following Subsection: K. Motorcycle Assignment a. Employees assigned to work as motor officers are entitled to compensation for the off duty maintenance and servicing of their motorcycles. The Parties acknowledge that the Fair Labor Standards Act (FLSA), which governs the entitlement to compensation for off -duty motorcycle duties, entitles the Parties to agree to a reasonable number of hours per month for such duties. The FLSA also allows the Parties to agree on appropriate compensation for the performance of such off -duty motorcycle duties. It is the intent of the Parties through this Subsection (K) to fully comply with the requirements of the FLSA and that such provisions do comply with the FLSA. b. The Chief of Police, at his or her sole discretion, shall determine the number of unit positions assigned to motor officer duties. At any time LOU: NBPMA Motor Pay Page 2 this number may decrease or increase depending on the decision of the Chief of Police. c. Employees assigned as motor officers shall receive an additional six (6) hours of straight time compensation per month, paid at one and one-half (1.5) times their regular hourly rate of pay. This pay is compensation for the off -duty maintenance and servicing of the motorcycle. The Parties agree the additional compensation is for the performance of off -duty work and does not meet the definition of compensation earnable under Government Code Section 20636, and will therefore not be reported to PERS. The understanding reached in this Side Letter will continue through the term of the 2015- 18 MOU. All other provisions of the current MOU, existing policy, applicable Police Department Standard Operating Procedure or related practices, shall remain unchanged. Executed this 11' day of Sew , 2017. City of Newport Beach By: Z tk'- U Dave Kiff, City Manager Approved as to Form: Aaron Harp, City Attorney Newport Beach Police Management Association By: William Depweg, Attest: p Ccci — resident Leilani Brown, City Clerk MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION C J 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" or "Association"), a recognized employee organization, and the City of Newport Beach ("City"), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment. 2. 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, 2015 to June 30, 2018 and this tentative agreement has been embodied in this MOU, which has been executed concurrently. 3. This MOU, upon approval by NBPMA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters set forth herein. SECTION 1. — General Provisions A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers-Milias-Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No. 2001-50, the City acknowledges that 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 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 NBPMA. Exhibit "A" is incorporated by reference into this MOU. 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, 2015. This MOU shall remain in full force and effect until June 30, 2018, 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 (1) hour, with their representative prior to a hearing described in (c) above. 2. City grants NBPMA one hundred (100) hours of Release Time per calendar year to engage in the activities described in subsection 1(a). NBPMA may accumulate up to three hundred (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 one hundred (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 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. 2 - NBPMA MOU 2015-2018 a. Any NBPMA 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. 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. 2001-50. 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; - 3 NBPMA MOU 2015-2018 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 Police 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. 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 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 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 the basis of race, gender, ethnicity, religion or other statutorily or constitutionally impermissible basis, or any pornographic or obscene material. 4- NBPMA MOU 2015-2018 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. I. Savings If any provision of this MOU shall be held invalid by any court of competent jurisdiction, or if compliance with or enforcement of any provision shall be restrained by court action, or other established governmental administrative tribunal, the remainder of this MOU shall not be affected, and the parties shall enter into negotiations for the sole purpose of arriving at a mutually satisfactory replacement for such provision or provisions. 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 Adjustments — this MOU Period Base salary increases for all NBPMA represented classifications shall be as follows and as specified in Exhibit A: Effective the pay period including January 1, 2015, base salaries will be increased by 1.8%. Effective the pay period including January 1, 2016, base salaries will be increased by 3.0%. Effective the pay period including January 1, 2017, base salaries will be increased by 2.5%. Effective the pay period including January 1, 2018, base salaries will be increased by 3.0%. -5 NBPMA MOU 2015-2018 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 (1.5) the regular rate of pay 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 one hundred twenty (120) 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. Overtime Compensation - Court a. Compensation - Employees shall receive either compensatory time or paid time at their discretion. b. 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 the actual standby time, with a minimum of one (1) hour paid at time and one-half (1.5) the employee's regular rate of pay. c. Appearance - Off -duty employees who are required to appear in court shall be compensated for the actual time involved with a minimum of four (4) hours paid at time and one-half the employee's regular rate of pay. 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. 6 NBPMA MOU 2015-2018 d. Cancellation — Off -duty employees whose court appearance is cancelled with less than twelve (12) hours notice shall receive a payment for one (1) hour at the employee's regular rate of pay. 4. NBPMA members occupying the position of Captain shall not be entitled to compensatory time off or pay 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 eighty (80) hours of administrative leave per calendar year. The precise amount of administrative leave granted each Captain shall be based on the recommendation of the Police Chief and approved by the City Manager. Administrative leave may not be carried forward from one (1) calendar year to the next. 5. 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. D. Uniform Allowance As permissible by law and subject to the provisions and limitations under the Public Employees Retirement Law, including restrictions on reporting uniform allowance as pensionable compensation for "non classic" members hired after January 1, 2013, the City shall report the value of provided uniforms at One Thousand Three Hundred Fifty Dollars ($1,350) per year, in accordance with PERS requirements. The parties agree the reported value of uniforms is intended to reflect clothing such as pants, shirts, jackets, and related attire and excludes health and safety related equipment. E. Scholastic Achievement Pay 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 the number of units and/or degrees received by the employee. Effective the pay period -7 NBPMA MOU 2015-2018 beginning January 20, 2007 (prospectively), employees shall be eligible for Scholastic Achievement Pay based on their total full-time sworn law enforcement time, including up to a maximum of six (6) months' time employed as a police recruit or similar classification in a police training academy. The Scholastic Achievement Pay schedule is as follows, and is regardless of years of service: 60 Units 90 Units BA/BS MAIMS/JD 2% 3% 7% 8.5% 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. Any unit members hired on and after September 12, 2012 shall be ineligible for any Scholastic Achievement Pay based upon having obtained units only. F. Special Leadership Compensation Individuals who have completed the California Post Supervisory Leadership Institute ("SLI"), Post Command College, or the FBI National Academy will receive an additional one percent (1 %) of base pay. G. Holiday Time NBPMA members shall accrue holiday time at the rate of ninety-six (96) hours per fiscal year (July 1 through June 30th), and at the rate of three point seven (3.7) hours per pay period. Option 1 (Default): 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 sixty (60) days of NBPMA membership, NBPMA members may irrevocably elect to have all or any portion of the three point seven (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 -8 NBPMA MOU 2015-2018 bank, and any spillover pay or other payout for flex leave, will not be reported to PERS as special compensation. H. Leave Pay -Off For the term of the agreement, NBPMA members shall receive payment for any accrued leave upon termination at the rate of one hundred percent (100%) of their base hourly rate. I. 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. All Unit members who actually work July 4th will be compensation at their regular hourly rate, plus premium pay equal to half (1/2) of the hours actually worked on that day. Employees will be provided theft 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. J. Bilingual Pay Employees certified as bilingual (Spanish) shall be eligible to receive Two Hundred Dollars ($200) 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. SECTION 3. — Leaves A. Flex Leave and Longevity Pay 1. Effective the first pay period after July 1, 2012, NBPMA members shall accrue (prospectively) flex leave and receive longevity pay based on the greater of their total continuous years of full-time service with the City of Newport Beach, or their total full-time employment as a sworn law enforcement officer, including up to a maximum of six (6) months time employed as a police recruit or similar classification in a police training academy. Effective upon 9 - NBPMA MOU 2015-2018 adoption of this 2015-18 MOU, NBPMA members shall accrue Flex Leave and receive Longevity Pay at the following rates: Yrs of Service Accrual Per Maximum Longevity Pay Period Accrual Pay Less than 5 5.69 443.82 0.00% 5 but less than 9 6.31 492.18 0.00% 9 but less than 12 6.92 539.76 0.00% 12 but less than 16 8.16 636.48 0.75% 16 but less than 20 8.16 636.48 1.50% 20 but less than 25 8.16 636.48 2.25% 25 or more 8.16 636.48 3.00% 2. NBPMA and the City acknowledge that employees assigned the 9/81 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 three (3) months provided, however, if a member on the flex leave program becomes sick during the first three (3) months of employment, the City will advance up to six (6) 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 three (3) 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. NBPMA members shall accrue three (3) months of flex leave upon completion of three (3) 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 three (3) 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 - 10 - NBPMA MOU 2015-2018 the City of Newport Beach Employee Policy Manual. Members entitled to use sick leave pursuant to 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. Effective during the first pay period of January, 1998, NBPMA members who have not utilized at least eighty (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 Leave Spillover Pay and shall not be entitled to accrue flex leave in excess of the Flex Leave Accrual Threshold. Employees who have accrued in excess of seventy-eight (78) times the member's bi-weekly accrual rate shall accrue no additional time unless through use of time or any authorized cash payment (including spillover pay), the accrued hours decrease to less than seventy-eight (78) times the bi-weekly accrual rate. Except for persons eligible for Spillover Pay, in no case shall leave that would have - 11 - NBPMA MOU 2015-2018 been accrued in excess of the above limitations be earned for cash conversion. 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 forty (40) hours of bereavement leave per incident (terminal illness followed by death is considered one (1) incident). Leave hours need not be used consecutively, but should occur in proximate time to the occurrence. Immediate family shall mean an employee's father, mother, stepfather, stepmother, brother, sister, spouse/domestic partner, child, stepchild or grandparent, and the employee's spouse/domestic partner's father, mother, brother, sister, child or grandparent. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. C. Worker's Compensation Leave In accordance with Section 4850 of the Labor Code, unit employees shall be entitled to leave of absence while disabled without Toss of salary for the period of the disability, not to exceed one (1) year. D. Scheduling of Medical Treatment for Industrial Injuries 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 12 - NBPMA MOU 2015-2018 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 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. SECTION 4. — Fringe Benefits A. Health 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 BIC 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 - City Contribution The City has implemented an IRS qualified Cafeteria Plan. In addition to the amounts listed below, the City shall contribute the minimum CaIPERS 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 - 13 - NBPMA MOU 2015-2018 coverages in accordance with plan rules and during regular open enrollment periods. • The parties recognize that from January 1, 2015 through June 26, 2015 the City has contributed $1,324 per month (plus the PERS minimum contribution) toward the Cafeteria Plan. • Effective the pay period that includes July 1, 2015 the City's monthly contribution towards the Cafeteria Plan will increase by $100 to $1,424.00 (plus the minimum CaiPERS participating employer contribution as outlined in Government Code §22892.) • Effective the first pay issue in January 2017, the City's monthly contribution towards the Cafeteria Plan will increase by $100 to $1,524.00 (plus the minimum CaIPERS participating employer contribution as outlined in Government Code §22892.) On or before July 1, 2017, at the request of either party, the parties shall meet and confer in good faith to discuss possible changes to the medical benefit program, contribution levels, or other elements of healthcare services as a result of the Affordable Healthcare Act (CA) or changes in law, provided, however, that any changes to the MOU only may occur by mutual agreement of the parties. 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. Current employees electing to opt -out of City provided medical coverage will be eligible to receive a maximum Cafeteria Allowance of $1,274 per month. Effective the first pay issue in January 2016, the opt -out Cafeteria Allowance will be $1,000 per month. 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings as agreed upon by the BIC. 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 BIC. - 14 - NBPMA MOU 2015-2018 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 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. 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. 2. Disability Insurance The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all regular full time employees with the following provisions: Weekly Benefit 66.67% gross weekly wages Maximum Benefit $10,000/month Minimum Benefit $15 (STD) and $100 (LTD) Waiting Period 30 Calendar Days (STD) 180 Calendar Days (LTD) Employees shall not be required to exhaust accrued paid leaves prior to receiving benefits under the disability insurance program. Employees may not supplement the disability benefit with paid leave once the waiting period has been exhausted. - 15 - NBPMA MOU 2015-2018 Concurrent with the commencement of this program, employees assumed responsibility for the payment of the disability insurance cost in the amount of one percent (VA) of base salary. Simultaneously, the City increased base wages by one percent (1%). 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. NBPMA members and their family members may access the EAP at no cost subject to provider guidelines. D. Retirement Benefits 1. Retirement Formula The City contracts with the California Public Employees Retirement System ("CalPERS" or `PERS') to provide retirement benefits for its employees. Pursuant to prior agreements and state mandated reform, the City has implemented first, second and third tier retirement benefits as follows: Tier 1 ("Legacy"): For employees hired by the City on or before November 23, 2012, the retirement formula for safety members shall be 3%@50, calculated on the basis of the highest consecutive 12 month period. Tier 11 ("Classic"): For employees first hired by the City between November 24 and December 31, 2012, or hired on or after January 1, 2013 and who are current members of the retirement system or a reciprocal retirement system, as defined in Public Employees Pension Reform Act (PEPRA), the retirement formula for safety members shall be 3%@55, calculated on the basis of the highest consecutive 36 month period. - 16 - NBPMA MOU 2015-2018 Tier 111 ("PEPRA"): For employees first hired by the City on or after January 1, 2013, and who do not meet the Tier 11 criteria, the safety retirement formula shall be 2.7%@57, calculated on the basis of the highest consecutive 36 month period. 2. Other Contract Provisions The City's contract with PERS shall also provide for: a. The military buy-back provisions pursuant to Section 20930.3 of the California Government Code and the highest year benefit pursuant to California Government Code Section 20042. b. The Level 4 1959 Survivors Benefits. c. The PERS pre -retirement option settlement 2 death benefit (Section 21548) for miscellaneous and safety members. 3. Employee Contributions Unit members shall contribute additional amounts toward the PERS retirement benefit, to the extent permissible by law, as set forth below. Employee retirement contributions that are in addition to the normal PERS Member Contribution shall be calculated on base pay, special pays, and other pays normally reported as pensionable compensation, and will be made on a pre-tax basis through payroll deduction provided under 414(h)(2). Tiers I and II: Effective the pay period that includes January 1, 2015, NBPMA Tier 1 and 11 safety members will contribute the full statutory member contribution, equal to 9% of pensionable compensation, plus an additional 4.6% of pensionable compensation toward retirement costs as permitted under Government Code §20516(t), for a total contribution of 13.6%. Effective the pay period that includes January 1, 2016, NBPMA Tier 1 and II safety members will contribute the full statutory member contribution, equal to 9% of pensionable compensation, plus an additional 5.6% of pensionable compensation toward retirement costs as permitted under Government Code §20516(t), for a total contribution of 14.6%. - 17 - NBPMA MOU 2015-2018 Tier III: The minimum statutory employee contribution for employees in Tier 111 is subject to the provisions of the Public Employees' Pension Reform Act (PEPRA) and equals 50% of the "total normal cost" as determined by PERS. For FY15-16, the employee safety rate is 11.25% and is subject to change based on annual PERS actuarial valuations. Effective the pay period that includes January 1, 2015 Tier 111 members will contribute the required 11.25% member contribution. In addition, Tier 111 members shall contribute 2.35% of pensionable compensation toward retirement costs pursuant to Government Code § 20516(f), for a total contribution of 13.6%. Effective the pay period that includes January 1, 2016, Tier III members will contribute the required 11.25% member contribution. In addition, Tier 111 members shall contribute 3.35% of pensionable compensation toward retirement costs pursuant to Government Code § 20516(f), for a total contribution of 14.6%. In the event the member contribution rate for employees in Tier 111 shall become greater or less than 11.25%, the additional contribution made by the employee under 20516(f) will be increased or decreased accordingly so that the total employee contribution is the same percentage contribution made by Tier I and II members. E. Retiree Medical Benefit 1. Background In 2005, the City and all Employee Associations agreed to replace the previous "defined benefit" retiree medical program with a new "defined contribution" program. The process of fully converting to the new program will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2005. b. Category 2 - Active employees hired prior to January 1, 2005, whose age plus years of service as of January 1, 2005 was less than 50 (46 for public safety employees). - 18 - NBPMA MOU 2015-2018 c. Category 3 - Active employees hired prior to January 1, 2005, whose age plus years of service was fifty (50) or greater (forty-six (46) for public safety employees) as of January 1, 2005. d. Category 4 - Employees who had already retired from the City prior to January 1, 2005, and were participating in the previous retiree medical program. 2. Program Structure This is an Integral Part Trust (IPT) Retirement Health Savings Plan (RHS) (formerly the Medical Expense Reimbursement Program Plan MERP). a. For employees in Category 1, the program is structured as follows: Each employee will have an individual RHS account for bookkeeping purposes, called his or her "Employee Account." This account will accumulate contributions to be used for health care expense after separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. Contributions will be in three parts. Part A contributions (mandatory employee contributions): one percent (1 %) of Salary. Part B contributions (employer contributions): One Dollar and Fifty Cents ($1.50) per month for each year of service plus year of age (updated every January 1st based on status as of December 31 st of the prior year). Effective January 2008, this contribution will increase to Two Dollars and Fifty Cents ($2.50) per month. Part C contributions (leave settlement as determined by Association): The Association will determine the level of contribution for all employees it represents, subject to the following constraints. All employees within the Association must participate at the same - 19 - NBPMA MOU 2015-2018 level. The participation level should be specified as a percentage of the leave balance on hand in each employee's leave bank at the time of separation from the City. For example, if the Association wishes to specify fifty percent (50%) of the leave balance as the participation level, then each member leaving the City, or cashing out leave at any other time, would have the cash equivalent of fifty percent (50%) of the amount that is cashed out added to the RHS, on a pre-tax basis. The remaining fifty percent (50%) would be paid in cash as taxable income. Individual employees would not have the option to deviate from this breakout. The Association has decided to participate in Part C contributions at the level of zero percent (0%) for Flex/Vacation Leave and one hundred percent (100%) for Sick Leave. This amount may be changed, on a going forward basis, as part of a future meet and confer process. However, the participation level must be the same for all employees within the Association. Additionally, the purpose and focus of these changes should be toward long-term, trend type adjustments. Due to IRS restrictions regarding "constructive receipt," the City will impose restrictions against frequent spikes or drops that appear to be tailored toward satisfying the desires of a group of imminent retirees. Spillover pay and Compensatory Time are no eligible for Part C contributions. Nothing in this section restricts taking leave for time off purposes. Sick leave balances may also be included in the RHS Part C contributions, but only to the extent and within all the numeric parameters specified in the Employee Policy Manual. Section 11.21 of the Employee Policy 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 eight hundred (800), and specifies that sick leave hours are "cashed out" on a two (2) for one (1) basis (eight hundred (800) hours of sick leave are converted to four hundred (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. - 20 - NBPMA MOU 2015-2018 Part A contributions begin upon enrollment in the program and are credited to each RHS Employee Account each pay period. Eligibility for Part B contributions is set at five (5) years of vested City employment. At that time, the City will credit the first five (5) years' worth of Part B contributions into the Employee Account (interest does not accrue during that period). Thereafter, contributions are made bi-weekly. Part C deposits, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero (0). This right is triggered upon separation. If an employee leaves the City prior to five (5) years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the RHS Employee Account. Such an employee will not be entitled to any Part B contributions. The exception to this is a full-time employee, participating in the program, who leaves the City due to industrial disability during the first five (5) years of employment. In such cases, the employee will receive exactly five (5) years' worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's RHS account at the time of separation. Distributions from RHS Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and his or her spouse and legal dependents — again only as permitted by IRS Publication 502. Qualification for dependency status will be determined by guidelines in IRC 152. If used for these purposes, distributions from the RHS accounts will not be taxable. Cash withdrawal for any other purpose is prohibited. Under recent IRS Revenue Ruling 2005-24, any balance remaining in the Employee Account after the death of the employee and his or her spouse and/or other authorized dependents (if any) must be forfeited. That particular RHS Employee Account will be • closed, and any remaining funds will become general assets of the plan. - 21 - NBPMA MOU 2015-2018 The parties agree that the City's Part B contributions during active employment constitute the minimum CaIPERS participating employer's contribution towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's RHS account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one-time City contribution to their individual RHS accounts that equates to One Hundred Dollars ($100) per month for every month they contributed to the previous "defined benefit" plan, to a maximum of fifteen (15) years (one hundred eighty (180) months). This contribution will be made only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. Employees in Category 2 who had less than five (5) years' service with the City prior to implementation of the new program will only receive Part B contributions back to January 1, 2006 when they reach five (5) years total service. c. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute Four Hundred Dollars ($400) per month into each of their RHS accounts after they retire from the City, to continue as long as the employee or spouse is still living. Each employee will contribute a flat One Hundred Dollars ($100) per month to the plan for the duration of their employment to partially offset part of this expense to the City. The maximum benefit provided by the City after retirement is Four Thousand Eight Hundred Dollars ($4,800) per year, accruing at the rate of Four Hundred Dollars ($400) per month. There is no cash out option for these funds, and they may not be spent in advance of receipt. Employees in this category will also receive an additional one-time City contribution of Seventy -Five Dollars ($75) per month for every month they contributed to the previous plan prior to January 1, - 22 - NBPMA MOU 2015-2018 2006, up to a maximum of fifteen (15) years (one hundred eighty (180) months). This contribution will be made to the RHS account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. d. For employees (retirees) in Category 4, the structure is very similar to the previous retiree medical program, except that there is no cost share requirement, and the Four Hundred Dollar ($400) City contribution after retirement can be used for any IRS authorized purpose, not just City insurance premiums. Effective July 1, 2006, a RHS account has been opened for each retiree in this category, and the City will contribute Four Hundred Dollar ($400) per month to each account as long as the retiree or spouse remains living. For existing NBPMA retirees in this category, the Four Hundred Dollar ($400) was increased to Four Hundred and Fifty Dollars ($450) effective July 1, 2006. The NBPMA has agreed to reimburse the City for half of the cost of this increase, on an ongoing basis. To that end, the City will invoice NBPMA at the end of each quarter for half the actual cost of this increase during the previous three months. 3. Administration Vendors have been selected by the City to administer the program. The contract expense for program -wide administration by the vendor will be paid by the City. However, specific vendor charges for individual account transactions that vary according to the investment actions taken by each employee, such as fees or commissions for trades, will be paid by each employee. The City's Deferred Compensation Committee, or its successor committee, will have the authority to determine investment options that will be available through the plan. 4. Value of Benefit For all purposes, including compensation comparisons, the Retiree Medical Program shall be valued at one percent (1%) of salary on which PERS retirement is based (Part A); plus a quarter percent (.25%) of other compensation (Part B). - 23 - NBPMA MOU 2015-2018 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. The maximum tuition reimbursement shall be One Thousand Four Hundred Dollars ($1,400) per fiscal year. SECTION 5. — Miscellaneous Provisions A. Reductions in Force/Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions a. "Layoffs" or "Laid off' shall mean the non —disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted permanent status in their current Classification or any Classification within the Series, subject to the following: 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 - 24 - NBPMA MOU 2015-2018 temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). d. "Series" shall mean two (2) 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 (1) 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 (2) 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 (1) 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 - 25 - NBPMA MOU 2015-2018 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 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 layoff, receive one (1) week severance pay for each year of continuous service with the City of Newport Beach, but in no case to exceed ten (10) weeks of severance compensation. B. Schedule 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. Employees currently work a variety of alternative work schedules (some trial) as approved by the Chief of Police. They include 3/12 and 4/10. The basic work schedule shall be considered the 9/81 for the term of this MOU. Subject to the right to re —open as specified in this subparagraph, 9/81 shall be the standard work schedule for the term of this MOU. The 9/81 schedule will be structured to allow for one hundred and thirty (130) days off during the calendar year. NBPMA members shall be entitled to eleven (11) days off for ten (10) months of the year and ten (10) days off during two (2) months of the year. The Chief of Police shall determine the - 26 - NBPMA MOU 2015-2018 months during which NBPMA members shall receive ten (10) 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 fourteen (14) day or twenty-eight (28) day work period pursuant to Section 29 U.S.C. 507(k) ("7 K Exemption"), provided, however, the 7k Exemption shall not affect the City's obligation to pay overtime pursuant to provisions of this MOU. 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: a. All Patrol Supervisors are required to report to work fifteen (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 fifteen (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 fifteen (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. - 27 - NBPMA MOU 2015-2018 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. An employee may be self —represented or represented by one (1) 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. 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 - 28 - NBPMA MOU 2015-2018 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 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 grievance affecting more than one (1) 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 fifteen (15) calendar days following receipt of the grievance and provide a written decision on the grievance within fifteen (15) calendar 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 individual 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) calendar days after receipt of the decision. D. Direct Deposit All Unit employees shall participate in the City's Direct Deposit Program. - 29 - NBPMA MOU 2015-2018 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 ninety (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 July 1, 2018. Signatures are on the next page. - 30 - NBPMA MOU 2015-2018 Executed this Girl day of OC. rO tR , 2015: NEWPORT BEACH POLICE ►�NAGEMENT ASSOCIATION CITY OF NEWPORT''`BEACH By: ATTEST: By: Leilani Brown City Clerk APPROVED AS TO FORM: I Aaron Harp, City Attorney Edward D. eli , Mayo Attachments: Exhibit "A" NBPMA Represented Classifications and Pay Rates - 31 - NBPMA MOU 2015-2018 EXHIBIT A Newport Beach Police Management Association Represented Classifications* and Pay Rates January 1, 2015 - June 30, 2018 Represented Classification Hourly Pay Rate Minimum Maximum Monthly Pay Rate Minimum Maximum Effective January 1, 2015 (1.8% Adjustment) Police Sergeant $43.40 $61.06 $7,522 $10,583 Police Lieutenant $51.02 $71.78 $8,843 $12,441 Effective January 1, 2016 (3.0% Adjustment) Police Sergeant $44.70 $62.90 $7,748 $10,902 Police Lieutenant $52.55 $73.94 $9,108 $12,816 Effective January 1, 2017 (2.5% Adjustment) Police Sergeant $45.82 $64.47 $7,942 $11,174 Police Lieutenant $53.86 $75.79 $9,335 $13,136 Effective January 1, 2018 (3.0% Adjustment) Police Sergeant $47.19 $66.40 $8,179 $11,509 Police Lieutenant $55.48 $78.06 $9,616 $13,530 * The City does not currently staff any postions at the Police Captain level, however the job classification remains represented by NBPMA 32 SIDE LETTER AMENDING THE 2012-2014 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION WHEREAS, on September 11, 2012, the City of Newport Beach (the "City") and the Newport Beach Police Management Association (the "Association" and together with the City, the "Parties") executed a memorandum of understanding (the "MOLL") for the period of January 1, 2012 through December 31, 2014; and WHEREAS, included in the MOU is a provision for the Association's members to share in the City's costs of providing Califomia Public Employment Retirement System (Ca1PERS) benefits; and WHEREAS, on November 25, 2012, the City adopted a Tier II benefit formula (3%@55) for anyone hired after November 25, 2012; and WHEREAS, the MOU reflected the Parties' intent that Tier II employees would be included in the cost share provisions agreed to in the MOU; and WHEREAS, because the MOU preceded PEPRA, the MOU does not address the employees subject to PEPRA ("Tier III") or the cost share provisions applicable to Tier III employees; and WHEREAS, the Association and the City engaged in a meet and confer process to discuss Tier III members participating in the MOU's cost share provisions and the payment by the employees of the City's pension obligation; and WHEREAS, the Association and City have reached agreement on an amendment to the 2012-2014 MOU to increase contributions by Tier III members and increase the July 2013 cost -of -living adjustment from 1.3% to 2.0%, and now wish to memorialize this agreement in this Side Letter; and WHEREAS, as part of this Side Letter, the Parties have agreed that the remaining terms of the MOU shall remain in full force and effect except as set forth in this Side Letter. NOW, THEREFORE, the City and the Association agree as follows: Section 1: MOU Section 2.A.3 shall be modified to read as follows: 2. Effective September 7, 2013, there shall be a base salary increase of two percent (2%). 3. Effective the first payroll period commencing on or after July 1, 2014, there shall be a base salary increase of not less than one percent (1 %), nor more than two percent (2%). The precise amount of the increase shall be determined with reference to the percent increase in the Consumer Price Index (All Urban Consumers) for the Los Angeles, Riverside, Orange County areas for the twelve (12) consecutive months ending on March 31, 2014. If there is either a decrease in the CPI, no increase in the CPI or the increase is less than one percent (1%), the base salary increase shall be one percent (1 %). If the increase is greater than one percent (1%), the base salary increase shall be in the same amount, but in no event, greater than two percent (2%). Section 2: MOU Section 4 D 6 shall be modified to read as follows: 6. All employees hired following City Council adoption of negotiated contract amendment(s) with CalPERS to implement a Tier II, 3%@55 retirement formula or Tier III, 2.7%@57 retirement formula under the Public Employees Pension Reform Act (PEPRA) shall be subject to the following retirement benefits. a. Tier II: For employees first hired by the City between November 24 and December 31, 2012, or hired on or after January 1, 2013, and are current members of the retirement system, as defined in PEPRA, the retirement formula shall be 3% @ 55 for Safety and calculated on the average 36 highest months' salary. Tier III: For employees first hired by the City on or after January 1, 2013, and who do not meet the Tier II criteria, the retirement formula shall be 2.7%@57 and calculated on the average 36 highest months' salary. b. All such hirees shall individually pay 100% of the statutorily mandated member normal employee PERS contribution as follows: Safety Tier II employees shall contribute 9% and Tier III shall contribute 11.25%. c. Unless specifically modified herein, said newly hired employees shall be subject to other then -existing City-PERS contract provisions. Section 3: MOU Section 4.D.7 shall be modified to read as follows: 7. Provisions under PEPRA provide varying employee contribution rates by bargaining unit, classification, or benefit factor, within a cost share agreement. Effective the payroll period including September 7, 2013, or as soon thereafter as is reasonably possible, the City shall take action to amend its contract with PERS to provide for a Government Code Section 20516(a) authorized cost sharing by safety unit members in an amount that equals a total 12.8% employee contribution. For employees in Tiers I and II, the 20516(a) cost share contribution shall be 3.8% of compensation earnable. The 3.8% is in addition to the normal 9% Member Contribution. For employees in Tier III the cost share contribution shall be 1.55% of compensation earnable, which is in addition to the 11.25% Member Contribution. This cost sharing contribution shall be treated as normal member PERS contributions to the extent provided by statute. The parties acknowledge that implementing the Government Code Section 20516(a) PERS contract amendment as to all unit safety members is contingent upon the cost sharing contribution being uniform with respect to all local police officers within the City and/or in compliance with any and all other provisions as may be mandated by statute 2 PMA Side Letter to 2012-2014 MOU and/or PERS. (Therefore, compliance with the requirement of uniform contribution with respect to all local police officers will require an agreement with the NBPMA which is in accord with the cost sharing agreement of the NBPMA.) The parties acknowledge that compliance with the Government Code Section 20516(a) "uniform contribution" requirement within the classification of all local police officers is not a certainty and may not be possible at the time of adoption of this 2012-2014 MOU. The parties further acknowledge that implementation of a Government Code Section 20516(a) PERS contract amendment is contingent upon PERS determining that all conditions precedent to a Government Code Section 20516(a) contract amendment have been met. Therefore, the parties acknowledge that implementing a Government Code Section 20516(a) PERS contract amendment as to unit safety members will entail the passage of an unspecified period of time and in fact, may not be approved by PERS. Therefore, the parties further agree that if a Government Code Section 20516(a) PERS contract amendment is not implemented, the parties shall, effective September 7, 2013, utilize Government Code Section 20516(f) to effectuate the three point eight percent (3.8%) safety member cost sharing contribution. Implementation of cost sharing pursuant to Government Code Section 20516(f) shall remain in full force and effect unless or until a Government Code Section 20516(a) contract amendment is approved by PERS. To the extent authorized by the IRS and/or Franchise Tax Board, Government Code Section 20516(f) cost sharing shall be implemented through pre-tax payroll deductions. Finally, if for any reason unit safety member cost sharing is not authorized by either Government Code Section 20516(a) or (f), then effective concurrent with either disallowance by PERS of such cost sharing or a Superior Court judgment being rendered disallowing cost sharing pursuant to Government Code Section 20516(a) or (f), the above Section 2.A(f) three point eight percent (3.8%) base salary increase shall be immediately terminated and the parties shall reconvene the meet and confer process confined to the issue of a replacement for the three point eight percent (3.8%) cost sharing and three point eight percent (3.8%) base salary increase. Moreover, upon the termination of the three point eight percent (3.8%) base salary increase, the City shall simultaneously terminate any employee cost sharing pursuant to subparagraph 8 of this Section, unless and until such three point eight percent (3.8%) base salary increase is reinstated by subsequent mutual agreement of the parties. Attached to this Memorandum of Understanding as Exhibit `B" is a March 1, 2012 letter from PERS Senior Pension Actuary, Kerry Worgan. Exhibit `B" is incorporated by reference into this MOU. Based upon the representations made in Exhibit "B", it is the agreement of the parties that unless and/or until modified pursuant to the meet and confer process or as mandated by law, these designated safety member cost sharing contributions shall continue until the August 26, 2020 "expiration date" designated in Exhibit `B" and shall then concurrently revert to the amount of two point one four two 3 PMA Side Letter to 2012-2014 MOU percent (2.142%) on August 26, 2020, unless and/or until said amount is modified pursuant to the meet and confer process and/or requirements of law. Section 4: MOU Section 4.D.9 shall be modified to read as follows: 9. Percent of retirement funding amount to be paid by safety members. The Ca1PERS safety retirement defined benefit plan is funded by CalPERS mandated employer contributions based on a percentage of payroll (and statutorily mandated employee member contributions, as well.) The combined employer and member contribution percentages constitute the cost of funding for the safety retirement plan. Effective September 7, 2013, when added to the safety normal member contribution of 9% (Tiers I & II) or 11.25% (Tier 111) of compensation, unit members who are safety employees shall be funding twenty-six point five percent (26.5%) of the cost of the safety retirement plan. (The twenty-six point five percent (26.5%) amount is the result of adding the nine percent (9%) normal member contribution to the three point eight percent (3.8%) employee payment of the employer cost of retirement funding described in section 4.D.7, pursuant to Government Code Section 20516. The safety member funding of twenty-six point five percent (26.5%) of the cost of the retirement plan shall remain in full force and effect on and after September 7, 2013, subject to the mandate that maintenance of the twenty-six point five percent (26.5%) member funding of the retirement cost shall be limited to an increase or decrease in Government Code § 20516 employee cost sharing of two percent (2%). For example, maintenance of twenty-six point five percent (26.5%) employee retirement funding rate shall result in a maximum Government Code § 20516 employee cost sharing of five point eight percent (5.8%) and a minimum of one point eight percent (1.8%). In the event that compliance with the above twenty-six point five percent (26.5%) member funding of retirement cost would result in a member funding an excess of any statutory or other legal limitations on such funding, each affected employee shall fund the maximum amount (not to exceed twenty- six point five percent (26.5%) plus or minus two percent (2%)) allowed by statute or other legal authority. Section 5: MOU Section 5.E shall be eliminated in its entirety. Signatures on the following page. 4 PMA Side Letter to 2012-2014 MOU APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: / / /`/ By: C. Harp City Attorney ATTEST: Date: y/,i/iq By: /1e(1)/k-1FX Leilani I. Brown City Clerk NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION Date: Steve Rasmussen, President CITY OF NEWPORT BEACH, a California municipal corporation Date: i . 10 i ► 4 By: Rush N. Hill, II Mayor 5 PMA Side Letter to 2012-2014 MOU APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: By: l o C. Harp Ci y Attorney ATTEST: Date: By: Leilani I. Brown City Clerk NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION Date: 091071 , `f Steve Rasmussen, President 5 CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Rush N. Hill, II Mayor PMA Side Letter to 2012-2014 MOU 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" or "Association"), a recognized employee organization, and the City of Newport Beach ("City"), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment. 2. 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, 2012 to December 31, 2014 and this tentative agreement has been embodied in this MOU, which has been executed concurrently. 3. This MOU, upon approval by NBPMA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters set forth herein. SECTION 1. — General Provisions A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers-Milias-Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No. 2001-50, the City acknowledges that 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 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 NBPMA. Exhibit "A" is incorporated by reference into this MOU. 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, 2012. This MOU shall remain in full - 1 - PMA MOU 2012-14 force and effect until December 31, 2014, 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 (1) hour, with their representative prior to a hearing described in (c) above. 2. City grants NBPMA one hundred (100) hours of Release Time per calendar year to engage in the activities described in subsection 1(a). NBPMA may accumulate up to three hundred (300) hours of City -provided Release Time. 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 one hundred (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 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. - 2 - PMA MOU 2012-14 a. Any NBPMA 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. 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. 2001-50. 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; - 3 - PMA MOU 2012-14 h. To determine the methods, means and personnel by which Police Department operations are to be conducted; The right to take all necessary actions to fulfill the Police 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. 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. 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 reached prior to the execution of this MOU and not set forth herein. 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 the basis of race, gender, ethnicity, religion or other statutorily or constitutionally impermissible basis, or any pornographic or obscene material. -4- PMA MOU 2012-14 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 If any provision of this MOU shall be held invalid by any court of competent jurisdiction, or if compliance with or enforcement of any provision shall be restrained by court action, or other established governmental administrative tribunal, the remainder of this MOU shall not be affected, and the parties shall enter into negotiations for the sole purpose of arriving at a mutually satisfactory replacement for such provision or provisions. 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 Adjustments — this MOU Period 1. Effective the first payroll period commencing on or after March 1, 2012, there shall be a base salary increase of not less than one percent (1 %), nor more than two percent (2%). The precise amount of the increase shall be determined with reference to the percent increase in the Consumer Price Index (All Urban Consumers) for the Los Angeles, Riverside, Orange County areas for the twelve (12) consecutive months ending on March 31, 2012. If there is either a decrease in the CPI, no increase in the CPI or the increase is less than or equal to one percent (1%), the base salary increase shall be one percent (1 %). If the increase is greater than one percent (1%), the base salary increase shall be in the same amount, but in no event, greater than two percent (2%). 2. Effective the first payroll period commencing on or after July 1, 2013, there shall be a base salary increase of not less than one percent (1%), nor more than two percent (2%). The precise amount of the increase shall be determined with reference to the percent increase in the Consumer Price. Index (All Urban - 5 - PMA MOU 2012-14 Consumers) for the Los Angeles, Riverside, Orange County areas for the twelve (12) consecutive months ending on March 31, 2013. If there is either a decrease in the CPI, no increase in the CPI or the increase is less than one percent (1%), the base salary increase shall be one percent (1%). If the increase is greater than one percent (1%), the base salary increase shall be in the same amount, but in no event, greater than two percent (2%). 3. Effective the first payroll period commencing on or after July 1, 2014, there shall be a base salary increase of not less than one percent (1%), nor more than two point five percent (2.5%). The precise amount of the increase shall be determined with reference to the percent increase in the Consumer Price Index (All Urban Consumers) for the Los Angeles, Riverside, Orange County areas for the twelve (12) consecutive months ending on March 31, 2014. If there is either a decrease in the CPI, no increase in the CPI or the increase is less than one percent (1%), the base salary increase shall be one percent (1%). If the increase is greater than one percent (1%), the base salary increase shall be in the same amount, but in no event, greater than two point five percent (2.5%). 4. Concurrent with the July 1, 2013 implementation of the three point one percent (3.1 %) Government Code Section 20516(a) cost sharing as to all unit members (see Section 4.D. below,) the base salary for all unit members shall be increased by three point one percent (3.1 %). 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 Overtime Employees shall be entitled to overtime compensation at the rate of time and one half (1.5) the regular rate of pay for hours worked in - 6 - PMA MOU 2012-14 excess of their regularly scheduled shift. Paid time off shall be considered time worked for overtime calculation purposes. 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 one hundred twenty (120) 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. Overtime Compensation - Court a. Compensation - Employees shall receive either compensatory time or paid time at their discretion. b. 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 the actual standby time, with a minimum of one (1) hour paid at time and one-half (1.5) the employee's regular rate of pay. c. Appearance - Off -duty employees who are required to appear in court shall be compensated for the actual time involved with a minimum of two (2) hours paid at time and one-half (1.5) the employee's regular rate of pay. 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. d. Cancellation — Off -duty employees whose court appearance is cancelled with less than twelve (12) hours notice shall receive a payment for one (1) hour at the employee's regular rate of pay. 4. NBPMA members occupying the position of Captain shall not be entitled to compensatory time off or pay 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 eighty (80) hours of administrative leave per calendar year. The precise amount of administrative leave granted each Captain shall be based on the recommendation of the Police Chief and approved by the City Manager. Administrative leave may not be carried forward from one (1) calendar year to the next. 5. 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. PMA MOU 2012-14 Uniform Allowance The City will report to PERS a uniform allowance amount of One Thousand Three Hundred and Fifty Dollars ($1,350) per year. E. Scholastic Achievement Pay 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 the number of units and/or degrees received by the employee. Effective the pay period beginning January 20, 2007 (prospectively), Employees shall be eligible for Scholastic Achievement Pay based on their total full-time sworn law enforcement time, including up to a maximum of six (6) months time employed as a police recruit or similar classification in a police training academy. The following is a schedule of monthly payments pursuant to the Scholastic Achievement Program: The Scholastic Achievement Pay schedule is as follows, and is regardless of years of service: 60 Units 90 Units BA/BS MA/MS/JD 2% 3% 7% 8.5% 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. Any unit members hired on and after City Council adoption of this 2012- 2014 MOU shall be ineligible for any Scholastic Achievement Pay based upon having obtained units only. - 8 - PMA MOU 2012-14 Special Leadership Compensation Individuals who have completed the California Post Supervisory Leadership Institute ("SLI"), Post Command College, or the FBI National Academy will receive an additional one percent (1%) of base pay. Holiday Time NBPMA members shall accrue holiday time at the rate of ninety-six (96) hours per fiscal year (July 1 through June 30th), and at the rate of three point seven (3.7) hours per pay period. Option 1 (Default): 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 sixty (60) days of NBPMA membership, NBPMA members may irrevocably elect to have all or any portion of the three point seven (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. H. Leave Pay -Off For the term of the agreement, NBPMA members shall receive payment for any accrued leave upon termination at the rate of one hundred percent (100%) of their base hourly rate. 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. All Unit members who actually work July 4th will be compensation at their regular hourly rate, plus premium pay equal to half (%) 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. -9- PMA MOU 2012-14 J. Bilingual Pay Employees certified as bilingual (Spanish) shall be eligible to receive Two Hundred Dollars ($200) 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. SECTION 3. — Leaves A. Flex Leave 1. Effective the first pay period after July 1, 2012, NBPMA members shall accrue (prospectively) flex leave and receive longevity pay based on the greater of their total continuous years of full-time service with the City of Newport Beach, or their total full-time employment as a sworn law enforcement officer, including up to a maximum of six (6) months time employed as a police recruit or similar classification in a police training academy. NBPMA members shall accrue Flex Leave and receive Longevity Pay at the following rates: Years of Continuous Service: % 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 Longevity Pay Per Pay Period: Increase 5.69231 6.30616 6.92152 7.53696 7.53696 7.53696 7.53696 0.75% 1.5% 2.25% 3.0% 2. NBPMA and the City acknowledge that employees assigned the 9/81 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. - 10 - PMA MOU 2012-14 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 (6) 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 (6) 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. NBPMA members shall accrue thirteen (13) 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 (6) 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. -11- PMA MOU 2012-14 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. Effective during the first pay period of January, 1998, NBPMA members who have not utilized at least eighty (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 Leave Spillover Pay and shall not be entitled to accrue flex leave in excess of the Flex Leave Accrual Threshold. Employees who have accrued in excess of seventy-eight (78) times the member's bi-weekly accrual rate concurrent with adoption of the 2012 MOU, shall accrue no additional time unless through use of time or any authorized cash payment (including spillover pay), the accrued hours decrease to less than seventy-eight (78) times the bi-weekly accrual rate. Except for persons eligible for Spillover Pay, in no case shall leave that would have been accrued in excess of the above limitations be earned for cash conversion. 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 forty (40) hours of bereavement leave per incident (terminal illness followed by death is considered one (1) incident). - 12 - PMA MOU 2012-14 Immediate family shall mean an employee's father, mother, brother, sister, spouse/domestic partner, child or grandparent, and the employee's spouse/domestic partner's father, mother, brother, sister, child or grandparent. C. Worker's 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 (1) year. D. Scheduling of Medical Treatment for Industrial Injuries 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 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. SECTION 4. — Fringe Benefits A. Health Insurance 1. Benefits Information Committee City has established a Benefits Information Committee ("BIC") composed of one representative from each employee association - 13 - PMA MOU 2012-14 group and up to three City representatives. The BIC 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. In addition to the amounts listed below, the City shall contribute the minimum CaIPERS 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 coverages in accordance with plan rules and during regular open enrollment periods. Effective the pay period beginning on or immediately after: © March 1, 2012, the City's contribution towards the Cafeteria Plan will increase to One Thousand One Hundred and Seventy - Four Dollars ($1,174) (plus the minimum Ca1PERS participating employer's contribution.) ® January 1, 2013, the City's contribution towards the Cafeteria Plan will increase to One Thousand Two Hundred and Seventy - Four Dollars ($1,274) (plus the minimum CaIPERS participating employee's contribution.) a January 1, 2014, the City's contribution towards the Cafeteria Plan will increase to One Thousand Three Hundred and Twenty -Four Dollars ($1,324) (plus the minimum CaIPERS participating employee'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 - 14 - PMA MOU 2012-14 the City from any responsibility or liability to provide medical insurance coverage on an annual basis. Those members participating in the opt -out program shall be permitted to cash out one hundred percent (100%) of the City's contribution towards the cafeteria plan, not to exceed One Thousand Two Hundred and Seventy -Four Dollars ($1,274) monthly. 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 BIC. 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 BIC. Additional Insurance/Programs IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. 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. 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. - 15 - PMA MOU 2012-14 2. Disability Insurance The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all regular full time employees with the following provisions: Weekly Benefit 66.67% gross weekly wages Maximum Benefit $10,000/month Minimum Benefit $50 Waiting Period 30 Calendar Days Employees shall not be required to exhaust accrued paid leaves prior to receiving benefits under the disability insurance program. Employees may not supplement the disability benefit with paid leave once the waiting period has been exhausted. Concurrent with the commencement of this program, employees assumed responsibility for the payment of the disability insurance cost in the amount of one percent (1%) of base salary. Simultaneously, the City increased base wages by one percent (1%). C. Employee Assistance Program City shall provide an Employee Assistance Program ("EAP") through a properly licensed provider. NBPMA members and their family members may access the EAP at no cost subject to provider guidelines. Retirement Benefits 1. For persons hired on or before the date of this MOU and on or before implementation of any contract amendment for a three percent (3%) at fifty-five (55) Plan, the City provides the Public Employees' Retirement System retirement formula of three percent (3%) at fifty (50). 2. Effective the first payroll period commencing on and after adoption of this MOU, unit members shall contribute six and a quarter percent (6.25%) of pensionable pay towards retirement costs pursuant to Government Code Section 20516 W. This payment will be calculated on base pay, special pays, and other pays normally reported as "PERSable" compensation, and will be made on a pre-tax basis through payroll deduction provided under 414(h)(2). This contribution will not - 16 - PMA MOU 2012-14 affect the reporting of the 9% Employer Paid Member Contribution and reported as special compensation for employees under the 3@50 retirement formula. 3. Effective the first payroll period commencing on and after July 1, 2013, unit members shall contribute an additional 2.75% of pensionable pay towards retirement costs pursuant to Government Code Section 20516 (t) for a total of 9%. This payment will be calculated on base pay, special pays, and other pays normally reported as "PERSable" compensation, and will be made on a pre-tax basis through payroll deduction provided under 414(h)(2). This contribution will not affect the reporting of the 9% Employer Paid Member Contribution and reported as special compensation for employees under the 3@50 retirement formula. 4, Effective the first payroll period commencing on and after July 1, 2014, the 9% employee contribution will be paid as the normal member contribution, Concurrently, the City shall cease reporting any Employer Paid Member Contribution for Unit Members and payment by any unit member of the individual member's normal employee PERS contributions required to be paid by PERS shall not be reported to PERS as special compensation. 5. The City's contract with PERS shall also provide for: a. A three percent (3%) at fifty (50) retirement formula pursuant to the provisions of Section 21252.01 of the California Government Code (subject to the Amendment described in Section 5, below.) b. The military buy-back provisions pursuant to Section 20930.3 of the California Government Code and the highest year benefit pursuant to California Government Code Section 20042. c. The Level 4 1959 Survivors Benefits. The PERS pre -retirement option settlement 2 death benefit (Section 21548) for miscellaneous and safety members. 6. 2nd Tier. All employees hired following City Council adoption of this 2012-2014 Memorandum of Understanding and implementation of enabling contract amendment(s) with CaIPERS, whenever those amendment(s) shall be made, shall be subject to the following retirement benefits. - 17 - PMA MOU 2012-14 a. Safety personnel — the three percent (3%) at fifty-five (55) retirement formula with the retiree's annuity being calculated based upon the employee's compensation earnable during the highest paid consecutive thirty-six (36) month period. b. All such hirees shall individually pay one hundred percent (100%) of the statutorily mandated member normal employee PERS contribution. c. Unless specifically modified herein, said newly hired employees shall be subject to other then -existing City-PERS contract provisions. 7. Safety Member Government Code Section 20516 Cost Sharing. Effective on July 1, 2013 or as soon thereafter as is reasonably possible, the City shall take all action necessary to amend its contract with PERS to provide for a Government Code Section 20516(a) authorized cost sharing by safety unit members of the cost of optional retirement benefits in an amount equal to three point one percent (3.1 %) of member compensation earnable. This three point one percent (3.1 %) .cost sharing contribution shall be treated as normal member PERS contributions to the extent provided by statute. The parties acknowledge that implementing the Government Code Section 20516(a) PERS contract amendment as to all unit safety members is contingent upon the cost sharing contribution being uniform with respect to all local police officers within the City and/or to compliance with any and all other provisions as may be mandated by statute and/or PERS. (Therefore, compliance with the requirement of uniform contribution with respect to all local police officers, will require an agreement with the NBPMA which is in accord with the cost sharing agreement of the NBPMA.) The parties acknowledge that compliance with the Government Code Section 2O516(a) "uniform contribution" requirement within the classification of all local police officers, is not a certainty and may not be possible at the time of adoption of this 2012-2014 MOU. The parties further acknowledge that implementation of a Government Code Section 20516(a) PERS contract amendment is contingent upon PERS determining that all conditions precedent to a Government Code Section 20516(a) contract amendment have been met. Therefore, the parties acknowledge that implementing a Government Code Section 2O516(a) PERS contract amendment as to unit safety - 18 - PMA MOU 2012-14 members will entail the passage of an unspecified period of time and in fact, may not be approved by PERS. Therefore, the parties further agree that if a Government Code Section 20516(a) PERS contract amendment is not implemented effective July 1, 2013, the parties shall effective July 1, 2013, utilize Government Code Section 20516(f) to effectuate the three point one percent (3.1%) safety member cost sharing contribution. Implementation of cost sharing pursuant to Government Code Section 20516(0 shall remain in full force and effect unless or until a Government Code Section 20516(a) contract amendment is approved by PERS. To the extent authorized by the IRS and/or Franchise Tax Board, Government Code Section 20516(0 cost sharing shall be implemented through pre-tax payroll deductions. Finally, if for any reason unit safety member cost sharing is not authorized by either Government Code Section 20516(a) or (0, then effective concurrent with either disallowance by PERS of such cost sharing or a Superior Court judgment being rendered disallowing cost sharing pursuant to Government Code Section 20516(a) or (0, the above Section 2.A(0 three point one percent (3.1%) base salary increase shall be immediately terminated and the parties shall reconvene the meet and confer process confined to the issue of a replacement for the three point one percent (3.1%) cost sharing and three point one percent (3.1%) base salary increase. Moreover, upon the termination of the three point one percent (3.1%) base salary increase, the City shall simultaneously terminate any employee cost sharing pursuant to subparagraph 8 of this Section, unless and until such three point one percent (3.1 %) base salary increase is reinstated by subsequent mutual agreement of the parties. Attached to this Memorandum of Understanding as Exhibit `B" is a March 1, 2012 letter from PERS Senior Pension Actuary, Kerry Worgan. Exhibit 'B" is incorporated by reference into this MOU. Based upon the representations made in Exhibit "B", it is the agreement of the parties that unless and/or until modified pursuant to the meet and confer process or as mandated by law, these designated safety member cost sharing contributions shall continue until the August 26, 2020 "expiration date" designated in Exhibit `B" and shall then concurrently revert to the amount of two point one four two percent (2.142%) on August 26, 2020, unless and/or until said amount is modified pursuant to the meet and confer process and/or requirements of law. 8. The parties further agree and acknowledge that if during the term of the MOU, State statutory or other requirements of law change to mandate modifications to substantive retirement benefits and/or the manner of funding such benefits prior to June 30, 2014, the parties shall promptly reconvene the meet and confer process in order to address the impact -19- PMA MOU 2012-14 of any .such mandatory statutory or other changes in the law. MOU changes which are required in order to bring the Agreement into conformance with mandatory statutory or other requirements, shall be implemented concurrent with the effective date of said statutory/other changes of law, regardless of the impact -related meet and confer process having been convened or completed. 9. Percent of retirement funding amount to be paid by safety members. The CaIPERS safety retirement defined benefit plan is funded by CaIPERS mandated employer contributions based on a percentage of payroll (and statutorily mandated employee member contributions, as well.) The combined employer and member contribution percentages constitute the cost of funding the safety retirement plan. Effective concurrent with implementation of the above July 1, 2013 safety member payment of nine percent (9%) of compensation as and for the individual member's normal employee PERS contributions, unit members who are safety employees shall be funding twenty-six point five percent (26.5%) of the cost of the safety retirement plan. (The twenty-six point five percent (26.5%) amount is the result of adding the July 1, 2013 nine percent (9%) normal member contribution to the above described three point one percent (3.1%) employee payment of the employer cost of retirement funding, pursuant to Government Code Section 20516.) The safety member funding of twenty-six point five percent (26.5%) of the cost of the retirement plan shall remain in full force and effect on and after July 1, 2013, subject to the mandate that maintenance of the twenty-six point five percent (26.5%) member funding of the retirement cost shall be limited to an increase or decrease in Government Code Section 20516 employee cost sharing of two percent (2%). For example, maintenance of twenty-six point five percent (26.5%) employee retirement funding rate shall result in a maximum Government Code Section 20516 employee cost sharing of five point one percent (5.1%) and a minimum of one point one percent (1.1 %). In the event that compliance with the above twenty-six point five percent (26.5%) member funding of retirement cost would result in a member funding an excess of any statutory or other legal limitations on such funding, each affected employee shall fund the maximum amount (not to exceed twenty-six point five percent (26.5%) plus or minus two percent (2%)) allowed by statute or other legal authority. E. Retiree Medical Benefit 1. Background In 2005, the City and all Employee Associations agreed to replace the previous "defined benefit" retiree medical program with a new "defined - 20 - PMA MOU 2012-14 contribution" program. The process of fully converting to the new program will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2005. Category 2 - Active employees hired prior to January 1, 2005, whose age plus years of service as of January 1, 2005 was less than 50 (46 for public safety employees). c. Category 3 - Active employees hired prior to January 1, 2005, whose age plus years of service was fifty (50) or greater (forty-six (46) for public safety employees) as of January 1, 2005. Category 4 - Employees who had already retired from the City prior to January 1, 2005, and were participating in the previous retiree medical program. 2. Program Structure This is an Integral Part Trust (IPT) Medical Expense Reimbursement Program Plan (MERP). a. For employees in Category 1 the program is structured as follows: Each employee will have an individual MERP account for bookkeeping purposes, called his or her "Employee Account." This account will accumulate contributions to be used for health care expense after separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. Contributions will be in three parts. Part A contributions (mandatory employee contributions): one percent (1 %) of Salary. - 21 - PMA MOU 2012-14 Part B contributions (employer contributions): One Dollar and Fifty Cents ($1.50) per month for each year of service plus year of age (updated every January 1st based on status as of December 31st of the prior year). Effective January 2008, this contribution will increase to Two Dollars and Fifty Cents ($2.50) per month. Part C contributions (leave settlement as determined by Association): The Association will determine the level of contribution for all employees it represents, subject to the following constraints. All employees within the Association must participate at the same level. The participation level should be specified as a percentage of the leave balance on hand in each employee's leave bank at the time of separation from the City. For example, if the Association wishes to specify fifty percent (50%) of the leave balance as the participation level, then each member leaving the City, or cashing out leave at any other time, would have the cash equivalent of fifty percent (50%) of the amount that is cashed out added to the MERP, on a pre-tax basis. The remaining fifty percent (50%) would be paid in cash as taxable income. Individual employees would not have the option to deviate from this breakout. The Association has decided to participate in Part C contributions at the level of ninety percent (90%) for Flex/Vacation Leave and ninety percent (90%) for Sick Leave. This amount may be changed, on a going forward basis, as part of a future meet and confer process. However, the participation level must be the same for all employees within the Association. Additionally, the purpose and focus of these changes should be toward long-term, trend type adjustments. Due to IRS restrictions regarding "constructive receipt," the City will impose restrictions against frequent spikes or drops that appear to be tailored toward satisfying the desires of a group of imminent retirees. Spillover pay is not eligible for Part C contributions. Nothing in this section restricts taking leave for time off purposes. Sick leave balances may also be included in the MERP Part C contributions, but only to the extent and within all the numeric parameters specified in the Employee Policy Manual. Section 11.21 of the Employee Policy Manual contains a schedule which specifies the amount of sick leave that can be "cashed out," based - 22 - PMA MOU 2012-14 on time of service. The manual also caps the number of hours that can be "cashed out" at eight hundred (800), and specifies that sick leave hours are "cashed out" on a two (2) for one (1) basis (eight hundred (800) hours of sick leave are converted to four hundred (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 (5) years of vested City employment. At that time, the City will credit the first five (5) years worth of Part B contributions into the Employee Account (interest does not accrue during that period). Thereafter, contributions are made bi-weekly. Part C deposits, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero (0). This right is triggered upon separation. If an employee leaves the City prior to five (5) years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the MERP Employee Account. Such an employee will not be entitled to any Part B contributions. The exception to this is a full-time employee, participating in the program, who leaves the City due to industrial disability during the first five (5) years of employment. In such cases, the employee will receive exactly five (5) years worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's MERP account at the time of separation. Distributions from MERP Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and his or her spouse and legal dependents — again only as permitted by IRS - 23 - PMA MOU 2012-14 Publication 502. Qualification for dependency status will be determined by guidelines in IRC 152. If used for these purposes, distributions from the MERP accounts will not be taxable. Cash withdrawal for any other purpose is prohibited. Under recent IRS Revenue Ruling 2005-24, any balance remaining in the Employee Account after the death of the employee and his or her spouse and/or other authorized dependents (if any) must be forfeited. That particular MERP Employee Account will be closed, and any remaining funds will become general assets of the plan. The parties agree that the City's Part B contributions during active employment constitute the minimum CaIPERS participating employer's contribution towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's MERP account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one-time City contribution to their individual MERP accounts that equates to One Hundred Dollars ($100) per month for every month they contributed to the previous "defined benefit" plan, to a maximum of fifteen (15) years (one hundred eighty (180) months). This contribution will be made only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. Employees in Category 2 who had less than five (5) years service with the City prior to implementation of the new program will only receive Part B contributions back to January 1, 2006 when they reach five (5) years total service. c. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute Four Hundred Dollars ($400) per month into each of their MERP accounts after they retire from the City, to continue as long as the employee or spouse is still living. - 24 - PMA MOU 2012-14 Each employee will contribute a flat One Hundred Dollars ($100) per month to the plan for the duration of their employment to partially offset part of this expense to the City. The maximum benefit provided by the City after retirement is Four Thousand Eight Hundred Dollars ($4,800) per year, accruing at the rate of Four Hundred Dollars ($400) per month. There is no cash out option for these funds, and they may not be spent in advance of receipt. Employees in this category will also receive an additional one-time City contribution of Seventy -Five Dollars ($75) per month for every month they contributed to the previous plan prior to January 1, 2006, up to a maximum of fifteen (15) years (one hundred eighty (180) months). This contribution will be made to the MERP account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. d. For employees (retirees) in Category 4, the structure is very similar to the previous retiree medical program, except that there is no cost share requirement, and the Four Hundred Dollar ($400) City contribution after retirement can be used for any IRS authorized purpose, not just City insurance premiums. Effective July 1, 2006, a MERP account has been opened for each retiree in this category, and the City will contribute Four Hundred Dollar ($400) per month to each account as long as the retiree or spouse remains living. For existing NBPMA retirees in this category, the Four Hundred Dollar ($400) was increased to Four Hundred and Fifty Dollars ($450) effective July 1, 2006. The NBPMA and Police Management Association have agreed to reimburse the City for half of the cost of this increase, on an ongoing basis. To that end, the City will invoice NBPMA at the end of each quarter for half the actual cost of this increase during the previous three months. 3. Administration Vendors have been selected by the City to administer the program. The contract expense for program -wide administration by the vendor will be paid by the City. However, specific vendor charges for individual account transactions that vary according to the investment actions taken by each employee, such as fees or commissions for trades, will be paid by each employee. - 25 - PMA MOU 2012-14 The City's Deferred Compensation Committee, or its successor committee, will have the authority to determine investment options that will be available through the plan. Value of Benefit For all purposes, including compensation comparisons, the Retiree Medical Program shall be valued at one percent (1%) of salary on which PERS retirement is based (Part A); plus a quarter percent (.25%) of other compensation (Part B). 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. Beginning July 1, 2012, the maximum tuition reimbursement for both sworn and non -sworn personnel shall be One Thousand Four Hundred Dollars ($1,400) per fiscal year. SECTION 5. — Miscellaneous Provisions 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: - 26 - PMA MOU 2012-14 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 (2) 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; An employee subject to layoff in one (1) 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. - 27 - PMA MOU 2012-14 d. In the event two (2) 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 (1) of the employees was not appointed from an eligibility list, the Department Director shall determine the employee(s) to be laid off. 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 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 layoff, receive one (1) week severance pay for each year of continuous service with the City of Newport Beach, but in no case to exceed ten (10) weeks of severance compensation. B. Schedule 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- - 28 - PMA MOU 2012-14 Milias-Brown Act to meet and confer before making any substantive changes to work schedules that impact an employee's conditions of employment. 1. Employees currently work a variety of alternative work schedules (some trial) as approved by the Chief of Police. They include 3/12 and 4/10. The basic work schedule shall be considered the 9/81 for the term of this MOU. Subject to the right to re —open as specified in this subparagraph, 9/81 shall be the standard work schedule for the term of this MOU. The 9/81 schedule will be structured to allow for one hundred and thirty (130) days off during the calendar year. NBPMA members shall be entitled to eleven (11) days off for ten (10) months of the year and ten (10) days off during two (2) months of the year. The Chief of Police shall determine the months during which NBPMA members shall receive ten (10) 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 fourteen (14) day or twenty-eight (28) day work period pursuant to Section 29 U.S.C. 507(k) ("7 K Exemption"), provided, however, the 7k Exemption shall not affect the City's obligation to pay overtime pursuant to provisions of this MOU. 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: a. All Patrol Supervisors are required to report to work fifteen (15) minutes early; 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 fifteen (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 fifteen (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. - 29 - PMA MOU 2012-14 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. An employee may be self —represented or represented by one (1) 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. 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. 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 - 30 - PMA MOU 2012-14 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. 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. Hearinqs/Meetinqs 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 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 grievance affecting more than one (1) 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 fifteen (15) calendar days following receipt of the grievance and provide a written decision on the grievance within fifteen (15) calendar 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 individual employees. - 31 - PMA MOU 2012-14 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) calendar days after receipt of the decision. Direct Deposit All Unit employees shall participate in the City's Direct Deposit Program. Classification and Compensation Study As this MOU is being prepared and adopted, the City Council has authorized and the City is in the process of completing a Classification and Compensation Study. Upon completion of the Study, the parties agree to meet and confer to discuss increases to compensation of unit members to address compaction (compensation levels of separation between ranks) concerns. 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 ninety (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 January 1, 2015. Signatures are on the next page. - 32 - PMA MOU 2012-14 Executed this \ I ""day of September, 2012: NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION By: ATTEST: By: Leilani Brown City Clerk APPROVED AS TO FORM: Aaron Harp, City Attorrfe Steve Rasmussen, President Attachments: (1) Exhibit "A" NBPMA Represented Classifications (2) Exhibit "B" Kerry Worgan March 1, 2012 Letter - 33 - PMA MOU 2012-14 EXHIBIT "A" CITY OF NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION Represented Classifications: Police Sergeant Police Lieutenant Police Captain - 34 - PMA MOU 2012-14 Exhibit "B" March 1, 2012 letter from PERS Senior Pension Actuary, Kerry Worgan - 35 - PMA MOU 2012-14 California Public Employees' Retirement System AActuarial Office P.O. Box 942701 Sacramento, CA 94229-2701 TTY: (916) 795-3240 Ca1PERS (888) 225-7377 phone • (916) 795-2744 fax www.calpers.ca.gov March 1, 2012 Mr. Dan Matusiewicz City of Newport Beach P.O. Box 1768 Newport Beach, Ca 92658-8915 Dear Mr. Matusiewicz: This letter gives information on the maximum amount of employee cost share for your Safety Plan. Current Public Employee Retirement Law allows permanent cost sharing of the normal cost (NC) and 20 years of cost sharing due to the increase in unfunded liability (UL) from some past amendment. The 20 years of cost sharing due to the increase in unfunded liability begins from the effective date of the contract amendment. The tables that follow lay out all the necessary information for the maximum amount of cost sharing: Safety Police Plan Amendment 3% @ 55 Effective Date 8/26/2000 NC Increase 2.142% UL Increase 5.096% Temporary Cost Share 7.238% Temporary Expiration Date 8/26/2020 Permanent Cost Share 2.142% Remember that these are maximum cost share amounts. Actual cost share amounts can be anything up to the amounts listed above. Should you have any questions, I can be reached at 916-795-0003. Sincerely, Kerry Worgan, FSA, FCIA, MAAA Senior Pension Actuary, CaIPERS AMENDMENT TO 2010-2011 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION WHEREAS, the 2010-2011 Memorandum of Understanding between representatives of the City of Newport Beach and the Newport Beach Police Management Association, Section 4 FRINGE BENEFITS (D) RETIREMENT BENEFITS (5) provides in part that, "Effective July 3, 2010 and through December 31, 2011, all sworn unit employees will contribute 3.5% of base pay towards retirement costs."; and WHEREAS, representatives of the City and the Newport Beach Police Management Association are in the process of negotiating a successor to the 2010-2011 Memorandum of Understanding; and WHEREAS, said meet and confer process is not likely to conclude on or before December 31, 2011; NOW THEREFORE, representatives of the City and the Newport Beach Police Management Association agree that all provisions in Section 4(D)(5) of the 2010-2011 Memorandum of Understanding shall remain in full force and effect through and including either the date upon which the City Council adopts a Memorandum of Understanding that is a successor to the 2010-2011 MOU, or February 29, 2012, whichever event occurs first. In the event that February 29, 2012 is concluded without the City Council having adopted a successor to the 2010-2011 MOU, the value of the 3.5% base pay contributed towards retirement during the period January 1, 2012 through and including February 29, 2012, shall be reimbursed to each unit member, without interest. Said reimbursement shall be made in equal installments paid over four (4) successive payroll periods commencing with the first payroll period commencing on or after March 1, 2012. IT IS AGREED: By: Steve Rasmussen, President Newport Beach Police Manage m - - ociation City of New By: Nancy ilner, Mayor 1Z/zZ/tr Date Date By: Leilani Brown, City Clerk 1 ate APPROVED AS TO FOR C. By: Aaron Harp, City Attorney (/ y/( Date Page 1 of 1 555315.3 NE020-025 Side Letter to the Memoranda of Understanding between the City of Newport Beach and Several Newport Beach Employee Associations as well as Unrepresented Employees Since 2009 the City and its employee associations agreed upon the closure of the City Hall complex during the Christmas and New Year's Holiday period. The Newport Beach employee associations and the unrepresented group listed below acknowledge the need for the City to reduce expenditures and the City's leave accrual liability. The undersigned Associations and City jointly agree to close the City Hall complex and other non- essential facilities and functions between the Christmas and New Year's Holiday period (December 24, 2011 through January 2, 2012). Facility closures shall be cost neutral to. the City and will not result in additional paid days/hours off. The City and the undersigned also agree that staff located at the City Hall complex and other non -essential employees will not have the option to work during this period, unless specifically requested by Department Directors and exclusively authorized by the City Manager or designee. Emergency Conditions requiring the activation of the Emergency Operations Center shall render this agreement invalid. The following guidelines will be applied to the closure: 1. Both Christmas Eve and New Year's Eve fall on a Saturday in 2011. Per applicable Memoranda of Understanding, the City provides half -day holidays (4 hours each) for Christmas Eve and New Year's Eve, which would otherwise be observed on December 23 and December 30 respectively. Under this agreement only, the two half -day holidays will be combined into one paid 8-hour holiday and observed on Friday, December 30. In conjunction, the City Hall complex will be open a full day on Friday, December 23, 2011. 2. Christmas Day and New Year's Day fall on a Sunday in 2011. As provided for in the current Memoranda of Understanding, the holiday will be observed the following Monday. Christmas Day will be observed on December 26, 2011 and New Year's Day will be observed on January 2, 2012. This results in only 3 full days (12/27, 12/28, and 12/29) that are required for employees to use Flex Leave during holiday closure. This is a one-time exception of the existing designated holiday schedule outlined in the current Memoranda of Understanding for each Association. 3. According to the City's Employee Policy Manual, an employee must be in paid status in order to receive holiday pay. Therefore, employees must either work or use flexible leave, vacation leave, administrative leave or compensatory time the day before and the day after the holiday in order to meet this requirement. The only day employees would be eligible to take leave w/out pay and still receive holiday pay would be Wednesday, December 28. 4. Employees who have completed their initial probationary period but do not have any accrued flexible leave, vacation leave, administrative leave or compensatory time will be required to take leave without pay. 5. Employees on a flexible schedule whose regularly scheduled day off is Friday, December 30, will take their regularly scheduled day off and bank the 8 hours of holiday pay to their Comp or Flex Leave Bank. Side Letter Agreement — Holiday Closure FY2011-12 Page 2 This agreement will help lower the liability on the City's books for leave balances and provide savings of utilities and other maintenance costs for fiscal year 2011-2012. This agreement shall not apply to Public Safety or essential functions that operate on a 24/7 basis regardless of scheduled holidays designated by existing MOU's and authorized for unrepresented employee groups. Any questions or requests for information shall be addressed to the Human Resources Department. cirh Executed this day of ProLb IASt , 2011. NEWPORT BEACH EMPLOYEE ASSOCIATIONS: City Employees' Association By: Teresa Craig, President Firefighter's Association By: 7, Brian McDonougYf, President Fire Management Association By: - . P Charles Duncan, President Key & Management Employees By: Mike Pisani Police Management Association By: Steve Rasmussen, President Approved David 'f ur ? City Attorney Newport Beach Employees' League By: 0441 Chris Auger, Preside Lifeguard Management Association n, President Profess onal & Technical Employees' Assoc. By: i, President mArletsbots Police nAssociatnion kifrtAi_ By: klzG/ David Syvoc , Pr ident FOR THE CITY OF NEWPORT BEACH: By: DaQCiff, City Manager Leilani Brown, City Clerk ( Side Letter to the Memoranda of Understanding between the City of Newport Beach and the Several Newport Beach Employee Associations and Unrepresented Employee Group In 2009, the City and its Employee Associations agreed upon the closure of the Civic Center complex during the Christmas and New Year's Holiday period. To support the City's ongoing efforts to meet its fiscal, managerial and operational goals, the Newport Beach Employee Associations and Unrepresented Group representatives listed below acknowledge the need for the City to reduce expenditures and the City's liability during Fiscal Year 2010-2011. The undersigned Associations and the City jointly agree to the closure of the Civic Center complex and other non -essential facilities and functions between the Christmas and New Year's Holiday period (December 24, 2010 through December 31, 2010). Facility shutdowns, including the Civic Center complex, shall be cost neutral to the City and will not result in additional paid days/hours off. The City and the undersigned also agree that the Civic Center complex and other non -essential employees will not have the option to work during this period, unless specifically requested by Department Directors and exclusively authorized by the City Manager, or designee. Emergency conditions requiring the activation of the Emergency Operations Center shall render this agreement invalid. The following guidelines will be applied to the closure: 1. Due to the holidays of Christmas and New Year's Day falling on Saturday, employees will work a full day on Thursday, December 23 and roll the designated 1/2 paid holiday from December 23 to Thursday, December 30, in order to make one complete paid holiday (8 hours). This results in only 3 full days (12/27, 12/28, and 12/29) that are required for employees to take off during the holiday closure. This is a one-time exception of the existing designated holiday schedule outlined in the current Memoranda of Understanding for each Association. 2. According to the City's Employee Policy Manual, an employee must be in paid status in order to receive holiday pay. Therefore, employees must use flexible leave, vacation leave, administrative leave or compensatory time the day before and the day after the holiday in order to meet this requirement. The only day employees will be eligible to take leave without pay and still receive holiday pay will be Tuesday, December 28. 3. Employees who have completed their initial probationary period, but do not have any accrued flexible leave, vacation leave, administrative leave or compensatory time will be required to take leave without pay. 4. Employees on a flexible schedule whose regularly scheduled day off falls between December 24, 2010 and December 31, 2010 will take their regularly scheduled day off. Employees in this category will only be required to take flexible leave, vacation leave, administrative leave or compensatory time for the alternate day they are scheduled to work. This agreement will help lower the liability on the City's books for leave balances and will provide for some savings in utilities and other maintenance costs for Fiscal Year 2010-2011. This agreement shall not apply to Public Safety personnel or essential functions that operate on a 24/7 basis, regardless of scheduled holidays designated by existing MOU's and authorized for unrepresented employee groups. Any questions or requests for information shall be addressed to the Human Resources Department. Signatures are on the next page. f Executed this day of 2010 NEWPORT BEACH EMPLOYEE ASSOCIATIONS: CITY EMPLOYEES By: Teresa Craig, President FIREFIGHTERS ASSOCIATION C. / By: Ii.) &&t, �- Brian McDonough, President LEAGUE EMPLOYEES By: TYa� MofPGff, reside'n LIFEGUARD MANAGEMENT By: Brent Jacobsen, resident FIRE MANAGEMENT PROFESSIONAL AND TECHNICAL By: CT J t v/ By: Charles Duncan, Vice - President Russell Bunim, President KEY & MANAGEMENT EMPLOYEES By: Mike Pisani POLICE MANAGEMENT POLICE By: David SyvocVPr ident APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY n, President By: David R. Hunt, ity Atto CITY OF NEWPORT BEACH By: Dav Kiff, City Manager MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION January 1, 2010 through December 31, 2011 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION TABLE OF CONTENTS Preamble Section 1. General Provisions Recognition 1 Duration of Memorandum 1 Release Time 2 Scope 3 Conclusiveness 4 Modifications 4 Bulletin Boards 4 No Strike 5 Savings 5 Impasse 5 Section 2. Compensation Salary 5 Code Seven/Duty Incentive Time 5 Overtime 6 Uniform Allowance 7 Scholastic Achievement Pay 7 Special Leadership Compensation 8 Holiday Time 8 Leave Pay -Off 8 July 4th 8 Bilingual Pay 9 Section 3. Leaves Flex Leave 9 Bereavement Leave 11 Workers Compensation Leave 12 Scheduling of Medical Treatment for Industrial Injuries 12 Section 4. Fringe Benefits Health Insurance 12 Additional Insurance/Programs 14 Employee Assistance Program 15 Retirement Benefits 15 Retiree Medical Benefit 16 Tuition Reimbursement 21 Section 5. Miscellaneous Provisions Reduction in Force/Layoffs 21 Schedule 24 Grievance Procedure 25 Direct Deposit 27 Compensation Study 27 Contract Negotiations 27 Exhibit A - Represented Classifications 29 ii 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, 2010 to December 31, 2011 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 set forth herein. 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. 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 - 1 - considered effective as of January 1, 2010. This MOU shall remain in full force and effect until December 31, 2011. Unless stated herein otherwise, 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 specific circumstances that require the designate to remain on duty. Designates shall, to the maximum extent feasible, receive shift - 2 - 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. 2001-50. 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; - 3 - g. To maintain the efficiency of operations; h. To determine the methods, means and personnel by which Police Department operations are to be conducted; 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. 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 fife of this MOU, neither party shall be compelled, and each party expressly waives its rights to request the other to meet and confer conceming 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 the basis of race, gender, ethnicity, religion or other statutorily or - 4 - 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. I. Savings If any provision of this MOU shall be held invalid by any court of competent jurisdiction, or if compliance with or enforcement of any provision shall be restrained by court action, or other established govemmental administrative tribunal, the remainder of this MOU shall not be affected, and the parties shall enter into negotiations for the sole purpose of arriving at a mutually satisfactory replacement for such provision or provisions. 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 remain unchanged for the term of this agreement. 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. - 5 - 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 120 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. Overtime Compensation - Court a. Compensation - Employees shall receive either compensatory time or paid time at their discretion. b. 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 the actual standby time, with a minimum of one (1) hour paid at time and one-half. c. Appearance - Off -duty employees who are required to appear in court shall be compensated for the actual time involved with a minimum of two (2) hours paid at time and one-half. 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. d. Cancellation — Off -duty employees whose court appearance is cancelled with less than 12 hours notice shall receive a payment for one hour at the employee's regular rate of pay. 4. NBPMA members occupying the position of Captain shall not be entitled to compensatory time off or pay 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 - 6 approved by the City Manager. Administrative leave may not be carried forward from one calendar year to the next. 5. 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. D. Uniform Allowance The City will report to PERS a uniform allowance amount of $1,350 per year. E. Scholastic Achievement Pay Swom 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. Effective the pay period beginning January 20, 2007 (prospectively) Employees shall be eligible for Scholastic Achievement Pay based on their total full-time swom law enforcement time, including up to a maximum of six months time employed as a police recruit or similar classification in a police training academy. 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% Effective June 23, 2007 Scholastic Achievement Pay will be modified as follows, regardless of years of service. - 7 - 60 Units: 90 Units: BA/BS MA/MS/JD: 2% 3% 7% 8.5% 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. Special Leadership Compensation Individuals who have completed the Califomia Post Supervisory Leadership Institute (SLI), Post Command College, or the FBI National Academy will receive an additional one (1%) percent of base pay. G. 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. Option 1 (Default): 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 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 conceming 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. H. Leave Pav-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. I. July 4th - 8 - 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. All 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. J. Bilingual Pay Effective the pay period beginning January 20, 2007, employees certified as bilingual (Spanish) shall be eligible to receive Two Hundred ($200.00) 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. Section 3. — LEAVES A. Flex Leave 1. Effective the pay period beginning January 6, 2007, NBPMA members shall accrue (prospectively) flex leave and receive longevity pay based on their total continuous years of full-time service with the City of Newport Beach, or their total full-time employment as a swom law enforcement officer, including up to a maximum of six months time employed as a police recruit or similar classification in a police training academy. NBPMA members shall accrue Flex leave at the following rates: Years of Continuous Service 1/2 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 5.23077 5.84616 6.46152 7.07696 7.07696 7.07696 7.07696 Longevity Longevity Pay Pay Increase Effective Increase December 22,2007 .77% 1.54% 2.3% .75% 1.5% 2.25% 3.0% - 9 - 2. NBPMA and the City acknowledge that employees assigned the 9/81 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. 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 - 10 - 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 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 an employee's father, mother, brother, sister, wife, husband, child, or grandparent, and the employee's spouse's father, mother, brother, sister, child or grandparent. 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 Toss of salary for the period of the disability, not to exceed one year. D. Scheduling of Medical Treatment for Industrial Injuries 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 retumed 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, 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 - 12 - 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. The City contribution toward the Cafeteria Plan shall be $974. 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. Effective the pay period beginning July 3, 2010, the City's contribution towards the Cafeteria Plan will increase to $1049 (plus the minimum CaIPERS participating employer's contribution). Effective the pay period beginning July 2, 2011, the City's contribution towards the Cafeteria Plan will increase to $1124 (plus the minimum Ca1PERS 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 - 13 - 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. 2. Disability Insurance The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all regular full time employees with the following provisions: Weekly Benefit 66.67% gross weekly wages Maximum Benefit $10,000/month Minimum Benefit $50 Waiting Period 30 Calendar Days Employees shall not be required to exhaust accrued paid leaves prior to receiving benefits under the disability insurance program. - 14 - 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. C. 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. D. Retirement Benefits 1. The City shall pay towards each member's required PERS retirement contribution 9% of salary for swom employees hired prior to July 6, 2010. For sworn employees hired after July 6, 2010, the City will pay 3.5% of the member contribution. Such employees will be eligible to receive the 9% the beginning of their 61/' year of uninterrupted service. 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. 2. The City provides the Public Employees' Retirement System retirement formula of 3% at 50 3. The City provides the PERS Level 4 1959 survivor's benefits for NBPMA members. 4. The City provides the PERS Pre -Retirement Option 2 Death Benefit (Section 21548) for NBPMA members. 5. Effective July 3, 2010 and through December 31, 2011, all sworn unit employees will contribute 3.5% of base pay towards retirement costs. This payment will be made on a pre-tax basis through payroll deduction pursuant to IRS Code Section 414(h)(2). This contribution will not affect the reporting of the 9% EPMC for employees hired before July 6, 2010 (Section 20636)(c)(4) of the California Govemment Code. - 15 - E. Retiree Medical Benefit 1. Background. In 2005, the City and all Employee Associations agreed to replace the previous "defined benefit" retiree medical program with a new "defined contribution" program. The process of fully converting to the new program will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2005. b. Category 2 - Active employees hired prior to January 1, 2005, whose age plus years of service as of January 1, 2005 was less than 50 (46 for public safety employees). c. Category 3 - Active employees hired prior to January 1, 2005, whose age plus years of service was 50 or greater (46 for public safety employees) as of January 1, 2005. d. Category 4 - Employees who had already retired from the City prior to January 1, 2005, and were participating in the previous retiree medical program. 2. Program Structure. This is an Integral Part Trust (IPT) Medical Expense Reimbursement Program Plan (MERP). a. For employees in Category 1, the program is structured as follows: Each employee will have an individual MERP account for bookkeeping purposes, called his or her "Employee Account". This account will accumulate contributions to be used for health care expense after separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Eamings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because - 16 - the plan requires that all distributions be spent for specked health care purposes. Contributions will be in three parts. Part A contributions (mandatory employee contributions): 1 % of Salary. Part B contributions (employer contributions): $1.50 per month for each year of service plus year of age (updated every January 1st based on status as of December 31st of the prior year). Effective January 2008, this contribution will increase to $2.50 per month. Part C contributions (leave settlement as determined by Association): The Association will determine the level of contribution for all employees it represents, subject to the following constraints. All employees within 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. For example, if the Association wishes to specify 50% of the leave balance as the participation level, then each member leaving the City, or cashing out leave at any other time, would have the cash equivalent of 50% of the amount that is cashed out added to the MERP, on a pre-tax basis. The remaining 50% would be paid in cash as taxable income. Individual employees would not have the option to deviate from this breakout. The Association has decided to participate in Part C contribution, at the level of ninety percent (90%) of sick and flex leave. This amount may be changed, on a go forward basis, as part of the future meet and confer process. However, the participation level must be the same for all employees within the Association. Additionally, the purpose and focus of these changes should be toward long-term, trend type adjustments. Due to IRS restrictions regarding "constructive receipt," the City will impose restrictions against frequent spikes or drops that appear to be tailored toward satisfying the desires of a group of imminent retirees. - 17 - Spillover pay is not eligible for Part C contributions. Nothing in this section restricts taking leave for time off purposes. Sick leave balances may also be included in the MERP Part C contributions, but only to the extent and within all the numeric parameters specified in the Employee Policy Manual. Section 11.21 of the Manual contains a schedule which specifies the amount of sick leave that can be "cashed out," based on time of service. The manual also caps the number of hours that can be "cashed out" at 800, and specifies that sick leave hours are "cashed out" on a 2 for 1 basis (800 hours of sick leave are converted to 400 hours for cash purposes). Sick leave participation is a separate item from vacation/flex leave participation, and thresholds must be separately identified by the Association. Part A contributions may be included in PERS compensation. Part B and Part C contributions will not be included in PERS compensation. Part A contributions begin upon enrollment in the program and are credited to each MERP Employee Account each pay period. Eligibility for Part B contributions is set at five years of vested City employment. At that time, the City will credit the first five years worth of Part B contributions into the Employee Account (interest does not accrue during that period). Thereafter, contributions are made bi-weekly. Part C deposits, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon separation. If an employee leaves the City prior to five years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the MERP Employee Account. Such an employee will not be entitled to any Part B contributions. The exception to this is a full-time employee, participating in the program, who leaves the City due to industrial disability during the first five years of employment. In such cases, the employee will receive exactly five years worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation - 18 - purposes. This amount will be deposited into the employee's MERP account at the time of separation. Distributions from MERP Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and his or her spouse and legal dependents — again only as permitted by IRS Publication 502. Qualification for dependency status will be determined by guidelines in IRC 152. If used for these purposes, distributions from the MERP accounts will not be taxable. Cash withdrawal for any other purpose is prohibited. Under recent IRS Revenue Ruling 2005-24, any balance remaining in the Employee Account after the death of the employee and his or her spouse and/or other authorized dependents (if any) must be forfeited. That particular MERP Employee Account will be closed, and any remaining funds will become general assets of the plan. The parties agree that the City's Part B contributions during active employment constitute the minimum CaIPERS participating employer's contribution towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's MERP account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one-time City contribution to their individual MERP accounts that equates to $100 per month for every month they contributed to the previous "defined benefit" plan, to a maximum of 15 years (180 months). This contribution will be made at the time of retirement, and only if the employee retires from the City and at the time of retirement. No interest will be eamed in the interim. - 19 - Employees in Category 2 who had less than five years service with the City prior to implementation of the new program will only receive Part B contributions back to January 1, 2006 when they reach five years total service. c. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute $400 per month into each of their MERP accounts after they retire from the City, to continue as long as the employee or spouse is still living. Each employee will contribute a flat $100 per month to the plan for the duration of their employment to partially offset part of this expense to the City. The maximum benefit provided by the City after retirement is $4,800.00 per year, accruing at the rate of $400.00 per month. There is no cash out option for these funds, and they may not be spent in advance of receipt. Employees in this category will also receive an additional one-time City contribution of $75 per month for every month they contributed to the previous plan prior to January 1, 2006, up to a maximum of 15 years (180 months). This contribution will be made to the MERP account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. d. For employees (retirees) in Category 4, the structure is very similar to the previous retiree medical program, except that there is no cost share requirement, and the $400 City contribution after retirement can be used for any IRS authorized purpose, not just City insurance premiums. Effective July 1, 2006, a MERP account has been opened for each retiree in this category, and the City will contribute $400 per month to each account as long as the retiree or spouse remains living. For existing NBPMA retirees in this category, the $400 was increased to $450 effective July 1, 2006. The NBPMA and Police Employees Association have agreed to reimburse the City for half of the cost of this increase, on an ongoing basis. - 20 - To that end, the City will invoice NBPMA at the end of each quarter for half the actual cost of this increase during the previous three months. 3. Administration Vendors have been selected by the City to administer the program. The contract expense for program -wide administration by the vendor will be paid by the City. However, specific vendor charges for individual account transactions that vary according the investment actions taken by each employee, such as fees or commissions for trades, will be paid by each employee. The City's Deferred Compensation Committee, or its successor committee, will have the authority to determine investment options that will be available through the plan. 4. Value of Benefit For all purposes, including compensation comparisons, the Retiree Medical Program shall be valued at 1% 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 shall be $1,200.00 per fiscal year. SECTION 5. — MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs The provisions of this Section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions - 21 - a. "Layoffs" or "Laid off" shall mean the non -disciplinary termination of employment. b. "Seniority' shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted permanent status in their current Classification or any Classification within the Series, subject to the following: i. Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status in the Classification or Series; ii. Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. c. "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part— time, seasonal or temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). d. "Series" shall mean two or more Classifications within a Department which require the performance of similar duties with the higher ranking Classification(s) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities for subordinates. The City Manager shall determine those Classifications which constitute a Series. e. "Bumping Rights", "Bumping" or "bump" shall mean the right of an employee, based upon seniority within a series, to displace a less senior employee in a lower Classification within the Series. No employee shall have the right to bump into a Classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience. 2. Procedures - 22 - 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-Emplovment 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 - 23 - personally delivered to the employee or deposited in the U.S. Mail, certified, retum 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 Pav 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 3/12 and 4/10. The basic work schedule shall be considered the 9/81 for the term of this MOU. Subject to the right to re -open as specified in this subparagraph, 9/81 shall be the standard work schedule for the term of this MOU. The 9/81 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 mufti -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: a. All Patrol Supervisors are required to report to work 15 minutes early; - 24 - 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 goveming 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 conceming the proceedings, and any document directly relevant to the proceedings. d. All parties shall engage in good faith efforts to promptly resolve the grievance in an amicable manner. The time limit - 25 - 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 discussion should focus on the issues raised by the grievance. Written decisions on the grievance or appeal - 26 - 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. Compensation Study Should the City conduct a classification/compensation study involving any police department classifications, it will consult with the Association on all aspects of the study, including study design, implementation, and findings. Any compensation changes recommended by the study will be subject to the meet and confer process. F. 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, 2011. Signatures are on the next page. - 27 - Executed this If/ day of Jvii j NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION / By: Mark Hamilton, resident CITY OF NEWPORT BEACH By: APPROVED AS TO FORM: iavic-aunt, Olt,/ ttorney , 2010: Police Sergeant Police Lieutenant Police Captain EXHIBIT A CITY OF NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION - 29 - EXHIBIT A Side Letter to the Memoranda of Understanding between the City of Newport Beach and the Several Newport Beach Employees Associations as well as Unrepresented Employee Groups In the spirit of unity and to support the City's ongoing efforts to meet its fiscal, managerial, and operational goals, the Newport Beach Employees Associations and Unrepresented Group representatives listed below acknowledge the need for the City to reduce expenditures and the City's liability during the Fiscal Year 2009-2010. The City has shared its budget challenges in an open manner and is hopeful that the resolution to the problem will be a collaborative effort. To that end, the undersigned Associations and the City jointly agree to the closure of City Hall and other non -essential facilities and functions between the Christmas and New Year's Holiday period (December 24, 2009 at 12:00 noon through and including January 1, 2010). Facility shutdowns, including City Hall, shall be cost neutral to the City and will not result in additional paid days/hours off. The City and the undersigned also agree that City Hall and other non -essential employees will not be given the option to work during this period, unless specifically requested by Department Directors and authorized by the City Manager. Emergency conditions requiring the activation of the Emergency Operations Center shall render this agreement invalid. The following guidelines will be applied to the closure: 1. Employees will be required to take flexible leave, vacation leave, administrative leave or compensatory time for the hours that they are scheduled to work from December 26, 2 009 through December 31, 2009. Scheduled paid holidays designated in existing Memoranda of Understanding (MOU) and authorized for unrepresented employee groups will not be affected. 2. Employees in their initial probationary period may choose to be advanced the leave time from their flexible leave bank for each day they are scheduled to work. 3. Employees who have completed their initial probationary period but do not have any accrued flexible leave, vacation leave, administrative leave or compensatory time will be required to take leave without pay. 4. Employees on a flexible schedule whose regularly scheduled day off falls between December 25, 2009 and January 1, 2010 would take their regularly scheduled day off. Employees in this category would only be required to take flexible leave, vacation leave, administrative leave or compensatory time for the alternate day they are scheduled to work. The goal of this current furlough is to lower the liability on the books for leaves taken, result in savings of utilities and other maintenance costs for fiscal year 2009/2010. This agreement shall not apply to Public Safety or essential functions that operate on a 24/7 basis regardless of scheduled holidays designated by existing MOU's and authorized for unrepresented employee groups. Signatures are on the next page. Executed this day of , 2009 NEWPORT BEACH EMPLOYEE ASSOCIATIONS: CITY EMPLOYEES Teresa Craig, Presi FIREFIGHTERS ASSOCIATION 76irbl- By: Chad Ponegalek, President FIRENAGEME�NT �Z` �E'l By: Ov.A �.i' Dave Mais, President KEY & ANAGEMENT EMPLOYEES WI I. By:,I� Susan Giangrande or Mike Pisani CITY OF NEWPORT BEACH: By: 0 Da\�e lCiff, City Maner LEAGUE P� OYEES By: j Dusti Burnside, President LIFEGUARD MANAGEMENT/1/4'C By: rent Ja 'ibsen, President PROFESSIONAL AND TECHNICAL ZP,51 By: 0/�� Michael Wojciechowski, President POLICE EMPLOYEES7e'J' By: David Syvock, r sid POLICE MANAGEMENT Z12,Z By: om Gazsi, President • 931 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, 2007 to December 31, 2009 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 set forth herein. SECTION 1. — GENERAL PROVISIONS 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. 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 - 1 - considered effective as of January 1, 2007. This MOU shall remain in full force and effect until December 31, 2009, 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. 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 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. - 2 - t • 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. 2001-50. 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; - 3 - • • h. To determine the methods, means and personnel by which Police Department operations are to be conducted; 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. 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. 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 the basis of race, gender, ethnicity, religion or other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. - 4 - • • 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 If any provision of this MOU shall be held invalid by any court of competent jurisdiction, or if compliance with or enforcement of any provision shall be restrained by court action, or other established governmental administrative tribunal, the remainder of this MOU shall not be affected, and the parties shall enter into negotiations for the sole purpose of arriving at a mutually satisfactory replacement for such provision or provisions. 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 January 20, 2007, the City shall increase base salary for the NBPMA employees by three (3%) percent. 2. Effective the pay period beginning December 22, 2007, the City shall increase base salary for all NBPMA employees by three and a quarter (3.25%) percent. 3. Effective the pay period beginning December 20, 2008, the City shall increase base salary for NBPMA employees by four (4%) percent. B. Code Seven/Dutv 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 -s- 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 andrules 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 120 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. Overtime Compensation - Court a. Compensation - Employees shall receive either compensatory time or paid time at their discretion. b. 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 the actual standby time, with a minimum of one (1) hour paid at time and one-half. c. Appearance - Off -duty employees who are required to appear in court shall be compensated for the actual time involved with a minimum of two (2) hours paid at time and one-half. 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. 4. NBPMA members occupying the position of Captain shall not be entitled to compensatory time off or pay for overtime. City and NBPMA agree that the position of Captain is properly considered exempt from the overtime requirements of FLSA. However, - 6 - • • 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. 5. 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. , D. Uniform Allowance The City will report to PERS a uniform allowance amount of $1,000 per year. E. Scholastic Achievement Pay 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. Effective the pay period beginning January 20, 2007 (prospectively) employees shall be eligible for Scholastic Achievement Pay based on their total full-time sworn law enforcement time, including up to a maximum of six months time employed as a police recruit or similar classification in a police training academy. 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 3 1% 1% 2% 3% 2% 3% 5,5% 5.5% 6.5% 6.5% Effective June 23, 2007 Scholastic Achievement Pay will be modified as follows, regardless of years of service. 60 Units: 90 Units: BA/BS MA/MS/JD: 2% 3% 7% 8.5% 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. Special Leadership Compensation Effective December 22, 2007, individuals who have completed the California Post Supervisory Leadership Institute (SLI), Post Command College, or the FBI National Academy will receive an additional one (1%) percent of base pay. G. 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. Option 1 (Default): 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 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 - 8 - • • any spillover pay or other payout for flex leave, will not be reported to PERS as special compensation. H. 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. 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. All 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. J. Bilingual Pay Effective the pay period beginning January 20, 2007, employees certified as bilingual (Spanish) shall be eligible to receive Two Hundred ($200.00) 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. Section 3. — LEAVES A. Flex Leave 1. Effective the pay period beginning January 6, 2007, NBPMA members shall accrue (prospectively) fiex .leave and receive longevity pay based on their total continuous years of full-time service with the City of Newport Beach, or their total full-time employment as a sworn law enforcement officer, including up to a maximum of six months time employed as a police recruit or similar classification in a police training academy. NBPMA members shall accrue Flex leave at the following rates: - 9 - Years of Continuous Service 1/2 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 5.23077 5.84616 6.46152 7.07696 7.07696 7.07696 7.07696 Longevity Pay Increase .77% 1.54% 2.3% Longevity Pay Increase Effective December 22,2007 .75% 1.5% 2.25% 3.0% 2. NBPMA and the City acknowledge that employees assigned the 9/81 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 members hourly rate of pay. 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 - 10 - • • 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 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 an employee's father, mother, brother, sister, wife, husband, child, or grandparent, and the employee's spouse's father, mother, brother, sister or child. 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 Injuries 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 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. 12 - • 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 pay period beginning December 23, 2006, the City contribution toward the Cafeteria Plan shall be $774. In addition, the City shall contribute the minimum CaIPERS 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 Associatibn 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. Effective the pay period beginning December 22, 2007, the City's contribution towards the Cafeteria Plan will increase to $874 (plus the minimum CaIPERS participating employer's contribution). Effective the pay period beginning December 20, 2008, the City's contribution towards the Cafeteria Plan will increase to $974 (plus the minimum CaIPERS participating employer's contribution). 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 - 13 - the City from any responsibility or liability to provide medical insurance coverage on an annual basis. 3. Dental lnsurance 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. 2. Disability Insurance The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all regular full time employees with the following provisions: - 14 - • • Weekly Benefit 66.67% gross weekly wages Maximum Benefit $10,000/month Minimum Benefit $50 Waiting Period 30 Calendar Days Employees shall not be required to exhaust accrued paid leaves prior to receiving benefits under the disability insurance program. Employees may not supplement the disability benefit with paid leave once the waiting period has been exhausted. Concurrent with the commencement of this program, employees assumed responsibility for the payment of the disability insurance cost in the amount of one (1.0%) percent of base salary. Simultaneously, the City increased base wages by one (1.0%) percent. C. 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. D. 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. 2. The City provides the Public Employees' Retirement System retirement formula of 3% at 50 3. The City provides the PERS Level 4 1959 survivor's benefits for NBPMA members. The City provides the PERS Pre -Retirement Option 2 Death Benefit (Section 21548) for NBPMA members. - 15 - Retiree Medical Benefit 1. Background. In 2005, the City and all Employee Associations agreed to replace the previous "defined benefit" retiree medical program with a new "defined contribution" program. The process of fully converting to the new program will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2005. b. Category 2 - Active employees hired prior to January 1, 2005, whose age plus years of service as of January 1, 2005 was less than 50 (46 for public safety employees). c. Category 3 - Active employees hired prior to January 1, 2005, whose age plus years of service was 50 or greater (46 for public safety employees) as of January 1, 2005. d. Category 4 - Employees who had already retired from the City prior to January 1, 2005, and were participating in the previous retiree medical program. 2. Program Structure. This is an Integral Part Trust (IPT) Medical Expense Reimbursement Program Plan (MERP). a. For employees in Category 1, the program is structured as follows: Each employee will have an individual MERP account for bookkeeping purposes, called his or her "Employee Account". This account will accumulate contributions to be used for health care expense after separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. - 16 - • Contributions will be in three parts. Part A contributions (mandatory employee contributions): 1 % of Salary. Part B contributions (employer contributio ns): $1.50 per month for each year of service plus year of age (updated every January 1st based on status as of December 31st of the prior year). Effective January 2008, this contribution will increase to $2.50 per month. Part C contributions (leave settlement as determined by Association): The Association will determine the level of contribution for all employees it represents, subject to the following constraints. All employees within 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. For example, if the Association wishes to specify 50% of the leave balance as the participation level, then each member leaving the City, or cashing out leave at any other time, would have the cash equivalent of 50% of the amount that is cashed out added to the. MERP, on a pre-tax basis. The remaining 50% would be paid in cash as taxable income. Individual employees would not have the option to deviate from this breakout. The Association has decided to participate in Part C contribution, at the level of ninety percent (90%) of sick and flex leave. This amount may be changed, on a go forward basis, as part of the future meet and confer process. However, the participation level must be the same for all employees within the Association. Additionally, the purpose and focus of these changes should be toward long-term, trend type adjustments. Due to IRS restrictions regarding "constructive receipt," the City will impose restrictions against frequent spikes or drops that appear to be tailored toward satisfying the desires of a group of imminent retirees. Spillover pay is not eligible for Part C contributions. - 17 - Nothing in this section restricts taking leave for time off purposes. Sick leave balances may also be included in the MERP Part C contributions, but only to the extent and within all the numeric parameters specified in the Employee Policy Manual. Section 11.21 of the Manual contains a schedule which specifies the amount of sick leave that can be "cashed out," based on time of service. The manual also caps the number of hours that can be "cashed out" at 800, and specifies that sick leave hours are "cashed out" on a 2 for 1 basis (800 hours of sick leave are converted to 400 hours for cash purposes). Sick leave participation is a separate item from vacation/flex leave participation, and thresholds must be separately identified by the Association. Part A contributions may be included in PERS compensation. Part B and Part C contributions will not be included in PERS compensation. Part A contributions begin upon enrollment in the program and are credited to each MERP Employee Account each pay period. Eligibility for Part B contributions is set at five years of vested City employment. At that time, the City will credit the first five years worth of Part B contributions into the Employee Account (interest does not accrue during that period). Thereafter, contributions are made bi-weekly. Part C deposits, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon separation. If an employee leaves the City prior to five years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the MERP Employee Account. Such an employee will not be entitled to any Part B contributions. The exception to this is a full-time employee, participating in the program, who leaves the City due to industrial disability during the first five years of employment. In such cases, the employee will receive exactly five years worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's MERP account at the time of separation. - 18 - • Distributions from MERP Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and his or her spouse and legal dependents — again only as permitted by IRS Publication 502. Qualification for dependency status will be determined by guidelines in IRC 152. If used for these purposes, distributions from the MERP accounts will not be. taxable. Cash withdrawal for any other purpose is prohibited. Under recent IRS Revenue Ruling 2005-24, any balance remaining in the Employee Account after the death of the employee and his or her spouse and/or other authorized dependents (if any) must be forfeited. That particular MERP Employee Account will be closed, and any remaining funds will become general assets of the plan. The parties agree that the City's Part B contributions during active employment constitute the minimum CatPERS participating employer's contribution towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS medical plan, or any otherplan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's MERP account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one-time City contribution to their individual MERP accounts that equates to $100 per month for every month they contributed to the previous "defined benefit" plan, to a maximum of 15 years (180 months). This contribution will be made at the time of retirement, and only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. - 19 - • • Employees in Category 2 who had less than five years service with the City prior to implementation of the new program will only receive Part B contributions back to January 1, 2006 when they reach five years total service. c. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute $400 per month intb each of their MERP accounts after they retire from the City, to continue as long as the employee or spouse is still living. Each employee will contribute a flat $100 per month to the plan for the duration of their employment to partially offset part of this expense to the City. The maximum benefit provided by the City after retirement is $4,800.00 per year, accruing at the rate of $400.00 per month. There is no cash out option for these funds, and they may not be spent in advance of receipt. Employees in this category will also receive an additional one-time City contribution of $75 per month for every month they contributed to the previous plan prior to January 1, 2006, up to a maximum of 15 years (180 months). This contribution will be made to the MERP account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. d. For employees (retirees) in Category 4, the structure is very similar to the previous retiree medical program, except that there is no cost share requirement, and the $400 City contribution after retirement can be used for any IRS authorized purpose, not just City insurance premiums. Effective July 1, 2006, a MERP account has been opened for each retiree in this category, and the City will contribute $400 per month to each account as long as the retiree or spouse remains living. For existing NBPMA retirees in this category, the $400 was increased to $450 effective July 1, 2006. The NBPMA and Police Employees Association have agreed to reimburse the City for half of the cost of this increase, on an ongoing basis. To that end, the City will invoice NBPMA at the end of each - 20 - quarter for half the actual cost of this increase during the previous three months. 3. Administration Vendors have been selected by the City to administer the program. The contract expense for program -wide administration by the vendor will be paid by the City. However, specific vendor charges for individual account transactions that vary according the investment actions taken by each employee, such as fees or commissions for trades., will be paid by each employee. The City's Deferred Compensation Committee, or its successor committee, will have the authority to determine investment options that will be available through the plan. 4. Value of Benefit For all purposes, including compensation comparisons, the Retiree Medical Program shall be valued at 1% 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 shall be $1,000.00 per fiscal year. Effective July 1, 2007, the maximum tuition reimbursement shall be $1,200 per fiscal year. SECTION 5. — MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs The provisions of this Section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. - 21 - 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 - 1 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 - 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 3/12 and 4/10. The basic work schedule shall be considered the 9/81 for the term of this MOU. Subject to the right to re —open as specified in this subparagraph, 9/81 shall be the standard work schedule for the term of this MOU. The 9/81 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 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 - y • 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. 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, 2009. Signatures are on the next page. - 27 - Executed this o2 day of ATTEST: By: ( (/97tne., LaVonne Harkless, City Clerk NEWPORT BEACH POLICE MAN'AGEMENT ASSOCIATION B Desmond CITY OF NEWPORT BEACH By: Steven Rosan ky, Mayor, APPROVED AS TO FORM: C Ro in Clauson, City Atto ney , 2007: - 28 - • C-J93 a -- 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 - iv • 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 - 2 - 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. 2001-50. 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 - • • 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; 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 - 4 - 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%. 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 Pay 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 members 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 members 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 - 1' • • 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 members flex leave bank on a bi-weekly basis in lieu of a cash payment. Once holiday time is accrued to the members 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 Pav 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 Pav Period Increase 1/2 but less than 5 5.23077 5 but less than 9 5.84616 9 but less than 12 6.46152 12 but less than 16 7.07696 16 but less than 20 7.07696 .77% 20 but less than 25 7.07696 1.54% 25 and over 7.07696 2.3% 2. NBPMA and the City acknowledge that employees assigned the 9/81 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 members 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 - • • 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 Injuries 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. 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, 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 CaIPERS 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 CaIPERS 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 - 2. Disability Insurance The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all regular full time employees with the following provisions: Weekly Benefit 66.67% gross weekly wages Maximum Benefit $10,000/month Minimum Benefit $50 Waiting Period 30 Calendar Days Employees shall not be required to exhaust accrued paid leaves prior to receiving benefits under the disability insurance program. Employees may not supplement the disability benefit with paid leave once the waiting period has been exhausted.. Concurrent with the commencement of this program, employees assumed responsibility for the payment of the disability insurance cost in the amount of one (1.0%) percent of base salary. Simultaneously, the City increased base wages by one (1.0%) percent. C. 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. D. 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. 2. The City has amended its contract with the Public Employees' Retirement System to implement the 3% at 50 Retirement Program. - 14 - J• • • 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 3/4ths (1/2 City and 1/4 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 - • • 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 Cl 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. Eamings 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 - i. Part A contributions (mandatory employee): 1% of Salary. ii.. Part B contributions (employer for employees fully converting to new plan): $1.50 per month for each year of service plus year of age (updated every January 1st based on status as of December 31 st of the prior year). iii. 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 - 18 - r• • • taxable. Cash withdrawal for any other purpose is prohibited. Under recent IRS Revenue Ruling 2005-24, any balance remaining in the Employee Account after the death of the employee and his or her spouse and/or other authorized dependents (if any) must be forfeited. That particular MERP Account will be closed, and any remaining funds will become general assets of the plan. The parties agree that the City's Part B contributions during active employment constitute the minimum CaIPERS participating employer's contribution towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's MERP account. c. Employee Participation i. New Employees Participation in the new plan is mandatory from the onset of employment. New employees will make no contributions to the old plan. ii. Conversion Threshold for Current Employees Members whose age plus years of service equal 45 or Tess at the time of implementation must convert to the new plan. Those with age plus years of service of 46 or more have the option of fully converting or remaining in the old plan with modified participation in the new plan. iii. Current Employees Fully Converting to New Plan In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one-time City contribution to their individual IPT accounts that equates to $100 per month for every month they contributed to the current plan, to a maximum of 15 years (180 months). This contribution will be made at the time of retirement, and only if 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 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 $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 eamed 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/Lavoffs The provisions of this Section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the - 21 - 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 - t. • 2. Procedures In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: a. Temporary and probationary employees within any Classification shall, in that order, be laid off before permanent employees. b. Employees within a Classification shall be laid off in inverse order of seniority; c. An employee subject to layoff in one Classification shall have the right to Bump a Tess senior employee in a lower ranking Classification within a Series. 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 - 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, retum 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 Pav 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 3/12 and 4/10. The basic work schedule shall be considered the 9/81 for the term of this MOU. Subject to the right to re —open as specified in this subparagraph, 9/81 shall be the standard work schedule for the term of this MOU. The 9/81 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 141 day of $ep m ber , 2005: NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION By: Jo n Desmond - 27 - ATTEST: By: CITY OF NEWPORT BEACH By: tkv Johr(l-leffernan, Mayor LaVonne Harkless, City Clerk APPRO) ED AS TO FORM: Robin Clauson, City Attorney - 28 - • • Final c-4 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, 2002 to December 31, 2004 and this tentative 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. Final B. Duration of Memorandum. Except ordinance, necessary effective remain in as specifically provided otherwise, any resolution or action of the City Council to implement this MOU shall be considered as of January 1, 2002. This MOU shall full force and effect until December 31, 2004, 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. 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 statutorylaw, 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. 2001-50. 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; 2 Final (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. 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. D. Release Time. 1. NEPMA 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 Final 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 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 Final member is to attend a meet and confer session. Employees may flex start/finish time up to two (2) hours. E. 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 the basis of race, gender, ethnicity, religion or other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. F. 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. G. 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. H. Modifications. Any agreement, alteration, understanding, variation, or waiver or modification of any of the terms or 5 Final provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. I. 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. Direct Wage Payments. 1. Salary Effective the first pay period in January, 2002, the City shall increase base salary for the NBPMA employees by four (4%) percent. Effective the first pay period in January, 2003, the City shall increase base salary for all NBPMA employees by two (2%) percent. Effective the first pay period in January, 2004, the City shall increase base salary for the NBPMA employees by four (4%) percent. 2. NBPMA shall have the right to reopen negotiations on the general increase scheduled for January, 2004 if the Consumer Price Index for Los Angeles, Riverside, Orange County All Urban Consumer increases by more than six (6%) percent for the twelve (12) months ending July, 2003. The City shall have the right to reopen if the Index increases by less than three (3%) percent. 6 Final 2. 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. 3. Overtime. (a) 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. (b) 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. (c) NBPMA members occupying the position of Captain shall not be entitled compensatory time off for overtime. City and NBPMA agree Final 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. (e) 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. B. Additional Compensations. 1. Scholastic Achievement Pay. 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 Final Years of Service: community colleges, state colleges or universities. The following is a schedule of monthly payments pursuant to the Scholastic Achievement Program: 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. 2 Holiday Pay. NBPMA members shall accrue 96 hours of holiday time each fiscal year (July 1 through June 30th), at the rate of 3.7 hours per pay period. NBPMA members may (a) use holiday time as paid time off work, (b) convert holiday time to flex leave or vacation leave or (c) receive pay for holiday time as specified in this Section. An election to receive holiday compensation as pay shall be made on a one time irrevocable basis in accordance with PERS regulations Only holiday pay irrevocably elected is "PERSable". The NBPMA members may use holiday time as paid time off work, convert holiday time to flex leave or vacation leave, or receive pay for holiday time as specified in this Section. NBPMA members who have not used all holiday time accrued during any fiscal year shall, during the month of July, elect either to convert unused holiday time to flex leave (or vacation leave if the member is in the vacation leave/sick leave program) or to be • • Final paid for unused holiday time at the members normal hourly rate of pay, provided, however, NBPMA members shall not be entitled to convert holiday time to flex leave to the extent that the conversion would cause the amount of flex leave accrued to exceed the Flex Leave Accrual Threshold. In the absence of an election during July, the members shall receive pay for unused holiday time at their normal hourly rate. NBPMA members who elect to receive pay for unused holiday time shall receive compensation in their paycheck for the last pay period in August. In no event shall any NBPMA member be entitled to receive holiday pay until serving at least thirty (30) consecutive calendar days in active paid status. 3. 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. 4. 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. Sergeants and Lieutenants 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. Section 3. - LEAVES. A. Pay for Time not worked. 10 Final 1. Flex Leave. (a) NBPMA personnel hired prior to July 1, 1996, shall accrue flex leave at the following rates. It is mutually understood that accrual rates have been modified to provide for the longevity increase set forth below: Years of Continuous Service 1/2 but less than 5 5 but less than 9 9 but less than 12 12 but less 16 but less 20 but less 25 and over than than than 16 20 25 Adjusted Accrual Longevity Pay Per Pay Period Increase 5.23077 5.84616 6.46152 7.07696 7.07696 7.07696 7.07696 .77% 1.54% 2.3% (b) NBPMA personnel hired after July 1, 1996, shall accrue flex leave at the following rates. It is mutually understood that accrual rates have been modified to provide for the longevity increase set forth below: Years of Continuous Service 1/2 but less than 5 5 but less than 10 10 but less than 16 16 but less than 20 20 but less than 25 25 and over Adjusted Accrual Longevity Pay Per Pay Period Increase 4.61538 5.53846 6.46152 7.07696 7.07696 7.07696 .77% 1.54 2.3% NBPMA and the City acknowledge that employees assigned the 9/81 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. (c) The Flex leave program shall be administered as follows: (i) NBPMA members shall not accrue flex leave until continuously employed by the Newport Beach Police Department for 11 Final 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. (ii) 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. (iii)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 703 et seq. of the Personnel Resolution. Members entitled to use sick leave pursuant to Section 703.1 of the Personnel Resolution 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 12 • Final 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. (iv) 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 Leave Spillover Pay and shall not be entitled to accrue flex leave in excess of the Flex Leave Accrual Threshold. (v) 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. 13 • . Final (vi) 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). 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. SECTION 4. - RETIREMENT. A. 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. 2. The City has implemented the Level 4 1959 survivor's benefits for NBPMA members. 3. The City has amended its contract with the Public Employees' Retirement System to implement the 3% at 55 Retirement Program. The ongoing cost of 14 • • Final this retirement change shall be borne by the City. The City of Newport Beach will, no later than December 1, 2002, amend 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. SECTION 5. - FRINGE BENEFITS. A. Health/Dental Insurance. The City has implemented an IRS qualified Cafeteria Plan. NBPMA members shall join this plan effective January 2002. 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 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 coverages in accordance with plan rules during regular open enrollment periods. Effective January, 2002, the City's contribution towards the Cafeteria Plan will be $484 (plus the $16 medical contribution). Effective January, 2003, the City's contribution towards the Cafeteria Plan will increase to $534 (plus the $16 medical contribution). 15 Final Effective January, 2004, the City's contribution towards the Cafeteria Plan will increase to $559 (plus the $16 medical contribution). Effective upon the ratification of this agreement, NBPMA members who do not want to enroll in any health care plan offered by the City must provide evidence of health care insurance coverage, and execute an agreement releasing the City from any responsibility or liability to provide health care insurance coverage on an annual basis. 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 Medical Insurance An employee is eligible for retiree medical benefits after seven years of service if the employee retires from the City and is a PERS annuitant. The City has implemented the $400 cap for retiree medical insurance contributions as agreed to by the City and the Newport Beach Police Management Association in previous Memoranda of Understanding. In accordance with these agreements, the City and active employees shall be responsible for 3/4ths (1/2 City and 1/4 actives) of retiree medical insurance cost to a maximum of $400. Retirees shall be responsible for the remaining 1/4. The employee's current share of the retirement contribution in 16 Final accordance with the formulas set forth above shall be $27.47 per month. Subsequent contribution levels shall be set in January, annually, in accordance with the formula described above, commencing in January 2002. In addition to the contributions above, current employees shall contribute $10 per month and the City shall contribute $20 per employee per month to accumulate funds to meet unfunded retiree medical liabilities. This contribution shall continue until the liability is fully funded. The City shall maintain separate, account for retiree medical funding. The account for unfunded retiree medical liabilities shall be interest bearing. Statements of these accounts shall be available to all affected employee organizations. B. Disability Insurance. The City shall provide disability insurance with the following provisions: Weekly Benefit 66 2/3% gross weekly wages Maximum Benefit (mo.) $ $8,000 Minimum Benefit $50 Waiting Period 30 Calendar Days Employees shall not be required to exhaust accrued paid leaves prior to receiving benefits under the disability insurance program. Employees may not supplement the disability benefit with paid leave once the waiting period has been exhausted. Employees shall assume responsibility for the payment of the disability insurance. Concurrent with implementation of the new disability insurance program, the industrial accident leave policy of the City (Section 8.03.2.1 1998 Personnel Rules) has been eliminated. 17 Final C. Section 125 Plan. 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. D. Employee Assistance Program. City shall provide an Employee through a properly licensed prov and their family members may Assistance Program at no cost guidelines. E. Tuition Reimbursement. Assistance ider. NBPMA access the subject to Program members Employee provider 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. Reimbursement upon the successful completion of Successful completion means a grade of for undergraduate courses and a grade of for graduate courses. All claims is contingent the course. "C" or better "B" or better for tuition 18 • • Final reimbursement require the approval of the Chief of Police and the Human Resources Director. SECTION 6. - MISCELLANEOUS PROVISIONS. A. Schedule. 1. Employees currently work a variety of alternative work schedules (some trial) as approved by the Chief of Police. They include 3/12 and 4/10. The basic work schedule shall be considered the 9/81 for the term of this MOU. Subject to the right to re -open as specified in this subparagraph, 9/81 shall be the standard work schedule for the term of this MOU. The 9/81 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 2.A.3. 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: (a) All Patrol Supervisors are required to report to work 15 minutes early; 19 Final (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. B. Scheduling of Medical Treatment for Industrial Injuries 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 it's 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 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 20 Final 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. C. Reductions in Force/Layoffs. The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions. (a) "Layoffs" or "Laid off" shall mean the non - disciplinary termination of employment. (b) "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted permanent status in their current Classification or any Classification within the Series, subject to the following: (i) Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status in the Classification or Series; (ii) Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. 21 Final (c) "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part-time, seasonal or temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). (d) "Series" shall mean two or more Classifications within a Department which require the performance of similar duties with the higher ranking Classification(s) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities for subordinates. The City Manager shall determine those Classifications which constitute a Series. (e) "Bumping Rights", "Bumping" or "bump" shall mean the right of an employee, based upon seniority within a series, to displace a less senior employee in a lower Classification within the Series. No employee shall have the right to bump into a Classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience. 2. Procedures. In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: (a) Temporary and probationary employees within any Classification shall, in that order, be laid off before permanent employees. (b) Employees within a Classification shall be laid off in inverse order of seniority; 22 Final (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 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 23 Final 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. D. 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 Personnel Resolution, 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 24 Final 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. (d) All parties shall engage in efforts to promptly resolve the an amicable manner. The specified may be extended agreement expressed in writing. good faith grievance in time limit upon mutual (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 25 • Final 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 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 26 Final notice of appeal within fifteen (15) days after receipt of the decision. E. Direct Deposit. All Unit employees shall participate in the City's Direct Deposit Program. F. Reopener. The City and NBPMA agree to reopen negotiations on a Deferred Retirement Option Program should it become available. Any implementation during the term of this agreement will be on a cost neutral basis to the City. G. Payout. Final paychecks, including leave payouts, will be at the rate of pay effective the first pay period in January for any employee retiring in January, 2002. H. Uniform Allowance. Effective immediately, the City will begin reporting to PERS a uniform allowance amount of $1,000 per year. Executed this `5 day of 41W , 2002: NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION By: By: Fred Heinec e CITY OF NEWPORT BEACH By: Tod geway Ma r 27 Final ATTEST: l%,c_) s LaVonne Harkless, City Clerk By: APPRO/ED AS TO FORM: Robert H. Burnham, City Attorney 28 • MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH POLICE MANAGEMENT. ASSOCIATION January 1, 1999 through December 31, 2001 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION TABLE OF CONTENTS Preamble Section 1. General Provisions Recognition 1 Duration of the Memorandum 1 Scope 2 Release Time 3 Bulletin Boards 4 No Strike 4 Conclusiveness 4 Modifications 5 Savings 5 Impasse 5 Section 2. Compensation Direct Wage Payments 5 Section 3. Leaves Pay for Time Not Worked 10 Bereavement Leave 13 Workers Compensation Leave 13 Section 4. Retirement Retirement Benefits 13 Section 5. Fringe Benefits Health/Dental Insurance 14 Disability Insurance- New 15 Section 125 Plan 16 Employee Assistance Program 16 Tuition Reimbursement 16 Section 6. Miscellaneous Provisions Schedule 17 Reductions in Force/Layoffs 18 Grievance Procedure 21 Final 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, 1999 to December 31, 2001 and this tentative agreement has been embodied in this MOU. 3. This MOU, upon approval by NBPMA and the Supplemental Memorandum of Understanding executed in 1997 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 I. -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 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 following classifications 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 NBPMA. B. Duration of Memorandum. 1. Except as specifically provided otherwise, any 1 ordinance, necessary effective remain in 2001, and after the event the successor Final resolution or action of the City Council to implement this MOU shall be considered as of January 1, 1999. This MOU shall full force and effect until December 31, the provisions of this MOU shall continue date of expiration of this MOU in the parties are meeting and conferring on a 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. 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 2 Final 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. 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. D. Release Time. 1. NBPMA members shall be allowed to participate in the following activities and receive full 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. 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 subsection 1(b) 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 3 Final 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. 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. E. 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 the basis of race, gender, ethnicity, religion or other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. F. 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. G. 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 4 Final forth herein. H. 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. I. 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 10 of Resolution No. 7173 or a successor resolution. SECTION 2. -COMPENSATION A. Direct Waae Payments 1. Pay for Time Worked (a) Salary Adiustments. The parties have agreed on internal relationships among the various classifications represented by NBPMA, as well as the relationship between each step in those. classifications and the benchmark position. These internal relationships have been computed in terms of numbers which, when multiplied by the salary paid to the benchmark position, represent the salary paid to members of NBPMA. The multipliers for each step of each classification represented by NBPMA are shown on the matrix attached as Exhibit "B..' The salaries of all NBPMA members shall, during the term of this MOU, be subject to the following guaranteed adjustments: (i) Effective the first payroll period in January, 1999, the City shall increase base salary for the Police Management 5 Final employees by two and one half (2.5%) percent. Effective the first payroll period in January, 2000, the City shall increase base salary for the Police Management employees by two and one half (2.5%) percent. Effective the first payroll period in January, 2001, the City shall increase base salary for the Police Management employeesby two and one half (2.5%) percent. (b) Subsequent Adjustments. Additional increases (if due) shall be made July of each year of this agreement pursuant to the Supplemental Memorandum of Understanding between the City and NBPMA executed in 1997. (c) Code Seven/Dutv 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. (d) Overtime (i) 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 6 Final overtime calculation purposes. (ii) 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. (iii)NBPMA members occupying the position of Captain shall not be entitled 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 grant each Captain shall be based upon the recommendation of the Police Chief and approved by the City Manager. Administrative leave for 1996 may be granted, if at all, within 30 days after the effective date of this MOU. Administrative leave may not be carried forward from one calendar year to the next. (iv) 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. 2. Additional Compensations (a) ,$cholastic Achievement Pay. Sworn NBPMA members are entitled to additional compensation contingent upon scholastic achievement ("Scholastic Achievement Pay"). Sworn NBPMA members may apply f.or increases pursuant to this Section when eligible and scholastic, achievement pay shall be included in the member's paycheck for the pay period 7 Years of Service: Final 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: 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% Increased compensation at the BA/BS and MA/MS/JD level shall be effective the first per period in January, 1999. All other changes shall occur the first full payroll period following ratification. Effective immediately, educational incentive payments shall be made only for units/degrees above the minimum qualifications called out in the job descriptions. Individuals currently receiving pay in this category (1) shall retain the compensation, however. (b) Holiday Pay. NBPMA members shall accrue 96 hours of holiday time each fiscal year (July 1 through June 30th), at the rate of 3.7 hours per pay period. NBPMA members may use holiday time as paid time off work, convert holiday time to flex leave or vacation leave, or receive pay for holiday time as specified in this Section. NBPMA members who have not used all holiday time accrued during any fiscal year shall, during the month of July, elect either to convert unused holiday time to flex leave(or 8 Final vacation leave if the member is in the vacation leave/sick leave program) or to be paid for unused holiday time at the members normal hourly rate of pay, provided, however, NBPMA members shall not be entitled to convert holiday time to flex leave to the extent that the conversion would cause the amount of flex leave accrued to exceed the Flex Leave Accrual Threshold. In the absence of an election during July, the members shall receive pay for unused holiday time at their normal hourly rate. NBPMA members who elect to receive pay for unused holiday time shall receive compensation in their paycheck for the last pay period in August. In no event shall any NBPMA member be entitled to receive holiday pay until serving at least thirty (30) consecutive calendar days in active paid status. (c) Leave Pay -Off For the termof the agreement, NBPMA members shall receive payment for any accrued leave upon termination at the rate of 109% of their base hourly rate. (d) 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. Sergeants and Lieutenants 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. Final Section 3. - Leaves A. Pav for Time Not worked. 1. Flex Leave. (a) Subject to the provisions of subsection (b), NBPMA members shall accrue flex leave follows: Years of Con't. Svc.: 1/2 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: 5.23077 5.84616 6.46152 7.07696 7.69232 8.30768 8.92304 as (b) Effective May 1, 1999, NBPMA personnel hired prior to July 1, 1996, shall accrue flex leave at the following rates. It is mutually understood that accrual rates have been modified to provide for the longevity increase set forth below: Years of Continuous Service 1/2 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 Longevity Pay Per Pay Period Increase 5.23077 5.84616 6.46152 7.07696 7.07696 7.07696 7.07696 .77% 1.54% 2.3% (d) NBPMA personnel hired after July 1, 1996, shall accrue flex leave at the following rates. It is mutually understood that accrual rates have been modified to provide for the longevity increase set forth below: Years of Adjusted Accrual Continuous Service Per Pav Period 1/2 but less than 5 5 but less than 10 10 but less than 16 10 4.61538 5.53846 6.46152 10 but less than 16 16 but less than 20 20 but less than 25 25 and over 6.46152 8.69462 9.30462 9.9246 Final NBPMA and the City acknowledge that employees assigned the 9/81 work schedule accrue one (1) additional hour per pay period in addition to the accrual levels set forth above. (d) The Flex leave program shall be administered as follows: (i) 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. (ii) 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. (iii)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 703 et seq. of the Personnel Resolution. Members entitled to use sick leave pursuant to Section 703.1 of the Personnel Resolution must notify 11 • Final 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. (iv) 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 Leave Spillover Pay and shall not be entitled to accrue flex leave in excess of the Flex Leave Accrual Threshold. (v) All requests for scheduled flex leave 12 Final shallbe 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. (vi) Members shall be paid for all accrued flex leave at their then current hourly rate of pay upon termination of the employment relationship. 2. This section is intended to effect a reduction of vacation and sick leave accrual rates that is commensurate with the reduction in flex leave accrual rates. The combined vacation and sick leave accrual is greater than flex leave accrual and the parties intend the reductions in annual vacation accrual to be commensurate to the annual reduction in flex leave accrual contemplated by Section 3.B.1. B. 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. NBPMA shall be entitled to 40 hours of bereavement leave per incident (terminal illness followed by death is considered one incident). 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. ,SECTION 4. -RETIREMENT A. Retirement Benefits. 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 inaccordance with the rules and 13 Final regulations promulgated by PERS. These amounts will be reported to PERS monthly as special compensation for retirement purposes. 2. The City has implemented the Level 4 1959 survivors benefits for NBPMA members. 3. Should additional retirement plan options become available through PERS, the Association may reopen negotiations on the City's retirement program. Any agreed upon changes in retirement shall be on a cost neutral basis to the City. SECTION 5. -FRINGE BENEFITS A. Health/Dentallnsurance. 1. The City shall make available to all NBPMA members the PERS health insurance programs and a second health care plan. City shall pay the health and dental premium for each NBPMA member, up to a maximum of $400 per month. 2. 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 toprovide each employee group with information about health care issues and to receive timely input from associations regarding preferred coverage options and levels of coverage. City shall provide information to the Committee in December, February and April of each year during the term of this MOU. 3. Medical Opt Out NBPMA members who do not want to enroll in any health care plan offered by the City, who provide evidence of health care insurance coverage through other carriers, and execute an agreement releasing the City from any responsibility or liability to provide health care insurance coverage, shall receive, in lieu of the $400 contribution towards the premium for Coverage offered by City sponsored 14 Final health care providers, an in -lieu health coverage payment of $200 per month. Employees may re -enroll in any of the City's available health plans per the rules of those plans. 4. Retiree Medical Insurance The parties agree that duringthe term of this Agreement, the maximum combined contribution by the City and active employees for retiree medical insurance shall not exceed $400.00 per month. (City contribution limited to two-thirds (2/3) of $400.00 with the active employees paying one-third (1/3) . Further, the City and Association agree to work, through a City wide committee, on a variety of issues involving retiree medical insurance in an attempt to achieve cost containment and equity amongst the City's retiree medical programs. B. Disability Insurance - New Effective April, 1999, the City shall provide disability insurance with the following provisions: Weekly Benefit 66 2/3% gross weekly wages Maximum Benefit (mo.) $5,000 Minimum Benefit $50 Waiting Period 30 Calendar Days 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, the employees shall assume responsibility for the payment of the disability insurance cost in the amount of one (1.0%) percent of base salary. Simultaneously, the City shall increase base wages by one (1.0%) percent (Excluded from the salary calculations pursuant to the SMOU). There will be no increase in the cost of the 15 Final disability insurance program for the term of this agreement. Concurrent with implementation of the new disability insurance program, the industrial accident leave policy of the City (Section 8.03.2.1 Personnel Rules) shall be eliminated. C. Section 125 Plan. Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income by City payment of allowable expenses such as child care 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. D. 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. E. 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. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for 16 Final graduate courses. All claims for tuition reimbursement require the approval of the Chief of Police and the Administrative Services Director. SECTION 6. -MISCELLANEOUS PROVISIONS A. Schedule. 1. Employees currently work a variety of alternative work schedules (some trial) as approved by the Chief of Police. They include 3/12 and 4/10. The basic work schedule shall be considered the 9/81 for the term of this MOU. Subject to the right to re -open as specified in this subparagraph, 9/81 shall be the standard work schedule for the term of this MOU. The 9/81 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 1.(C)(1). 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: (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 17 Final 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. B. Reductions in Force/Lavoffs. The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. pefinitions. (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 18 Final and embraced by a single job title authorized in the City budget and shall not include part-time, seasonal or temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). (d) "Series" shall mean two or more Classifications within a Department which require the performance of similar duties with the higher ranking Classification(s) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities for subordinates. The City Manager shall determine those Classifications which constitute a Series. (e) "Bumping Rights", "Bumping" or "bump" shall mean the right of an employee, based upon seniority within a series, to displace a less senior employee in a lower Classification within the Series. No employee shall have the right to Bump into a Classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience. 2. Procedures. In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: (a) Temporary and probationary employees within any Classification shall, in that order, be laid off before permanent employees. (b) Employees within a Classification shall be laid off in inverse order of seniority; (c) An employee subject to layoff in one Classification shall have the right to Bump a less senior employee in a lower ranking Classification within a Series. 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 19 Final 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 least thirty (30) days advance notice or thirty (30) days pay in lieu of addition, employees laid off will be accumulated paid leave, holiday leave accumulated sick leave to the extent the Personnel Resolution. 4. Re -Employment. be given at of the layoff notice. In paid for all (if any), and permitted by 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 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. 20 • Final 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 Personnel Resolution, any provision of Resolution No. 71-73, 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. (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 21 • Final 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/Meetincrs 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 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 22 Final 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. Continuing Negotiations NBPMA and the City agree to continue negotiations on the issues of implementing the Physical Fitness Program and an Injured On -Duty (IOD) Policy. It is the intent of the parties that these negotiations be completed within thirty (30) days of the execution of this Memorandum of Understanding. Executed this /7 day of ASt64t3-7— , 1999: NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION By: By: inecke CITY OF NEWPOR . BEACH (9)2d D=n is O'Neil By: Mayor ATTEST: By: C /(171,, _. Y1 Ak(-114 LaVonne Harkless, City Clerk 23 APPROVFO AS TO FORM: RobrtH. Burnham, City Attorney 24 Final • e-a 7-3;L 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, 1996 to December 31, 1997 and this tentative agreement has been embodied in this MOU. 3. This MOU, upon approval by NBPMA 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 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 following classifications 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 NBPMA. B. Duration of Memorandum. 1. Except as specifically provided otherwise, any ordinance, resolution or action of the City Council 1 necessary effective remain in 1997, and after the event the successor to implement this MOU shall be considered as of January 1, 1996. This MOU shall full force and effect until December 31, the provisions of this MOU shall continue date of expiration of this MOU in the parties are meeting and conferring on a 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. 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 all of its managerial authorities Resolution but are not this MOU, the City reserves and retains inherent exclusive and non-exclusive rights, powers, functions and ("Management Rights") as set forth in No. 7173. Management Rights include, 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; 2 (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. 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. D. Release Time. 1. NBPMA members shall be allowed to participate in the following activities and receive full 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. 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 subsection 1(b) 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 3 year. Designates must give reasonable advance notice to, and obtain permission from, their supervisor prior to use of release time. 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. E. 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 the basis of race, gender, ethnicity, religion or other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. F. 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, sickout, withholding of services, or lockout activities. G. 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. 4 • • H. 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. 2. Savinas. 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. Compensation Policy. 1. Intent The intent of this Policy is to maintain salaries and other components of the City's total compensation package at levels which will attract and retain highly qualified personnel as members of the Newport Beach Police Department. The City Council shall, in applying this compensation policy, take into consideration the following factors: (a) The City's then current economic position; (b) The City's standing in the defined labor market (law enforcement agencies in Orange County); (c) Changes in the cost of living as measured by increases or decreases in the Consumer Price Index; and; (d) Internal relationships. The City shall use its compensation policy, 5 tempered by sound fiscal policy, to maintain a highly competitive standing within the defined labor market with the understanding that the City's ability to make economic adjustments may be limited by budgetary considerations, constraints imposed upon the City by limitations in municipal revenues, or extraordinary expenditures. Taking all of these factors into consideration, it is the City's intent to compensate employees represented by NBPMA based upon the average of the five (5) highest paid benchmark positions of law enforcement agencies (all municipal police departments and the Sheriff) in Orange County. 2. Procedure The City shall annually evaluate the compensation of NBPMA members and, through the meet and confer process mandated by the Meyers-Milias-Brown Act, will make appropriate modifications to total compensation. The procedure for evaluating the average of the five (5) highest paid benchmark positions in Orange County shall begin with the compensation survey prepared in July of each year by the Orange County Division of the League of Cities, subject to verification as to accuracy. The City will use this survey to determine the total compensation paid by other law enforcement agencies in Orange County to the benchmark position. The benchmark position shall be the top step non -specialty police officer, or Patrol Deputy Sheriff in the case of the County, and does not include police officer classifications such as Master Officers, Senior Officers, Corporals or similar special categories based upon any specific combination of experience, training or education. Total compensation shall consist of three factors: salary, retirement benefits (employer -paid retirement contributions including payment of employee's share) and health insurance contributions. Salary and retirement benefits shall be calculated using the amount paid to, or on behalf of, the benchmark position. Health insurance contributions shall be calculated based upon the maximum contribution made by the employer on behalf of an employee with two or more dependents who is enrolled in the health plan having the largest number of employee participants. The total compensation paid to the five (5) highest paid benchmark positions shall be added and the total divided by five without regard to weighting or the number of officers or employees of the law 6 enforcement agencies with the five (5) highest paid benchmark positions. Once the appropriate increase in total compensation for the benchmark position is determined, City shall calculate the corresponding increase in salary for the benchmark position. Salaries for all NBPMA represented classifications shall then be adjusted by applying the multipliers in the matrix (Exhibit "B") to the new salary paid to the benchmark position. 3. Term of Compensation Policy This compensation policy shall survive the term of this MOU and shall remain in full force and effect unless and until modified by the parties in writing. B. Direct Wage Payments 1. Pay for Time Worked (a) Salary Adjustments. The parties have agreed on internal relationships among the various classifications represented by NBPMA, as well as the relationship between each step in those classifications and the benchmark position. These internal relationships have been computed in terms of numbers which, when multiplied by the salary paid to the benchmark position, represent the salary paid to members of NBPMA. The multipliers for each step of each classification represented by NBPMA are shown on the matrix attached as Exhibit "B." The matrix shall be effective on January 1, 1996. The salaries of all NBPMA members shall, during the term of this MOU, be subject to the following guaranteed adjustments: (i) Effective July 1, 1996, the City shall pay the increase in the employer retirement rate for all NBPMA members without any corresponding reduction in salary for any NBPMA member. (ii) Effective the first pay period of January 1997, the total compensation for the benchmark position shall be increased by fifty percent (50%) of the difference between then current total compensation due to the benchmark position based on the compensation formula and the average total compensation of the five (5) 7 highest paid benchmark positions of law enforcement agencies in Orange County with the ranking and average total compensation of the five (5) highest paid benchmark positions to be calculated on the basis of total compensation paid by each law enforcement agency on July 1996. Total compensation for all other classifications represented by NBPMA shall be adjusted in accordance with the matrix. The remaining 50% adjustment necessary to reach the average of the top five agencies based upon July 1996 comparison figures shall be provided the first pay period in July 1997. (b) Subsequent Adiustments. Any Adjustment in total compensation to be effective on or after January 1, 1998 shall be determined in accordance with the compensation policy specified in Section 2 or the then current MOU. (c) Salary Steps Effective July 1, 1996, two additional steps (designated A and B with existing salary steps redesignated C through H) shall be added to the compensation schedule for each classification represented by NBPMA. The first salary step (A) shall specify a salary for the classification that is ten percent (10%) lower than the current first step in the salary range. The second additional step (B) shall specify a salary that is five percent (5%) lower than the current salary for the first step in the salary range. Existing rules relative to the time of step increases and advancement shall be applicable to the two new additional steps. (d) 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 8 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. (e) Overtime (i) 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. (ii) 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. (iii)As of the effective date of this MOU, NBPMA members occupying the position of Captain shall not be entitled 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 grant each Captain shall be based upon the recommendation of the Police Chief and approved by the City Manager. Administrative leave for 1996 may be granted, if at all, within 30 days after the effective date of this MOU. Administrative leave may not be carried forward from one calendar year to the next. (iv) With the approval of the Division 9 Commander, NBPMA members assigned to non - shift assignments, may work certain holidays if they occur on regularly scheduled work days. 2. Additional Compensations (a) Scholastic Achievement Pay. 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. The Plan consists of five levels which reflect multipliers of the base scholastic achievement pay of $48.00 per month. 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: 2 3 4 $48/mo. $48/mo. $48/mo. $48 $96 $96 (b) Holiday Pay. $48 $144 $144 BA/BS MA/MS/JD: $48 $48 $192 $192 $192 $240 NBPMA members shall accrue 96 hours of holiday time each fiscal year (July 1 through June 30th), at the rate of 3.7 hours per pay period. NBPMA members may use holiday time as paid time off work, convert holiday time to 10 flex leave or vacation leave, or receive pay for holiday time as specified in this Section. NBPMA members who have not used all holiday time accrued during any fiscal year shall, during the month of July, elect either to convert unused holiday time to flex leave(or vacation leave if the member is in the vacation leave/sick leave program) or to be paid for unused holiday time at the members normal hourly rate of pay, provided, however, NBPMA members shall not be entitled to convert holiday time to flex leave to the extent that the conversion would cause the amount of flex leave accrued to exceed the Flex Leave Accrual Threshold. In the absence of an election during July, the members shall receive pay for unused holiday time at their normal hourly rate. NBPMA members who elect to receive pay for unused holiday time shall receive compensation in their paycheck for the last pay period in August. In no event shall any NBPMA member be entitled to receive holiday pay until serving at least thirty (30) consecutive calendar days in active paid status. (c) 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. (d) 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. Sergeants and Lieutenants 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. Section 3. - Leaves A. Pay for Time Not worked. 1. Flex Leave. (a) Subject to the provisions of subsection (b), NBPMA members shall accrue flex leave as follows: Years of Con't. Svc.: 1/2 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 eriod: 5.84616 6.46152 7.07696 7.69232 8.30768 8.92304 9.53848 Effective the first full pay period in July 1996, these accrual rates shall be adjusted as follows: Years of Con't. Svc.: 1/2 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: 5.53846 6.15385 6.76923 7.38462 8.00000 8.61538 9.23077 Effective the first full payroll period in January 1998, NBPMA members shall accrue flex leave at the following rates if total compensation for the benchmark position is at least equal to the average of the top five law enforcement agencies in Orange County: Years Adjusted Accrual of Con't. Svc.: Per Pav Period: 1/2 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 12 5.23077 5.84616 6.46152 7.07696 7.69232 8.30768 • • 25 and over 8.92304 (b) NBPMA members 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 Service 1/2 but less than 5 5 but less than 10 10 but less than 15 15 but less than 20 20 and over Accrual Rate Per Pay Period 4.61538 5.53846 6.46152 7.07696 7.69232 NBPMA and the City acknowledge that employees assigned the 9/81 work schedule accrue one (1) additional hour per pay period in addition to the accrual levels set forth above. (c) The Flex leave program shall be administered as follows: (i) 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. (ii) 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. 13 (iii)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 703 et seq. of the Personnel Resolution. Members entitled to use sick leave pursuant to Section 703.1 of the Personnel Resolution 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. (iv) NBPMA 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). 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. Effective during the first pay period of January 1997, NBPMA members who have not utilized at least 80 hours of flex leave during the prior calendar year (60 hours of flex leave for calendar year 1996 only). shall not accrue flex leave in excess of the Flex Leave 14 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 Leave Spillover Pay and shall not be entitled to accrue flex leave in excess of the Flex Leave Accrual Threshold. (v) 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. (vi) Members shall be paid for all accrued flex leave at their then current hourly rate of pay upon termination of the employment relationship. 2. This section is intended to effect a reduction of vacation and sick leave accrual rates that is commensurate with the reduction in flex leave accrual rates. The combined vacation and sick leave accrual is greater than flex leave accrual and the parties intend the reductions in annual vacation accrual to be commensurate to the annual reduction in flex leave accrual contemplated by Section 3.B.1. Effective the first pay period in July 1996, vacation accrual rates shall each be reduced by eight (8) hours per year. In the event total compensation for the benchmark position is equal to, or exceeds, the average total compensation of the five highest paid benchmark positions of law enforcement agencies in Orange County, as of January 1, 1998, vacation leave accrual shall be reduced an additional eight (8) hours. B. 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. NBPMA shall be entitled to 40 hours of bereavement leave per incident (terminal illness followed by death is 15 considered one incident). 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. SECTION 4. - Retirement A. Retirement Benefits. 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 monthly as special compensation for retirement purposes. 2. Effective May 1996, the City shall implement the Level 4 1959 survivors benefits for NBPMA members. SECTION 5. - Fringe Benefits. A. Health/Dental Insurance. 1. The City shall make available to all NBPMA members the PERS health insurance programs and a second health care plan. City shall pay the health and dental premium for each NBPMA member, up to a maximum of $400 per month. 2. 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 16 issues and to receive timely input from associations regarding preferred coverage options and levels of coverage. City shall provide information to the Committee in December, February and April of each year during the term of this MOU. 3. Medical Qpt Out NBPMA members who do not want to enroll in any health care plan offered by the City, who provide evidence of health care insurance coverage through other carriers, and execute an agreement releasing the City from any responsibility or liability to provide health care insurance coverage, shall receive, in lieu of the $400 contribution towards the premium for Coverage offered by City sponsored health care providers, an in lieu health coverage payment of $200 per month. Employees may re -enroll in any of the City's available health plans per the rules of those plans. 4. Retiree Medical Insurance The parties agree that during the term of this Agreement, the maximum combined contribution by the City and active employees for retiree medical insurance shall not exceed $400.00 per month. (City contribution limited to two-thirds (2/3) of $400.00 with the active employees paying one-third (1/3). Further, the City and Association agree to work, through a City wide committee, on a variety of issues involving retiree medical insurance in an attempt to achieve cost containment and equity amongst the City's retiree medical programs. B. ,Short Term Disability/Long Term Disability. 1. Short Term Disability. The City currently administers a short term disability plan funded through a combination of employee and employer contributions. A NBPMA member shall pay the full cost of any short term disability premium until he or she has accrued at least 160 hours of flex leave and/or sick leave. An NBPMA member shallpay fifty percent (50%) of any short term disability premium when he or she has accrued between 160 hours and 319 hours of flex 17 leave and/or sick leave. City shall pay all of any member's short term disability premium when he or she has accrued 320 or more hours of flex leave and/or sick leave. The plan provides up to two-thirds of a member's salary for a period of up to six months post -disability provided the employee has used available sick leave and a portion of accrued paid leave. City shall have the right to re -open this MOU to meet and confer regarding the transfer of the responsibility for administration, and the manner of funding, of the short term disability plan. The City shall continue to self-administer the short term disability plan until the parties reach agreement regarding appropriate amendments. 2. Lona Term Disability. The City currently provides long term disability protection through an insurance company. This plan is funded through a combination of employee and employer contributions. A NBPMA member shall pay the full cost of any long term disability premium until he or she has accrued at least 160 hours of flex leave and/or sick leave. A NBPMA member shall pay fifty percent (50%) of any long term disability premium when he or she has accrued between 160 hours and 319 hours of flex leave and/or sick leave. City shall pay all of any member's long term disability premium when he or she has accrued 320 or more hours of flex leave and/or sick leave. The City shall have the right tore-open this MOU to meet and confer relative to the provision of long term disability coverage. In the absence of any agreement to the contrary, the City will use its best efforts to continue to provide long term disability coverage through qualified insurance carriers or companies. 3. Income Ceilings/Payment of Premiums. The ceiling on insured income under the short term and long term disability plans will be $7,500 per month for non -industrial claims. The maximum benefit shall be $5,000 per month. The maximum. benefit for industrial injuries shall be $1,750.00 per month. The City will pay one-third (1/3) of the cost of a member's health, dental and life insurance premiums when the member has at least five (5) years of continuous service with the City and is on approved disability leave of absence. The City will pay two-thirds (2/3) of the cost of 18 health, dental and life insurance premiums for an employee with ten (10) years of continuous service who is on approved disability and the City will pay the entire cost of those premiums for an employee with fifteen (15) or more years of continuous service not to exceed the amount paid for active employees. C. Section 125 Plan. Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income by City payment of allowable expenses such as child care 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. D. 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. E. 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 $885.00 per year for fiscal years through 1995-96. Maximum tuition reimbursement for sworn personnel shall be $600.00 per fiscal year effective July 1, 1996. Reimbursement is contingent upon the successful 19 • • 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 Administrative Services Director. SECTION 6. - Miscellaneous Provisions. A. Schedule. 1. Employees currently work a variety of alternative work schedules (some trial) as approved by the Chief of Police. They include 3/12 and 4/10. The basic work schedule shall be considered the 9/81 for the term of this MOU. Subject to the right to re -open as specified in this subparagraph, 9/81 shall be the standard work schedule for the term of this MOU. The 9/81 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 1.(C)(1). 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: (a) A11 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 20 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. B. Reductions in Force/Layoffs. The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions. (a) "Layoffs" or "Laid off" shall mean the non -disciplinary termination of employment. (b) "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted permanent status in their current Classification or any Classification within the Series, subject to the following: (i) Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status in the Classification or Series; (ii) Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. (c) "Classification" shall mean one or more full 21 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 supervisoryresponsibilities 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. 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 22 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 least thirty (30) days advance notice or thirty (30) days pay in lieu of addition, employees laid off will be accumulated paid leave, holiday leave accumulated sick leave to the extent the Personnel Resolution. 4. Re -Employment. be given at of the layoff notice. In paid for all (if any), and permitted by 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 Personnel Director. 5. Severance Pay. Permanent employees who are the date of lay-off, receive for each year of continuous of Newport Beach. 23 laid off shall, as of one week severance pay service with the City 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 Personnel Resolution, any provision of Resolution No. 71-73, 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. (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 24 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 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 25 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. Re -opener. Other employee groups or any key and management personnel should other employee groups not be required to agree to equivalent leave reductions by January 1997, the City agrees to reopen negotiations on the leave portion of this agreement only. The parties intent is to insure that equivalent leave reductions be applied to all employee organizations. Absent compensating factors (other reductions) if equivalent reductions are not achieved the stated intent is to adjust leave accruals consistent with those granted to other organizations. 26 Executed this )2q day of p6-,-0g& 1996: NEWPORT BEACH POLI E MANAGEMENT ASSOCIATION By: By: Steve Van Horn Fred He i necke CITY OF NEWPORT BEACH By: John Hedges Mayor ATTEST: By: Q (> (7t,-A0), LaVonne Harkless, City Clerk APP;"OVED AS TO FORM: obert H. Burnham, City Attorney 27 d • • • • MATRIX POLICE OFFICER Entry 78.4 82.3 86.4 90.7 95.24 Top Step (E) 100.0 (This will become 105.0 110.0 112.5 115.0 SERGEANT 105.82 111.11 116.66 122.49* 128.61 135.13 LIEUTENANT CAPTAIN 124.4 130.62 137.16 144.02** 151.22 158.78 146.17 153.48 161.16 169.22*** 177.68 186.56 "Fu Step 4/1/94). * Level at which a Police Officer at master officer 15% would be promoted to a Sergeant. ** *** Level at which a top step sergeant would be promoted to Lieutenant Level at which a top step Lieutenant would be promoted to Captain. This Matrix shall be effective January 1, 1994. The "Police Sergeant plus 2-1/2%" classification is eliminated when the Matrix becomes effective. EXHIBIT B • 1993 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 July 1, 1992 to December 31, 1995 and this tentative agreement has been embodied in this MOU. 3. This MOU, upon approval by NBPMA 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 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 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 NBPMA. B. Duration of Memorandum. 1. Except as specifically provided otherwise, any ordinance, resolution or action of the City Council necessary to implement this MOU shall be considered effective as of July 1, 1992. This MOU shall remain in krV tipma.mou\5-24-93 full force and effect until December 31, 1995, 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. $cope. 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) the determination of procedures and standards for the selection and promotion of employees; (d) the direction, supervision and assignment 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; 2 (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. 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. D. Release Time. 1. Release Time shall mean the right to receive full pay while participating in the following activities: (a) attendance at meetings, conferences, seminars or workshops related to matters within the scope of representation; (b) preparation for, travel to, and attendance at scheduled meetings between the City and NBPMA during the meet and confer process. 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 the right to engage in the activities described in subparagraph 1(b) as necessary and without reduction to the Release Time granted in subsection 2. 4. NBPMA shall designate those members entitled to utilize Release Time. Designates must give reasonable advance notice to, and obtain permission from, their supervisor prior to use of release time. 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. E. Bulletin Boards. Space shall be provided on bulletin boards within the Police Department at their present location for the kr\nbpna.00u\5-24-93 3 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 the basis of race, gender, ethnicity, religion or other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. F. 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. G. 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 meet and confer with the other concerning any issues 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. H. 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. I. 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. krobpme.mou\5-24-93 4 • • 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 Policy. A. Policy. The intent of this Policy is to maintain salaries and other components of the City's total compensation package at levels which will attract and retain highly qualified personnel as members of the Newport Beach Police Department. The City Council shall, in applying this compensation policy, take into consideration the following factors: 1. The City's then current economic position; 2. The City's standing in the defined labor market (law enforcement agencies in Orange County); 3. Changes in the cost of living as measured by increases or decreases in the Consumer Price Index; and 4. Internal relationships. The City shall use its compensation policy, tempered by sound fiscal policy, to maintain a highly competitive standing within the defined labor market with the understanding that the City's ability to make economic adjustments may be limited by budgetary considerations, constraints imposed upon the City by limitations in municipal revenues, or extraordinary expenditures. Taking all of these factors into consideration, it is the City's intent to' compensate employees represented by NBPMA based upon the average of the five (5) highest paid benchmark positions of law enforcement agencies (all municipal police departments and the Sheriff) in Orange County. B. Procedure. The City shall annually evaluate the compensation of NBPMA members and, through the meet and confer process mandated by the Meyers Milias Brown Act, will make appropriate modifications to total compensation. The procedure for evaluating the average of the five (5) highest paid benchmark positions in Orange County shall begin with the compensation survey prepared in July of each year by the Orange County Division of the League of Cities, subject to verification as to accuracy. The City will use this survey to kr\nbpma.mou\5-24-93 5 • • determine the total compensation paid by other law enforcement agencies in Orange County to the benchmark position. The benchmark position shall be the top step non -specialty police officer, or Patrol Deputy Sheriff in the case of the County, and does not include police officer classifications such as Master Officers, Senior Officers, Corporals or similar special categories based upon any specific combination of experience, training or education. Total compensation shall consist of three factors: salary, retirement benefits (employer --paid retirement contributions including payment of employee's share) and health insurance contributions. Salary and retirement benefits shall be calculated using the amount paid to, or on behalf of, the benchmark position. Health insurance contributions shall be calculated based upon the maximum contribution made by the employer on behalf of an employee with two or more dependents who is enrolled in the health plan having the largest number of employee participants. The total compensation paid to the five (5) highest paid benchmark positions shall be added and the total divided by five without regard to weighting or the number of officers or employees of the law enforcement agencies with the five (5) highest paid benchmark positions. Once the appropriate increase in total compensation for the benchmark position is determined, City shall calculate the corresponding increase in salary for the benchmark position. Salaries for all NBPMA represented classifications shall then be adjusted by applying the multipliers in the matrix (Exhibit "B") to the new salary paid to the benchmark position. C. Term of Compensation Policy. This compensation policy shall survive the term of this MOU and shall remain in full force and effect unless and until modified by the parties in writing. D. Revocation of Current Policy (J-11. NBPMA agrees that this compensation policy takes the place of Council Policy J-1, that Council Policy J-1 is no longer applicable to NBPMA and that City has the right to modify or revoke J-1 at any time subsequent to the effective date of this MOU. SECTION 3. - Direct Wage Payments. A. Pay for Time Worked. 1. Salary Adiustments. The parties have agreed on internal relationships among the various classifications represented by NBPMA, as well as the relationship between each step in those classifications and the benchmark position. These internal relationships have been computed in terms of numbers which, when multiplied by the salary paid to the benchmark position, represent the salary paid to members of NBPMA. The multipliers for each step krMbpaa.mou\5-24-93 6 of each classification represented by NBPMA are shown on the matrix attached as Exhibit "B." The matrix shall be effective on January 1, 1994. The salaries of all NBPMA members shall, during the term of this MOU, be subject to the following guaranteed adjustments: (a) Effective January 1, 1994, salaries shall be increased by three percent (3%) or the increase in the Consumer Price Index from July 1, 1992 to June 30, 1993, whichever is greater. For the purposes of this subsection, the term "CPI Increase" shall mean the total percentage change shown in the all items index for all urban consumers, Los Angeles--Anaheim--Riverside, published by the U.S. Department of Labor, Bureau of Labor Statistics. (b) The provisions of this subsection are intended to implement for NBPMA members the City's commitment to increase total compensation of the benchmark position by at least fifty percent (50%) of the differential between then current total compensation (as defined in Section 2(B)) and the average total compensation of the five (5) highest paid benchmark positions (or equivalent) of law enforcement agencies in Orange County as defined in Section 2(B). Effective on January 1, 1995, the salaries of all NBPMA members shall be increased as provided in this subsection. Once the City has determined the increase in total compensation of the benchmark position (at least 50% of the differential between total compensation and Newport Beach and the average total compensation of the five (5) highest paid benchmark positions), the City shall determine the salary increase for the benchmark position that produces the required increase in total compensation, and that amount shall be added to the existing salary for the benchmark position. Salaries for NBPMA members shall be increased by applying the matrix multipliers to the new salary for the benchmark position. For example, if the total compensation paid by Newport Beach was $4,000 ($3,000 salary, $600 retirement and $400 health insurance), and the average total compensation of the five highest paid benchmark positions was $4,720, the minimum total compensation increase would be $360 ($4,720 minus $4,000 equals $720 divided by two equals $360). City would then determine what salary increase would produce an increase in total compensation of $360. In this example, and assuming no change in the health insurance contribution, the salary increase would be $300 which was calculated by dividing $360 by 1.2 (1.2 is the ratio of salary and retirement benefits to salary). In summary, the new salary would be $3,300, the new retirement contribution would be $660 (20% of salary), kr\nbpma.mou\5-24-93 7 and the health insurance contribution would remain $400 for a total compensation of $4,360. The salaries of all NBPMA members would be increased by applying the matrix multipliers to the new salary. For example, if the matrix multiplier for the NBPMA member's classification is 1.25, that member's new salary would be $4,125 ($3,300 times 1.25). (c) In the event any recognized association, or labor organization composed of Newport Beach employees, or a significant segment of unrepresented employees, receives any increase in total compensation prior to January 1, 1994, other than pursuant to court order or judicial decree, the same increase shall be granted to NBPMA members as of the date the increase is effective as to the other association, labor organization, or segment of unrepresented employees. City shall have no obligation to increase salaries pursuant to subsection (a) if the increase in total compensation paid pursuant to this section is effective prior to January 1, 1994 and the increase in total compensation is greater than the percentage increase in total compensation that would result from application of subsection (a). In the event increases in total compensation granted pursuant to this Section are less than the increase specified in subsection (a), NBPMA salaries shall be increased, effective January 1, 1994, by an additional amount necessary to comply with subsection (a), but in no event shall the total of the adjustments exceed the maximum adjustment required by subsection (a). 2. Adiustments. Any Adjustment in total compensation to be effective on or after January 1, 1996 shall be determined in accordance with the compensation policy specified in Section 2 or the then current MOU. 3. Additional Step. Effective April 1, 1994, a new step ("F Step") shall be added to the compensation schedule for each classification represented by NBPMA. The salary for the F Step shall be five percent (5%) greater than the then current salary for the E Step. NBPMA members who have been at the E Step for twelve (12) months prior to April 1, 1994 shall advance to the F Step on that date. All other NBPMA members shall be eligible for an increase to the F Step after serving twelve (12) months at the E Step. kr\itpma.mou\5-24-93 8 4. Retirement Benefits. (a) The City shall pay each member's required PERS retirement contribution (9% of salary). 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. As provided in an earlier MOU executed between the City and the predecessor to NBPMA, which became effective well in advance of December 18, 1992, any NBPMA member shall have one opportunity during the term of his or her employment with Newport Beach to convert the City's obligation to pay his or her required employee retirement contribution to a corresponding salary increase (9% for sworn employees) and, at the same time, assume the obligation to pay his or her own retirement contributions. This payment by the employee shall, to the extent permitted by law, be regarded as an employer pick-up within the meaning of Section 414(h)(2) of the United States Internal Revenue Code and Section 20022(a)(6) of the California Government Code so that, to the extent permitted by law, it may be subtracted from the employee's gross salary for the purpose of calculating the employee's reportable ordinary income but included in the compensation of the employee reported to the Public Employee's Retirement System ("PERS"). NBPMA members acknowledge that they may not, under current PERS and Internal Revenue Service regulations, return to the City contribution program once a member has elected to pay his or her own retirement contributions and received a corresponding salary increase. NBPMA and its members shall have no right to seek reimbursement from City in the event any member incurs any tax or other liability resulting from City's compliance with the provisions of this subsection. (b) In a 1988-89 MOU between the City and the predecessor to NBPMA, City agreed to provide NBPMA members with retirement benefits based upon highest year compensation ("Highest Year Benefit"). Pursuant to that MOU, the City agreed to pay the total extra cost of the Highest Year Benefit during 1988-89 and thereafter phase the additional cost into the calculation of total compensation at the rate of "an additional twenty percent (20%) per year" until finally absorbed into the total compensation calculation. The parties wish to resolve any disagreement over the meaning and method of implementation of those provisions of the 1988-89 MOU related to the Highest Year Benefit by converting the current value of the Highest Year Benefit to a guaranteed kr nbpoe.mou\5-24-93 9 payment over and above each member's salary. This guaranteed payment shall be calculated by multiplying the member's salary by a percentage determined by dividing 60% of the cost of the Highest Year Benefit for the benchmark position (as of April 28, 1993) by total compensation for the benchmark position as of April 28, 1993. This guaranteed payment shall be effective June 1, 1993, shall continue in full force and effect until December 31, 1995, and shall not be included in the calculation of total compensation for any purpose, including, without limitation, the computation of total compensation for the purpose of calculating salary increases pursuant to subsection 3(A)(1)(a), (b) and (c). City shall provide NBPMA with proof of compliance with this subsection within thirty (30) days after its effective date and within thirty (30) days after each subsequent salary increase. 5. Code Seven/Dutv Incentive Time. The City and NBPMA have agreed to eliminate entitlement for duty incentive time or Code Seven time based upon implementation of the 9/80 work schedule and a Settlement Agreement between the City and the predecessor to NBPMA, which expressly limits the restrictions that may be imposed on employees during "Code Seven" time. NBPMA and its members agree that this waiver of entitlement to compensation for duty incentive time or Code Seven time shall survive the termination of this MOU and that no request for compensation for duty incentive time or Code Seven time shall be made at any time in the future by NBPMA and/or any of its members. B. Pay for Time Not worked. 1. Flex Leave. (a) Subject to the provisions of subsection (b), NBPMA members shall accrue flex leave as follows: Years Adjusted Accrual of Con't. Svc,: Per Pay Period (Hours): 1/2 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 kr\Ncma.mou\5-24-93 10 6.85 7.46 8.08 8.70 9.31 9.92 10.54 These accrual rates are effective July 1, 1992. Flex leave banks of NBPMA members shall be adjusted to reflect the new accrual rates effective July 1, 1992. (b) The Flex leave program shall be administered as follows: (i) 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 81 hours of flex leave time for use by the member to recover from illness. In the event the City advances flex 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. (ii) NBPMA members shall accrue 81 hours 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. (iii) 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 703 of the Personnel Resolution. Members entitled to use sick leave pursuant to Section 703.1 of the Personnel Resolution 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 or 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 kr\nbpae.uou\5-24-93 11 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. (iv) Prior to the effective date of this MOU, members were entitled to accrue flex leave up to a maximum of 78 times the member's bi-weekly accrual rate. Earned flex leave in excess of the maximum permitted is currently paid bi-weekly at the member's hourly rate of pay. To allow members to continue to receive payment for earned flex leave in excess of the maximum permitted accrual (which will increase because of the change in rate of accrual) and to reduce the City's contingent liability for payment of flex leave upon resignation, termination or retirement, members shall be permitted to accrue no more than 70 times the member's bi-weekly accrual rate. Earned flex leave in excess of the new maximum permitted accruals shall continue to be paid bi-weekly at the member's hourly rate of pay. In addition, NBPMA members may, during the period from July 1, 1993 to September 1, 1993 elect to receive pay, at the member's hourly rate of pay, for all accrued flex leave in excess of 52 times the member's bi-weekly accrual rate and, in such event, the members shall thereafter receive pay at his or her hourly rate of pay for all earned flex leave in excess of 52 times the member's bi-weekly accrual rate. (v) 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. (vi) Members shall be paid for all accrued flex leave at their then current hourly rate of pay upon termination of the employment relationship. (c) Prior to January 1, 1990, NBPMA members accrued both sick leave and vacation leave. In 1990, the City adopted an alternative system called the Flex Leave Program. Employees who opted for the Flex Leave Program accrued less leave than the combined vacation/sick leave accrual, but no restrictions were placed upon the use of the leave. NBPMA members who enrolled in the Flex Leave Program shall have the right to return the vacation/sick leave system by filing a written election to do so with the City during a thirty (30) day period to be determined kr\nbpma.mw\5-24-93 12 • • by separate agreement between NBPMA and the City. For those employees who returned to the vacation/sick leave system, accrued flex leave shall be considered accrued vacation leave. (d) Long before December 18, 1992, the City provided, and shall continue to provide, to NBPMA members who have accumulated flex leave in excess of the maximum permitted level, the opportunity to receive additional compensation in lieu of flex leave accrual. The increased compensation has been, and shall continue to be, calculated by multiplying the number of hours of flex leave relinquished by the member during each bi-weekly period by the member's then current hourly rate of pay. City shall, at the request of NBPMA, take any action permitted by law to cause that additional salary to satisfy the definitions of "compensation" and "compensation earnable" within the meaning of Sections 20022 and 20023 of the Government Code of the State of California, including advising PERS of this long standing practice and the City's representations, if so requested by any NBPMA member. 3. Holiday Pay. 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. NBPMA members may use holiday time as time off work on holidays, as paid time off work for days other than holidays, convert holiday time to flex leave or vacation leave, or receive pay for holiday time as specified in this Section. NBPMA members who have not used all holiday time accrued during any fiscal year shall, during the month of July, elect either to convert unused holiday time to flex leave/vacation leave or to be paid for unused holiday time at the normal hourly rate. In the absence of an election during July, the member shall receive pay for unused time at the normal hourly rate. NBPMA members who elect, or are entitled, to receive pay for unused holiday time shall receive compensation in their paycheck for the last pay period in August. In no event shall any NBPMA member be entitled to receive holiday pay until serving at least thirty (30) consecutive calendar days in active paid status. 4. Worker's Compensation Leave. Any employee incapacitated by reason of any injury or illness that City has determined arose 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 kr\nbpma.mou\5-24-93 13 • • 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. Except as expressly provided in this MOU, the payments which supplement temporary disability compensation shall be made as provided in the Personnel Resolution. SECTION 4. - Fringe Benefits. A. Insurance. 1. Health Insurance. City shall provide a health care plan available to all NBPMA members, their spouses, and dependents. The health plan shall be underwritten by a reputable health care provider. The City shall also provide dental coverage with a maximum annual benefit of $1,000. The dental coverage may be offered by a provider other than the one which sponsors the group health care plan. City shall pay the health and dental premium for each NBPMA member, spouse and dependents up to a maximum of $400 per month. City and NBPMA shall meet and confer between the effective date of this MOU and July 1, 1993 with respect to the health care plan provider, adjustments to the maximum City contribution per member, and other issues relevant to health care coverage. 2. 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. City shall provide information to the Committee in December, February and April of each year during the term of this MOU. B. Short Term Disability/Long Term Disability. 1. Short Term Disability. The City currently administers a short term disability plan funded through a combination of employee and employer contributions. A member shall pay the full cost of any short term disability premium until he or she has accrued at least 160 hours of flex leave and/or sick leave. A member shall pay fifty percent kr\nbpma.mou\5-24-93 14 (50%) of any short term disability premium when he or she has accrued between 160 hours and 319 hours of flex leave and/or sick leave. City shall pay all of any member's short term disability premium when he or she has accrued 320 or more hours of flex leave and/or sick leave. The plan provides up to two-thirds of a member's salary for a period of up to six months post -disability provided the employee has used available sick leave and a portion of accrued paid leave. City shall have the right to re -open this MOU to meet and confer regarding the transfer of the responsibility for administration of, and the manner of funding, the short term disability plan. The City shall continue to self-administer the short term disability plan until the parties reach agreement regarding appropriate amendments. 2. Long Term Disability. The City currently provides long term disability protection through an insurance company. This plan is funded through a combination of employee and employer contributions. A member shall pay the full cost of any long term disability premium until he or she has accrued at least 160 hours of flex leave and/or sick leave. A member shall pay fifty percent (50%) of any long term disability premium when he or she has accrued between 160 hours and 319 hours of flex leave and/or sick leave. City shall pay all of any member's long term disability premium when he or she has accrued 320 or more hours of flex leave and/or sick leave. The City shall have the right to re -open this MOU to meet and confer relative to the provision of long term disability coverage. In the absence of any agreement to the contrary, the City will use its best efforts to continue to provide long term disability coverage through qualified insurance carriers or companies. 3. Income Ceilings/Payment of Premiums. The ceiling on insured income under the short term and long term disability plans will be $7,500 per month for non -industrial claims. The maximum benefit shall be $5,000 per month. The maximum benefit for industrial injuries shall be $1,750.00 per month. The City will pay one-third (1/3) of the cost of a member's health, dental and life insurance premiums when the member has at least five (5) years of continuous service with the City and is on approved disability leave of absence. The City will pay two-thirds (2/3) of the cost of insurance premiums for an employee with ten (10) years of continuous service who is on approved disability and the City will pay the entire cost of those premiums for an employee with fifteen (15) or more years of continuous service. C. 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, krwbpna.mou\5-24-93 15 fees or other student expenses for approved job -related courses. Maximum tuition reimbursement for sworn personnel shall be $885.00 per year for fiscal year 1992-93 through 12-31-95. Maximum tuition reimbursement for non -sworn members shall be $2,213.00 per year for fiscal year 1992-93 through 12-31-95. 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 Personnel Director. D. Section 125 Plan. Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income by City payment of allowable expenses such as child care and medical expenses. City shall, within three (3) months after this MOU becomes effective, establish 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. E. Employee Assistance Program. City shall provide an Employee Assistance Program through a properly licensed provider. NBPMA members may access the Employee Assistance Program at no cost subject to provider guidelines. F. Scholastic Achievement Pay. NBPMA members are entitled to additional compensation contingent upon scholastic achievement ("Scholastic Achievement Pay"). 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. kr\nbpna.mo0,5-24-93 16 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 Scholastic Achievement Pay of $48.00 per month. 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: MA/MS/JD: 2 $48/mo. $48 $48 $48 $48 3 $48/mo. $96 $144 $192 $192 4 $48/mo. $96 $144 $192 $240 SECTION S. - Miscellaneous Provisions. A. Schedule. 1. Subject to the right to re -open as specified in the subparagraph, 9/81 shall be the standard work schedule for the term of this MOU. The 9/81 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. NBPMA shall have the right to re -open discussions regarding the appropriate work schedule by sending written notice of its intention to do so on or before September 1, 1993. Upon notice, the parties shall meet and confer, in good faith, regarding the appropriate work schedule 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, with the exception of the provisions of subparagraph 3 below, 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 1(C)(1). 3. City and NBPMA members wish to resolve a dispute regarding the time required for Sergeants and Lieutenants assigned to Patrol to prepare for briefing. 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: kr\nbpim.mo05-24-93 17 (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 orders issued by the Chief of Police consistent with this MOU; (c) The 15 minutes per shift shall be converted to compensatory time off 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. B. Reductions in Force/Lavoffs. The provisions of this section shall apply when the City Manager or City Council 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 for other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions. (a) "Layoffs" or "Laid off" shall mean the non - disciplinary termination of employment. (b) "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted permanent status in their current Classification or any Classification within the Series, subject to the following: (i) Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status in the Classification or Series; (ii) Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. (c) "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job title, authorized in the City budget and shall not kr\nbpuo.mou\5-24-93 18 • • 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, and/or 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. 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 Personnel Resolution. kr\nbpne.mo0,5-24-93 19 • • • 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 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. 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 Personnel Resolution, any provision of Resolution No. 71-73, 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. kr\nbpnm.mou\5-24-93 20 (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. (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. Bearings/Meetings. The appropriate supervisor, Chief of Police or City Manager shall meet with the member and any representative in an effort to kr\nbpntaatu\5-24-93 21 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 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 in accordance with the procedures outlined in Subsection 3. In the event NBPMA is dissatisfied with the decision of the Chief of Police, it may appeal to the City Manager. The City Manager shall provide NBPMA with a written decision within fifteen (15) days after the meeting. 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. Re -opener. 1. NBPMA shall have the right to re -open this MOU to discuss three non total compensation issues in addition to the re -opener on work schedule and the other re -openers specified below in subparagraph 2 of this section. NBPMA shall notify the City in writing on or before September 1, 1993 of its intent to re -open and the specific subjects to be discussed. 2. City and NBPMA have agreed to re -open this MOU and meet and confer in good faith on the following subjects and any other matters within the scope of representation not identified in this MOU: Seniority/ Special Assignments, Court Appearance Pay, Overtime, Military Leave, Jury Duty Leave, and Bereavement Leave. The purposes of this re -opener provision are: (a) to describe these benefits accurately for inclusion in this MOU; (b) to resolve any inequities in the manner in which the rules on these subjects are presently applied; (c) to discuss revisions to rules regarding overtime and other subjects and to reduce City liability for overtime without reducing the duration of shifts; (d) to resolve inconsistencies between provisions of the Personnel Rules and Police Department Manual regarding these subjects. kr\nbpia.mou\5,24-43 22 Executed this 26th day of ATTEST: By: Wanda Raggio, City May , 1993: NEWPORT BEACH POLICE ENS-$LOYEES ASSOCIATION By: By: Steve Van Hor Fred CITY OF NEWPORT BEACH By: APP''4ED AS TO FORM: C1are'ce J. Turner, Mayor ert H. Burnham, City Attorney kr\nbpma.mou\5-24-93 23 REPT NBR: PAY500X CITY OF NEWPORT BEACH, CA PAGE NBR: 1 RUN DATE: 05-25-93 JOB CLASS -RANGE REPORT CLASS TITLE RANGE HOURLY BI-WEEKLY ' MONTHLY - ANNUAL 2010 - POLICE CAPTAIN 2075 33.36421 2,669.14 5,783.00 69,398.00 35.03E35 2,802.59 6,072.00 72,667.00 36.78406 2,942.72 6,376.00 76,511.00 38.62300 3,069.84 6,695.00 50,336.00 40.55421 3,244.34 7,029.00 84,353.00 .00000 .00 .00 .00 .00000 .00 .00 .00 2020 POLICE LIEUTENANT 2065 28.47762 2,278.21 4,936.00 59,233.00 29.90152 2,392.12 5,183.00 62,195.00 31.39657 2,511.73 5,442.00 65,305.00 32.96630 2,637.30 5,714.00 68,570.00 34.61450 2,769.16 6,000.00 71,998.00 .00000 .00 .00 .00 .00000 .00 .00 .00 2040 POLICE SERGEANT 2040 23.31463 1,865.17 4,041.00 48,494.00 24.46016 1,958.41 4,243.00 50,919.00 25.70419 2,056.34 4,455.00 53,465.00 26.98952 2,159.16 4,678.00 56,138.00 28.33916 2,267.13 4,712.00 58,945.00 .00000 .00 .00 .00 .00000 .00' .00 .00 2041 POLICE SERGEANT + 2.5X 2045 23.89750 1,911.80 4,142.00 49,707.00 25.09217 2,007.37 4,349.00 52,192.00 26.34675 2,107.74 4,567.00 54,601.00 27.66424 2,213.14 4,795.00 57,542.00 29.04763 2,323.81 5,035.00 60,419.00 .00000 .00 .00 .00 .00000 .00 .00 .00 EXHIBIT • MATRIX POLICE OFFICER_ Entry 78.4 82.3 86.4 90.7 95.24 Top Step (E) 100.0 (This will become 105.0 110.0 112.5 115.0 SERGEANT 105.82 111.11 116.66 122.49* 128.61 135.13 LIEUTENANT CAPTAIN ** *** 124.4 130.62 137.16 144.02** 151.22 158.78 146.17 153.48 161.16 169.22*** 177.68 186.56 nFn Step 4/1/94). Level at which a Police Officer at master officer 15% would be promoted to a Sergeant. Level at which a top step sergeant would be promoted to Lieutenant Level at which a top step Lieutenant would be promoted to Captain. This Matrix shall be effective January 1, 1994. The "Police Sergeant plus 2-1/2%" classification is eliminated when the Matrix becomes effective. EXHIBIT B • • CITY OF NEWPORT BEACH PO. BOX 1768, NEWPORT BEACH, CA 92659-1768 February 1, 1993 Sergeant Steve Van Horn, President Newport Beach Police Management Association (NBPMA) PO Box 8532 Newport Beach, California 92658-8518 Dear Sergeant Van Horn: C-293z Pursuant to Section 8 of City Council Resolution number 7173, the Employer -Employee Relations Resolution, the Newport Beach Police Management Association (NBPMA) has petitioned the City of Newport Beach, California for recognition as the exclusive representative of a certain unit of the City employees for purposes of the Meyers-Milias-Brown Act, California Government Code section 3500 et seq. Pursuant to the aforesaid petition, the NBPMA requested to be recognized as the exclusive representative of the following unit employees: "All sworn peace officers employed by the City Police Department holding permanent classifications as Captain, Lieutenant, or Sergeant." Pursuant to Resolution #7173, the NBPMA provided the City with all information required therein including sufficient information establishing: (1) That the aforesaid unit is an appropriate unit of employees for the purposes of recognition pursuant to the Meyers-Milias-Brown Act; (2) That a majority of the employees within said unit desire to be represented by the NBPMA for the purposes set forth in the Meyers-Milias- Brown Act; (3) That the NBPMA meets all of the requirements for recognition-: as set forth in Resolution #7173. Pursuant to section 8 of Resolution # 7173, the City Representative, at his sole discretion, may grant recognition to a petitioner that meets the 3300 Newport Boulevard, Newport Beach • • criteria of an employee organization, as the exclusive representative to a defined employee unit. It is hereby my determination, that the NPBMA does meet the criteria set forth in Resolution # 7173 of an employee organization, and therefore I officially recognize the NBPMA as the exclusive representative for "All sworn peace officers employed by the City Police Department holding permanent classifications as Captain, Lieutenant or Sergeant", and certify that the NBPEA shall enjoy this status from this date forward. Duane K. Munson Director of Personnel • • Board of Directors: STEVE VAN HORN President JLM CARSON Vice President MIKE BLITCH Treasurer FRED HEINECKE Secretary JOHN KLEIN Members: DON CHANDLER KEN COWELL JOHN DESMOND AL FISCHER DOUG FLETCHER JOHN FREEMAN ANDY GONIS TRENT HARRIS NEIL HARVEY PAUL HENISEY MIKE HYAMS MIKE JACKSON JIMKAMINSKY RICHARD LONG MIKE McDERMOTT MIKE McDONOUCH TIM NEWMAN PAT OSULLIVAN BOB OAKLEY CHUCK OLMSTEAD DOUG PARMENTIER CARY PETERSEN TIM RILEY RON RODGERS GENE SENECAL KENT STODDARD DOUG THOMAS TODD WILKINSON DARRYL YOULE January 14, 1993 Duane munson Personnel Director City of Newport Beach Sir, NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION INC. "A Professional Management Association" The enclosed list of city employees are members of the Newport Beach Police Management Association (NBPMA). They request the City of Newport Beach to recognize the NBPMA as their representative in meet and confer issues involving those employees. Also enclosed are the documents required by the city to complete the process. Sincerely, Steve Van Horn, President NBPMA PO BOX 8532, NEWPORT BEACH CALIFORNIA 92658-8532 (714) 644-3718 NEWPORTBEACH POLICE MANAGEMENT ASSOCIATION "A Professional Management Association" BLITCH, M. CAPTAIN CARSON, J. LIEUTANANT CHANDLER, D. LIEUTANANT COWELL, K. SERGEANT DESMOND, J. FISCHER, A. SERGEANT FLETCHER, D. LIEUTANANT FREEMAN, J. SERGEANT(- GONIS, A. SERGEANT HARRIS, T. SERGEANT 7 HARVEY, N. SERGEANT HEINECKE, F. SERGEANT HENISEY, P. LIEUTANANT HYAMS, M. SERGEANT LLede ' /-' -9s SERGEANT40.; ittd"8 %lss I -liA3 2-q3 JACKSON, M. LIEUTANANT/7 ,,?,(6,.<7Mte4 6 / KAMINSKY, J. SERGEANT KLEIN, J. SERGEANT 1� LONG, R. SERGEANT C.'6 /`,-*.37() ' /- / 2 - 9k McDERMOTT, M SERGEANT 4 / tc- f3 McDONOUGH, M. SERGEANT 5Y,d " _et4/c_. i- / 3-9 3 NEWMAN, T. LIEUTANANT /,_— (13 O'SULLIVAN, P. SERGEANT 01 /-fl p3 OAKLEY, R. SERGEANT ���,(� /"A' OLMSTEAD, C. SERGEANT e d� " L2' - �I3 /A/4- 1.3 PARMENTIER, D. PETERSEN, G. RILEY, T. RODGERS, R. SENECAL, E. STODDARD, K. THOMAS, D. VAN HORN, S. WILKINSON, T. YOIJLE, D. SERGEANT CAPTAIN - LIEUTANANG9 SERGEANT,...- --- SERGEANT SERGEANT SERGEANT _ SERGEANT 11,) • SERGEANT y� SERGEANT • t/i;fg3 / 2/ 3 /3193 /5-473 1413 t%"r/93 Board of Directors: STEVE VAN HORN President JIM CARSON Vice President MIKE JaLrrCH Treasurer FRED HEINECKE Secretary JOHN KLEIN Members: DON CHANDLER KEN COWELL JOHN DESMOND AL FISCHER DOUC FLETCHER JOHN FREEMAN ANDY GONIS TRENT HARRIS NEE. HARVEY PAUL HENISEY MIKE HYAMS MIKE JACKSON Jeer KAMINSKY RICHARD LONG MIKE McDERMOTT MIKE McDONOUGH TIM NEWMAN PAT OSULLIVAN BOB OAKLEY CHUCK OLMSTEAD DOUC PARMENTIER GARY PETERSEN TId RILEY RON RODGERS GENE SENECAL KENT STODDARD DOUG THOMAS TODD WILKINSON DARRYL YOULE NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION INC. "A Professional Management Association" January 14, 1993 Duane Munson Personnel Director City of Newport Beach 3300 Newport Blvd. Newport Beach Ca. 92663 Sir, Pursuant to California Government Code sections 3502, 3503, 3504 and City of Newport Beach resolution No. 7173 the Newport Beach Police Management Association seeks recognition as the representative organization for sworn officers of the Newport Beach Police Department at the rank of Sergeant, Lieutenant and Captain. The information contained in this document will correspond by letter with section 7 of Resolution No. 7173. The name of the organization shall be the NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION. The officers of the President Vice President Treasurer Secretary Board Member The President behalf of the organization are; Sgt. Steve Van Horn Lt. Jim Carson Capt. Mike Blitch Sgt. Fred Heinecke Sgt. John Klein or Vice President may speak on organization A copy of the organization's Constitution is attached. The organization's membership may be affiliated with the California Peace Officers Association and/or the Peace Officers Research Association of California. (F) Notice to the organization can be directed to the President or Vice President at P.O. Box 8532 Newport Beach, Ca. 92658-8532. (G) The organization recognizes that section 923 of the California Labor Code is not applicable to municipal employees. PO BOX RS32, NEWPORT BEACH CALJFORNJA 92658-8532 (714) 644-3718 Petition for Recognition Page Two (H) The organization has no restriction on membership based on race, color, creed, sex, national origin or age. (I) The names of the employees represented and their rank is; CAPTAIN M. Blitch G. Petersen LIEUTENANT J. Carson D. Chandler D. Fletcher P. Henisey M. Jackson T. Newman T. Riley SERGEANT K. Cowell J. Desmond A. Fischer J. Freeman A. Gonis T. Harris N. Harvey F. Heinecke M. Hyams J. Kaminsky J. Klein R. Long M. McDermott M. McDonough P. O'Sullivan R. Oakley C. Olmstead D. Parmentier R. Rodgers E. Senecal K. Stoddard D. Thomas S. Van Horn C. Wilkinson D. Youle (J) A signed statement from a majority of the group represented designating this organization as their representative is attached. • • Petition for Recognition Page Three (K) It is requested the City Representative recognize the Newport Beach Police Management Association as the majority representative of the employees in the employee group for the purpose of meeting and conferring in good faith on all matters within the scope of representation. Re�fuj. Jily �thmitted, Steve Van Horn, President Newport Beach Police Management Association CONSTOTUTOOH OF THE NCWPOOOAT BEACH POLICE MAONAGEMEiNJT ASSOCOATOO( ARTICLE I (Title) Section 1. The name of the organization shall be known as the Newport Beach Police Management Association. ARTICLE II (Purpose) Section 1. To establish an Association among the sworn managers of the Newport Beach Police Department that will promote, provide and protect those ideals held for the furtherance of a professional police service for the community of Newport Beach. To select representatives that will meet and confer with the city regarding matters that affect working conditions. ARTICLE III (Nature) Section 1. Membership in this organization does not affect a members duties or responsibilities to the service of the police department. Police rank does not exist in this organization except with reference to representative groups for the purpose of elections. ARTICLE IV (Membership) Section 1. There shall be two types of membership: voting members and associate members. Section 2. Voting members are active duty members of the association who pay the required dues. Voting members shall have the right to vote on any issue brought to a membership meeting and vote to elect representatives for the board of directors and meet and confer. Section 3. Associate members are any retired sworn member of the Newport Beach Police Department who retired at the rank of sergeant, lieutenant, or captain, or any member of the Newport Beach Police Managers Association who retires with a service Constitution of the Nevit , rt Beach Police Management Association Page 2 • retirement from the Newport Beach Police Department. An associate member is not entitled to vote. Section 4. The rights of voting membership shall not be denied to any full time employed sworn position at the rank of captain, lieutenant, or sergeant of the Newport Beach Police Department, or retired captain, lieutenant, or sergeant for associate membership when such employee indicates his/her intention to join this organization, support it's constitution, and pay dues required herein. ARTICLE V (Administration) Section 1. The executive and administrative power of this organization shall be vested in the Board of Directors which will be composed of five (5) members. Representation from distinguishing groups shall be as follows: one (1) from the rank of captain, one (1) from the rank of lieutenant, and three (3) from the rank of sergeant. . Section 2. There shall be included in the Board of Directors: one (1) President, one (1) Vice President, one (1) Secretary, and one (1) Treasurer. Section 3. A quorum of the Board of Directors shall be three (3) members. Section 4. Any item before the Board of Directors that is a change in working conditions SHALL be submitted to the general membership for a majority vote. ARTICLE VI (Election of Office) Section 1. Any member desiring to run for election to the Board of Directors shall submit his name in writing to the Board of Directors within 10 days of the opening of nominations and prior to the close of nominations. The nomination period shall be December first (1) through December tenth (10) each year. Section 2. The Board of Directors shall be elected by the membership of the Association. The Board of directors shall appoint an election committee consisting of one member from each group, captains, lieutenants, and sergeants after the nominations have been closed. None of the nominees shall be appointed to the election committee. The election committee shall prepare a printed ballot bearing the names of members nominated for election to the Board of Directors. One ballot shall be submitted to each member who shall proceed to ballot. The balloting period shall be at least seven (7) Constitution of the New, Beach Police Management Association Page 3 days, unless all members have voted prior to the last day. The nominees shall be voted on only by members from the group they represent; captains, lieutenants or sergeants. The ballots shall be placed in a ballot box. Section 3. The election committee, after the final voting date, shall open the ballot box and count the votes. The nominees receiving the greatest numbers of votes cast within the number of positions allotted for each representative group, shall be declared elected. Section 4. The President, Vice President, Secretary, and Treasurer shall be elected from the Board of Directors by the Board of Directors. Section 5. Each member of the Board of Directors shall be elected for a term of two (2) years beginning January first of the current year and concluding December thirty-first of the second year. In the initial election the one (1) Captain position and one (1) Sergeant position will be elected for a term of one year, and the one (1) Lieutenant position and remaining two (2) Sergeants positions will be elected for terms of two (2) years. ARTICLE VII (Removal from the Board of Directors) Section 1. Any member of the Board of Directors who becomes negligent in the performance of his duties, or guilty of any act inimical to the welfare of the association, may be removed from office by a two-thirds vote of the members in the affected group (captains, lieutenants or sergeants). ARTICLE VIII (Vacancies) Section 1. When a vacancy occurs on the Board of directors the vacancy shall be filled. in the manner prescribed under ARTICLE VI and will be for the balance of the term of the member being replaced. When a vacancy occurs to a Meet and Confer Representative the vacancy shall be filled in the manner prescribed under ARTICLE IX and will be for the balance of that year. ARTICLE IX (Meet and confer representation) Section 1. During the first month of each calendar year the members of each group (captains, lieutenants, and sergeants) shall elect one (1) member from their respective group to meet and confer with the city regarding working conditions, salaries, benefits, and related items. Constitution of the New, Beach Police Management Association Page 4 ARTICLE X (Finance) Section 1. Each voting member of the Association shall be assessed at the rate of .005 of the top step salary for his/her classification per pay period. An additional assessment of one dollar ($1.00) per pay period shall be made to the coffee fund. Additional contributions may be made by members for specific purposes—PORAC dues, insurance, or other payments as authorized by the members. A contribution of two dollars ($2.00) per pay period for the legislative Action fund shall also be made. Those members not wanting to contribute to the legislative Action fund shall submit their intent in writing to the Board of Directors. Associate members shall be assessed at the rate of ten ($10.00) dollars per calendar year, payable in December of the preceding year. Section 2. Assessments shall be deposited in an account under the association name for specific use in the designated assessment. Section 3. Disbursements shall be made only upon approval of a majority of a quorum of the Board of Directors, and checks will be issued in payment of obligation only when signed by two (2) officers of the Board of Directors. Section 4. Disbursements shall not be made to reimburse members for participation in sporting events. Section 5. The treasurer, or a designee from the Board of Directors, shall prepare a financial statement showing disbursements on a regular basis, but no less than quarterly. ARTICLE XI (Incorporation) Section 1. The Board of Directors shall have the power and authority to incorporate this organization under the laws of the State of California ARTICLE XII (Amendments) Section 1. This constitution shall be amended by a favorable vote of two-thirds of the membership. Such a vote shall be by ballot after such amendment or amendments shall have been submitted in writing, entered into the _minutes, and noticed by publication of the proposed change or changes and the date of balloting. Such Constitution of the NewSrt Beach Police Management Association Page 5 publication to be at least ten (10) days prior to the date selected for balloting. The balloting period shall be at least seven (7) days unless all members shall have voted prior to the last day. ARTICLE XIII (Ratification & Amendments) Section 1. This constitution shall be in full force and effect immediately upon adoption and shall supersede and render null and void any existing constitution and by-laws of any previous Police Association. Section 2. Any amendments to this constitution shall be in full force and effect immediately upon adoption. ARTICLE IVX (Membership meetings) Section 1. Membership meetings may be called by the Board of Directors or by three (3) members, providing at least 24 hours notice to members is given. Notice of the meetings must state generally the business to be transacted, and the time and place of the meeting. Notice of the meeting must be posted. Membership meetings shall be chaired by a member of the Board of directors in order of secession. If no Board member is present the meeting shall be chaired by the senior ranking supervisor member. Section 2. For all membership meetings a quorum shall consist of twelve (12) eligible members entitled to vote. Section 3. Members entitled to vote at any meeting of members shall be members in good standing. Voting may be by voice, hand or ballot. Written proxies are permitted provided they have been signed and dated by the absentee member, and contain the name of the bearer. Absentee ballots shall be collected by the sergeant at arms. Each member entitled to vote shall cast one (1) vote on each matter submitted to a vote of the members. If any member requests the vote be by ballot, that shall be the method of voting. Section 4. If a quorum is present, the affirmative vote of a simple majority of the voting power represented at the meeting, entitled to vote and voting on any matter, shall be the act of the members. A simple majority is defined as 50% of those voting plus one. Constitution of the New Beach Police Management Association Page 6 Section 5. The Chairman of each meeting of the general membership shall appoint a Sergeant at Arms for that meeting. Should a dispute arise as to the conduct of any matter at a meeting of the general membership, the Sergeant at Arms will use "Robert's Rules of Order" to settle the dispute.