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HomeMy WebLinkAbout2019-6 - Adopting a Memorandum of Understanding Between the City of Newport Beach and The Newport Beach Employees League AssociationRESOLUTION NO. 2019-6 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, ADOPTING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH EMPLOYEES LEAGUE ASSOCIATION WHEREAS, the City Council of the City of Newport Beach ("City Council") previously adopted Resolution No. 2001-50, the "Employer -Employee Relations Resolution," pursuant to the authority contained in the Meyers-Milias-Brown Act, Government Code §3500, et seq.; WHEREAS, the City of Newport Beach ("City") supports effective communication and collaborative working relationships with its employee associations to promote improved relations while balancing good management practices; WHEREAS, the City previously entered into a memorandum of understanding with the Newport Beach Employees League ("NBEL"), a recognized employee organization, for the term of July 1, 2015 through December 31, 2018; WHEREAS, representatives from the City and NBEL met and conferred in good faith and reached a tentative agreement on wages, benefits, and other terms and conditions of employment ("Tentative Agreement'), which are memorialized in the Memorandum of Understanding between the City and NBEL ("Memorandum of Understanding") attached hereto as Exhibit A and incorporated herein by this reference; WHEREAS, the NBEL ratified said Tentative Agreement on November 28, 2018; WHEREAS, City of Newport Beach Charter Section 601 requires the City Council to provide the number, titles, qualifications, powers, duties and compensation of all officers and employees of the City; WHEREAS, Newport Beach Municipal Code Section 2.28.010 provides that, upon recommendation of the City Manager, the City Council may establish by resolution the salary range or rate for each position; WHEREAS, the City Manager has reviewed the changes to the salary schedule for NBEL unit members provided in this resolution and recommends approval; WHEREAS, the City Council received and considered the Tentative Agreement at its regular meeting on January 8, 2019; Resolution No. 2019-6 Page 2 of 3 WHEREAS, the City Council received and considered the Memorandum of Understanding at its regular meeting on January 22, 2019; WHEREAS, by adopting this resolution, the City Council intends to amend the salary schedule for employees represented by the NBEL so as to be in conformance with the Memorandum of Understanding; and WHEREAS, by adopting this resolution, the City Council also desires to replace the 2015-2018 memorandum of understanding between the City and the NBEL by adopting the Memorandum of Understanding attached hereto as Exhibit A to serve as the successor agreement between the City and the NBEL for the period of January 1, 2019 through December 31, 2021. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby adopt the Memorandum of Understanding that is attached hereto and incorporated herein as Exhibit A. Wages, hours, fringe benefits and other terms and conditions of employment for employees represented by the NBEL shall be provided in accordance with the provisions of the Memorandum of Understanding, which shall serve as the successor agreement between the City and the NBEL for the period of January 1, 2019 through December 31, 2021. Section 2: The City's Salary Schedule shall be modified to be consistent with this resolution. Section 3: The Memorandum of Understanding supersedes in all respects any and all terms and provisions of all prior memoranda of understanding between City and employees represented by NBEL, except to the extent that any term or provision of this Memorandum of Understanding expressly provides otherwise. Section 4: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 5: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Resolution No. 2019-6 Page 3of3 Section 6: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 22nd day of January, 2019. ATTEST: Lell9ni 1. .. City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE 01�lt�- Aaron C. Harp , City Attorney ane B. Dixon Mayor Attachment: Exhibit A — Memorandum of Understanding Exhibit A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH EMPLOYEES LEAGUE Term: January 1, 2019 through December 31, 2021 TABLE OF CONTENTS Page PREAMBLE.................................................................................................................... 1 SECTION 1 - GENERAL PROVISIONS Recognition..................................................................................................................... 1 Term............................................................................................................................... 2 ReleaseTime.................................................................................................................. 2 Scope............................................................................................................................. 2 Conclusiveness..............................................................................................................3 Modifications................................................................................................................... 4 NBELDues..................................................................................................................... 4 SECTION 2 - COMPENSATION Salary............................................................................................................................. 4 Overtime.......................................................................................................................... 5 StandbyDuty................................................................................................................... 6 Call -Back Duty................................................................................................................ 6 Accumulation of Compensatory Time Off........................................................................ 6 NightShift Differential...................................................................................................... 7 ActingPay....................................................................................................................... 7 CertificationPay.............................................................................................................. 7 CourtTime...................................................................................................................... 9 SECTION 3 - LEAVES FlexLeave....................................................................................................................... 9 VacationLeave............................................................................................................. 10 SickLeave..................................................................................................................... 11 HolidayLeave............................................................................................................... 12 BereavementLeave..................................................................................................... 13 LeaveSellback.............................................................................................................. 13 SECTION 4 - FRINGE BENEFITS HealthInsurance........................................................................................................... 14 Additional Health Insurance/Programs.......................................................................... 15 Employee Assistance Program..................................................................................... 16 PERS Retirement Benefit.............................................................................................. 16 RetireeMedical Benefit................................................................................................. 18 Tuition Reimbursement................................................................................................. 22 Deferred Compensation................................................................................................ 22 SECTION 5 — MISCELLANEOUS/WORKING CONDITIONS Reduction in Force/Layoffs............................................................................................ 22 Non-Discrimination........................................................................................................ 25 Promotional Preference................................................................................................. 25 WorkSchedules............................................................................................................ 26 Labor Management Committee..................................................................................... 26 Discipline — Notice of Intent........................................................................................... 27 Grievance Procedure.................................................................................................... 27 ProbationaryPeriod....................................................................................................... 28 Failureof Probation....................................................................................................... 29 AccidentReporting........................................................................................................ 29 SafetyShoes................................................................................................................. 30 Uniforms........................................................................................................................ 30 VoluntaryTraining Program.......................................................................................... 31 In -Service Supervisory and Safety Training.................................................................. 31 Clean -Up Time.............................................................................................................. 31 RestPeriods.................................................................................................................. 31 ServiceAwards............................................................................................................. 31 DirectDeposit................................................................................................................ 31 Salaryon Reclassification............................................................................................. 32 Separability................................................................................................................... 32 EXHIBIT A — Represented Classifications and Pay Rates ............................................ 34 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH EMPLOYEES LEAGUE This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE The NEWPORT BEACH EMPLOYEES LEAGUE ("NBEL"), a recognized employee organization, affiliated with the Orange County Employees Association ("OCEA'), 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. NBEL representatives and City representatives have reached agreement as to wages, hours and other terms and conditions of employment for the period from January 1, 2019 through December 31, 2021 and this agreement has been embodied in this MOU. 3. This MOU, upon approval by NBEL 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. 2001-50, City hereby confirms its prior certification of NBEL as the recognized employee organization 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 the NBEL. 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 January 1, 2019. This MOU shall remain in full force and effect until December 31, 2021, 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 provisions of this MOU shall prevail over conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions and policies of the City of Newport Beach, and federal and state statutes, rules and regulations which either specifically provide that agreements such as this prevail, confer rights which may be waived by any collective bargaining agreement, or are, pursuant to decisional or statutory law, superseded by the provisions of an agreement similar to this MOU. C. Release Time Four NBEL officers designated by the NBEL shall collectively be granted an annual maximum of 150 hours paid release time, for the conduct of NBEL business. Such time shall be exclusive of actual time spent in collective bargaining and shall be scheduled at the discretion of the NBEL officer. Every effort will be made to schedule this time to avoid interference with City operations. 2. Release time designees shall be identified annually and notice shall be provided to the City. Release time incurred shall be reported regularly in the form and manner prescribed by the City. 3. Activities performed on release time shall include representation of members in rights disputes; preparation for collective bargaining activities, and distribution of NBEL written communication in the work place. 4. Each January, the City will examine the number of Release Time hours the LABEL used the preceding year. If the NBEL used in excess of 75% of the hours normally granted (150), the LABEL will be granted an additional 30 hours for that year. D. Scope 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 Newport Beach Employees League 2019-21 2. 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. 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 the Employer -Employee Relations Resolution No. 2001-50. Management Rights include, but are not limited to, the following: (a) the determination of the purposes and functions of City Departments; (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 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; and (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 With the exception of a separate MOU covering retirement issues, 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 within the scope of representation except as expressly 3 Newport Beach Employees League 2019-21 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. As provided in the Employer -Employee Relations Resolution No. 2001-50, the City shall determine the manner in which City services are to be provided, including whether the City should provide services directly or contract out work, including work that is currently being performed by NBEL members. In the event the City introduces a plan to outsource services currently being performed by LABEL members to achieve greater efficiency and/or cost savings, and upon request by the NBEL, the City shall meet and confer with NBEL representatives to discuss the impacts of the City's decision to contract out work. The City shall retain sole authority to decide whether or not to contract out work, including work that is currently being performed by NBEL members. This provision shall not limit the City's authority to enter into such an agreement for any City services. F. Modifications Any agreement, understanding, 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. NBEL Dues 1. The collection of NBEL dues shall be handled through the payroll deduction process. 2. NBEL agrees to defend, indemnify and hold harmless the City for its collection of NBEL dues. SECTION 2. — Compensation A. Salary Base salary increases for all NBEL represented classifications shall be as follows and as specified in Exhibit A: Effective the pay period that includes January 1, 2019, base salaries will be increased by one and nine tenths percent (1.90%). Effective the pay period that includes January 1, 2020, base salaries will be increased by one and nine tenths percent (1.90%). Effective the pay period that includes January 1, 2021, base salaries will be increased by one and ninety-two one hundredths percent (1.92%). 4 Newport Beach Employees League 2019-21 B. Overtime 1. Advanced Approval - Employees must have advanced approval from their supervisor to work overtime. 2. FLSA Overtime - Overtime earned for actual work hours in excess of 40 in the employee's defined FLSA workweek. 3. Contract Overtime - Overtime earned for an employee whose hours paid in their defined FLSA workweek exceeds 40. For purposes of calculating hours paid for contract overtime, holidays and pre -scheduled vacation or Flex leave occurring during the work week count as time worked. The use of sick leave, floating holiday hours or flex leave that is not pre -scheduled and approved in writing in advance do not count as hours worked for purposes of calculating hours paid for determining eligibility for contract overtime. 4. Rate at Which Overtime is Calculated - Both FLSA and Contract Overtime (paid at time and one half — 1.5) shall be calculated at the regular rate of pay, except that the rate at which Contract 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 by choosing benefits which cost less than the Allowance. 5. Workweek for Purposes of Calculating Overtime - For employees who work the 9/80 work schedule, their defined FLSA workweek shall begin exactly four hours after the start time of their shift on their alternating regular day off (i.e., their eight-hour day) and end exactly 168 hours later. For employees who work a 5/40 work schedule, their workweek shall begin on Saturday at 12:01 a.m. and will end exactly 168 hours later the following Saturday at 12:00 a.m. 6. Work Schedule - Regardless of the type of work schedule an employee is assigned (e.g., 5/40 and 9/80), full time employees are regularly scheduled to work forty (40) hours in their defined FLSA workweek. 7. Reporting Time - The City calculates overtime in tenths of an hour. An employee who works in excess of three minutes of the next tenth should round up to the next tenth and if the employee works three minutes or less of the next tenth should round down. For example, if an employee whose normal work schedule ends at 5:00 p.m. works until 5:03 p.m. he/she should round down and not report the additional three minutes. However, if the employee works until 5:04 p.m., he/she should report an additional tenth of an hour of time worked. 5 Newport Beach Employees League 2019-21 C. Standby Duty 1. Defined (a) To be ready to respond immediately to calls for service; (b) To be reachable by telephone; (c) To remain within a specified distance from his/her work station; and (d) To refrain from activities which might impair the employee's ability to perform his/her assigned duties. 2. Compensation Standby duty compensation for all unit employees shall be eight dollars ($8.00) per hour. Standby pay will not be piggybacked with any other paid time, such as call-back, scheduled or unscheduled overtime, or if working a scheduled shift. D. Call -Back Duty 1. Defined Call-back duty requires the employee to respond to a request to return to his/her work station after the normal work shift has been completed and the employee has left his/her normal work station. Those periods of overtime which had been scheduled by the Department Director prior to the end of the normal work shift are not considered call-back duty. 2. Compensation All employees on call-back duty shall receive a minimum of two (2) hours pay. If an employee works more than two (2) hours, he/she shall receive pay for actual hours worked. E. Accumulation of Compensatory Time Off Unit members may receive compensatory time off (CTO), in lieu of cash, as compensation for overtime hours worked at the rate of one and one half hours for each hour of overtime worked. An employee may only accrue CTO if requested and then approved by the employee's supervisor. Call-back time may be converted to CTO with supervisor approval. [N Newport Beach Employees League 2019-21 Employees may accumulate up to eighty (80) hours of CTO. If an employee has eighty (80) hours of accrued CTO, he/she will not be able to accrue additional CTO until he/she uses CTO to reduce his/her balance below eighty (80) hours. F. Night Shift Differential The City agrees to pay $1.00 per hour night shift differential for Employees working a regularly scheduled work shift of which four or more hours are worked between the hours of 5 p.m. and 5 a.m. Overtime worked as an extension of an assigned day shift shall not qualify an employee for night shift differential. The differential pay is paid only for hours actually worked. In accordance with this provision, City agrees to pay $.50 per hour night shift differential to automotive shop mechanics for hours worked after 5:00 p.m. The parties agree that to the extent permitted by law, the shift differential pay in this section is special compensation and shall be reported to Ca1PEERS as such pursuant to Title 2 CCR, Section 571(a)(4) Shift Differential Pay. G. Acting Pay NBEL employees will be eligible to receive "acting pay" only after completing 80 consecutive hours in the higher classification. Acting pay is 107.5% of the employee's base pay rate. Once the minimum hours' requirement has been satisfied, acting pay will be granted for all hours worked above 40 hours beginning with the 41st hour worked in the higher classification. The parties agree that to the extent permitted by law, acting pay is special compensation and shall be reported to Ca1PERS as such pursuant to Title 2 CCR, Section 571(x)(3) Temporary Upgrade Pay. H. Certification Pa Payment for certifications will be made on a bi-weekly basis for unit members holding a valid and current certification in areas indicated below. Employees may submit proof of valid certificates, including renewals, upon completion. The bi-weekly payment for such eligible certificates will begin the first pay period following department approval. All amounts listed below reflect the annual benefit for the specified certificate.- 7 ertificate: 7 Newport Beach Employees League 2019-21 1. Water or Wastewater Operator Grade 1 $110 Grade II $350 Grade III $450 Grade IV $650 Grade V $800 These pays do not stack. Employees receive the one pay from the list above for the Grade they have achieved. 2. Backflow Certification - $220 3. Qualified Applicator Certificate - $110 for each category, up to a maximum of $330 4. Fire Mechanic State Level I - $110 5. Fire Mechanic State Level II - $220 6. Fire Mechanic III - $400 7. Certified Arborist -$110 8. ASE Certification - $55 each and $220 for possessing a current ASE Master Truck Technician and $220 for possessing a current ASE Master Automobile Technician certification. 9. Commercial Driver's License, Class A - $220 10. Commercial Driver's License, Class B - $165 11. Public Works Certificate (18-20 Jr. College units) or Maintenance Superintendents Association (MSA) Certificate - $300 12. Water Utility Science Certificate - $300 13.Cross Connection Specialist - $110 14. Crane Certification - $110 15. Forklift Trainer - $300 (2 employees, max) The maximum certificate pay benefit for unit members shall be $5, 000 annually. 8 Newport Beach Employees League 2019-21 The City will reimburse employees for: 1) application, testing, and certification fees for successfully completing certification examinations for the above listed certificates, and 2) required physicals when employees obtain/renew required Class A or B Drivers Licenses. Court Time Employees who are required to appear in Court during their off-duty hours in connection with City business shall receive overtime compensation for the number of hours they spend in court, with a minimum of two (2) hours of such compensation. SECTION 3. - Leaves A. Flex Leave 1. Unit members shall accrue Flex leave at the following rates: Years of Continuous Hrs Accrued per Annual Max Balance Service Pay Period hours hours Less than 5 6.00 156.00 468.00 5 but less than 9 6.61 171.86 515.58 9 but less than 12 7.23 187.98 563.94 12 but less than 16 8.15 211.90 635.70 16 but less than 20 8.77 228.02 684.06 20 but less than 25 9.38 243.88 731.64 25 and over 10.00 260.00 780.00 Members shall accrue three (3) months (i.e., 39 hours) of Flex leave (as provided in the chart above) upon completion of three (3) months of continuous employment with the City of Newport Beach, provided however, this amount shall be reduced by any Flex leave time advanced during the first three (3) months of employment. 2. Limit on Accumulation Any paid leave earned in excess of this level will be paid on an hour for hour basis in cash (spill over pay) at the employee's hourly rate of pay. Members hired prior to July 1, 1996 shall be paid for earned Flex leave in excess of the maximum permitted accrual at the member's hourly rate of pay provided that they have utilized at least eighty (80) hours of Flex leave the previous calendar year. Employees who have not utilized the required amount of leave the prior calendar year shall not be eligible to accrue time above the maximum accrual limit. �7 Newport Beach Employees League 2019-21 Employees first hired, or rehired by the City subsequent to July 1, 1996 shall not be eligible for Flex leave spillover pay and shall not be entitled to accrue Flex leave in excess of the Flex leave accrual threshold. 3. Method of Use The Department Director shall approve all requests for Flex leave taking into consideration the needs of the Department, and whenever possible the seniority and wishes of the employee. Flex leave may be granted on an hourly basis. B. Vacation Leave This section applies only to those Regular Full-time Employees hired on or before January 1, 1990 and who have elected not to enroll in the Flex Leave program. Basis for Accrual/Full-Time Employees Employees entitled to Vacation leave -with -pay shall accrue such leave based on years of continuous service and the number of hours in a normal work week for the position to which they are assigned in accordance with the following schedule: Years of Continuous Service Less than 5 5 but less than 9 9 but less than 12 12 but less than 16 16 but less than 20 20 but less than 25 25 and over 2. Limit on Accumulation Accrual per pay period Hours 3.38 3.99 4.61 5.22 5.84 6.46 7.07 Accrual of vacation days in excess of those earned for two years of continuous service is not permitted past December 31 st of each year with the following exception: with approval of the Department Director, an employee may accrue vacation days in excess of the two-year limit provided all such excess accumulation is taken by March 31st of the following year. 3. Method of Use The Department Director shall schedule and approve all vacation leaves for employees taking into consideration the needs of the Department, and whenever possible, the seniority and wishes of the employee. Vacation 10 Newport Beach Employees League 2019-21 leave may be granted on an hourly basis. Any fraction over an hour shall be charged to the next full hour. C. Sick Leave This section applies only to those Regular Full-time Employees hired on or before January 1, 1990 and who have elected not to enroll in the Flex Leave program. Basis for accrual Full-time, regular employees shall accrue sick leave based on the number of hours in a normal work week for the position to which they are assigned in accordance with the following schedules: Normal Work Week - 40 hours Service Time 0-1 year 1-2 years 2-3 years 3-4 years 4+ 2. Method of Use (a) General Monthly Accrual 4 hours 5 hours 6 hours 7 hours 8 hours An employee may use sick leave for an entire day or partial day if needed. If used for a partial day, employees should report its use to the nearest tenth of an hour. (b) Approval Sick leave may be granted only at the discretion of or with the approval of the Department Director and as defined in the Employee Policy Manual. 3. Sick Leave Conversion Employees who at the end of the calendar year have an accrued level of Sick Leave equal to or greater than the full value of 50 months of accrued Sick Leave, and who have used six or less days of Sick Leave during that calendar year will be permitted (only once per year) to convert up to six (6) days of Sick Leave to paid vacation at the value of 50% (maximum value of 3 days per year). 11 Newport Beach Employees League 2019-21 D. Holiday Leave The following days shall be observed as paid holidays (i.e., employees shall have the day off with pay) by all unit members. For each holiday, except the Floating Holiday (where the employee chooses the day off), if an employee is required to work on the holiday, they will receive their pay for the holiday and in addition either pay or Flex Leave for the number of hours worked on the holiday. Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas Day New Year's Eve New Year's Day Washington's Birthday Memorial Day Martin Luther King Day Floating Holiday July 4 1 st Monday in Sept. November 11 4th Thurs. in November Last 1/2 of working day December 25 Last 1/2 of working day January 1 3rd Monday in February Last Monday in May 3rd Monday in January July 1St - 1 day* *The floating holiday (eight (8) hours of holiday leave) is awarded on July 1. The hours are added to employees' Flex Leave account. Holidays will be paid based on the employee's regular work day schedule. For example, if an employee is on a 9/80 schedule and the holiday is observed on a day that the employee is regularly scheduled to work 9 hours, the employee is entitled to receive 9 hours of Holiday pay. However, if an employee is on a 9/80 schedule and the holiday is observed on a day that the employee is regularly scheduled to work 8 hours, the employee is entitled to receive 8 hours of holiday pay. Employees will receive 8 hours of Holiday Pay annually for the Floating Holiday. Holidays listed above (except the Floating Holiday) occurring on a Saturday shall be observed the preceding Friday. Holidays occurring on a Sunday shall be observed the following Monday. (Half day holidays shall be observed prior to the observed holiday). 2. Holiday Pay Eligibility Following are the limitations on eligibility for Holiday pay: (a) Holiday pay will be paid only to employees who work their scheduled day before and scheduled day after a holiday, or are on authorized 12 Newport Beach Employees League 2019-21 paid leave (e.g. approved vacation or sick leave that has been approved by the Department Director). (b) Newly hired employees will be eligible to receive full pay for scheduled holidays, without a waiting period. E. Bereavement Leave Bereavement leave shall be defined as "the necessary absence from duty by an employee because of the death or terminal illness in his/her immediate family." Unit members shall be entitled to forty (40) hours of bereavement leave per calendar year per incident (terminal illness followed by death is considered one incident). Bereavement leave shall be administered in accordance with the provisions of the Employee Policy Manual. Leave hours need not be used consecutively, but should occur in proximate time to the occurrence. For the purposes of this section, immediate family shall mean an employee's father, mother, stepfather, stepmother, brother, sister, spouse/domestic partner, child, stepchild, grandparents and the employee's spouse's/domestic partner's father, mother, brother, sister, child and grandparents. The provisions of this Section shall not diminish or reduce any rights a member may have pursuant to applicable provisions of State or Federal law. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. F. Leave Sellback During calendar year 2019, employees shall have the option (on two occasions) of selling back on an hour for hour basis, accrued Flex or Vacation leave. In no event shall the Flex or Vacation leave balance be reduced below one hundred and sixty (160) hours. Hours sold back will be subject to the Retiree Health Savings Plan Part C contributions, per Section 4 (E), Retiree Medical. For the term of this MOU the Association has elected Part C contributions for Flex/Vacation at 0%. Effective in calendar year 2020 and thereafter, 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. 13 Newport Beach Employees League 2019-21 SECTION 4. —Fringe Benefits A. Health Insurance Benefits Information Committee City has established a Benefits Information Committee (BIC) composed of one representative from each employee association and up to three City representatives. The Benefits Information Committee has been established to allow the City to present data regarding carrier and coverage options, the cost of those options, appropriate coverage levels and other health 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 The City has implemented an IRS qualified Cafeteria Plan. In addition to the contribution amounts listed below, the City shall contribute the minimum CalPERS participating employer's contribution towards medical insurance for employees enrolled in a CalPERS medical plan, per Government Code Section 22892. 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 Employees League will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. 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 will contribute the PERS minimum contribution amount and $1,725 per month towards the Cafeteria Plan. NBEL members who do not 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 per month. 14 Newport Beach Employees League 2019-21 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 comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. 5. Healthcare Reform The parties recognize that certain State and Federal laws, programs and regulations, including the Affordable Care Act, may impact future medical plan offerings. Either party may request to reopen Section 4,A,(2) regarding medical insurance for the purpose of discussing alternative approaches and proposals to providing healthcare coverage. In addition, should State or Federal laws concerning taxation of healthcare benefits change, the parties agree to meet and discuss the impact of such change. Additional Health 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. An NBEL member may request that medical, child care and other eligible expenses be paid or reimbursed by the Section 125 Plan out of the employee's account. The taxable salary of the employee will be reduced by the amount designated by the employee for reimbursable expenses. 2. Disability Insurance The City shall provide 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) WE Newport Beach Employees League 2019-21 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 terminates from City employment. C. Employee Assistance Program City shall provide an Employee Assistance Program (EAP) through a properly licensed provider. NBEL members and their family members may access the EAP subject to provider guidelines. D. The Retirement Benefit Retirement Formula The City contracts with PERS to provide retirement benefits for its employees. Pursuant to prior agreements and state mandated reform, the City has implemented first, second and third tier retirement benefits: Tier 1: For employees hired by the City on or before November 23, 2012, the retirement formula shall be the 2.5%@55 calculated on the basis of the single highest year. Tier 2: For employees first hired by the City between November 24 and December 31, 2012, or hired on or after January 1, 2013 and are current Classic members of the retirement system, as defined in the Public Employees' Pension Reform Act ("PEPRA'), the retirement formula shall be 2%@60 calculated on the average 36 highest month's salary. Tier 3: For employees first hired by the City on or after January 1, 2013, and who do not meet the Tier 2 criteria because they are new members as defined by the PEPRA, the retirement formula shall be 2.0%@62 calculated on the average 36 highest month's salary. 16 Newport Beach Employees League 2019-21 2. Employee Contributions The NBEL has agreed to share in the rising cost of pension obligations. Under the terms of this MOU, unit members will contribute additional amounts toward the PERS retirement benefit, to the extent permissible by law. Should any provision be deemed invalid, the City and NBEL agree to meet for the purpose of renegotiating employee retirement contributions. Employees in each Tier contribute 13% of pensionable pay toward the retirement benefit. Employee retirement contributions that are in addition to the normal PERS Member Contribution (of 7% or 8%) shall 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, to the extent allowable by law. It is recognized that these payments will not be reported to PERS as contributions toward either the Member or Employer rate, as provided under GC Section 20516(f). Tier I.- Tier : Tier 1 Employees shall pay their eight percent (8%) (compensation earnable) member contribution, 2.42% compensation earnable (as cost sharing) per Government Code section 20516(a) and 2.58% compensation earnable (as cost sharing) per Government Code section 20516(1,. Tiers 2: Tier 2 employees shall pay their seven percent (7%) (compensation earnable) member contribution and six percent (6%) of compensation earnable as cost sharing per Government Code section 20516(f). Tier 3 The minimum statutory employee contribution for employees in Tier 3 is subject to the provisions of the (PEPRA) and equals 50% of the "total normal cost". Tier 3 employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code Section 20516(f), for a total employee contribution of 13% of pensionable compensation. The City contracts with PERS for the 4th Level 1959 Survivors Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military Service Credit, 2% Cost of Living Adjustment and the pre -retirement option settlement 2 death benefit (Section 21548). 17 Newport Beach Employees League 2019-21 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 three categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2006. b. Category 2 - Active employees hired prior to January 1, 2006, whose age plus years of service as of January 1, 2006 was less than 50 (46 for public safety employees). c. Category 3 - Active employees hired prior to January 1, 2006, whose age plus years of service was 50 or greater (46 for public safety employees) as of January 1, 2006. 2. Program Structure This is an Integral Part Trust (IPT) Retiree Health Savings (RHS) Program (formerly the Medical Expense Reimbursement Program WERP"). 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): 1 % of Salary. 18 Newport Beach Employees League 2019-21 Part B contributions (employer contributions): $2.50 per month for each year of service plus year of age (updated every January 1 st based on status as of December 31 st of the prior year). Part C contributions (leave settlement as determined by NBEL): The NBEL will determine the level of contribution for all employees it represents, subject to the following constraints. All employees within the NBEL must participate at the same level, except that Safety members and Non -safety members within an NBEL may have different levels. The participation level should be specified as a percentage of the leave balance on hand in each employee's leave bank at the time of separation from the City. For example, if the NBEL wishes to specify 50% of the leave balance as the participation level, then each member leaving the City, or cashing out leave at any other time, would have the cash equivalent of 50% of the amount that is cashed out added to the RHS, on a pre-tax basis. The remaining 50% would be paid in cash as taxable income. Individual employees would not have the option to deviate from this breakout. The NBEL has decided to participate in Part C contributions at the level of zero percent (0%) Flex/Vacation and zero percent (0%) Sick Leave. This amount may be changed, on a go forward basis, as part of a future meet and confer process. However, the participation level must be the same for all employees within the NBEL. 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 RHS Part C contributions, but only to the extent and within all the numeric parameters specified in the Employee Policy Manual. Section 11.21 of the Manual contains a schedule, which specifies the amount of sick leave that can be "cashed out," based on time of service. The manual also caps the number of hours that can be "cashed out" at 800, and specifies that sick leave hours are "cashed out" on a 2 for 1 basis (800 hours of sick leave are converted to 400 hours for cash purposes). Sick leave participation is a separate item from Vacation/Flex leave participation, and thresholds must be separately identified by the NBEL. 19 Newport Beach Employees League 2019-21 Part A contributions may be included in PERS compensation. Part B and Part C contributions will not be included in PERS compensation. Part A contributions begin upon enrollment in the program and are credited to each RHS Employee Account each pay period. Eligibility for Part B contributions is set at five years of vested City employment. At that time, the City will credit the first five years' worth of Part B contributions into the Employee Account (interest does not accrue during that period). Thereafter, contributions are made bi-weekly. Part C deposits, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon separation. If an employee leaves the City prior to five years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the RHS Employee Account. Such an employee will not be entitled to any Part B contributions. The exception to this is a full-time employee, participating in the program, who leaves the City due to industrial disability during the first five years of employment. In such cases, the employee will receive exactly five years' worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's RHS account at the time of separation. Distributions from RHS Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, 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 CalPERS participating employer's contribution (i.e., the Ca1PERS statutory minimum amount) towards medical insurance after retirement. The parties also agree that, for retirees selecting 20 Newport Beach Employees League 2019-21 a CalPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's RHS account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one-time City contribution to their individual RHS accounts that equates to $100 per month for every month they contributed to the previous "defined benefit" plan, to a maximum of 15 years (180 months). This contribution will be made only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. Employees in Category 2 who had less than five years' service with the City prior to implementation of the new program will only receive Part B contributions back to January 1, 2006 when they reach five years total service. c. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute $400 per month into each of their RHS accounts after they retire from the City, to continue as long as the employee or spouse is still living. Each employee will contribute a flat $100 per month to the plan for the duration of their employment to partially offset part of this expense to the City. The maximum benefit provided by the City after retirement is $4,800 per year, accruing at the rate of $400 per month. There is no cash out option for these funds, and they may not be spent in advance of receipt. Employees in this category will also receive an additional one-time City contribution of $75 per month for every month they contributed to the previous plan prior to January 1, 2006, up to a maximum of 15 years (180 months). This contribution will be made to the RHS account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. 3. Administration Vendors have been selected by the City to administer the program. The contract expense for program -wide administration by the vendor will be paid by the City. 21 Newport Beach Employees League 2019-21 However, specific vendor charges for individual account transactions that vary according to the investment actions taken by each employee, such as fees or commissions for trades, will be paid by each employee. The City's Deferred Compensation Committee, or its successor committee, will have the authority to determine investment options that will be available through the plan. F. Tuition Reimbursement NBEL members attending accredited community colleges, colleges, trade schools or universities, or recognized professional organizations or agencies, 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, seminars, or professional development programs. Maximum tuition reimbursement for employees shall be $1,500 per fiscal year. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Human Resources Director or designee. G. Deferred Compensation Each employee shall have the right to enroll in the deferred compensation program set up by the City and subject to the rules of IRS Code section 457. For each employee who enrolls in the deferred compensation program, the City shall contribute to each employee's deferred compensation account as follows: Effective the first day of the pay period which includes January 1, 2020, the City shall contribute twenty five dollars ($25) per month to each enrolled employee's deferred compensation account if the employee contributes at least twenty five dollars ($25) per month towards his/her deferred compensation account. The City is only obligated to make the contribution to an employee's deferred compensation account if the employee has enrolled in the deferred compensation program. 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. SECTION 5. Miscellaneous/Working Conditions A. Reductions in Force/Layoffs 22 Newport Beach Employees League 2019-21 The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. DEFINITIONS "Layoffs" or "Laid Off' shall mean the non -disciplinary termination or employment. 2. "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 the current Classification or any Classification within the Series, subject to the following: (a) Credit shall be given only for continuous service subsequent to the most recent appointment to regular status in the Classification or Series; and (b) Seniority shall include time spent on industrial leave, military leave, and leave of absence without pay, but shall not include time spent on any other authorized or unauthorized leave of absence. 3. "Classification" shall mean one or more full time positions identical or similar in duties not including part-time, seasonal or temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). 4. "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 more supervisory responsibilities for subordinates. The City Manager shall determine those classifications following a meet and consult process which constitute a Series. 5. "Bumping Rights", "Bumping" or "Bump" shall mean (1) the right of an employee, based upon seniority within a series to bump into a lower ranking classification within the same series, (2) to be followed by, an employee being permitted to bump into a classification within a different series. The latter bumping shall be based upon unit wide seniority and shall be limited to a classification in which the employee previously held regular status. 23 Newport Beach Employees League 2019-21 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. PROCEDURE The General Services Division within the Municipal Operations Department will select employees for layoff by straight seniority department wide. This means department management has total control of position elimination and personnel reassignment within ranks, but the layoffs shall be on a straight forward "last hired - first fired" basis. The layoff system for the Utilities Division shall operate the same department -wide seniority as does the General Services Division, with the exception of the Electrical and Telecommunications sections. Because of the highly specialized skills and training of the personnel in these sections, these sections shall be treated as unique and individual unto themselves. In the event the City Manager determines to reduce the number of employees within a classification, the following procedures are applicable: Temporary and probationary employees within any classification shall, in that order, be laid off before permanent employees. 2. Employees within a classification shall be laid off in inverse order of seniority. 3. 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. 4. 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 following the Department Director's consideration of established performance evaluations. REEMPLOYMENT Employees who are laid off shall be placed on a Department re-employment list in reverse order of layoff. The re-employment list shall expire in 18 months. 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 within seven (7) days of written notice of appointment. Notice shall be deemed given when 24 Newport Beach Employees League 2019-21 personally delivered to the employee or deposited in the U.S. Mail, first class postage prepaid, 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. SEVERANCE If an employee is laid off from theirjob with the City, for economic reasons, the City will grant severance pay in an amount equal to one week of pay for every full year of continuous employment service to the City of Newport Beach up to ten (10) weeks of pay. 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. B. Non -Discrimination City and NBEL agree that there will be no discrimination by either party or by any of their agents against any employee because of his/her membership or non- membership in NBEL, or because of any protected classification identified in the law. C. Promotional Preference Where no less than two (2) unit members achieve top three ranking on a certified eligible list, selection to the position shall be made with preference given to the unit members so qualified. The Human Resources Department shall be responsible for insuring that a position vacancy announcement for all available City positions be distributed in a manner that reasonably assures unit members access to the announcements. The Human Resources Department shall oversee all testing procedures. Any employee who has achieved "regular status" may request assignment to any lateral or lower classification, and that employee may be transferred into that classification without competitive testing if both of the following conditions have been satisfied: .1. The employee meets the minimum qualifications of the classification; and 2. The Department Director approves of the transfer. 25 Newport Beach Employees League 2019-21 D. Work Schedules Employees in the unit work either a 9/80 or 5/40 work schedule. Employees assigned to the 9/80 work schedule will have alternating Fridays off with the City determining which employees will work on each alternating Friday to ensure effective coverage of the work. The City agrees to maintain flex -scheduling where it is currently in place in this unit in the Municipal Operations Department. The Building Maintenance, Parks Maintenance, and Beach Maintenance crews will be placed on the 5/40 schedule including the Memorial Day and Labor Day weekends, or any portion of time between these Holidays at the discretion of the General Services Director. The City reserves the right to amend the program as needed to mitigate any operational problems which may arise due to budgetary cutbacks, personnel cuts or shortages, service level complaints, or any other operational reason. Should an operational problem involving service reductions or increases in cost materialize, the Department Director will notify the LABEL and the employees affected work group of the problem in writing, supported with cause. The NBEL and/or the employees of the affected work group, will in turn have up to ten (10) working days to respond and schedule a meeting with the Department Director. The purpose of the meeting is to propose a solution to the problem. The Department Director will consider the proposed solution and respond, in writing, within five (5) working days. If the Department Director and the work group disagree on the solution, the NBEL and/or employees of the affected work group will have up to five (5) working days to appeal the Department Director's decision to the City Manager, who will consider both sides of the issue and resolve the dispute, in a written decision within ten (10) days after the aforementioned meeting. E. Labor Management Committee Committees shall meet on an as needed basis; names of participating unit members shall be announced to management no less than 5 work days before the scheduled meeting; cancellation for cause shall be rendered by the canceling party no less than 48 hours prior to the scheduled meeting; canceled meetings shall be rescheduled to take place within 5 working days of the canceled meeting; committees shall be departmental; they may be combined in the interests of efficiency with other such committees; City participants shall include appropriate department or division heads outside the unit; the purpose of the committees shall be to resolve conflict and exchange information; a unit staff person may attend meetings; meetings shall be scheduled to last no less than one hour; grievances in process shall not be subject to resolution in meetings; matters properly dealt with in negotiations may be discussed but no agreements shall be effected on same in committee. Meetings shall be on work time. 26 Newport Beach Employees League 2019-21 F. Discipline - Notice of Intent Employees who are to be the subject of discipline equal to an unpaid suspension of three (3) days or greater shall be entitled to prior written notice of intent to discipline at least seven (7) calendar days prior to the imposition of the actual penalty. This written notice shall contain a description of the event or conduct which justifies the imposition of discipline. The notice shall also include the specific form of a discipline intended, and the employee shall be offered the opportunity for a Skelly meeting before their Department Director prior to the imposition of the penalty. All other discipline resulting in less than a three (3) day suspension will not be subject to the aforementioned procedure. This understanding is not intended to in any way reduce the rights of employees to due process. Employees who have become the subject to a suspension of one or two days who wish to appeal the suspension shall have the right to appeal the decision to the City Manager or designee. Employees who have received a written reprimand, shall have the right to place comments on the document prior to placement in his/her personnel file as well as file a grievance as addressed in the grievance procedure. G. Grievance Procedure Step 1: A grievance may be filed by any employee on his/her own behalf, or jointly by a group of employees, or by the NBEL. The Grievance Procedure is the sole and exclusive method by which an employee or the NBEL may challenge a provision of this MOU. A grievance shall be brought to the attention of the immediate supervisor for discussion within ten (10) business days after an employee or NBEL Board member knew, or in the exercise of reasonable diligence should have known, the act or events upon which the grievance is based. If the Employee or the NBEL (if filed by the NBEL) is not satisfied with the decision reached through the informal discussion or if extenuating circumstances exist, the Employee or NBEL shall have the right to file a formal grievance in accordance with Step 2 of this section. Grievances not presented within the time period shall be considered resolved. The supervisor shall meet with the grievant to settle grievance and give a written answer to the grievant within seven (7) business days from receipt of the grievance by the supervisor. When the immediate supervisor is also the department head the grievance shall be presented in Step 2. Step 2: If the employee or the NBEL (if filed by the NBEL) is not in agreement with the decision rendered in Step 1, the grievant shall have the right to present a formal 27 Newport Beach Employees League 2019-21 grievance to the Department Director within ten (10) business days after the discussion in Step 1. The right to file a grievance petition shall be waived in the event the Employee orN8EL fails to file a formal grievance within ten (10) business days after the occurrence of the incident that forms the basis of the grievance. All formal grievances shall be submitted on the form prescribed by the Human Resources Director and no formal grievance shall be accepted until the form is complete. The formal grievance shall contain a clear, concise statement of the grievance, the facts upon which the grievance is based, the rule, regulation or policy the interpretation of which is involved in the grievance, and the specific remedy or remedies sought by the grievant. The Department Director should render a written decision within ten (10) business days after receipt of the formal grievance. Step 3: If the formal grievance has not been satisfactorily adjusted in Step 2, it may be appealed to the City Manager or designee within ten (10) business days after the Employee receives the decision. The City Manager or designee may accept or reject the decision of the Department Director and shall render a written decision within ten (10) business days after conducting a grievance hearing. The decision of the City Manager or designee shall be final and conclusive. If mutually agreeable, a meeting may be conducted involving all affected parties at any step in the grievance procedure prior to a decision. The City Manager or designee may delegate uninvolved Department Directors to act on behalf of the City Manager to provide findings and recommendations. The findings and recommendations of the uninvolved Department Directors are advisory only and the City Manager's or designee's decision shall be final. Time Limits: Grievances shall be processed from one step to the next within the time limit indicated for each step. Time limits shall be strictly enforced. Any time limits established can be waived or extended only by mutual agreement confirmed in writing. Any grievance not carried to the next step by the Employee or NBEL within the prescribed time limit shall be deemed resolved upon the basis of the previous decision. A grievance may also be filed and appealed to the 3rd step of the grievance procedure for performance evaluations and written reprimands. H. Probationary Period Newly hired employees shall serve a twelve (12) month probationary period. The probationary period for promoted employees shall be six (6) months. Newly hired employees shall become eligible for their first step increase after twelve (12) months. All other City rules regarding step increases shall remain unchanged. 28 Newport Beach Employees League 2019-21 Failure of Probation New Probation An employee on new probation may be released at the sole discretion of the City at any time without right of appeal or hearing, except as provided in Subsection 3, below. 2. Promotional Probation (a) An employee on promotional probation may be failed at any time without right of appeal or hearing, except as provided in Subsection 3, below, and except that failing an employee on promotional probation must not be arbitrary, capricious or unreasonable. (b) An employee who fails promotional probation shall receive a performance evaluation stating the reason for failure of promotional probation. (c) When an employee fails his or her promotional probation, the employee shall have the right to return to his or her former class provided the employee was not in the previous class for the purpose of training for a promotion to a higher class. When an employee is returned to his or her former class, the employee shall serve the remainder of any uncompleted probationary period in the former class. (d) If the employee's former class has been deleted or abolished, the employee shall have the right to return to a class in his or her former occupational series closest to, but no higher than, the salary range of the class which the employee occupied immediately prior to promotion and shall serve the remainder of any probationary period not completed in the former class. 3. Probationary Release An employee who alleges that his or her probationary release was based on discrimination by the City, may submit a grievance within ten (10) days after receipt of the Notice of Failure of Probation. J. Accident Reporting The City will require that all traffic collisions involving City vehicles shall be reviewed by the traffic division supervisor of the Newport Beach Police Department to prevent any unnecessary reports from being forwarded to the DMV. Also, the 29 Newport Beach Employees League 2019-21 vehicle accident review board will evaluate the supervisor's field report prior to making its preventable/non-preventable determination. K. Safety Shoes If the City determines that an employee in the bargaining unit is required to wear safety shoes, the employee shall be provided with a voucher (annually) which enables the employee to purchase safety shoes from the City's vendor for safety shoes. The City has identified certain safety shoe styles for which it will pay (as of 1/1/19 the maximum the City will pay is $172.80). If the cost of the particular safety shoe styles (for which the City will pay) increases, the amount the City will pay will increase (by the increased cost of those styles of shoes). If the soles of the safety shoes wear out within a year, the employee should present the shoes to his/her supervisor. If the supervisor agrees that the soles are worn out, he/she will authorize the employee to purchase a new pair of shoes at City expense. If the supervisor judges that the uppers are in good condition, he will authorize the employee to have the shoes resoled at City expense. L. Uniforms It shall be understood by the NBEL and its members that employees who report for work either "out of uniform" or in "dirty" or "otherwise substandard" uniforms will be sent home without additional prior notice and without pay. Such incidents shall further be documented and regularly repeated violations of the uniform standards will subject the employee to progressive discipline up to and including dismissal for negligence and/or misconduct. Employees represented by the NBEL will be permitted to wear specified and approved shorts as part of the City approved optional uniform. The shorts must be dark blue in color, the inseam must be no less than 4 and 1/2 inches after shrinkage. They must be worn in combination with the standard City uniform shirt of the optional (golf style) City uniform shirt, and they must be worn with either white or blue socks. The optional uniform shall be considered proper and acceptable year round. Department Directors may make individual exceptions to this optional uniform agreement through the establishment of Departmental Policy in the interest of reasonable safety considerations. PERS Reporting of Uniform Allowance - To the extent permitted by law, the City shall report to the California Public Employees' Retirement System (Ca1PERS) the uniform allowance of $95 per year for classifications who receive a uniform 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 Ca1PERS. Kit] Newport Beach Employees League 2019-21 M. Voluntary Training Program The Department shall, when the need for additional or replacement individuals possessing a commercial driver's license is anticipated, establish a voluntary training program that will allow employees to qualify for the license. N. In -Service Supervisory and Safety Training The City will continue its program of providing supervisory and motivational training for Supervisors and Crew Chiefs and any additional training required by law. O. Clean -Up Time When necessary, each employee shall be permitted up to fifteen (15) minutes of paid City time at the end of each work shift to perform work related job site and personal clean-up and to put away tools and equipment. The amount of clean-up time shall be limited to the actual needs of the employee. P. Rest Periods Employees shall be allowed a rest period of fifteen (15) minutes during the first half of their shift and another rest period of fifteen (15) minutes during the second half of their shift. Rest periods should be taken as close to mid shift as is possible. Such rest periods shall be scheduled in accordance with the requirements of the Department, but in no case shall rest periods be scheduled within one (1) hour of the beginning or the ending of a work shift or lunch period. The City may designate the location or locations at which rest periods may be taken. Rest periods shall be considered hours worked and employees may be required to perform duties, if necessary. Q. Service Awards For the purposes of determining service awards, if an employee has been employed by the City on more than one occasion, non-consecutive time will be considered as part of total service. An employee is required to individually notify the awards committee of all of the service time. R. Direct Deposit All employees shall participate in the payroll direct deposit system. 31 Newport Beach Employees League 2019-21 S. Salary on Reclassification An employee who is reclassified will be provided with a minimum salary increase of five (5%) percent upon reclassification (not to exceed the maximum of the new salary range). T. Separability Should any part of this MOU or any provision herein contained be rendered or declared invalid, by reason of any existing or subsequently enacted Legislation, or by decree of a Court of competent jurisdiction, such invalidation of such part or portion of this MOU shall not invalidate the remaining portion hereto, and same shall remain in full force and effect. Signatures are on the next page. 32 Newport Beach Employees League 2019-21 Executed this day of , 2019: ATTEST: Leilani Brown, City Clerk NEWPORT BEACH EMPLOYEES LEAGUE By: (2�_. Craig Aug , Pr ident CITY OF NEWPORT BEACH By: Diane Dixon, Mayor APPROVED AS TO FORM: By: C Peter Br n, Special Counsel 33 Newport Beach Employees League 2019-21 EXHIBIT A.1 NEWPORT BEACH EMPLOYEES LEAGUE MOU Term: January 1, 2019 - December 31, 2021 Effective: December 22, 2018 REPRESENTED POSITION Auto Parts Buyer Beach Maint. Supervisor Concrete Finisher Concrete Maint. Crew Chief Concrete Supervisor Equipment Maint. Supervisor Equipment Mechanic I Equipment Mechanic II Equipment Mechanic, Sr. Equipment Operator I Equipment Operator II Facilities Maint. Crew Chief Facilities Maint. Supervisor Facilities Maint. Technician Facilities Maint. Worker II Groundsworker I Groundsworker II Maint. & Ops. Specialist Maint. Worker I Maint. Worker II Park Maint. Chief Park Maint. Supervisor Shuttle Driver Storm Drain/St. Sweep Chief Storm Drain/St. Sweep Supervisor Street Maint. Crew Chief Street Maint. Supervisor Utilities Coordinator, SCADA Utilities Crew Chief Utilities Specialist Utilities Specialist, Sr. Utilities Supervisor Water Production Operator Water Production Supervisor Water Quality Coordinator 1.9% Adjustment HOURLY PAY RATE 1 MONTHLY PAY RATE Z MIN MAX MIN MAX $26.26 $36.99 $4,553 $6,411 $34.37 $48.40 $5,957 $8,389 $26.64 $37.45 $4,618 $6,492 $29.70 $41.83 $5,149 $7,250 $34.37 $48.40 $5,957 $8,389 $34.40 $48.40 $5,963 $8,389 $23.30 $32.75 $4,039 $5,676 $26.94 $37.93 $4,669 $6,574 $29.70 $41.83 $5,149 $7,250 $24.14 $34.01 $4,184 $5,896 $25.39 $35.72 $4,402 $6,192 $29.70 $41.83 $5,149 $7,250 $34.37 $48.40 $5,957 $8,389 $26.64 $37.45 $4,618 $6,492 $21.92 $30.83 $3,800 $5,343 $21.27 $29.94 $3,687 $5,189 $23.43 $33.01 $4,062 $5,722 $29.70 $41.83 $5,149 $7,250 $21.92 $30.83 $3,800 $5,343 $23.01 $32.38 $3,989 $5,613 $29.70 $41.83 $5,149 $7,250 $34.37 $48.40 $5,957 $8,389 $21.12 $29.73 $3,660 $5,152 $29.70 $41.83 $5,149 $7,250 $34.37 $48.40 $5,957 $8,389 $29.70 $41.83 $5,149 $7,250 $34.37 $48.40 $5,957 $8,389 $31.85 $44.84 $5,521 $7,772 $29.70 $41.83 $5,149 $7,250 $24.62 $34.65 $4,268 $6,006 $26.46 $37.24 $4,587 $6,455 $34.37 $48.40 $5,957 $8,389 $31.20 $43.90 $5,408 $7,609 $36.12 $50.82 $6,261 $8,809 $34.37 $48.40 $5,957 $8,389 1 Hourly pay rates are rounded to the nearest hundredth. Z Monthly pay rates are rounded to nearest whole dollar. 34 EXHIBIT A.2 NEWPORT BEACH EMPLOYEES LEAGUE MOU Term: January 1, 2019 - December 31, 2021 Effective: December 21, 2019 1.9% Adjustment REPRESENTED POSITION Auto Parts Buyer Beach Maint. Supervisor Concrete Finisher Concrete Maint. Crew Chief Concrete Supervisor Equipment Maint. Supervisor Equipment Mechanic I Equipment Mechanic II Equipment Mechanic, Sr. Equipment Operator I Equipment Operator II Facilities Maint. Crew Chief Facilities Maint. Supervisor Facilities Maint. Technician Facilities Maint. Worker II Groundsworker I Groundsworker II Maint. & Ops. Specialist Maint. Worker I Maint. Worker II Park Maint. Chief Park Maint. Supervisor Shuttle Driver Storm Drain/St. Sweep Chief Storm Drain/St. Sweep Supervisor Street Maint. Crew Chief Street Maint. Supervisor Utilities Coordinator, SCADA Utilities Crew Chief Utilities Specialist Utilities Specialist, Sr. Utilities Supervisor Water Production Operator Water Production Supervisor Water Quality Coordinator HOURLY PAY RATE 1 MIN MAX MONTHLY PAY RATE Z MIN MAX $26.76 $37.69 $4,639 $6,533 $35.02 $49.32 $6,070 $8,548 $27.15 $38.16 $4,705 $6,615 $30.27 $42.62 $5,246 $7,388 $35.02 $49.32 $6,070 $8,548 $35.06 $49.32 $6,077 $8,548 $23.74 $33.37 $4,115 $5,784 $27.45 $38.65 $4,758 $6,699 $30.27 $42.62 $5,246 $7,388 $24.60 $34.66 $4,263 $6,008 $25.88 $36.40 $4,485 $6,309 $30.27 $42.62 $5,246 $7,388 $35.02 $49.32 $6,070 $8,548 $27.15 $38.16 $4,705 $6,615 $22.34 $31.41 $3,872 $5,445 $21.68 $30.50 $3,757 $5,287 $23.88 $33.64 $4,139 $5,830 $30.27 $42.62 $5,246 $7,388 $22.34 $31.41 $3,872 $5,445 $23.45 $33.00 $4,065 $5,720 $30.27 $42.62 $5,246 $7,388 $35.02 $49.32 $6,070 $8,548 $21.52 $30.29 $3,730 $5,250 $30.27 $42.62 $5,246 $7,388 $35.02 $49.32 $6,070 $8,548 $30.27 $42.62 $5,246 $7,388 $35.02 $49.32 $6,070 $8,548 $32.46 $45.69 $5,626 $7,919 $30.27 $42.62 $5,246 $7,388 $25.09 $35.31 $4,349 $6,121 $26.97 $37.95 $4,674 $6,578 $35.02 $49.32 $6,070 $8,548 $31.80 $44.73 $5,511 $7,754 $36.80 $51.79 $6,379 $8,976 $35.02 $49.32 $6,070 $8,548 1 Hourly pay rates are rounded to the nearest hundredth. Z Monthly pay rates are rounded to nearest whole dollar. 35 EXHIBIT A.3 NEWPORT BEACH EMPLOYEES LEAGUE MOU Term: January 1, 2019 - December 31, 2021 Effective: December 19, 2020 1.92% Adjustment REPRESENTED POSITION Auto Parts Buyer Beach Maint. Supervisor Concrete Finisher Concrete Maint. Crew Chief Concrete Supervisor Equipment Maint. Supervisor Equipment Mechanic I Equipment Mechanic II Equipment Mechanic, Sr. Equipment Operator I Equipment Operator II Facilities Maint. Crew Chief Facilities Maint. Supervisor Facilities Maint. Technician Facilities Maint. Worker II Groundsworker I Groundsworker II Maint. & Ops. Specialist Maint. Worker I Maint. Worker II Park Maint. Chief Park Maint. Supervisor Shuttle Driver Storm Drain/St. Sweep Chief Storm Drain/St. Sweep Supervisor Street Maint. Crew Chief Street Maint. Supervisor Utilities Coordinator, SCADA Utilities Crew Chief Utilities Specialist Utilities Specialist, Sr. Utilities Supervisor Water Production Operator Water Production Supervisor Water Quality Coordinator HOURLY PAY RATE 1 MONTHLY PAY RATE Z MIN MAX MIN MAX $27.28 $38.42 $4,728 $6,659 $35.69 $50.26 $6,186 $8,712 $27.67 $38.90 $4,796 $6,742 $30.85 $43.44 $5,347 $7,530 $35.69 $50.26 $6,186 $8,712 $35.73 $50.27 $6,193 $8,713 $24.20 $34.01 $4,194 $5,895 $27.98 $39.39 $4,849 $6,827 $30.85 $43.44 $5,347 $7,530 $25.07 $35.33 $4,345 $6,123 $26.37 $37.10 $4,571 $6,431 $30.85 $43.44 $5,347 $7,530 $35.69 $50.26 $6,186 $8,712 $27.67 $38.90 $4,796 $6,742 $22.77 $32.02 $3,946 $5,550 $22.09 $31.09 $3,829 $5,389 $24.34 $34.28 $4,218 $5,942 $30.85 $43.44 $5,347 $7,530 $22.77 $32.02 $3,946 $5,550 $23.90 $33.63 $4,143 $5,829 $30.85 $43.44 $5,347 $7,530 $35.69 $50.26 $6,186 $8,712 $21.93 $30.87 $3,802 $5,351 $30.85 $43.44 $5,347 $7,530 $35.69 $50.26 $6,186 $8,712 $30.85 $43.44 $5,347 $7,530 $35.69 $50.26 $6,186 $8,712 $33.08 $46.57 $5,734 $8,071 $30.85 $43.44 $5,347 $7,530 $25.57 $35.99 $4,432 $6,238 $27.48 $38.68 $4,764 $6,704 $35.69 $50.26 $6,186 $8,712 $32.41 $45.59 $5,617 $7,903 $37.51 $52.78 $6,502 $9,149 $35.69 $50.26 $6,186 $8,712 1 Hourly pay rates are rounded to the nearest hundredth. z Monthly pay rates are rounded to nearest whole dollar. 36 STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; the foregoing resolution, being Resolution No. 2019-6 was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 22nd day of January, 2019; and the same was so passed and adopted by the following vote, to wit: AYES: Council Member Brad Avery, Council Member Duffy Duffield, Council Member Jeff Herdman, Mayor Pro Tem Will O'Neill, Mayor Diane Dixon NAYS: None ABSTAIN: Council Member Joy Brenner ABSENT: Council Member Kevin Muldoon IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 23,d day of January, 2019. Leilani I. Krown City Clerk Newport Beach, California