HomeMy WebLinkAbout2013-12 - Adopt Memorandum of Understanding with the Newport Beach Lifeguard Management AssociationRESOLUTION NO. 2013 -12
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH
ADOPTING A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE
NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION
WHEREAS, the City Council of the City of Newport Beach previously adopted
Resolution No. 2001 -50, the "Employer- Employee Relations Resolution," to promote
improved relations and communication between the City of Newport Beach and its
employee associations; and
WHEREAS, the City of Newport Beach previously entered into a Memorandum
of Understanding with the Newport Beach Lifeguard Management Association for the
period of July 1, 2009 through December 31, 2011; and
WHEREAS, representatives from the City of Newport Beach and representatives
from the Newport Beach Lifeguard Management Association have met and conferred in
good faith and agreed to modify the current Memorandum of Understanding; and
WHEREAS, the City Council of the City of Newport Beach desires to replace the
Memorandum of Understanding between the City of Newport Beach and the Newport
Beach Lifeguard Management Association by adopting a successor Memorandum of
Understanding.
NOW, THEREFORE, the City Council of the City of Newport Beach does
RESOLVE as follows:
Section 1. Wages, hours, fringe benefits and other terms and conditions
of employment of employees represented by the Newport Beach Lifeguard
Management Association shall be provided in accordance with the provisions of the
attached Memorandum of Understanding (Attachment A).
Section 2. The term of the Memorandum of Understanding shall be for 30
months, commencing retroactively to January 1, 2012, and will remain in full force and
effect through June 30, 2014.
Adopted this 22nd day of January, 2013.
ATTES�T��� , W��
City Clerk
Mayor of the City of Newport Beach
Attachment A
MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF NEWPORT BEACH AND
THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION
This Memorandum of Understanding (hereinafter referred to as WOU ") is entered into
with reference to the following:
1=11- 1ifilc3>� I
Authorized representatives of the CITY OF NEWPORT BEACH (hereinafter
referred to as "CITY ") and authorized representatives of the NEWPORT BEACH
LIFEGUARD MANAGEMENT ASSOCIATION (hereinafter referred to as
"NBLMA ") a recognized employee organization, met and conferred, exchanging
various proposals concerning wages, hours, fringe benefits and other terms and
conditions of employment of employees represented by NBLMA (hereinafter
referred to as "EMPLOYEES ") for the period of January 1, 2012 through June 30,
2014.
2. NBLMA representatives have reached an agreement as to wages, hours and
other terms and conditions of employment to apply to all affected EMPLOYEES
for the time period defined above. Said EMPLOYEES desire to reduce their
agreement to writing, and to present such agreement, in the form of this MOU, to
the City Council of the City of Newport Beach for approval.
NOW, THEREFORE, this MOU is made and entered into by the parties hereto effective
January 1, 2012, as follows:
SECTION 1. GENERAL PROVISIONS
A. Duration of Memorandum
The terms of this MOU are to remain in full force and effect beginning January 1,
2012 through June 30, 2014.
B. Scope
All present written rules and currently established practices and employee
rights, privileges and benefits that are within the scope of representation
shall remain in full force and effect during the term of this MOU unless
specifically amended by the provisions of this MOU, or in the case of the
Department Standard Operating Procedures (SOPs) falling within the
scope of representation, the City has given notice to the Association and,
upon request, met and conferred on any proposed changes which fall
within the scope of representation.
When the Department proposes to change any SOP departmental rule or
regulation, it will provide a copy of such change to the Association no less
than seven (7) days prior to implementation of the proposed change. If
such proposed change materially impacts any matter within the scope of
representation, then the parties agree to meet and confer over such
impact.
2. Pursuant to this MOU, the City reserves and retains all of its inherent
exclusive and non - exclusive managerial rights, powers, functions and
authorities ( "Management Rights ") as set forth in Resolution No. 2001 -50.
C. Conclusiveness
Except as provided for in this agreement, 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 for herein or by mutual agreement of the parties. No representative of
either party has the authority to make and none of the parties shall be bound by
any statement, representation or agreement, which is not embodied in this MOU.
Any changes to any salaries, benefits or terms and conditions of employment
within the scope of representation not embodied in this MOU shall require prior
mutual agreement signed by the Mayor and the Newport Beach Lifeguard
Management Association President.
D. Savings
Should any part of this MOU or any provision herein contained be rendered or
declared invalid, by reason of any existing or subsequently enacted Legislation,
or by decree of a Court of competent jurisdiction, such invalidation of such part or
portion of this MOU shall not invalidate the remaining portion hereto, and same
shall remain in full force and effect; provided, however, that should the provisions
of this MOU relating to pay schedule adjustment increases be declared invalid,
CITY agrees to provide alternate benefits agreeable to NBLMA, to EMPLOYEES
to receive the same amount of money as they would have received had such
provision not been declared invalid.
E. Other Terms and Conditions
Except as to those matters expressly covered by this MOU, all terms and
conditions of employment may be changed or amended after meeting and
conferring, in good faith.
E
P. Unit Classification Titles
Unit classifications are listed in Exhibit A.
For all compensation comparison purposes, actual job duties, and not
classification titles, will be utilized.
SECTION 2. COMPENSATION
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Salary Adiustments
Effective the pay period including January 1, 2013 salaries will be increased by
an amount equal to the increase in the Consumer Price Index (CPI) Los
Angeles /Orange County Urban Wage Earners Index for the 12 month period
ending on October 31, 2012 with a minimum 1.5% increase and a maximum
2.5% increase.
Effective the pay period including January 1, 2014 salaries will be increased by
an amount equal to the increase in the Consumer Price Index (CPI) Los
AngeleslOrange County Urban Wage Earners Index for the 12 month period
ending on October 31, 2013 with a minimum 1.5% increase and a maximum
2.0% increase.
Special Assignment Pay
Boat Pay: Lifeguard Captains certified for and assigned to boat operations shall
receive additional compensation of 2.5% of base salary for their job classification.
Effective upon MOU adoption, the Lifeguard Captain — Boat classification shall
be "sunsetted" and the incumbent shall retain the classification and assignment
pay until reassignment, promotion, or separation from employment.
Subsequently, boat assignment pay will be assigned to a qualified Captain and
compensated only when performing boat duties.
Training Pay: Lifeguard Captain assigned as the "Training Captain" will receive
an additional 7.5% of base pay while assigned the responsibilities of training.
C. Overtime
Unit employees shall receive overtime compensation for all hours worked in
excess of forty (40) in any work period. Paid time off shall be considered time
worked for the purposes of calculating overtime.
Unit employees shall have the option of requesting compensatory time off (CTO)
for all overtime, including training time, during the term of this agreement. All
compensatory time off shall be subject to existing City rules providing for
maximum (CTO) accrual of eighty (80) hours at time and one half on the books
or 120 actual hours.
D. Uniform Allowance
The City shall pay the entire cost of providing LMA members with each
component of the required LMA uniforms. The required LMA uniform includes
uniform pants, uniform shirts, safety shoes, badges and insignias, uniform
jackets and liners, belts, dive equipment, foul weather gear, personal floatation
device and helmet. The City shall not be responsible for providing employees
with socks, underwear, cap, workout shoes, or other clothing.
The City shall report the value of provided uniforms at $838 to PERS in
accordance with PERS requirements.
E. Call Out
Call out compensation shall be in accordance with the following provisions:
1. All emergency call out time shall be calculated to the nearest one quarter
(1/4) hour of time worked.
2. For forty (40) hour employees, a minimum of two (2) hours (including
travel time) of pay at the rate of one and one half (1 112) times the
employee's regular hourly rate of pay shall be guaranteed for each
emergency call out.
F. Scholastic Achievement Pay
Unit members whose starting date was prior to the City Council adoption of this
2092 -2014 MOU are entitled to additional compensation contingent upon
scholastic achievement ( "Scholastic Achievement Pay "). LMA members may
apply for increases pursuant to this Section when eligible and scholastic
achievement pay shall be included in the member's pay check for the pay period
immediately after approval by the Fire Chief. It is the responsibility of the LMA
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 full -time
service as a NBLMA member and number of units and/or degrees received by
the employee. Qualifying units and /or degrees must be awarded by accredited
community colleges, state colleges or universities. LMA members shall receive
scholastic achievement pay in accordance with the following:
I
Years of Total College % of Actual Step
Service Semester Units in Job Class Range
2 or more
30
1.5%
2 or more
A.A. /A. S. *
3.5%
3 or more
60
2.5%
3
90
3.5%
4 or more
90
3.5%
4
120
4.5%
4
B.A. /B.S.
5.5%
4
M.A. M.S.
6.5%
* Effective concurrent with Council adoption of the 2012 -2014 MOU,
Unit members hired on and after City Council adoption of this 2012 -2014 MOU
shall be ineligible for any scholastic pay based upon having obtained units only.
A 'degree' shall be awarded by an institution accredited by the State of
California, the United States Department of Education, the Council for Higher
Education, or the Distance Education Training Council.
Night Standby
An employee assigned to standby duty for purposes of being on call to handle
emergency situations arising at times other than during normal working hours
shall be guaranteed two (2 1/2) and a half hours of pay at his regular hourly rate
of pay for each calendar day of such standby duty. Employees shall have the
option of receiving compensatory time off in lieu of pay for night standby.
►• -
Temporary upgrading shall be defined as the temporary assignment of an
employee to work in a job classification, which is assigned to a salary schedule
higher than his /her regular job classifications.
Employees temporarily upgraded to the following job classifications and
equivalent positions shall receive a five percent (5 %) pay differential over their
regular rate of pay for all time worked In the higher job classification if they are
assigned to work in the higher job classification for a period of one (1) working
hour or longer.
Lifeguard Captain
Lifeguard Battalion Chief
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All holiday, vacation, sick leave and paid leave shall be paid at the employee's
regular rate of pay.
Assignments to higher rated classifications shall be made at the sole discretion of
the City.
Court Standby Pay
NBLMA members who, pursuant to Subpoena compelling attendance to testify to
acts, observations, or omissions occurring in the course and scope of
employment or at the direction of their supervisor, are required, while off —duty, to
remain within a certain response time from court, shall be considered to be on
"court standby time" and shall receive four hours of pay for each eight hours of
court standby time. NBLMA members shall, when required to appear in court
pursuant to a Subpoena or the direction of their supervisor to testify at to matters
relating to their employment with the City, be considered to be on duty and shall
be paid accordingly. Members shall remit all witness fees received for testifying
or appearing on any matter for which the member is eligible to receive court
standby time.
Lifeguard Officer Adiustment
Upon adoption of this 2012 -14 MOU, the City will conduct a total compensation
survey of the Lifeguard Officer classification. If survey results indicate Lifeguard
Officer total compensation is below market median of the survey agencies, the
City will provide a minimum 1.0 %, to a maximum 2.0 %, base salary adjustment
to the Lifeguard Officer salary range, in an effort to reach market parity, In no
event will the adjustment be greater than 2.0 %.
SECTION 3. LEAVES
A. Flex Leave
All employees hired after July 1, 1990 will be included in the Flexible Leave
Program. Within 60 days of the signing of this Memorandum of Understanding all
unit members still in the vacation /sick leave program may, collectively, elect to
convert to the flex leave program. Conversion terms shall be the same as those
utilized during the initial establishment of the flex leave program.
Basis for Accrual
Permanent full -time employees enrolled in the flex leave program will earn
leave in accordance with the following schedule:
Years of continuous Accrual per Longevity
Service pay period /hrs Pay Increase
1 but less than 5
5 but less than 9
9 but less than 12
12 but less than 16
16 but less than 20
20 but less than 25
25 and over
During the first six months
employees shall not accrue paid
employment six (6) months of
employees account.
5.54
0
6.15
0
6.77
0
7.69
0
7.69
1.0%
7.69
1.5%
7.69
2.5%
of employment, new regular full -time
leave. At the completion of six months of
accrued flex leave will be placed in the
Note: If an employee becomes sick in the first six months of employment,
the City will advance up to six (6) months of potentially accrued flex leave
time to be used for illnesses only. If employee terminates employment
prior to six months, the City will subtract the pay equivalent of the number
of flex leave days advanced from the employee's final check. Any flex
leave time advanced during the first six months of employment will be
subtracted from the six (6) months of accrual placed in the employees
account upon completion of six months employment.
2. Limit on Accumulation
Employees may accrue flex leave up to an accumulated total equal to
seventy eight (78) times the member's bi- weekly accrual rate. Effective
the pay period following adoption of the 2012 -14 MOU, members shall be
entitled to accrue flex leave up to a maximum of fifty -two (52) 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 ("spillover pay').. Members shall be eligible for flex leave spillover
pay only if they have utilized at least eighty (80) hours of flex leave the
previous calendar year. Employees who have not utilized the required
amount of leave the prior calendar year shall not be eligible to accrue time
above the maximum accrual limit.
Method of Use
Flex leave may not be taken in excess of that actually accrued and in no
case, except for illness, may it be taken prior to the completion of an
employee's initial probationary period.
The Department Director shall approve all requests for flex leave taking
into consideration the needs of the Department, and whenever possible
the seniority and wishes of the employee. Flex leave may be granted on
an hourly basis. Any fraction over an hour shall be charged to the next full
hour.
B. Vacation
1. Basis for AccruallFull -Time Employees
Employees entitled to vacation leave - with -pay shall accrue such leave
based on years of continuous service and the number of hours in a normal
workweek for the position to which they are assigned in accordance with
the following schedule:
Years of Accrual
Continuous Per
Service Pay Period
0 but less than 5
3.38
5 but less than 9
199
9 but less than 12
4.61
12 but less than 16
5.22
16 but less than 20
5.84
20 but less than 25
6.46
25 and over
7.07
2. Limit on Accumulation
Accrual of vacation days in excess of those earned for two years of
continuous service is not permitted past December 31st of each year with
the following exception: with approval of the Department Director, an
employee may accrue vacation days in excess of the two -year limit
provided all such excess accumulation is taken by March 31st of the
following year.
I Method of Use
Vacation may not be taken in excess of that actually accrued and in no
case, except for entry -level employees, may it be taken prior to the
completion of an employee's initial probationary period. Entry level
employees may use vacation after the completion of the initial six (6)
months of probation. The Department Director shall schedule and
approve all vacation leaves for employees taking into consideration the
needs of the Department, and whenever possible, the seniority and
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IN
wishes of the employee. Vacation leave may be granted on an hourly
basis.
Use of Flex and Vacation Leave
Level A staffing shall run from June 15th through Labor Day. During this period
of time, full -time personnel may be limited to a total of forty (40) hours usage of
vacation/flex leave. Additional vacation /flex leave during this period may be
approved if, in the opinion of management, adequate staffing levels can be
maintained.
The Department shall develop a policy defining when approved vacation /flex
leave times shall not be subject to cancellation.
The City will budget eighty (80) hours of overtime per employee per year for
vacations /flex leave backfill. Concurrently, the City and NBLMA will jointly review
procedures defining minimum staffing and the hours for night call out. Any
changes to these areas fall within the scope of representation and will be subject
to the meet and confer process.
Sick Leave
1. Basis for Accrual /Full -time Employees
Full -time, regular employees shall accrue sick leave based on the number
of hours in a normal workweek for the position to which they are assigned
in accordance with the following schedules:
Normal Work Week
40 hours
0- - 1 year
4 hours per month
1 -2 years
5 hours per month
2 -3 years
6 hours per month
3-4 years
7 hours per month
4+ years
8 hours per month
After the 3rd year level, and the 5th year level, employees will be required
to maintain the same number of hours as required of other permanent
employees.
Employees accruing sick leave hours under the above formula and
enrolled in the City's Disability Program will be eligible for City -paid
Disability Insurance premiums as follows: 50% at 88 hours, 100% at 208
hours.
R
2. Method of Use
a. General
Sick leave may not be taken in excess of that actually accrued.
Except as noted, an employee serving his /her initial probation
period is eligible to use his /her accumulated sick leave provided
that if for any reason his /her City employment is terminated prior to
the completion of such probationary period, his /her final pay check
shall be reduced by the value of the sick leave he /she has taken.
After completion of the initial six (6) months probation period, entry-
level employees shall not have used sick leave deducted from their
final pay check if they have maintained a satisfactory or higher
performance evaluation rating throughout the probationary period.
Sick leave may be granted on an hourly basis.
3INEWORTRIM
Sick leave may be granted only at the direction of or with the
approval of the Department Director and only for the purposes
defined in Section 112A of 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 40 months of accrued
sick leave, and who have used six or less days of sick leave during the
calendar year will be permitted (only once per year) to convert up to six
days of sick leave to either salary or paid vacation at the value of 50%
(Maximum value of 3 days per year). Eligible sick leave days converted to
cash shall be at the employee's option. Eligible sick leave days converted
to paid vacation shall require the approval of the Department Director.
E. Family Sick Leave
Unit employees shall be entitled to use an amount of time equal to one -half (1/2)
of their annual sick leave accrual for an illness of a dependent which requires the
presence of the employee. Such time may be taken from the employee's annual
sick leave accrual or sick leave bank, at the employee's choice. Leave shall be
administered in accordance with the provisions of Section 11.2 of the Employee
Policy Manual. The provisions of this section shall not be construed to affect or
reduce the right of any employee to any unpaid family medical leave authorized
by State or Federal law.
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For purposes of family sick leave, family member shall mean spouse, parent,
(parent shall mean biological, foster, or adoptive), child (child shall mean
biological, adopted, or foster child; a stepchild; a legal ward; or a child of an
employee standing in local parentis).
Holiday Time
Subject to the provisions herein, the following days shall be observed as paid
holidays by all employees in permanent positions and other personnel whose
work assignments, in the judgment of the Department Director, require their
presence on the job. For each designated holiday, except the Floating Holidays,
such personnel shall receive an equivalent number of hours of paid leave or
equivalent pay whichever in the judgment of the Department Director best serves
the interest of the Department.
Independence Day
Labor Day
Veteran's Day
Thanksgiving Day
Friday following Thanksgiving
Christmas Eve
Christmas
New Year's Eve
New Year's Day
Martin Luther King Day
Washington's Birthday
Memorial Day
Floating Holiday (1)
July 4
1st Monday in September
November 11
4th Thurs. in November
Last 1/2 of working day
December 25
Last 1/2 of working day
January 1
3`d Monday in January
3rd Monday in February
Last Monday in May
For employee's birthday or other
holiday.
Eligibility and use according to
Memorandum of understanding.
Holiday pay will be paid only to employees who work their scheduled day
before the holiday and scheduled day after a holiday or are on authorized
leave (e.g., approved vacation, sick leave, or flex leave that has been
reviewed and approved by the Department Director).
2. Newly hired employees will be eligible to receive full pay for scheduled
holidays, without a waiting period.
3 "Floating Holiday " eligibility allows for newly hired employees to earn their
first floating holiday credit, eight (8) hours, at the same time as they
receive their regular appointment status, upon the successful completion
of their probationary period.
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4. In July, 2003 all employees were provided a one -time opportunity to elect
to convert all or any portion of their annual holiday benefits to cash on an
annual basis. This election shall be uniform from year to year. For
example, an employee electing to convert 48 of the 96 hours of the annual
benefit to cash must so convert 48 hours of earned holiday benefits each
year thereafter. Holiday pay will be paid bi- weekly with the regular check.
Holiday leave conversion pay will not count in the total compensation
formula used to adjust salaries and benefits.
Employees hired after July 2003 will make this election at the time of hire.
This holiday compensation shall be reported to PERS as special
compensation and shall be regarded as compensation earnable as
defined in Government Code Sec. 20636 (c) (6) for purposes of computing
retirement benefits and contributions.
Bereavement Leave
The provisions of the Bereavement Leave Policy applicable to affected
employees are as follows:
Defined. The necessary absence from duty by an employee having a regular or
probationary appointment, because of death or terminal illness in his /her
immediate family. For the purposes of this section, immediate family shall mean
father, mother, brother, sister, spouse /domestic partner, child, or grandparents
and the employee's spouse's /domestic partner's father, mother, brother, sister,
and child.
Maximum Allowed. Such leave shall be limited to five (5) working days per
calendar year per occurrence.
Probationary Employees. An employee serving his /her initial probationary period
who takes leave under this section who for any reason terminates his /her
employment prior to the completion of such probationary period shall have
his /her final pay check reduced by the value of the leave taken.
Sick Leave Pay Out
Upon paid retirement termination in good standing or death, but not termination
for cause or resignation in lieu of termination, any member or his /her estate shall
be paid for a percentage of the employee's accrued but unused Sick Leave
computed as follows:
12
YEARS OF SERVICE
LESS THAN 10
10 BUT LESS THAN 15
15 BUT LESS THAN 20
20 OR MORE
PERCENT OF UNUSED SICK
LEAVE PAID FOR:
NONE
25%
37.5%
50%
Payment for accrued but unused Sick Leave shall be limited to the first 800 hours
of accrued Sick Leave for Staff Employees and the first 1200 hours for Line
Employees (for example if a Line Employee had accumulated 1400 hours of Sick
Leave and retired after 16 years he or she would receive Terminal Sick Leave
Pay in a sum equal to 109% of their base salary per hour for 450 hours of Sick
Leave — 1200 hours multiplied by .375).
Leave Pay -Off
Payment for accrued leave will be at 100% of the base hourly rate.
SECTION 4. FRINGE BENEFITS
A. Insurance
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. City Contribution
The City has implemented an IRS qualified Cafeteria Plan. NBLMA
members shall participate in this plan. The City contribution toward the
Cafeteria Plan shall be as set forth below. 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 Lifeguard Management Association will cooperate in pursuing
additional optional benefits to be available through the Cafeteria Plan.
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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 first pay issue in January 2013, the City's contribution
towards the Cafeteria Plan will be $1,249 (plus the minimum CalPERS
participating employer's contribution).
Effective the first pay issue in January 2014, the City's contribution
towards the Cafeteria Plan will increase to $1,349 (plus the minimum
CaIPERS participating employer's contribution).
LMA 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
maximum cafeteria allowance provided to current employees who execute
an opt -out agreement is $1,249 per month effective January 2013.
Employees hired after adoption of this 2012 -2014 MOU, and who execute
an opt -out agreement, will receive a maximum cafeteria allowance of $600
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 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 Health 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
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the employee will be reduced by the amount designated by the employee
for reimbursable expenses.
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.
Concurrent with the commencement of this program, employees assumed
responsibility for the payment of the disability insurance cost in the amount
of one (1.0 %) percent of base salary. Simultaneously, the City increased
base wages by one (1.0 %) percent.
3. Life Insurance
The City shall provide life insurance for all regular full -time employees in
$1,000 increments equal to one times the employee's annual salary up to
a maximum of $50,000. At age 70 the City -paid life insurance is reduced
by 50% of the pre -70 amount. This amount remains in effect until the
employee retires from City employment.
C. Employee Assistance Program
City shall provide an Employee Assistance Program (EAP) through a properly
licensed provider. Association members and their family members may access
the EAP subject to provider guidelines.
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D. The Retirement Benefit
1. Retirement Benefit 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 3 % @50 calculated on the basis of the best/single
highest year.
Tier 2: For employees first hired by the City between November 24 and
December 31, 2012, or hired on or after January 1, 2013 and are current
members of the retirement system, as defined in the Public Employees
Pension Reform Act, the retirement formula shall be 2 %@50 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 Tier 2 criteria, the retirement formula shall be 2.7%(00
calculated on the average 36 highest month's salary.
The City's contract with PERS also provides fora
b. The military buy -back provisions pursuant to Section 20930.3 of the
California Government Code and the highest year benefit pursuant
to Section 20042.
C. The Level 4 1959 Survivors Benefits.
d. The pre- retirement option settlement 2 death benefit (Section
21548).
2. Employee Contributions
Tier 1 and 2 Employees: Unit members in Tiers 1 and 2 will pay the full
9% "safety member" contribution of CaIPERS reportable earnings. 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 be
considered as part of employee's "compensation eamable" under
Government Code section 20636.
Tier 3 Employees: The minimum statutory employee contribution for
employees in Tier 3 is subject to the provisions of the Public Employees
Pension Reform Act (PEPRA) and equals 50% of the "total normal cost'
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as determined by PERS. ForFY92 -93, the employee rate is 99.25% and
is subject to change based on annual PERS actuarial valuations.
In the event pension reform is modified by State or Federal legislation,
resulting in changes to previously negotiated terms, the parties agree to
meet and confer to discuss subsequent changes to the contract.
E. Retiree Health Benefits Program
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, 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.
d. Category 4 - Employees who had already retired from the City prior
to January 1, 2006, and were participating in the previous retiree
medical program.
2. Program Structure
This is an Integral Part Trust (IPT) Retiree Health Savings (RHS) Plan
(formerly the Medical Expense Reimbursement Program "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
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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 (mandatary 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 the Association must participate at the same level,
except that Safety members and Non - safety members within an
Association 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 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 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 Association has decided to participate in Part C contribution, at
the level of zero percent (0 %). 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 except that Safety members and Non - safety
members within an Association may have different levels. 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
m
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
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 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,
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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 towards medical insurance after retirement. The parties
also agree that, for retirees selecting a CalPERS medical plan, or any
other plan with a similar employer contribution requirement, the
required City contribution will be withdrawn from the retiree's 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.
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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 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 $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 $400 per month to
each account as long as the retiree or spouse remains living.
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 1% of salary on which PERS retirement is based
(Part A); plus .25% of other compensation (Part B).
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F. Tuition Reimbursement
NBLMA members attending accredited community colleges, colleges 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. 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.
LMA members attending pre - approved, directly job - related classes, courses and
seminars given by recognized agencies, organizations or individuals other than
accredited college institutions may apply for reimbursement of actual cost of
tuition, books, fees or other student expenses. Reimbursement is contingent
upon the successful completion of the course. Successful completion means a
document or certificate showing successful completion of the course or seminar.
All claims for reimbursement require the approval of Fire Chief or designee
before submittal to Human Resources.
Maximum tuition reimbursement for employees shall be $1,500.00 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
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;
M
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
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.
b. Employees within a Classification shall be laid off in inverse order
of seniority;
C. An employee subject to layoff in one Classification shall have the
right to Bump a less senior employee in a lower ranking
Classification within a Series, provided, however, that the
determination of the employee to be terminated from the position of
Lifeguard shall be based on seniority within the Series. An
employee who has Bumping Rights shall notify the Department
23
Director within seven (7) working days after notice of layoff of
his /her intention to exercise Bumping Rights.
d. In the event two or more employees in the same Classification are
subject to layoff and have the same seniority, the employees shall
be laid off in inverse order of their position on the eligibility list or
lists from which they were appointed. In the event at least one of
the employees was not appointed from an eligibility list, the
Department Director shall determine the employee(s) to be laid off.
3. Notice
Employees subject to lay —off shall be given at least thirty (30) days
advance notice of the layoff or thirty (30) days pay in lieu of notice. In
addition, employees laid off will be paid for all accumulated paid leave,
holiday leave (if any), and accumulated sick leave to the extent permitted
by the Personnel Resolution,
4. Re— Employment
Permanent and probationary employees who are laid off shall be placed
on a Department re— employment list in reverse order of layoff. The re-
employment list shall remain in effect until exhausted by removal of all
names on the list. In the event a vacant position occurs in the
Classification which the employee occupied at the time of layoff, or a
lower ranking Classification within a Series, the employee at the top of the
Department re— employment list shall have the right to appointment to the
position, provided, he or she reports to work within seven (7) days of
written notice of appointment. Notice shall be deemed given when
personally delivered to the employee or deposited in the U.S. Mail,
certified, return receipt requested, and addressed to the employee at his
or her last known address. Any employee shall have the right to refuse to
be placed on the re— employment list or the right to remove his or her
name from the re— employment list by sending written confirmation to the
Human Resources Manager.
5. Severance Pay
Permanent employees who are laid off shall, as of the date of lay —off,
receive one week severance pay for each year of continuous service with
the City of Newport Beach, to a maximum of ten (10) weeks of severance
pay
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• EM
Any discipline shall be in accordance with the Department SOP and the
Employee Policy Manual.
C. Health and Fitness Evaluations
All NBLMA members shall participate in the Department Fitness Program.
D. Provision for Sun Protection
1. The first full pay period of each fiscal year, the City will provide $400 to
each unit employee for sunglasses and other sun protection materials (not
restricted to use at Lifeguard Store).
2. Each unit employee shall receive an annual skin cancer screening, which
will be conducted either on or off duty at the Department's discretion.
Employees directed to receive this screening off duty shall receive one (1)
hour of compensatory time off as compensation.
E. Fitness Equipment and Exercise Time
At a time, during the life of this MOU, selected by NBLMA, the City will provide up
to $3,000.00 per year towards the purchase of fitness equipment to be used on
duty for the intended benefit of NBLMA for the term of this agreement. The
actual equipment to be purchased shall be recommended by NBLMA, and shall
require the final approval of the Fire Chief. Unit employees shall be allowed up
to three (3) hours per week for physical fitness training.
F. Employee Policy Manual
The City and LMA have agreed on implementation of the City's revised
Employee Policy Manual.
G. Direct Deposit
All Unit employees shall participate in the City's Direct Deposit Program.
H. Part -Time Conversion
Part -time Lifeguard IV employees converted to full -time status in January 2000
shall utilize their original Lifeguard IV hire date as their anniversary date. Any
changes resulting from this change shall be prospective only.
Signatures are on the next page.
IRA
RITOWIN
W
Executed this day of , 2013:
NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION
BY:
Boyd Mickley, President
f-.
Brian O'Rourke, Vice President,
CITY OF NEWPORT BEACH
BY:
Keith Curry, Mayor
Leilani Brown, City Clerk
Aaron Harp, City Attorney
26
EXHIBIT A
Newport Beach Lifeguard Management Association Represented Classifications
Lifeguard Officer
Lifeguard Captain
Lifeguard Captain - Boat
Lifeguard Battalion Chief
27
STATE OF CALIFORNIA ;
COUNTY OF ORANGE
CITY OF NEWPORT BEACH }
1, Leilani 1. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; that the foregoing resolution, being Resolution
No. 2013 -12 was duly and regularly introduced before and adopted by the City Council of said City at a
regular meeting of said Council, duly and regularly held on the 22nd day of January, 2013, and that the
same was so passed and adopted by the following vote, to wit:
Ayes: Gardner, Petros, Hill, Selich, Henn, Mayor Curry
Noes: Daigle
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 23rtl day of January 2013.
4*" "`
City Clerk
Newport Beach, California
(Seal)