Loading...
HomeMy WebLinkAbout05/28/1974 Item #H-2eMAY 2 8 1974 CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER May 28, 1974 TO: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: TRANSMITTAL OF MEMORANDUM OF UNDERSTANDING 0 i COUNCIL AGENDA H -2(e) RECOMMENDATION: Adopt Resolution No. approving the agreement reached with the Newport Beach City Employees Association. DISCUSSION: Forwarded herewith for your consideration is the signed Memorandum o U�rstanding negotiated with Representatives of the Newport Beach City Employees Association. The negotiations were conducted in accordance with Sections 3500 -3510 of the California Government Code and the City of Newport Beach Employee - Employer Relations Resolution (Council Resolution 7173). As required, this agreement is now presented to the City Council for final determination. Outlined below are the major areas covered by the agreement and the cost of each: A. SALARIES Increases were granted to all 318 employees represented by the Association and are in compliance with Council Policy J -1. The survey of salaries in other jurisdictions indicated that Newport Beach had fallen behind the average from 3 -7% for those classifi- cations represented by this Association. Total compensation data reduced this inequity by only 1 -2% which indicates that other jurisdictions are beginning to grant increases at a greater rate than Newport Beach. In addition, salary increases in other juris- dictions for FY 1974 -75 were projected to be from 7 -8 %. Based on this data, increases were negotiated in the range of 9 -13 %. These increases, however, will be made in two steps: 6% on July 6, 1974, and the remainder in January, 1975. Because of this arrangement, the overall average salary increase is 8.0 %. Cost is estimated at $277,500.00 on the annual payroll of $3,452,000.00. B. RELATED COSTS The salary increase granted above will produce a proportionate increase in the retirement costs to the City of $24,000.00 per year. Mayor and City Council Page 2 C. HEALTH INSURANCE Agreement was reac ed concerning modification of the City's Health Insurance Plan to provide a reduced deductible, higher maximum coverage, and a limitation on out -of- pocket costs by the employee. The maternity benefit was deleted. Cost of these modifications is estimated at $17,500.00 per year. D. NIGHT DIFFERENTIAL PAY An increase from $0.15 to $0.25 per hour in differential pay was granted to those employees who regularly work the night shift. Cost is estimated at $2,700.00 per year. E. UNIFORMS An increase from 3 to 5 uniforms per week was granted to those employees who are required by the City to wear uniforms. Cost is estimated at $14,000.00 per year. F. HOLIDAYS - REFUSE DIVISION It is recommended tat refuse collection operations in the City of Newport Beach be suspended on two additional holidays: Veteran's Day and Memorial Day. Only 5 of the 10 holidays granted by the City are now observed by the Refuse Division: Thanksgiving, Christmas Day, New Year's Day, Independence Day and Labor Day. The effect of suspending operations on Veteran's Day and Memorial Day would always affect the same areas of the City since both holidays fall on Mondays. The savings to the City is estimated at $2,600.00 per year. In summary, the total cost of the salary and benefit package for the next fiscal year is estimated at $333,100.00, an increase of 8.4% over the last fiscal year. It is my opinion that the agreement reached represents a fair and equitable settlement for the employees and the City and I recommend your approval. 1 ROBERT L. WYNN City Manager Attachment RLW:bl MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH EMPLOYEES ASSOCIATION A RECOGNIZED EMPLOYEE ORGANIZATION This Memorandum of Understanding is entered into with reference to the following: In the interest of maintaining harmonious relationships between the City of Newport Beach and the Newport Beach City Employees Association, authorized representatives of the City of Newport Beach (hereinafter referred to as "CITY ") and authorized representatives of the Newport Beach City Employees Association (hereinafter referred to as the "ASSOCIATION "), a recognized employee organization, have met and conferred in good faith exchanging various proposals concerning wages, hours, fringe benefits and other terms and conditions of employment of employees represented by the ASSOCIATION; and Representatives of the CITY and the ASSOCIATION have reached an understanding and agreement as to certain changes in wages, hours, fringe benefits and other terms and conditions of employment of the employees represented by the ASSOCIATION and have agreed that the parties hereto shall jointly recommend to the City Council of the City of Newport Beach approval of said understanding and agreement and adoption of a new wage and salary resolution which will provide for and implement said changes. Therefore, the CITY and the ASSOCIATION agree as follows: Ll ARTICLE I. SALARIES 0 A new Wage and Salary Resolution shall be adopted executing the following i changes in salaries for the 1974 -75 fiscal year. A. Effective July 6, 1974, the salary of each employee represented by the ASSOCIATION shall be increased by an amount equal to six percent (6 %) over and above his or her salary immediately prior thereto. B. Effective January 4, 1975, the salary of each employee represented by the ASSOCIATION, except those employees whose classification is listed in Appendix A of this Memorandum, shall be increased by an amount equal to three percent (3 %) over and above his or her salary immediately prior thereto. C. Effective January 4, 1975, the salary of each employee excepted in Paragraph B. above, and represented by the ASSOCIATION shall be increased by an amount equal to seven percent (7 %) over and above his or her salary immed- iately prior thereto. ARTICLE II. HEALTH INSURANCE Effective October 1, 1974, the Health Insurance Plan, maintained by the City, will be changed as indicated for employees and their eligible dependents as follows: A. The calendar year deductible for each insured family member shall be reduced to $50.00 per year. B. The family deductible limit shall be reduced to $150.00 C. Out -of- pocket limit (co- insurance limit) of $500.00 per person will be added to the Plan. This feature will provide 100% reimburse- ment of covered medical expenses when the 20% co- insurance paid by the employee reaches $500.00 in any calendar year. D. The maximum benefit for each insured family member shall be increased to $250,000.00. E. The existing maternity benefit will be discontinued for pregnancies that commence on or after July 1, 1974, ARTICLE III. INSURANCE PREMIUM COSTS Effective October 1, 1974, the CITY shall pay 100% of the employee premium cost for Health and Life Insurance including all increased premium cost resulting from the amendments to the Health Insurance coverage described hereinabove in Article II. The premium payments for Short and Long Term Disability Insurance shall continue to be governed by the terms now in effect (i.e., those employees who have 0 -19 days of accrued sick leave shall pay 100% of the premium cost; those employees who have 20 -39 days of accrued sick leave shall pay 50% of the premium cost and the City shall pay 50% of the premium cost; those employees who have 40 or more days of accrued sick leave shall have the entire cost paid by the City.) In addition, the CITY shall continue to extend Health Insurance coverage to eligible dependents of employees and to pay 95% of the premium cost for such dependents, including the increased premiums resulting from the amendments described hereinabove in Article II. The remaining 5% of such premiums shall continue to be paid by the employees. ARTICLE IV. NIGHT DIFFERENTIAL Effective July 6, 1974, the Night Differential pay for all affected employees represented by the ASSOCIATION presently authorized to receive such pay shall be increased from $0.15 per hour to $0.25 per hour. ARTICLE V. UNIFORMS Effective July 6, 1974, the CITY shall provide to each employee represented by the ASSOCIATION, who is required by the CITY to wear a uniform while on duty, one clean uniform on each day of work. ARTICLE VI. HOLIDAYS - REFUSE DIVISION The parties hereto agree to recommend to the City Council that normal refuse collection operations in the City be suspended on Veterans Day, fourth Monday in October, and Memorial Day, last Monday in May. ARTICLE VII. RECLASSIFICATIONS The CITY agrees to discuss the results of all reclassifications of employees represented by the ASSOCIATION with the employee and the ASSOCIATION. ARTICLE VIII. OTHER TERMS AND CONDITIONS OF EMPLOYMENT All other terms and conditions of employment of all employees represented by the ASSOCIATION in existence immediately prior to the effective date of this Agreement shall remain unchanged and in full force and effect during the entire term of this Agreement unless altered by mutual agreement of the parties hereto. This Memorandum of Understanding shall be implemented by appropriate resolution or resolutions of the City Council of the City of Newport Beach. Executed this —1G� day of , 1974. CITY OF NEWPORT BEACH NEWPOR EACH C TY EMPLOYEES ASSOCIATION By: By: !. FRA IVEN Assistant to the L LUESING, Presi en City Manager, and it pr ntative GEORGE PA PA 'Finance re or STEPHE H. SILVER, Representative and City Repr sentative Appendix A Assistant Civil Engineer Assistant Planner Associate Civil Engineer Associate Planner Building Inspector I Building Inspector II Chief Building Inspector Chief Draftsman Chief Plan Checking Engineer Civil Engineer Code Enforcement Officer Counterman I Counterman II Engineering Aide I Engineering Aide II Engineering Aide III Graphics Designer Landscape Planner Plan Checker Plan Checking Engineer Public Works Inspector Senior Planner Survey Instrument Man Survey Party Chief Survey Rodman & Chainman Traffic Engineering Technician Zoning Inspector WA RESOLUTION NO. 13260 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH APPROVING THE AGREEMENT NEGOTIATED BY REPRESENTATIVES OF THE NEWPORT BEACH CITY EMPLOYEES ASSOCIATION AND THE CITY REPRESENTATIVES WHEREAS, Resolution no. 7173 of the City Council of the City of Newport Beach provides that the City Representatives and Representatives of recognized Employee Associations will meet and confer in good faith regarding matters within the scope of representation; and WHEREAS, the City Representatives and Representatives for the Newport Beach City Employees Association have met and have agreed on those matters within the authority of such representatives; and WHEREAS, the City Representatives and Representatives for the Newport Beach Employees Association have jointly recommended approval of this agreement by the City Council. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Newport Beach does hereby approve the agreement reached and directs that the changes recommended by the agreement be placed into effect on July 1, 1974. ADOPTED this ATTEST: City Clerk day of MAY2 ° 1974. Mayor