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HomeMy WebLinkAbout2016-3 - Adopting a Memorandum of Understanding between the City of Newport Beach and the Newport Beach City Employees Association RESOLUTION NO. 2016-3 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 CITY EMPLOYEES ASSOCIATION WHEREAS, the City Council of the City of Newport Beach 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; and WHEREAS, the City of Newport Beach supports effective communication and collaborative working relationships with its employee associations to promote improved relations while balancing good management practices; and WHEREAS, the City of Newport Beach previously entered into a Memorandum of Understanding with the Newport Beach City Employees Association for the period of July 1, 2012, through June 30, 2015; and WHEREAS, representatives from the City of Newport Beach and representatives from the Newport Beach City Employees Association have met and conferred in good faith and reached a Tentative Agreement on wages, benefits, and other terms and conditions of employment; 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 City Employees Association by adopting a successor Memorandum of Understanding for the period of July 1, 2015, through December 31 , 2018. NOW, THEREFORE, the City Council of the City of Newport Beach hereby resolves as follows: Section 1: The recitals provided above are true and correct and are incorporated into the operative part of this resolution. Section 2: Wages, hours, fringe benefits and other terms and conditions of employment of employees represented by the Newport Beach City Employees Association shall be provided in accordance with the provisions of the attached Memorandum of Understanding (Exhibit A). Section 3: The term of the Memorandum of Understanding shall be for 42 months, commencing retroactively to July 1, 2015, and remaining in full force and effect through December 31 , 2018. Section 4: The City's Salary Schedule shall be modified so as to be consistent with this Resolution. Resolution No. 2016-3 Page 2 of 2 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, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared invalid or unconstitutional. 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 1.5378) 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 12t' day of January, 2016. i ne B. Dixon Mayor ATTEST: — ,6. , PW' Leilani I. Brown City Clerk NAfW ®� Uc �� �f�6 ra Nr F Exhibit A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH CITY EMPLOYEES ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE 1. The Newport Beach City Employees Association ("NBCEA"), a recognized employee organization, affiliated with the Laborers' International Union of North America, Local 777 (LIUNA), 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. NBCEA representatives and City representatives have reached a tentative agreement as to wages, hours and other terms and conditions of employment for a three and one-half year period, from July 1, 2015 through December 31, 2018 and this tentative agreement has been embodied in this MOU. 3. This MOU, upon approval by NBCEA 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, the City acknowledges that NBCEA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in those classifications specified in Exhibit "A" or as appropriately modified in accordance with the Employer/Employee Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBCEA. B. Duration of Memorandum 1. Except as specifically provided otherwise, any ordinance, resolution or action of the City Council necessary to implement this MOU shall 2 be considered effective as of July 1, 2015. This MOU shall remain in full force and effect until December 31, 2018, and the provisions of this MOU shall continue after the date of expiration of this MOU in the event the parties are meeting and conferring on a successor MOU. 2. The terms and conditions of this MOU shall prevail over conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions and policies of the City of Newport Beach, and federal and state statutes, rules and regulations which either specifically provide that agreements such as this prevail, confer rights which may be waived by any collective bargaining agreement, or are, pursuant to decisional or statutory law, superseded by the provisions of an agreement similar to this MOU. C. Release Time 1. Three NBCEA officers designated by the NBCEA shall collectively be granted an annual maximum of 150 hours paid release time for the conduct of NBCEA business. Such time shall be exclusive of actual time spent in collective bargaining and shall be scheduled at the discretion of the NBCEA 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 NBCEA written communication in the work place. 4. Each January, the City will examine the number of Release Time hours the Association used the preceding year. If the Association used in excess of 75% of the hours normally granted (150), the Association will be granted an additional 30 hours for that year. D. Scope 1. All present written rules and current established practices and employees' rights, privileges and benefits that are within the scope of representation shall remain in full force and effect during the term of this MOU unless specifically amended by the provisions of this MOU. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 3 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 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. Employee Data and Access In January and July of each year, the City shall provide NBCEA a list of all unit members including name, department, and job title. NBCEA designated officers shall be entitled to solicit membership from new employees at their work site. This solicitation shall be made from the total release time for NBCEA Officers, and shall be scheduled in a manner that NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 4 is not disruptive to departmental operations. Department heads may determine appropriate times for new employee contact, but they cannot reasonably deny such contact. F. 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 life of this MOU, neither party shall be compelled, and each party expressly waives its rights to request the other to meet and confer concerning any issue within the scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herein. 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 Association members. In the event the City introduces a plan to outsource services currently being performed by Association members to achieve greater efficiency and/or cost savings, and upon request by the Association, the City shall meet and confer with Association 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 Association members. This provision shall not limit the City's authority to enter into such an agreement for any City services. G. Modifications Any agreement, understanding, or waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. The parties have determined certain contract provisions may be outdated or inconsistent with policy, charter, or Federal, State or local law. Effective during the term of the MOU City and Association representatives will review the contract document with the intent of proposing simplified and appropriate language, content and formatting. No changes to the MOU shall be effective unless approved by City Council, NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 5 H. Agency Shoo 1. Unit employees, by majority vote, have elected for an Agency Shop provision. 2. The Association shall comply with all statutory and legal requirements regarding agency shop, should it be approved through the election process. This will include all requisite procedures for appeals, record-keeping, establishment of the service fee amount; designating acceptable charities pursuant to Section 3502.5 of the Government Code, etc. 3. Complying with agency shop provisions shall not be a condition of employment. Enforcement shall be the responsibility of the Association; utilizing appropriate civil procedures. The City will cooperate with Association efforts to achieve enforcement. 4. The collection of Association dues and/or service fees shall continue to be handled through the payroll deduction process. 5. The Association and LIUNA agree to defend, indemnify and hold harmless the City for its action pursuant to this section. SECTION 2. — Compensation A. Salary Base salary increases for all NBCEA represented classifications shall be as follows and as specified in Exhibit A: 1. Effective the pay period that includes January 1, 2016, base salaries will be increased by 2.65%. 2. Effective the pay period that includes January 1, 2017, base salaries will be increased by 2.65%. 3. Effective the pay period that includes January 1, 2018, base salaries will be increased by 2.65%. B. Normal Overtime 1. Definitions a. Miscellaneous Employee - An employee designated as a Miscellaneous member of the Public Employees Retirement System (PERS). NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 6 b. Normal Overtime — Normal overtime for Miscellaneous employees is defined as any scheduled hours worked in excess of the basic work week. For the purposes of this section, the basic work week is 40 hours, or as determined by the Department Director and approved by the City Manager which occurs between a fixed and regularly recurring period of 168 hours - 7 consecutive 24 hour periods - beginning at 0001 on Saturday and ending at midnight the following Friday. C. Hours Worked - Hours worked are defined as hours which employees are required to be performing their regular duties or other duties assigned by the City. d. Incidental Overtime - Incidental overtime is any extension of the basic work shift of less than 1/10 of an hour that is non- recurrent. 2. Compensation Overtime for all non-exempt employees shall be paid at one-and- one-half (1'/2) times the employee's regular rate of pay. Reporting of overtime on payroll forms will be as prescribed by the Finance Director. Incidental overtime is not compensable. 3. Overtime Pay Calculations Durina Week Including Holiday(s) For the purpose of calculating overtime, holidays occurring during the regular work week will count as time worked. The Floating holiday is excluded from this provision. C. Standby Dutv 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. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 7 2. Compensation Standby duty shall be compensated at the rate of one (1) hour of overtime compensation for each eight (8) hours of such duty. Standby duty on holidays shall be compensated at the rate of two (2) hours of overtime compensation for each (8) hours of standby duty. Should the employee be required to return to work while on standby status, the provisions pertaining to compensation for call-back pay shall apply for the actual period of time the employee is in a work status. 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 personnel eligible for overtime pay shall be guaranteed two (2) hours pay, or pay for one-and-one-half (1-1/2) times the number of hours worked, whichever is greater. Reporting of overtime on payroll forms will be prescribed by the Administrative Services Director. E. Accumulation of Compensatory Time Off City employees represented by the NBCEA and classified as non-exempt may receive compensatory time off, in lieu of cash, as compensation for overtime hours worked. Compensatory time shall be calculated at the rate of one-and-one-half hours (1 %2) for each hour of overtime worked beyond the 40 hour limit of the work week. Compensatory time is to be granted only when the employer and employee agree that the application of "comp time" is a desirable substitute for the payment of cash for overtime. Call- back time may be converted to comp time with supervisor approval. Employees may accumulate up to eighty (80) hours of compensatory time. Any hours in excess of eighty (80) will be paid off. Accumulation in excess of the eighty (80) hours may be approved at the discretion of the Department Director. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 8 F. Night Shift Differential Unit members shall receive a night shift differential of $1.00 per hour; payable for each hour worked after 5:00. 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. G. Incentive Shift for Library Members For NBCEA members in the Library Services Department, the Sunday work shift will be considered an "incentive" shift. Unit members working on Sunday who work five hours but less than eight will be paid eight hours incentive pay at the regular hourly rate. This article is not to be construed as to impact on other City rules. H. 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. I. Acting Pav NBCEA 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. J. Certificate Pay Effective January 1, 2013, the Certificate Pay program was modified to eliminate "inactive" certificates and "sunset" certain active certificates. Employees currently receiving a "sunset" certificate are considered grandfathered under the program, but no further employees will be eligible; effective January 1, 2014, the pay for eligible certificates was converted from a percentage based benefit to a flat dollar amount. The complete list of eligible certificates and the corresponding benefit is listed in Exhibit B. All other procedures associated with Certificate Pay remain in effect. K. Bi-lingual Pay Upon determination of the Department Director that an employee's ability to speak, read and/or write in Spanish contributes to the Department providing NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 9 better service to the public, the employee shall be eligible to receive one hundred fifty ($150.00) dollars per month in bi-lingual pay. The certification process will confirm that the employee is fluent at the street conversational level in speaking, reading and/or writing Spanish. Employees certified shall receive bi-lingual pay the first full pay period following certification. Additional languages may be certified for compensation pursuant to this section by the Department Director with the concurrence of the Human Resources Director. L. One-Time Payment Effective following City Council adoption of this 2015-2018 MOU, or as soon thereafter as reasonably practicable, currently employed unit members will receive a one-time payment of$2,400. The parties agree that this one-time payment does not meet the criteria under California Code of Regulations 571(b) as reportable compensation for retirement purposes. SECTION 3. — Leaves A. Flex Leave Effective the pay period including January 1, 2013, all unit members shall accrue Flex leave at the following rates: Years of Continuous Hrs Accrued oer Annual Max Allowable Service Pay Period hours Balance (hours) 1 but 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 of flex leave 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. 1. 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. Any flex 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 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 10 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 accruing at the 16 years of continuous service level or above shall be required to use 120 hours of flex leave the previous calendar year. Employees who have not utilized the required amount of leave the prior calendar year shall not be eligible to accrue time above the maximum accrual limit. Employees first hired, or rehired by the City subsequent to July 1, 1996 shall not be eligible for flex leave spill over pay and shall not be entitled to accrue flex leave in excess of the flex leave accrual threshold. 2. Method of Use Flex leave may not be taken in excess of that actually accrued and in no case, except for illness, may it be taken prior to the completion of an employee's initial probationary period. The Department Director shall approve all requests for flex leave taking into consideration the needs of the Department, and whenever possible the seniority and wishes of the employee. Flex leave may be granted on an hourly basis. Any fraction over an hour shall be charged to the next full hour. B. Vacation/Sick Due to the full conversion of employees to the Flex leave program, former Vacation and Sick leave provisions "B" and "C" are hereby removed and shall be referenced exclusively in prior MOUs. C. Holiday Leave Subject to the provisions herein, the following days shall be observed as paid holidays by all unit members. For each designated holiday, except the Floating Holiday, employees shall receive an equivalent number of hours of paid leave or equivalent pay. Independence Day July 4 Labor Day 1St Monday in Sept. Veteran's Day November 11 Thanksgiving Day 4th Thurs. in November Friday following Thanksgiving Christmas Eve Last'/z of working day Christmas Day December 25 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 11 New Year's Eve Last'/ of working day New Year's Day January 1 Washington's Birthday 3`d Monday in February Memorial Day Last Monday in May Martin Luther King Day 3`d Monday in January Floating Holiday July 15t - 1 day Effective the pay period including January 1, 2013 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. 1. 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 will be paid only to employees who work their scheduled day before and scheduled day after a holiday or are on authorized leave (e.g. leave that has been reviewed and approved by the Department Director). 3. In addition, for all employees an additional 8 hours of floating holiday will be added to his/her Flex leave accumulated total, on the first pay period in July each year. D. Bereavement Leave Bereavement leave shall be defined as "the necessary absence from duty by an employee having a regular or probationary appointment 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 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 12 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. E. Leave Sellback Twice annually, employees shall have the option of selling back on an hour for hour basis, accrued Flex leave. In no event shall the Flex 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 (F), Retiree Medical. For the term of this MOU the Association has elected Part C contributions for Flex/Vacation at 0%. SECTION 4. — Fringe Benefits A. Insurance 1. Benefits Information Committee The City has established a Benefits Information Committee (BIC) composed of one representative from each employee association group 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 group with information about health insurance/programs and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. Medical Insurance The City has implemented an IRS qualified Cafeteria Plan. In addition to the contribution amounts listed below, the City shall contribute the minimum CalPERS participating employer's contribution towards medical insurance for employee 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 City Employees Association 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. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 13 The parties recognize that from July 1, 2015 through December 31, 2015 the City has contributed $1,549 per month (plus the PERS minimum contribution) toward the Cafeteria Plan. Effective the first pay issue in January 2016, the City's contribution towards the Cafeteria Plan will increase by$76 per month to $1,625 (plus the minimum CaIPERS participating employer's contribution). Effective the first pay issue in January 2017, the City's contribution towards the Cafeteria Plan will increase by $100 per month to $1,725 (plus the minimum CaIPERS participating employer's contribution). NBCEA 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. Effective January 1, 2016, or as soon thereafter is practicable following MOU adoption, the maximum cafeteria allowance provided to employees who execute an opt-out agreement is $1,000 per month. 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's 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. Effective July 2017, 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. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 14 B. Additional Insurance Programs 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. An Association 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 base salary of 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 terminates from City employment. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 15 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. D. Retirement Benefit 1. 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 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 Public Employees Pension Reform Act, 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, the retirement formula shall be 2% @ 62 calculated on the average 36 highest month's salary. 2. Employee Contributions The Association 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 Association agree to meet for the purpose of renegotiating employee retirement contributions. At the conclusion of this contract employees in each Tier will contribute 13% of pensionable pay toward the retirement benefit. Employee retirement contributions that are in addition to the normal PERS Member Contribution shall be calculated on base pay, special pays, and other pays normally reported as "PERSable" compensation, and will be made on a pre-tax basis through payroll deduction, to the extent allowable by the government tax code. It is recognized that these payments will not be reported to PERS as NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 16 contributions toward either the Member or Employer rate, as provided under GC Section 20516(f). Under a separate agreement, and ratified via a contract amendment with CaIPERS in 2008, the modified normal member contribution for Tier 1 employees is 10.42% of pensionable compensation. The parties recognize that from July 1, 2015 through December 31, 2015, NBCEA members have been paying, in addition to the member contribution, a portion of the Employer rate under a 205160 cost sharing agreement. The normal Member rate and the cost sharing rate vary by Tier. However, the combined contribution rate for each Tier equals 12.35% of pensionable compensation, as provided in a prior agreement. Tier 1 and Tier 2 Employees: Effective the pay period including January 1, 2016, Tier 1 and Tier 2 employees shall contribute an additional .35% of pensionable compensation toward retirement costs pursuant to Government Code Section 20516 (f), for a total of 12.70%. Effective the pay period including January 1, 2017, Tier 1 and Tier 2 employees shall contribute an additional .30% of pensionable compensation toward retirement costs for a total employee contribution of 13%. 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 of 2012 (PEPRA) and equals 50% of the "total normal cost". Effective the pay period including January 1, 2016, in addition to the statutorily required 50% contribution of total normal costs, Tier 3 employees shall make an additional contribution toward retirement pursuant to Government Code Section 20516(f), such that the total employee contribution equals 12.7%. Effective the pay period including January 1, 2017, in addition to the statutorily required 50% contribution of total normal costs, Tier 3 employees shall make an additional contribution toward retirement pursuant to Government Code Section 20516(f), such that the total employee contribution equals 13%. 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. The City contracts with PERS for the 4th Level 1959 Survivors Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military Service NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 17 Credit, 2% Cost of Living Adjustment and the pre-retirement option settlement 2 death benefit(Section 21548). E. LIUNA Supplemental Pension The City shall contribute, on behalf of each unit member, one and one half percent (1.5%) of base salary into the LIUNA Supplemental Pension Fund. The City's sole obligation is to forward the agreed upon amount to the fund. The City is not responsible for, nor does it make any representation regarding the payment of benefits to unit members. Effective January 1, 2007, the City increased the base salary of all members by 1.5%, and then deducted that same amount as a mandatory employee contribution. For tax purposes, the contributions, although designated employee contributions, are being paid by the employer in lieu of contributions by the employee. The contributions are deemed "picked-up" and treated as employer contributions, thereby excluding the employee's gross income until distributed. Employees cannot opt out of the "pick-up," or receive the contributed amounts directly instead of having them paid to the plan. Participation at the same level will continue to be mandatory for members of the Association. In accordance with correspondence received from a legal expert retained by the City, this amount will not be taxable, except for Medicare. Minor changes to other compensation related items that are calculated from base salary will also result from this administrative change. The Association agrees with the procedural change, and acknowledges that members who leave City employment prior to vesting in the LIUNA pension plan will still have no right to return of amounts contributed, or other recourse against the City concerning LIUNA. The Association and LIUNA agree to defend, indemnify and hold harmless the City for its actions pursuant to this section. F. Retiree Medical Benefit 1. Background In 2005, the City and all Employee Associations agreed to replace the previous "defined benefit" retiree medical program with a new "defined contribution" program. The process of fully converting to the new program will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2006. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 18 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) RHS Retiree Health Savings (RHS) plan (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. 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, NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 19 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 contributions at the level of zero percent (0%) Flex. 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 Association. Additionally, the purpose and focus of these changes should be toward long-term, trend type adjustments. Due to IRS restrictions regarding "constructive receipt," the City will impose restrictions against frequent spikes or drops that appear to be tailored toward satisfying the desires of a group of imminent retirees. Spillover pay is not eligible for Part C contributions. Nothing in this section restricts taking leave for time off purposes. Sick leave balances may also be included in the 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 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 20 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 towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's RHS account. b. For employees in Category 2. the program is the same as for those in Category 1, with the following exception: NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 21 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 workforce. 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. 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. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 22 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). G. Tuition Reimbursement NBCEA 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 coursework, seminars or professional development programs. Effective January 1, 2013, reimbursement will increase by $100 per year, for a maximum annual benefit of $1,500 per fiscal year. Effective January 1, 2016, reimbursement will increase to a maximum annual benefit of$2,000 per fiscal year. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Human Resources Director or designee. SECTION 5. — Miscellaneous 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. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 23 DEFINITIONS 1. "Layoffs" or "Laid Off' shall mean the non-disciplinary termination of 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 permanent 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 permanent 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. Classification 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, 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. 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 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 24 In the event the City Manager determines to reduce the number of employees within a classification, the following procedures are applicable: 1. 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. NOTICE Employees subject to lay-off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any), and accumulated sick leave to the extent permitted by the Employee Policy Manual. REEMPLOYMENT 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 expire in eighteen (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 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. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 25 SEVERANCE If an employee is laid off from their job 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. B. Transfer and Reassignments The City acknowledges that before arriving at a final decision involving the transfer or reassignment of work schedules of those employees represented by the NBCEA, the seniority and preference of the employee is taken into consideration. C. Banding Position vacancy announcements for available City positions shall be distributed in a manner that reasonably assures unit members access to the announcements. In order to select the most qualified individual for vacant positions the City will continue its practice of "banding" candidates into one of the following ratings: Outstanding, Highly Recommended, Recommended, and Not Recommended, during the testing process. Department Directors review qualified candidates in band order, beginning with the top band and are permitted to hire any eligible candidate from the list (minimum rating of Recommended). Where no less than 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. D. 9/80 (or 4/10) Scheduling Plan The City agrees to maintain flex-scheduling where it is currently operating successfully and additionally to put in place a 9/80 (or 4/10) schedule, on a test basis (excluding the Library) for the balance of the life of the MOU. This test will be conducted at the discretion of the Department Director. The program will have proven itself to be successful if it costs the same or less than the present 5/40 program, and if the service levels for the 9/80 (or 4/10) schedules are the same or better as they are on the present 5/40 program. The program will be evaluated individually by work group, and should a problem involving service reductions or increases in cost materialize, the Department Director will meet with the work group to resolve the problem. If the Department Director and the work group disagree on the solution, the City Manager will consider both sides of the issue and resolve the dispute. Final evaluation of the success/failure of the NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 2s 9/80 (or 4/10) schedule test will be conducted by the Department Director, and his/her determination shall be final. Effective the pay period beginning January 15, 2011, the 9/80 flex-schedule was modified as follows: employees were provided the option of alternating Fridays off only. Employees on a 9/80 schedule with alternating Mondays or any other day off, converted to Fridays off beginning in January 2011. To ensure effective coverage, employees on the 9/80 schedule was divided into groups A or B, with equal numbers of staff as much as possible, including management and supervisory staff, off on alternating Fridays. To ensure ongoing compliance with Fair Labor Standards Act, and to maintain organizational efficiency, deviations from established flex days, if legally permitted, will be considered on a case-by-case basis. E. Labor Management Committee Committees shall meet quarterly on an annual schedule; names of participating unit members shall be announced to management no less than 5 working 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. The Committees shall include a Library Committee with two unit members participating; and three additional Committees, one of which shall meet in each quarter of the year on a continuing rotational basis. 1. Building/Planning/Engineering: Minimum representation shall include one NBCEA member and one management representative. 2. Finance: Minimum representation shall include two NBCEA members and two management representatives. 3. All other City departments: Minimum representation shall include three NBCEA members and three management representatives. The City and NBCEA agree that initial committee establishment will require good faith effort to affect the spirit of this agreement. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 27 F. Discipline - Notice of Intent Employees who are to be the subject of substantial punitive discipline for any misconduct or negligence 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 to a hearing before their Department Director prior to the imposition of the penalty. This procedure will only be applied in cases of substantial punitive discipline. It shall be understood that a disciplinary penalty equal to an unpaid suspension of three (3) days or greater shall be substantial. All other discipline resulting in less than a three (3) day suspension will be considered non-substantial and 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 discipline and who believe that the penalty is not justified shall have access to the grievance procedure as established in the Employee-Employer Resolution 2001-50. 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 a Recognized Employee Organization. A grievance shall be brought to the attention of the immediate supervisor for discussion within ten (10) days of when the grievance arose. If the Employee is not satisfied with the decision reached through the informal discussion or if extenuating circumstances exist, the Employee 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) calendar 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 is not in agreement with the decision rendered in Step 1, an employee shall have the right to present a formal grievance to the Department Director within ten (10) Days after the discussion in Step 1. The right to file a grievance petition shall be waived in the event the NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 28 Employee fails to file a formal grievance within ten (10) 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) 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 within ten (10) Days after the Employee receives the decision. The City Manager may accept or reject the decision of the Department Director and shall render a written decision within ten (10) Days after conducting a grievance hearing. The decision of the City Manager 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 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 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 in this Manual can be waived or extended only by mutual agreement confirmed in writing. Any grievance not carried to the next step by the Employee within the prescribed time limit shall be deemed resolved upon the basis of the previous decision. H. Probation 1. 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. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 29 2. Failure of Probation (a) 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 (c), below. (b) Promotional Probation An employee on promotional probation may be failed at any time without right of appeal or hearing, except as provided in (c), below, and except that failing an employee on promotional probation must not be arbitrary, capricious or unreasonable. An employee who fails promotional probation shall receive a performance evaluation stating the reason for failure of promotional probation. 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. 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. (c) 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. I. Salary on Reclassification The City will amend its Employee Policy Manual to provide for a minimum salary increase of five percent (5%) upon reclassification (not to exceed the maximum of the new salary range). NEWPORT BEACH CITYEMPLOYEES ASSOCIATION MOU 2015-2018 30 J. Uniforms and Safety Equipment For assigned Park Patrol staff, uniforms shall be worn at all times during regular business hours. Park Patrol shall be provided with City designated shirts, shorts, pants, boots, jacket, and hat annually. Additional equipment or supplies may be issued to employees by the Department as deemed appropriate. If the provided winter jacket or work boots are lost, the employee shall replace the item with one from an authorized vendor. Work boots shall provide toe protection and meet Department safety standards. The Department Head or designee may approve exceptions to wearing uniforms. The City will continue its practice of directly paying for dry cleaning for individuals in the Park Patrol classification. K. Service Awards For the purpose 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. Prior to system implementations, an employee is required to individually notify the awards committee of all of the service time. L. Employee Handbook There will be a consolidation of documents to be given to each employee. This consolidation will be comprised of Employee Policy Manual, related Departmental Rules and Regulations; Employee/Employer Resolutions and a copy of Memorandum of Understanding. More information may be included. M. Direct Deposit All employees shall participate in the payroll direct deposit system. N. Deferred Compensation The City agrees to, through a joint City-Employee Committee, explore the possible addition of additional deferred compensation providers during the term of this agreement. O. 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 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 31 remaining portion hereto, and same shall remain in full force and effect; provided, however, that should provisions of this MOU relating to any schedule adjustment be declared invalid, City agrees to provide alternative benefits agreeable to NBCEA, to employees, which will cause such employees to receive the same amount of money as they would have received had such provision not been declared invalid. Signatures are on the next page. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 32 Executed this day of 2016: FOR THE NEWPORT BEACH CITY EMPLOYEES ASSOCIATION: By: _ A--2 Teresa Craig, President FOR THE CITY OF NEWPORT BEACH By: Diane B. Dixon, Mayor ATTEST: By: Leilani Brown, City Clerk ROVED AS TO FORM: Aaron Harp, City Attorney t (L{11 G NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2015-2018 Newport Beach City Employees Association Represented Classifications and Pay Rates Effective January 1, 2016 2.65% Wage Increase Hourly Monthly Represented Classification Min Max Min Max Assistant,Administrative $27.13 $38.12 $4,703 $6,608 Assistant, Department $21.77 $30.61 $3,774 $5,306 Assistant, Office $18.61 $26.20 $3,226 $4,541 Building Dept Specialist $26.38 $37.15 $4,573 $6,439 Buyer $27.19 $38.24 $4,713 $6,628 Cultural Arts Coordinator $26.78 $37.67 $4,642 $6,530 Fiscal Clerk $19.63 $27.64 $3,402 $4,792 Fiscal Clerk,Senior $22.85 $32.15 $3,961 $5,573 Fiscal Specialist $26.47 $37.26 $4,589 $6,458 Inventory Analyst $23.29 $32.80 $4,037 $5,685 Librarian 1 $26.78 $37.67 $4,642 $6,530 Librarian II $29.43 $41.45 $5,101 $7,185 Librarian III $32.40 $45.58 $5,615 $7,900 Library Assistant $22.78 $32.04 $3,948 $5,553 Library Clerk 1 $17.75 $24.95 $3,076 $4,325 Library Clerk II $19.63 $27.64 $3,402 $4,792 Library Clerk,Senior $22.78 $32.04 $3,948 $5,553 License Supervisor $29.68 $41.77 $5,144 $7,240 Mail Processing Clerk,Sr $20.61 $29.01 $3,573 $5,028 Marketing Specialist $27.13 $38.13 $4,703 $6,610 Park Patrol Officer $19.34 $27.21 $3,352 $4,717 Park Patrol Officer, Lead $21.70 $30.54 $3,761 $5,293 Records Specialist $27.13 $38.12 $4,703 $6,608 Recreation Coord,Asst $20.61 $29.01 $3,573 $5,028 Recreation Coordinator $25.09 $35.30 $4,349 $6,119 Recreation Supervisor $27.66 $38.95 $4,795 $6,751 33 Newport Beach City Employees Association Represented Classifications and Pay Rates Effective January 1,2017 2.65% Wage Increase Hourly Month) Represented Classification Min Max Min Max Assistant,Administrative $27.85 $39.13 $4,827 $6,783 Assistant, Department $22.35 $31.42 $3,873 $5,446 Assitant, Office $19.10 $26.89 $3,311 $4,662 Building Dept Specialist $27.08 $38.13 $4,694 $6,610 Buyer $27.91 $39.25 $4,838 $6,804 Cultural Arts Coordinator $27.49 $38.67 $4,765 $6,702 Fiscal Clerk $20.15 $28.37 $3,493 $4,918 Fiscal Clerk, Senior $23.46 $33.00 $4,066 $5,720 Fiscal Specialist $27.17 $38.25 $4,710 $6,629 Inventory Analyst $23.91 $33.67 $4,144 $5,836 Librarian $27.49 $38.67 $4,765 $6,702 Librarian 11 $30.21 $42.55 $5,236 $7,375 Librarian 111 $33.26 $46.79 $5,765 $8,110 Library Assistant $23.38 $32.89 $4,053 $5,701 Library Clerk 1 $18.22 $25.61 $3,158 $4,439 Library Clerk II $20.15 $28.37 $3,493 $4,918 Library Clerk,Senior $23.38 $32.89 $4,053 $5,701 License Supervisor $30.47 $42.88 $5,281 $7,432 Mail Processing Clerk,Sr $21.16 $29.78 $3,667 $5,162 Marketing Specialist $27.85 $39.14 $4,827 $6,784 Park Patrol Officer $19.85 $27.93 $3,441 $4,841 Park Patrol Officer, Lead $22.28 $31.35 $3,861 $5,434 Records Specialist $27.85 $39.13 $4,827 $6,783 Recreation Coord,Asst $21.16 $29.78 $3,667 $5,162 Recreation Coordinator $25.75 $36.24 $4,464 $6,281 Recreation Supervisor $28.39 $39.98 $4,921 $6,930 34 Newport Beach City Employees Association Represented Classifications and Pay Rates Effective January 1,2018 2.65% Wage Increase Hourly Monthly Represented Classification Min Max Min Max Assistant,Administrative $28.59 $40.17 $4,955 $6,962 Assistant, Department $22.94 $32.25 $3,977 $5,590 Assitant, Office $19.61 $27.60 $3,398 $4,784 Building Dept Specialist $27.80 $39.14 $4,818 $6,784 Buyer $28.65 $40.29 $4,966 $6,984 Cultural Arts Coordinator $28.22 $39.69 $4,891 $6,880 Fiscal Clerk $20.68 $29.12 $3,585 $5,048 Fiscal Clerk, Senior $24.08 $33.87 $4,174 $5,872 Fiscal Specialist $27.89 $39.26 $4,834 $6,804 Inventory Analyst $24.54 $34.56 $4,254 $5,991 Librarian 1 $28.22 $39.69 $4,891 $6,880 Librarian 11 $31.01 $43.68 $5,375 $7,571 Librarian III $34.14 $48.03 $5,918 $8,325 Library Assistant $24.00 $33.76 $4,160 $5,852 Library Clerk 1 $18.70 $26.29 $3,242 $4,557 Library Clerk II $20.68 $29.12 $3,585 $5,048 Library Clerk,Senior $24.00 $33.76 $4,160 $5,852 License Supervisor $31.28 $44.02 $5,421 $7,629 Mail Processing Clerk, Sr $21.72 $30.57 $3,765 $5,299 Marketing Specialist $28.59 $40.18 $4,955 $6,964 Park Patrol Officer $20.38 $28.67 $3,532 $4,969 Park Patrol Officer, Lead $22.87 $32.18 $3,964 $5,578 Records Specialist $28.59 $40.17 $4,955 $6,962 Recreation Coord,Asst $21.72 $30.57 $3,765 $5,299 Recreation Coordinator $26.43 $37.20 $4,582 $6,448 Recreation Supervisor $29.14 $41.04 $5,051 $7,114 35 City Employees Association Approved Certificates Certificate* Monthly Amount Certified Revenue Officer $85 Microsoft Certified Professional Certificate $45 Public Notary** $45 Forklift Training Certificate $45 * Only those unit members receiving the certificate pay at time of the 2012-15 MOU were eligible for the benefit. **Added in 2015-18 MOU and only available to NBCEA members in Administrative supports positions and must be used for City business 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; that the foregoing resolution, being Resolution No. 2016-3 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 12th day of January, 2016 and that the same was so passed and adopted by the following vote, to wit: AYES: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Dixon NAYS: None ABSENT: Mayor Pro Tem Muldoon IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 13th day of January, 2016. City Clerk Newport Beach, California (Seal) P0 � Q O _ U P c'9Li Fov-