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HomeMy WebLinkAboutCity Council - 2002-132 RESOLUTION NO. 2002-132 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING AND IMPLEMENTING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE HUNTINGTON BEACH MANAGEMENT EMPLOYEES' ORGANIZATION (MEO) AND THE CITY OF HUNTINGTON BEACH FOR 12/21/02 THROUGH 12/19/03 The City Council of the City of Huntington Beach does resolve as follows: The Memorandum of Understanding between the City of Huntington Beach and the Huntington Beach Management Employees' Organization ("MEO"), a copy of which is attached hereto as EXHIBIT "A" and by reference made a part hereof, is hereby approved and ordered implemented in accordance with the terms and conditions thereof, and the City Administrator is authorized to execute this Agreement. Such Memorandum of Understanding shall be effective for the term December 21, 2002, through December 19, 2003. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16th day of AU�Z�� apy� Mayor ATTEST: APPROVED AS TO FORM: City Clerk / City Attorney I, it 1310E LO Al- iJl+ 3'd7— REVIEWED AND APPROVED: INITIATED AND APPROVED: City Adminiefrator Director of dministrative Services O 1 reso/meo-emp/l 1/13/02 Fachibit A to Res.No.2002-132 MEO MOU TABLE OF CONTENTS PREAMBLE.................................................................................................................................................................................3 ARTICLEI-TERM OF MOU...................................................................................................................................................3 ARTICLE H-REPRESENTATIONAL UNIT/CLASSIFICATIONS....................................................................................4 ARTICLE IH-ARTICLE NUMBER RESERVED..................................................................................................................4 ARTICLE IV-EXISTING CONDITIONS OF EMPLOYMENT...........................................................................................4 ARTICLEV-SEVERABILITY.................................................................................................................................................4 ARTICLE VI-SALARY SCHEDULE...... .......... .................... ....................... ......... ......... ..................... ................4 ARTICLEVH-SPECIAL PAY..................................................................................................................................................5 A. EDUCATIONAL TUITION..........................................................................................................................................................5 B. BILINGUAL PAY......................................................................................................................................................................6 ARTICLEVIII-UNIFORMS.....................................................................................................................................................6 ARTICLE IX-HOURS OF WORK/OVERTIME/ADMINISTRATIVE LEAVE................................................................6 A. OVERTIME..............................................................................................................................................................................6 B. ADMINISTRATIVE LEAVE........................................................................................................................................................6 C. FLEX SCHEDULE AND HOURS OF WORK.................................................................................................................................6 ARTICLE X-HEALTH AND OTHER INSURANCE BENEFITS........................................................................................8 A. HEALTH ......... ...........:.. ........ . ........ ....... ......... .............. .... .......:.... ...... ............8 B. ELIGIBILITY CRITERIA AND COST.:........ .. .......:. ....:..`: ......... ......:.. :........ ...:..... ..:.....: ......... ................8 1. City Paid Medical, Dental and Vision Insurance—Employee and Dependents..............................................................8 2. QOLLs Contribution to Health Insurance Premiums.........................................................................................................8 a. Year 2003 Premiums......................................................................................................................................................................8 b. Future Premiums.............................................................................................................................................................................8 3. Medical Cash-Out............................................................................................................................................................9 4. Section 125 Plan..............................................................................................................................................................9 C. LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT.........................................................................................................9 D. LONG TERM DISABILITY INSURANCE.....................................................................................................................................9 E. MISCELLANEOUS..................................................................................................................................................................10 1. City Paid Premiums While On Medical Disability.........................................................................................................10 2. Insuance Benefits Advisory Committee..........................................................................................................................10 3. Health Plan Over-Payments...........................................................................................................................................10 a. Reduction of Employee's Bi-Monthly Salary Warrant................................................................................................................. 10 b. Notice of Ineligible Dependents...................................................................................................................................................10 C. Twelve Month Recovery Period...................................................................................................................................................10 F. JOINT CAFETERIA PLAN STUDY...........................................................................................................................................10 ARTICLE XI-RETIREMENT BENEFITS............................................................................................................................11 A. BENEFITS..................._........ .................. ..................... ..................... ......... ..............11 1: Self Funded Supplemental Retirement Benefit......... ......... ......... ...;............ ... ......... ......... ......... ......I......it 2. Medical Insurance for Retirees........ . ......... ......... ......... ......... ......... ......... ......... ......... ..........................11 a. Medical Insurance Upon Retirement............................................................................................................................................11 b. Premiums Paid Upon Retirement By Use of Unused Sick Leave Benefits...................................................................................12 B. PUBLIC EMPLOYEES'RETIREMENT SYSTEM REIMBURSEMENT AND REPORTING.................................................................12 1. Employee's Contribution................................................................................................................................................12 2. Two Percent at AQe 55 Formula....................................................................................................................................12 3. Pre-Retirement Optional Settlement 2 Death Benefit.....................................................................................................12 2003 MEO MOU Final i 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 MEO MOU TABLE OF CONTENTS 4. Fourth Level of 1959 Survivor Benefits..........................................................................................................................12 5. Review of Contract Amendment Cost Analysis...............................................................................................................12 ARTICLE XII-LEAVE BENEFITS........................................................................................................................................13 A. GENERAL LEAVE..................................................................................................................................................................13 1. Accrual...........................................................................................................................................................................13 2. Eligibility and Approval.................................................................................................................................................13 3. Family Sick Leave..........................................................................................................................................................13 4. Conversion to Cash........................................................................................................................................................13 5. One Week Minimum Vacation Requirement...................................................................................................................14 B. HOLIDAYS............................................................................................................................................................................14 C. SICK LEAVE...................................................:......................................................................................................................14 D. BEREAVEMENT LEAVE.. ..................... .............................. ......................... ..................................... : .....................16 E. PATERNITY LEAVE...:...:.....................................................................................................................I..... ......... .............16 ARTICLE XIII-CITY RULES................................................................................................................................................16 ARTICLE XIV-MISCELLANEOUS......................................................................................................................................33 A. PHYSICAL EXAMINATION.....................................................................................................................................................33 B. VEHICLE POLICY..................................................................................................................................................................33 C. DEFERRED COMPENSATION LOAN PROGRAM......................................................................................................................33 D. EMPLOYEE PERFORMANCE EVALUATIONS...........................................................................................................................33 ARTICLE XV-CITY COUNCIL APPROVAL.....................................................................................................................34 EXHIBIT A-MEO SALARY SCHEDULE............................................................................................................................35 EXHIBIT B-DELTA DENTAL BROCHURE.......................................................................................................................37 EXHIBIT C-DELTA CARE PLAN BROCHURE............................................. EXHIBIT D-EMPLOYEE HEALTH PLAN BROCHURE...:.... ............. .. ... ........ .... ... ......... ......... ....39 EXHIBIT E-RETIREE MEDICAL PLAN ......... ......... ......... ......... ......... ........: ......... ......... ......... .............40 . RETIREE SUBSIDY MEDICAL PLAN..................................................................................................................................40 SCHEDULEOF BENEFITS.....................................................................................................................................................41 A. Minimum Eli i�ty for Benefits....................................................................................................................................41 B. Disability Retirees..........................................................................................................................................................41 C. Maximum Monthly Subsidy Payments............................................................................................................................41 INDEMNITY HEALTH PLAN,EMPLOYEES/RETIREES'................................................................................................42 RETIREE SUBSIDY MEDICAL PLAN/MISCELLANEOUS PROVISIONS.....................................................................43 A. Eligibility........................................................................................................................................................................43 B. Bene ts... ..........................44 C. Subsidies.........................................................................................................................................................................44 D. Medicare........................................................................................................................................................................45 E. Cancellation...................................................................................................................................................................45 EXHIBIT F-VEHICLE USE/ASSIGNMENT........................................................................................................................47 EXHIBIT G-PHYSICAL EXAMINATION DESCRIPTION..............................................................................................48 EXHIBIT H—9/80 WORK SCHEDULE.................................................................................................................................49 EXHIBIT I—4/10 WORK SCHEDULE...................................................................................................................................52 2003 MEO MOU Final ii 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 MEMORANDUM OF UNDERSTANDING between THE CITY OF HUNTINGTON BEACH (Hereinafter called CITY) and THE HUNTINGTON BEACH MANAGEMENT EMPLOYEES' ORGANIZATION (Hereinafter called ASSOCIATION or MEO) PREAMBLE This Memorandum of Understanding is entered into by and between the City 'of Huntington Beach, a Municipal Corporation of the State of California, herein called "City", and the Huntington Beach Management Employees' Organization, a California Organization, herein called "Association". WHEREAS, pursuant to California law, the city, acting by and through its designated representatives, duly appointed by the governing body of said city, and the representatives of the Association, a duly recognized employee association have met and conferred in good faith and have fully communicated and exchanged information concerning wages, hours, and other terms and conditions of employment for the period December 21, 2002 through December 19, 2003. WHEREAS, except as otherwise expressly provided herein, all terms and conditions of this Agreement shall apply to all employees represented by the Association, and WHEREAS, the representatives of the city and Association desire to reduce their agreements to writing, NOW THEREFORE, this Memorandum of Understanding (MOU) is made, to become effective December 21, 2002 and it is agreed as follows. ARTICLE I -TERM OF MOU This Agreement shall be in effect for a period of one (1) year commencing December 21, 2002, and ending midnight December 19, 2003. The City and the Association agree to exchange proposals regarding a successor Memorandum of Understanding (MOU) on or prior to August 4, 2003. 2003 MEO MOU Final 3 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 ARTICLE II - REPRESENTATIONAL UNIT/CLASSIFICATIONS It is recognized that Association is the employee association which has the right to meet and confer in good faith with the city on the behalf of employees whose classifications are listed in Exhibit A, attached hereto and incorporated by reference herein. ARTICLE III -ARTICLE NUMBER RESERVED ARTICLE IV - EXISTING CONDITIONS OF EMPLOYMENT Except as otherwise expressly provided herein, the adoption of this Memorandum of Understanding shall not change existing benefits and terms and conditions of employment which have been established in prior Memoranda of Understanding, and/or provided for in the Personnel and Departmental Rules of the City of Huntington Beach. ARTICLE V - SEVERABILITY If any section, subsection, sentence, clause, phrase or portion of this MOU or any additions or amendments thereof, or the application thereof to any person, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity .of the remaining portions of this resolution or its application to other persons. The City Council hereby declares that it would have adopted this MOU and each section, subsection, sentence, clause, phrase or portion, and any additions or amendments thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions, or the application thereof to any person, be declared invalid or unconstitutional. ARTICLE VI - SALARY SCHEDULE A. Salary Schedule 1. All MEO represented employees are required to utilize direct deposit of payroll checks. The city shall issue each employee direct deposit advice (payroll receipt) each pay period that details all income, withholdings and deductions. 2. Permanent employees shall be compensated at hourly salary rates by job type and pay grade including a three percent (3%) increase effective December 21 2002 as set forth in Exhibit A attached hereto and incorporated herein by this reference. 2003 MEO MOU Final 4 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 3. Marine Safety Chief The salary range of the Marine Safety Division Chief shall be a minimum of 18% above the Marine Safety Lieutenant but shall be no higher than 15% below the Deputy Director of Recreation/Beach Development. ARTICLE VII - SPECIAL PAY A. Educational Tuition: 1. Upon approval of the Department Head and the Human .Resources Manager, permanent employees may be compensated for courses from accredited educational institutions. Tuition reimbursement shall be limited to job related courses or job related educational degree objectives and requires prior approval by the Department Head and Human Resources Manager. 2. Education costs shall be reimbursed to permanent employees on the basis of a full refund for tuition, books, parking (if a required fee) and any other required fees upon presentation of receipts. However, the maximum reimbursement shall be not more than one thousand five hundred dollars ($1,500) in any fiscal year period. 3. If a permanent employee was enrolled in a degree with approval from their Department Head-and the Human Resources Manager prior to April 15, 2002. Education costs shall be paid to employees on the basis of full refund for tuition, fees, books and supplies; provided, however, that maximum reimbursement shall be at the rates currently in effect in the University of California System. Employee may be compensated for actual cost of tuition, books, fees, at accredited educational institutions that charge higher rates than the University of California, if it can be demonstrated by the employee that said educational institutional presents the only accredited course or program within a reasonable commuting distance of the employee. 4. Reimbursements shall be made when the employee presents proof to the Human Resources Manager that he/she has successfully completed the course with a grade of"C" or better; or a "Pass" if taken for credit. 5. The city and the Association agree to re-convene an "Education Committee" that will consist of two individuals from the city and two individuals from the Association to meet on the topic of tuition reimbursement. The committee will meet between July 1, 2003 and August_30, 2003. The resulting committee report shall be a possible subject of negotiation in a successor MOU. 2003 MEO MOU Final 5 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 B. Bilingual Pay: Permanent employees who are required by their Department Head to use Spanish, Vietnamese, or Sign Language skills as part of their job assignment, shall be paid an additional five-percent (5%) of their basic hourly rate in addition to their regular bi- weekly salary. Permanent employees may accept assignments utilizing bilingual skills in other languages on a short-term assignment with approval by the City Administrator. Such employees shall receive the additional five percent (5%) for every bi-weekly pay period that the assignment is in effect. In order to be eligible for said compensation, employee's language proficiency will be tested and certified by the Human Resources Manager or designee. ARTICLE VIII - UNIFORMS The city agrees to provide uniforms to employees on active duty who are required to wear uniforms to the same extent as in the past. ARTICLE IX - HOURS OF WORK/OVERTIME/ADMINISTRATIVE LEAVE It is the intent of the city to provide an opportunity for MEO employees to select a flex schedule and/or alternative work schedule that is consistent with the city's objective that such schedules shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Administrator or designee. A. Overtime: Employees represented herein shall not be eligible for paid overtime compensation. B. Administrative Leave: All unit employees shall be entitled to 40 hours of administrative leave upon working forty (40) additional hours above their regular work schedule per calendar year. Such employee may earn additional administrative leave, on an hour for hour basis, for hours worked in excess of seventy-five (75) in a calendar year. Time off for Police Department fitness programs and flexible scheduling that is agreed to between the employee and Department Head are exempt from the 75-hour provision. C. Flex Schedule and Hours of Work: Effective February 1, 2003, with supervisor and Department Head approval, MEO employees may flex regular scheduled start times between the hours of 7:00 a.m. to 9:00 a.m. Flex schedules shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Administrator or designee. 2003 MEO MOU Final 6 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 Effective February 1, 2003, MEO employees will have the option of working a 5/40 or 9/80 work schedule with supervisor and Department Head approval. MEO employees assigned the 4/10 work schedule shall retain the option of working the 4/10 work schedule with supervisor and Department Head approval. In order to maintain service to the public, departmental effectiveness, productivity and/or efficiency a Department Head may assign an employee a different work schedule that is in compliance with the requirements of the Fair Labor Standards Act (FLSA) with City Administrator approval. 1. 5/40 Work Schedule The 5/40 work schedule shall.be defined as working five (5) eight (8) hour days Monday through Friday each`week plus a one-hour lunch during each work shift, totaling a forty (40) hours work week. The assigned 5/40 work schedule must be in compliance with the requirements of FLSA and all other applicable laws. 2. 9/80 Work Schedule The 9/80 work schedule, as outlined in Exhibit H, shall be defined as working nine (9) days for eighty (80) hours in a two week pay period by working eight (8) days at nine (9) hours per day and working one (1) day for eight (8) hours (Friday), plus a one-hour lunch during each work shift, totaling forty (40) hours in each FLSA work week. The 9/80 work schedule shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Administrator or designee. - 3. 4/10 Work Schedule The 4/10 work schedule, as outlined in Exhibit I, shall be defined as working four (4) ten (10) hour days Monday through Thursday each week plus a one- hour lunch during each work shift, totaling a forty (40) hours work week. The assigned 4/10 work schedule must be in compliance with the requirements of FLSA and all other applicable laws. The 4/10 work schedule shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Administrator or designee. 2003 MEO MOU Final 7 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 ARTICLE X - HEALTH AND OTHER INSURANCE BENEFITS A. Health The city shall continue to make available group medical, dental and vision benefits to all MEO employees. B. Eligibility Criteria and Cost 1. City Paid Medical, Dental and Vision Insurance - Employee and Dependents The city will assume payment for employee and dependents medical, dental and vision insurance effective the first of the month following one complete calendar month of employment. 2. City's Contribution to Health Insurance Premiums a. Year 2003 Premiums The city "caps" its contributions for 2003 premiums at the level set forth in the chart below: Monthly City Dental Dental City Plan HMO Vision Paid Premium (PPO) (PMI) EE $336.05 $236.31 $42.88 $23.00 $17.58 EE + 1 664.53 517.79 81.82 39.11 17.58 EE + 2 or more 813.62 682.46 1 116.36 1 59.81 1 17.58 Effective January 4, 2003 employee bi-weekly payroll deduction contributions for 2003 premiums are set forth in the chart below: Bi-Weekly Dental Dental Employee Paid City Plan HMO (PPO) (PMI) Vision Premium EE $12.00 $5.95 $1.89 $0.00 $0.23 EE + 1 23.72 13.05 3.66 0.00 0.23 EE' +2 or more 29.04 17.20 5.12 0.00 0.23 b. Future Premiums The city "caps" its contributions toward monthly group medical, dental and vision plan premiums, by category (EE,, EE + 1, and EE + 2 or more) and plan, at the year 2003 level. Until the City Council approves a successor to this Memorandum-of- Understanding, the city's 2003 contribution caps will remain in place 2003 MEO MOU Final 8 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 in 2004 and beyond, even if premium increases result in these additional costs being borne by the employee. 3. Medical Cash-Out If an employee is covered by a medical program outside of a city-provided program (evidence of which must be supplied to Administrative Services Department), they may elect to discontinue city medical coverage and receive ninety two dollars and thirty-one cents ($92.31) bi-weekly to deposit into their Deferred Compensation account or any other pre-tax program offered by the city. 4. Section 125 Plan This plan allows employees to use pre-tax salary to pay for regular child care, adult dependent care and/or medical expenses. C. Life and Accidental Death and Dismemberment Each employee shall be provided with $45,000 life insurance and $45,000 accidental death and dismemberment insurance paid for by the city. Each employee shall have the option, at his or her own expense, to purchase additional amounts of life insurance and accidental death and dismemberment insurance to the extent provided by the city's current providers. Evidence of insurability is contingent upon total participation in additional amounts. D. Long Term Disability Insurance This program provides, for each incident of illness or injury, a waiting period of thirty (30) calendar days, during which the employee may use accumulated sick leave, general leave pay, or the employee may elect to be in a non-pay status. Subsequent to the thirty (30) day waiting period, the employee will be covered by an insurance plan paid for by the city, providing 66 2/3 percent of the first $12,500 of the employee's basic monthly earnings. The maximum benefit period for disability due to accident or sickness shall be to age 65. Days and months refer to calendar days and months. Benefits under the plan are integrated with sick leave, Worker's Compensation, Social Security and other non- private program benefits to which the employee may be entitled. Disability is defined as: "The inability to perform all of the duties of regular occupation during two years, and thereafter the inability to engage in any employment or occupation for which he is fitted by reason of education, training or experience." Rehabilitation benefits are provided in the event the individual, due to disability, must engage in another occupation. Survivor's benefits continues plan payment for three (3) months beyond death. A copy of the plan is on file in the Administrative Services Department. 2003 MEO MOU Final 9 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 E. Miscellaneous 1. City Paid Premiums While on Medical Disability When an employee is off work without pay for reason of medical disability, the city shall maintain the city paid employee's insurance premiums during the period the employee is in a non-pay status for the length of said leave, not to exceed twenty-four (24) months. 2. Insurance and Benefits Advisory Committee The city and the Association agree to participate in a citywide joint labor and management insurance and benefits advisory committee to discuss and study issues relating to insurance and benefits available for employees. 3. Health Plan Over-Payments Unit members shall be responsible for accurately reporting the removal of ineligible dependents from health plan coverages. The city shall have the right to recover any premium paid by the city, including premiums to its self-insured plan, on behalf of ineligible dependents. Recovery of such over-payments shall be made as follows: a. Reduction of Employee's Bi- Weekly Salary Warrant The employee's bi-weekly salary warrant shall be reduced by one-half of the amount of the bi-weekly over-payment. Such reduction shall continue until the entire amount of the over-payment is recovered. b. Notice of Ineligible Dependents The city shall use its best efforts to advise all unit members of their obligation to report changes in the status of dependents, which affect their eligibility. c. Twelve Month Recovery Period The city shall be entitled to recover a maximum of twelve (12) months of premium over-payments. Neither the employee nor the dependent shall be liable to the city other than as provided herein. F. Joint Cafeteria Plan Study The city and up to four MEO employees will convene an ad-hoc committee to study a cafeteria plan for employee benefits. The ad-hoc committee will finalize its report by June 30, 2003. The resulting report may have an effect on 2004 benefit costs. 2003 MEO MOU Final 10 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 ARTICLE XI - RETIREMENT BENEFITS A. Benefits 1. Self Funded Supplemental Retirement Benefit Employees hired prior to August 17, 1998 are eligible for the Self-Funded Supplemental Retirement Benefit, which provides that: a. In the event a member elects Option #2 (Section 21456) or Option #3 (Section 21457) of the Public Employees' Retirement Law, the city shall pay the difference between such elected option and the unmodified allowance which the member would have received for his or her life alone. This payment shall be made only to the member, shall be payable by the city during the life of the member, and upon that member's death, the city obligation shall cease. The method of funding this benefit shall be at the sole discretion of the city. This benefit is vested for employees covered by this agreement. (Note: The options provide the allowance is payable to the member until his or her death, and then either the entire allowance (Option #2) or one-half of the allowance (Option #3) is paid to the beneficiary for life.) b. Employees hired on or after August 17, 1998 shall not be eligible for this benefit referenced in A.1.a. herein above. 2. - Medical Insurance for Retirees a. Medical Insurance Upon Retirement Upon retirement, whether service or disability, each employee shall have the following options in regards to medical insurance under city sponsored plans: 1) With no change in benefits, retirees can stay in any of the plans offered by the city, at the retiree's own expense, for the maximum time period required by Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) Federal Law, or 2) Retirees retiring after approval of this MOU may participate in the Retiree Medical Plan, attached hereto as Exhibit E, or the Health Maintenance Organization (HMO) Plan currently being offered to retirees at the retiree's own expense if the requirements set forth in Exhibit E are met, or if the retiree meets the eligibility requirements described in Exhibit E, the retiree may receive a subsidy from the city for retiree medical insurance pursuant to the schedule set forth in Exhibit E. 2003 MEO MOU Final 11 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 b. Premiums Paid Upon Retirement By Use of Unused Leave Benefits Employees electing to participate in the City's group health insurance program after retirement may cause the premiums to be paid by the City out of any available funds due and owing them under the terms of this agreement for unused sick leave and general leave benefits upon retirement. B. Public Employees' Retirement System Reimbursement and Reporting 1. Employee's Contribution Each employee covered by this Agreement shall continue to be reimbursed once bi-weekly in an amount equal to 7% of the employee's base salary (9% for safety employees) as a pickup of the employee's contribution, or portion of such contribution, to the Public Employees' Retirement System. The above PERS pickup is not base salary but is done pursuant to Section 414(h)(2) of the Internal Revenue Code. 2. Two Percent at Age 55 Formula Unit employees shall be covered by the two percent at age 55 formula (2% @ 55) as identified in Section 21354. 3. Pre-Retirement Optional Settlement 2 Death Benefit The city will initiate the contract amendment process for the Pre-Retirement Optional Settlement 2 Death Benefit as identified in Section 21548 with CalPERS within ten (10) business days of City Council ratification of all memoranda of understanding and/or other necessary agreements with all miscellaneous retirement plan employee associations and will adopt said amendment as soon as reasonably possible thereafter. 4. Fourth Level of 1959 Survivor Benefits The city will initiate the contract amendment process for the Fourth Level of the 1959 Survivor Benefit as identified in Section 21574 with CalPERS within ten (10) business days of City Council ratification of all memoranda of understanding and/or other necessary agreements with all miscellaneous retirement plan employee associations and will adopt said amendment as soon as reasonably possible thereafter. 5. Review of Contract Amendment Cost Analysis Upon receipt of the contract amendment cost analyses for the retirement formulas of 2.5%@55, 2.7%@55 and 3%@60 from CalPERS, (which have already been requested from CaIPERS) the city and association shall jointly review the contract amendment cost analyses. This joint review shall not be a reopener nor shall it commit the city to make any amendments to its contract with CalPERS. 2003 MEO MOU Final 12 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 ARTICLE XII - LEAVE BENEFITS A. General Leave 1. Accrual Employees accrue leave at the accrual rates outlined below. General leave may be used for any purpose, including vacation, sick leave, and personal leave. Years of Service General Leave Allowance First through Fourth Year 176 Hours Fifth through Ninth Year 200 Hours Tenth through Fourteenth Year 224 Hours Fifteenth Year and Thereafter 256 Hours 2. Eligibility and Approval General leave must be pre-approved except for illness, injury or family sickness, which may require a physician's statement for approval. Accrued general leave may not be taken prior to six (6) months' service except for illness, injury or family sickness. General leave accrued time is to be computed from hiring date anniversary. Members shall not be permitted to take general leave in excess of actual time earned. Members shall not accrue general leave in excess of six hundred hours (600). Employees may not use their general leave to advance their separation date on retirement or other separation from employment. . 3. Family Sick Leave As required by law, employees will be allowed to use up to one-half of their annual General Leave accrual for family sick leave, pursuant to the provisions of California Labor Code Section 233. The city will provide family and medical care leave for eligible employees that meet all requirements of State and Federal law. Rights and obligations are set forth in the Department of Labor Regulations implementing the Family Medical Leave Act (FMLA), and the regulations of the California Fair Employment and Housing Commission implementing the California Family Rights Act (CFRA). 4. Conversion to Cash Once during each fiscal year, each employee shall have the option to convert into a cash payment or deferred compensation up to a total of one hundred twenty (120) hours of earned general leave benefits. The employee shall give two (2) weeks advance notice of his/her desire to exercise such option. 2003 MEO MOU Final 13 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 5. One Week Minimum Vacation Requirement The Deputy City Treasurer shall take a minimum of one week, (i.e., five consecutive work days) paid vacation each calendar year. B. Holidays The following are paid eight (8) hour holidays: 1. New Year's Day 2. Martin Luther King Jr., (third Monday in January) 3. Presidents Day (third Monday in February 4. Memorial Day (last Monday in May) 5. Independence Day (July 4) 6. Labor Day (first Monday in September) 7. Veteran's Day (November 11) 8. Thanksgiving Day (fourth Thursday in November) 9. The Friday after Thanksgiving 10. Christmas Day (December 25) Any day declared by the President of the United States to be a national holiday and adopted as an employee holiday by the City Council of Huntington Beach. Holidays which fall on Saturday shall be observed the preceding Friday, and those falling on Sunday shall be observed the following Monday. C. Sick Leave 1. Accrual — No employee shall accrue sick leave after December 24, 1999. 2. Credit —Employees assigned to MEO shall carry forward their sick leave balance and shall no longer accrue sick leave credit. 3. Usage — Employees may use accrued sick leave for the same purposes for which it was used prior to December 25, 1999. 4. Family Sick Leave — The city will provide family and medical care leave for eligible employees that meet all requirements of State and Federal law. Rights and obligations are set forth in the Department of Labor Regulations implementing the Family Medical Leave Act (FMLA), and the regulations of the California Fair Employment and Housing Commission implementing the California Family Rights Act (CFRA). 2003 MEO MOU Final 14 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 5. Pay Off At Termination a. Employees covered by this agreement and on the payroll on November 20, 1978 shall be entitled to the following sick leave payoff plan: At involuntary termination by reason of disability, or by death, or by retirement, employees shall be compensated at their then current rate of pay for seventy-five percent (75%) of all unused sick leave accumulated as of July 1, 1972, plus fifty percent (50%) of unused sick leave accumulated subsequent to July 1, 1972, up to a maximum of 720 hours of unused, accumulated sick leave, except as provided in paragraph 4 below. Upon termination for any other reason, employees shall be compensated at their then current rate of pay for fifty percent (50%) of all unused, accumulated sick leave, up to a maximum of 720 hours of such accumulated sick leave. b. Employees hired after November 20, 1978 shall be entitled to the following sick leave payoff plan: Upon termination, all employees shall be paid, at their then current salary rate, for twenty-five percent (25%) of unused, earned sick leave to 480 hours accrued, and for thirty-five percent (35%) of all unused, earned sick leave in excess of 480 hours, but not to exceed 720 hours, except as provided in paragraph 4 below. c. Except as provided in paragraph 4 below, no employee shall be paid at termination for more than 720 hours of unused, accumulated sick leave. However, employees may utilize accumulated sick leave on the basis of "last in, first out" meaning that sick leave accumulated in excess of the maximum for payoff may be utilized first for sick leave, as defined in Personnel Rule 18- 8. d. Employees who had unused, accumulated sick leave in excess of 720 hours as of July 5, 1980, shall be compensated for such excess sick leave remaining on termination under the formulas described in paragraphs 1 and 2 above. In no event shall any employee be compensated upon termination for any accumulated sick leave in excess of the "cap" established by this paragraph (i.e., 720 hours plus the amount over 720 hours existing on July 5, 1980). Employees may continue to utilize sick leave accrued after that date in excess of such "cap" on a "last in, first out basis. e. To the extent that any "capped" amount of excess sick leave over 720 hours is utilized, the maximum compensable amount shall be correspondingly reduced. (Example: Employee had 1,000 hours accumulated. Six months after July 5, 1980, employee has accumulated another 48 hours. Employee 2003 MEO MOU Final 15 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 is then sick for 120 hours. Employee's maximum sick leave "cap" for compensation at termination is now reduced by 72 hours to 928 hours.) f. Employees electing to participate in the City's group health insurance program after retirement may cause the premiums to be paid by the City out of any available funds due and owing them under the terms of this agreement for unused sick leave benefits upon retirement. D. Bereavement Leave Employees shall be entitled to bereavement leave not to exceed twenty-four (24) work hours in each instance of death in the immediate family. Immediate family is defined as father, mother, sister, brother, spouse, children, grandfather,grandmother, stepfather, stepmother, step grandfather, step grandmother, grandchildren, stepsisters, stepbrothers, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepchildren, or wards of which the employee is the legal guardian. E. Paternity,Leave The city will provide family and medical care leave for eligible employees that meet all requirements of State and Federal law. Rights and obligations are set forth in the Department of Labor Regulations implementing the Family Medical Leave Act (FMLA), and the regulations of the California Fair Employment and Housing Commission implementing the California Family Rights Act (CFRA). ARTICLE XIII - CITY RULES A. Personnel Rules The city and the Association agree to implement the following rules and accordingly revise the Personnel Rules as described herein: 1. Rule 5 — Recruitment and Examination Procedure a) 5-4 — Order of Certification Whenever certification is to be made, the eligibility lists, if active and not exhausted shall be used in the following order: 1) Re-employment list 2) Promotional list 3) Employment List If fewer than five (5) names of persons willing to accept appointment are on the list from which certification is to be made, then additional eligibles shall be certified from the various lists next lower in order of preference until five (5) names are certified. If there are fewer than five (5) names on such lists, there shall be certified the number thereon. In such case, the appointing 2003 MEO MOU Final 16 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 authority may demand certification of five (5) names and examinations shall be conducted until five (5) names may be certified. In the event the appointing authority does not choose to appoint from the five (5) names certified, a new examination may be requested. In the event another examination is conducted, those names shall be merged with others already on the list in order of scores. b) 5-14 — Promotional Exams Promotional examinations may be conducted whenever, in the opinion of the Human Resources Manager, after consultation with the department head, the need of the service so requires; provided, however, a promotional examination may not be given unless there are two (2) or more candidates eligible. Only employees who meet the requirements for the vacant position may compete in promotional examinations. Promotional examinations may include any of the selection techniques, or any combination thereof, mentioned in Section 5-13. Additional factors including, but not limited to, performance rating and length of service may be considered. A promotional employment list shall be established after the administration of a promotional examination, and such list shall contain the name(s) of those that passed the examination. 2. Rule 7 — Discipline a) 7-2 — Causes for Discipline 12) Possession, use or sale of illegal narcotics or habit-forming drugs, while on-duty or on city property. 14) Conviction of any felony or a misdemeanor with a job nexus. A plea or verdict of guilt, or a conviction following a plea of nolo contendere, is deemed to be a conviction within the meaning of this section. 15) Participating in an unlawful strike, work stoppage, slowdown, or using or attempting to use sick leave to accomplish the same purpose as a strike, work stoppage, or slowdown. 3. Rule 8 — Termination a) 8-1 — Medical Examination. Evaluation of Employee's Work Capacity. Demotion. Transfer or Termination of Appointment At any time a department head has reasonable cause to, believe that an employee may not be able to perform the duties of his/her position for physical or psychological reasons, such department head shall consult with the Human Resources Manager regarding such belief. If the Human Resources Manager concurs, the department head may order the employee to submit to a medical or psychological examination. The 2003 MEO MOU Final 17 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 employee shall be offered the opportunity, in writing, to select from a panel of three to five physicians or psychologists to conduct the examination. The cost of such examination shall be paid by the city and, to the extent practicable, shall be scheduled during the work hours with no loss of pay. The department head shall review the medical or psychological report and shall consult with the Human Resources Manager regarding the physician's assessment of the employee's ability to perform the duties of his/her position. Any decision regarding such employee shall be made in accordance with the Americans with Disabilities Act. Notwithstanding any other provision of this rule, an employee being evaluated for medical or psychological fitness to perform the duties of his/her position may apply for another position in the competitive service for which he/she has qualified. If such employee is qualified and can perform the duties of a lower paying vacant position for which he/she has applied, he/she will be placed in such position, without competitive examination, subject to the approval of the department head. (The city and Association agree to meet biannually to discuss the 8-1 process). b) 8-3 — Layoff in Accordance with Length of Service The city and the Association agree that the first sentence in Personnel Rule 8-3 shall be modified to. read as follows: Layoff shall . be made in accordance with the relative length of the last period of continuous service of the employees in the class of layoff, provided, however, that no permanent employee shall be laid off until all temporary, acting and probationary employees in the competitive service holding positions in the same class are first laid off. c) 8-11 — Re-Employment With the approval of Human Resources Manager, an employee who has resigned in good standing from the competitive service may be re- employed to his/her former position, if vacant, or to a vacant position in the same or comparable class within one (1) year from date of resignation in accordance with Rule 5-21. If such re-employment commences within ninety days of the effective date of resignation, the employee shall not be considered a new employee for vacation and seniority purposes. 4. Rule 12 - Classification Plan a) 12-10 —Temporary Employees Employment on a basis other than permanent or probationary to a permanently budgeted position not to exceed 1000 hours in any twelve (12) month period. Employees occupying temporary positions shall not be 2003 MEO MOU Final 18 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 included in the competitive service and shall not be subject to these rules and regulations. 5. Rule 14 —Additional Pay and Pay Adjustments a) 14-6 — Salary Advancements to Meet Recruiting Problems or to Give Credit for Prior Service. Application for Other Advancements The Department Head, through the Human Resources Manager and with the approval of the City Administrator may make an appointment at any step above the minimum salary rate to classes or positions in order to meet recruiting problems to obtain a person who has extraordinary qualifications, or to give credit for prior city service in connection with appointments, promotions, reinstatements, transfers, reclassifications, or demotions. Salary adjustments within the salary range for the class, other than merit salary adjustments authorized by Section 14-1, may be approved by the City Administrator, upon recommendation of the department head through the Human Resources Manager. Such recommendation shall include the reason(s) for the adjustment, whether the advancement is to be permanent or temporary, and an effective date. 6. Rule 18 —Attendance and Leaves a) 18-16 — Industrial Accident Leave In.the event a permanent employee, who is a miscellaneous member of the Public Employees' Retirement System (PERS), is temporarily totally disabled as a result of an injury or illness arising out of and in the course of employment and covered by the State of California Workers' Compensation Insurance and Safety Act, resulting light duty assignments due to the injury or illness or absences from work shall be considered Industrial Accident Leave as that term is defined by this rule. A permanent employee eligible for Industrial Accident Leave shall receive compensation from the city in an amount equal to the employee's regular rate of salary during such period of temporary total disability. Benefits received under this rule shall be in lieu of statutory Workers' Compensation benefits. Industrial Accident Leave shall continue during all absences resulting from the injury or illness, including those absences attributable to doctor's appointments, therapy, or other follow-up medical visits, but in no case exceeding one year of accumulated absences attributable to the same injury or illness. In the event an employee is temporarily, totally disabled by coinciding qualifying injuries or illnesses, periods of absences shall be applied concurrently to all qualifying injuries or illnesses. Industrial Accident Leave compensation shall begin on the first day an eligible employee is absent due to a qualifying injury or illness as defined 2003 MEO MOU Final 19 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 above. Industrial accident Leave compensation will terminate on the earliest of the following: 1) The date upon which the injury or illness giving rise to eligibility for compensation under this rule is declared permanent and stationary by a treating or examining physician; or 2) The date PIERS approves an application for disability retirement benefits filed by the employee or by the city; or 3) The employee receives thirty(30) days advance notice and refuses to submit to a medical examination ordered by PIERS pursuant to Government Section 21154 or otherwise refuses to cooperate with PIERS in determining whether the employee is incapacitated for the performance of duty; or 4) The employee receiving Industrial Accident Leave Compensation applies for service-connected retirement benefits; or 5) The employment of the affected employee is otherwise separated. If an injured worker remains temporarily disabled after receiving one year of Industrial Accident Leave for accumulated absences or light duty work attributable to the. same . injury or illness, the employee will receive temporary total disability benefits as specified by the. State of California Workers' Compensation Insurance and Safety Act. Any period of time during which an employee is absent from work by reason of injury or illness for which he or she is entitled to receive Industrial Accident Leave compensation will not constitute a break in continuous service for the purposes of salary adjustments, sick leave, vacation accruals, and length of service computation. In the event an employee who is receiving or has received Industrial Accident Leave compensation makes a claim or initiates legal action against a third party for allegedly causing or contributing to the injury or illness resulting in the inability to work, the employee is required to notify in writing the City's Risk Management Division of the claim or commencement of such action within ten (10) days of the claim or such commencement. The city retains its rights of subrogation in all such instances. ,b) 18-19 — Maternity Leave The city and the Association agree to modify the present Personnel Rule 18-19 Maternity Leave to read as follows: "A permanent,employee shall be entitled to a leave of absence without pay due to inability to work due to pregnancy. The employee will be entitled to use available sick leave during this period. Said leave must be requested in writing from the Department 2003 MEO MOU Final 20 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 Head and must include written notification from the employees physician stating the last day the employee may work and the estimated duration of leave. The employee must obtain written authorization to return to work from the attending physician. Said authorization must be filed with the Department Head and the Human Resources Manager." c) 18-20 — Leave of Absence without Pay The city and the Association agree that the following sub-paragraph "C" shall be added to Personnel Rule 18-20. Leave of Absence without Pay: Leave of absence without pay, for medical disability reasons, shall be restricted to six (6) months. 7. Rule 19 — Grievance Procedure Non-Disciplinary Matters a) 19-5 Grievance Procedure The grievance procedure shall consist of the following steps, each of which must be completed prior to any request for further consideration of the matter unless otherwise provided herein: Step 1. Informal Discussion (optional) If an employee feels that he has a grievance, as defined in Section 19-2, he may request a meeting with his immediate supervisor within - ten (10) days after the employee becomes aware or reasonably should have become aware of the subject matter of the grievance. The immediate supervisor, within five (5) days of such request, shall meet with the employee when so requested and discuss the grievance in an effort to clarify the issue and work toward a cooperative settlement or resolution of the dispute. The immediate supervisor shall present, verbally or in writing, his decision to the employee within five (5) days from the time of the informal discussion. Step 2. Formal Procedure. Immediate Supervisor If the grievance is not settled through informal discussion, or if the employee elects not to invoke his right to informal discussion, the employee may formally submit a grievance to his immediate supervisor within five (5) days following the decision pursuant to informal discussion, or in the event the employee does not elect to invoke his right to informal discussion, within ten (10) days after the occurrence which gives rise to the grievance or after the employee becomes aware or reasonably should have been aware of the subject matter of the grievance. Such submission shall be in writing, stating the nature of the grievance and a suggested solution or requested remedy. Within five (5) days after receipt of the written grievance, the immediate supervisor shall meet with the employee. 2003 MEO MOU Final 21 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 Within five (5) days thereafter written decision shall be given the employee by the immediate supervisor. Step 3. Department Head In cases where the department head is not the immediate supervisor, if the grievance is not settled under Step 2, the grievance may be presented to the department head. The grievance shall be submitted within five (5) days after receipt of the written decision from Step 2. Within five (5) days after receipt of the written grievance, the department head, or his representative, shall meet with the employee and his immediate supervisor, if any. Within five (5) days thereafter written decision shall be given to the employee. Step 4 — City Administrator If the grievance is not settled under Step 3, the grievance may be presented to the City Administrator in accordance with the following procedure: Within fifteen (15) days after the time the decision is rendered under Step 3 above, a written statement of the grievance shall be filed with Human Resources Manager who shall act as hearing officer and shall set the matter for hearing within fifteen (15) days thereafter and shall cause notice to be served upon all interested parties. The Human Resources Manager, or his representative; shall hear the matter de novo and shall make recommended findings, conclusions and decision in the form of a written report and recommendation to the City Administrator within five (5) days following such hearing. The City Administrator may, in his discretion, receive additional evidence or argument by setting the matter for hearing within ten (10) days following his receipt of such report and causing notice of such hearing to be served upon all interested parties. Within five (5) days after receipt of report, or the hearing provided for above, if such hearing is set by the City Administrator, the City Administrator shall make written decision and cause such to be served upon the employee or employee organization and the Human Resources Manager. Step 5 — Personnel Board Hearing Hearing. As soon as practicable thereafter, the Human Resources Manager shall set the matter for hearing before a hearing officer either selected by mutual consent of the parties or from a list provided by the Personnel Commission. Ratification of the hearing officer selected by mutual consent of the parties, if from a list approved by the Personnel Commission, shall not require separate 2003 MEO MOU Final 22 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 approval or-ratification by the Personnel Commission. The hearing officer shall hear the case and make recommended findings, conclusions and decision in the form of a written report and recommendation to the Personnel Commission. In lieu of the hearing officer process, the Personnel Commission may agree to hear a case directly upon submission of the case by mutual consent of the parties. 8. Rule 20 —Disciplinary Procedure and Appeal a) 20-1 — Purpose The purpose of this rule is to provide a procedure for recommending and imposing discipline against city employees, and a means by which an employees may administratively appeal any such disciplinary action. b) 20-2 — Disciplinary Procedures 1) Notice of Proposed Adverse Action For disciplinary demotions, suspensions or dismissals, an employee shall be served a written Notice of Proposed Adverse Action by the employee's department head, or his/her designee, or by certified mail, prior to the proposed disciplinary action taking effect. The notice shall state the reasons for and charges upon which the proposed action. is based, and,the effective date of the. action the right to respond and the employer's right to representation. A copy of all materials upon which the proposed action is based shall be attached to the notice. 2) Employee's Right to Respond The employee shall be given a minimum of ten (10) calendar days to respond orally and/or in writing to the charges upon which the proposed action is based. The employee's response shall be made to and/or before his/her department head. 3) Time Off The employee shall be given reasonable time off with pay to attend disciplinary meetings. 4) Final Notice of Decision After an employee has responded to or waived his/her right to respond to the proposed adverse action, the employee shall be served with a final Notice of Decision from his/her department head. The final written Notice of Decision shall state whether or not the proposed action shall be taken or modified, and the reasons therefore and effective date or the action. 2003 MEO MOU Final 23 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 c) 20-3 —Appeal to Personnel Commission Disciplinary action involving the termination, suspension, demotion or other reduction in pay may be appealed to the Personnel Commission for de novo hearing and final determination in accordance with the following procedure: 1) Request for Appeal Within five (5) days after the employee's receipt of a final Notice of Discipline, a written request for an appeal to the Personnel Commission shall be submitted to the Human Resources Manager. 2) Hearing As soon as practicable thereafter, the Human Resources Manager shall set the matter for hearing before a hearing officer. The hearing officer shall hear the case without the Board and shall make recommended findings, conclusions and decision in the form of a written report and recommendation to the Board. 3) Final Decision The Board shall consider the written report and recommendations of the hearing officer and after due deliberation in executive session, shall render a decision in the matter which shall be final and binding on all parties, and from which there shall be no further appeal. d) 20-4— Supplemental Hearing by Personnel Board 1) The Board may, in its sole discretion, after it has received the written report and recommendation of the hearing officer, set the matter for private hearing for the purpose of receiving additional evidence or argument. In the event the Board sets a private hearing for such purposes, the Human Resources Manager shall give written notice to all parties concerned in such matter. 2) The Board, following a consideration of the hearing officer's written report and recommendation and deliberation thereon and any supplemental hearing before the Board, shall make findings, conclusions and decisions which shall be final and binding on all parties and from which there shall be no further appeal. e) 20-5 — Employee Status on Pending Appeal Notwithstanding the provisions of Rule 7, Section 7-4 (Suspension with Pay), the disciplinary. action shall be effective pending an appeal to the Personnel Commission. 2003 MEO MOU Final 24 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 9. Rule 21 — Grievance Procedures - General a) 21-7 Hearing Officer The hearing officer provided for in Rules 19 and 20 shall be from a list provided by the Personnel Commission or one selected by mutual consent of the parties. b) 21-12 Time. Extension of The city and the employee, or employee organization may, by mutual consent, extend the time period within which an act must occur in the processing of grievances. c) 21-13, Time Extension, Grievances The city and the employee, or employee organization may, by mutual consent, extend the time periods within which an act must occur in the processing of grievances. B. Employer-Employee Relations Resolution 1. Modification of Section 7 — Decertification and Modification a) The city and the Association desire to maintain labor stability within the representational unit to the greatest extent possible, consistent with the employee's right toselect the representative of his or her own choosing. For these purposes, the parties agree that this Agreement shall act as a bar to appropriateness of this unit and the selection of the representative of this unit, except during the month of August prior to the expiration of this Agreement. Changes in bargaining unit shall not be effective until expiration of the MOU Except as may be determined by the Personnel Commission pursuant to the procedures outlined below. This provision shall modify and supersede the time limits, where inconsistent, contained in Section 7 of the current Employer-Employee Relations Resolution of the City of Huntington Beach. b) The city and the Association have agreed to a procedure whereby the city, by and through the Human Resources Manager, would be entitled to propose a Unit Modification. The Association and the city agree to jointly recommend a modification of the City of Huntington Beach Employer- Employee Relations Resolution (Resolution Number 3335) upon the city's having completed its obligation to meet and confer on this issue with all other bargaining units. The proposed changed to the Employer-Employee Relations Resolution is as follows: 2003 MEO MOU Final 25 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 7.3 Human Resources Manager Motion of Unit Modification - The Human Resources Manager may propose, during the same period for filing a petition for decertification, that an established unit be modified in accordance with the following procedure: 1. The Human Resources Manager shall give written notice of the proposed modification(s); to any affected employee organization and any affected employees. 2. The Personnel Commission shall hold a meeting concerning the proposed modification(s) at which time all affected employee organizations and employees shall be heard; 3. Thereafter, the Personnel Commission shall determine the composition of the appropriate unit or units and shall give written notice of such determination to the affected employee organizations and any affected employees. The City Administrator, employee organization or employee aggrieved by an appropriate unit determination of the Personnel Commission may, within ten (10) days of notice thereof, request a review of such determination by the City Council. Within thirty (30) days of receipt of a request to review a unit determination of the Personnel Commission the City Council shall review the matter. The. City Council's decision shall be final. 4. Except as provided otherwise in this MOU, the salary, benefit and working conditions specified by this MOU shall be provided to employees in classifications listed in Exhibit A and have completed or are in the process of completing a probationary period in a permanent position in the competitive service in which the employee regularly works twenty hours or more per week. C. Rules Governing Layoff, Reduction in Lieu of Layoff and Re-Employment 1. Part 1 — Layoff Procedure a) General Provisions 1) Whenever it is necessary, because of lack of work or funds to reduce the staff of a city department, employees may be laid off pursuant to _ these rules. 2) Whenever an employee is to be separated from the competitive service because the tasks assigned are to be eliminated or substantially changed due to management-initiated changes, including but not 2003 MEO MOU Final 26 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 limited to automation or other technological changes, it is the policy of the city that steps be taken by the Human Resources Division on an interdepartmental basis to assist such employee in locating, preparing to qualify for, and being placed in other positions in the competitive service. This shall not be construed as a restriction on the city government in effecting economies or in making organizational or other changes to increase efficiency. 3) A department shall reduce staff by identifying which positions within the department are to be eliminated. 4) The employee who has the least citywide service credit in the class within the department shall have citywide transfer rights in the class pursuant to Part 1, Section 3, Transfer or Reduction to Vacancies in Lieu of Layoffs, or within the occupational series pursuant to Part 2, Bumping Rights. 5) If a deadline within this procedure falls on a day that City Hall is closed, the deadline shall be the next day City Hall is open. b. Service Credit 1) Service credit means total time of full-time continuous service within the city at the time the layoff is initiated, including probation, paid leave or military leave. Permanent part-time employees earn service credit on a pro-rata basis. 2) Except as required by law, leaves of absence without pay shall not earn service credit. 3) As between two or more employees who have the same amount of service credit, the employee who has the least amount of service in class shall be deemed to be the least senior employee. c. Transfer or Reduction to Vacancies in Lieu of Layoff 1) In lieu of layoff, a transfer within class shall be offered to an employee(s) with the least amount of service credit in the class designated for staff reduction within a department subject to the following: a) The employee has the necessary qualifications to perform the duties of the position. b) The employee shall be given the opportunity, in order of service credit, to accept a transfer to a vacant position in the same class 2003 MEO MOU Final 27 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 within the city, provided the employee has the necessary qualifications to perform the duties of the position. c) If no position in the same class is vacant, the employee shall be given the opportunity, in order of service credit, to transfer to the position in the same class that is held by an incumbent in another department with the least amount of service credit whose position the employee has the necessary qualifications to perform. 2) If an employee(s) is not eligible for transfer within the employee's class, the employee shall be offered, in order of service credit, a reduction to a vacant position in the next lower class within the city in the occupational series in lieu of layoff provided the employee has the necessary qualifications to perform the duties of the position. 3) If the employee refuses to accept a transfer or reduction pursuant to A. or B., above, the employee shall be laid off. d) If the employee(s) in the class with the least amount of service credit is in the position(s) to be eliminated or displaced by transfer, the employee shall be offered bumping rights, pursuant to Part 2, Service Credit. e) Any employee who takes a reduction to a position in a. lower class within the occupational series in lieu of layoff shall be placed on the reinstatement/reemployment list(s) pursuant to Part 3., Reemployment. 2. Order of Layoff a) Prior to implementing a layoff, vacant positions that are authorized to be filled shall be identified by citywide occupational series. If the employee refuses to accept a position pursuant to Section 3., above, the employee shall be laid off. b) No promotional probationary employee or permanent employee within a class in the department shall be laid off until all temporary, nonpermanent part-time and non-promotional probationary employees in the class are laid off. Permanent employees whose positions have been eliminated may exercise citywide bumping rights to a lower class in the occupational series pursuant to Part 2. c) When a position in a class and/or occupational series is eliminated, any employee in the class who is on authorized leave of absence or is holding a temporary acting position in another class shall be included for determining order of service credit and be subject to these layoff procedures as if the employee was in his or her permanent position. 2003 MEO MOU Final 28 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 3. Notification of Employees a) The Human Resources Division shall give written notice of layoff to the employee by personal service or by sending it by certified mail to the last known mailing address at least fifteen (15) calendar days prior to the effective date of the layoff. Normally notices will be served on employees personally at work. b) Layoff notices may be initially issued to all employees who may be subject to layoff as a result of employees exercising voluntary reduction/bumping rights. c) The notice of layoff shall include the reason for the layoff, the effective date of the layoff, the employee's hire date and the employee's service credit ranking. The notice shall also include the employee's right to bump the person in a lower class with the least service credit within the occupational series provided the employee possesses the necessary qualifications to successfully perform the duties in. the lower class and the employee has more service credit than the incumbent in the lower class. d) The written layoff notice given to an employee shall include notice that he or she has seven (7) calendar days from the date of personal service, or date of delivery of mail if certified, to notify the Human Resources Manager in writing if the employee intends to exercise the employee's bumping rights, if any, pursuant to Part 2,_Bumping Rights. e) Whenever practicable, any employee with the least amount of service credit in a lower class within an occupational series which is identified for work force reduction shall also be given written notice that such employee may be bumped pursuant to Part 2. This notice shall include the items referred to in C., above. f) If an employee disagrees with the city's computation of service credit or listed date of hire, the employee shall notify the Human Resources Manager as soon as possible but in no case later than five (5) calendar days after the personal service or certified mail delivery. Disputes regarding date of hire or service credit shall be jointly reviewed by the Human Resources Manager and the employee and/or the employee's representative as soon as possible, but in no case later than five (5) calendar days from the date the employee notifies the Human Resources Manager of the dispute. Within five (5) calendar days after the dispute is reviewed, the employee shall be notified in writing of the decision. 2003 MEO MOU Final 29 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 4. Part 2 — Bumping Rights a) Voluntary Reduction or Bumping in Lieu of Layoff 1) A promotional probationary employee or permanent employee who receives a layoff notice may request a reduction to a position in a lower class within the occupational series provided the employee possesses the necessary qualifications to perform the duties of the position. 2) Employees electing reduction under A above, shall be reduced to a position authorized to be filled in a lower class within the employee's occupational series. The employee may reduce to a lower class in his/her occupational series by: 1) filling a vacancy in that class, or 2) if no vacancy exists, displacing the employee in the class with the least service credit whose position the employee has the necessary qualifications to perform. A displaced employee shall have bumping rights. 3) An employee who receives a layoff notice must exercise bumping rights within seven (7) calendar days of receipt of the notice as specified in Part 1. Failure to respond within the time limit shall result in a reputable presumption that the employee does not intend to exercise any right of reduction or bumping to a lower class. The employee must carry the burden of proof to show that the employee's failure to respond within the time limits was reasonable. If the employee establishes that failure to respond within the time limit was reasonable, to the Human Resource Manager's satisfaction, the employee shall be permitted to exercise bumping rights but shall not be reinstated to a paid position until the employee to be bumped has vacated the position. If the employee disagrees with the Human Resource Manager decision, the employee may appeal pursuant to the provisions of Sections 3 and 4 below. b) Re instate ment/Re-employment List.- Any employee who takes a reduction to a position in a lower class within the occupational series in lieu of layoff shall be placed on tile reinstatement/re-employment list pursuant to Part 3, Re-employment. c) Qualifications Appeal Any employee who is denied a reduction to a position in a lower class within the occupational series on the basis that the employee does not possess the necessary qualifications to successfully perform the duties of the lower position may appeal the decision. The appeal shall be filed with the Human Resource Manager within five (5) calendar days of the employee's receipt of written notice of the decision and reason(s) for denial. 2003 MEO MOU Final 30 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 The employee's appeal shall be in writing and shall include supporting facts or documents supporting the appeal. d) Qualifications Appeal Hearing 1) Upon receipt of an appeal, the Human Resource Manager shall contact a mediator from the California State Mediation and Conciliation Service to schedule a hearing within two (2) weeks after receipt of the appeal. If the California State Mediation and Conciliation Service is not available within that time frame, the parties shall mutually select a person who is available within the time frame. If the California State Mediation and Conciliation Service and the person mutually selected are not available within tile time frame, the parties shall select the earliest date either is available to conduct the hearing. The parties shall split the cost, if any, of the hearing officer. In addition, the parties shall meet within three (3) workdays to attempt to resolve the dispute. If the dispute remains unresolved, the parties shall endeavor in good faith to submit to the hearing officer a statement of all agreed upon facts relevant to the hearing. 2) Appeal hearings shall be limited to two (2) hours, except as otherwise agreed by the parties or directed by the hearing officer. 3) The hearing officer shall attempt to resolve the dispute by mutual agreement if, possible. If no agreement is reached the hearing officer shall render a decision at the conclusion of the hearing which shall be final and binding 5. Part 3 — Re-employment a) Re-employment 1) Employees who are laid off or reduced to avoid layoff shall have their names placed upon a reemployment list, for each class in the occupational series, in seniority order at or below the level of the class from which laid off or reduced. 2) Names of persons placed on the reemployment lists shall remain on the list for two (2) years from the date of layoff or reduction. 3) Vacancies shall be filled from the reemployment list for a class, starting at tile top of the list, providing that the person meets the necessary qualifications for tile position. 4) Names of persons are to be removed from the reemployment list for a class if on two (2) occasions they decline an offer of employment or on 2003 MEO MOU Final 31 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 two (2) occasions fail to respond to offers of employment in a particular class within five (5) calendar days of receipt of written notice of an offer. Any employee who is dismissed from the city service for cause shall have his or her name removed from all re-employment lists. 5) Re-employment lists shall be available to HBMEO and affected employees upon reasonable request, 6) Qualification appeals involving reemployment rights shall be resolved in the same manner as that identified in Part 2., Section 4. b) Status on Re-employment 1) Persons re-employed from layoff within a two (2) year period from the date of layoff shall receive the following considerations and benefits: a) Service credit held upon layoff shall be restored, but no credit shall be added for the period of layoff. b) Prior service credit shall be counted toward sick leave and vacation accruals. c) Employees may cash in sick leave upon layoff or at any time after layoff in the manner and amount set forth in existing Memoranda of Understanding for that employee's unit. Sick leave shall be paid to an employee when the reemployment list(s) expire(s), if not previously paid. d) Upon reinstatement the employee may have his or her sick leave re-credited by repayment to the city the cashed amount. Sick leave accumulation of less than 480 hours shall be restored upon reemployment. e) The employee shall be returned to the salary step of the classification held at the time of the layoff and credited with the time previously served at that step prior to being laid off. f) The probationary status of the employee shall resume if incomplete. 2) Employees who have been reduced in class to avoid layoff and are returned within two (2) years to their former class shall be placed at the salary step of the class they held at the time Of reduction and have their merit increase eligibility date recalculated. 2003 MEO MOU Final 32 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 ARTICLE XIV - MISCELLANEOUS A. Physical Examination Employees covered by this agreement shall be provided, once every two years, with a city paid physical examination. Said exam shall be comprehensive in nature and shall include: 1. A complete medical history, physical exam, laboratory testing and review of results by a physician. (See Exhibit G, Physical Exam Description.) 2. A stress EKG will be provided for employees forty (40) years of age or older. No more than one-half of the eligible employees shall receive examinations in any one fiscal year. B. Vehicle Policy 1. Approval is required by the City Administrator or his designee for any city vehicle to be taken home by a MEO employee. 2. The auto allowance for qualifying employees shall be one hundred sixty one dollars and fifty-three cents ($161.53) bi-weekly. 3. No unit employee. shall have their automobile allowance eliminated until the city's Fleet Management Policy is re-negotiated. 4. Eligibility for automobile allowance shall be determined in accordance with the city's Fleet Management Program dated August, 1999. C. Deferred Compensation Loan Program Employees may borrow up to 50% of their deferred compensation funds for critical needs such as medical costs, college tuition, or purchase of a home. D. _Employee Performance Evaluations The city and up to four MEO employees will convene an ad-hoc committee to study a new employee performance evaluation system. The ad-hoc committee will finalize its report by June 30, 2003. Nothing from said ad-hoc committee shall constitute a wavier by MEO or any of its represented employees of the right to dispute future performance evaluations. 2003 MEO MOU Final 33 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 ARTICLE XV - CITY COUNCIL APPROVAL It is the understanding of the city and the Association that this Memorandum of Understanding is of no force or effect unless and until adopted by resolution of the City Council of the City of Huntington Beach. IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Understanding this it day of December, 2002. HUNTINGTON BEACH CITY OF HUNTINGTON BEACH MANAGEMENT EMPLOYEES' A Municipal Corporation ORGANIZATION By: By: �a Ray Sil r' �stavo A. Duran, MEO President City AdminisP, 'or y By: By: William P. Workman Bever Braden, MEO Vice-President Assistant ' y Admi istrat By: By Clay Ma Shawna rone-Schmidt, MEO Secretary Direc f Administrative o Services By, , By. , -f Steven M. Berliner James Joe , Negotiating Team Chief Negotiator APPROVED AS TO FORM APPROVED AS TO FORM By: rnV�_ By: �Jennife(M. cGrath mes G. H er, MEO Negotiator City Attorney 2003 MEO MOU Final 34 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 EXHIBIT A CITY OF HUNTINGTON BEACH MANAGEMENT EMPLOYEES' ORGANIZATION SALARY SCHEDULE EFFECTIVE DECEMBER 21, 2002 0028 Accountant, Principal 532 30.97 32.67 34.47 36.37 38.37 0025 Administrative Analyst MEO 497 26.01 27.44 28.95 30.54 32.22 0084 Administrative Analyst, Principal MEO 544 32.88 34.69 36.6 38.61 40.73 0089 Administrative Analyst, Senior MEO 525 29.91 31.55 33.28 35.11 37.04 0132 Assistant City Clerk 488 24.86 26.23 27.67 29.19 30.8 0024 City Engineer 617 47.31 49.91 52.66 55.56 58.62 0069 Civil Engineer,Associate 542 32.56 34.35 36.24 38.23 40.33 0096 Civil Engineer, Principal 561 35.79 37.76 39.84 42.03 44.34 0092 Claims Supervisor 535 31.44 33.17 34.99 36.91 38.94 0471 Community Relations Officer 525 29.91 31.55 33.28 135.11 37.04 0097 Construction Manager 557 35.07 37 39.04 41.19 43.46 0085 Contract Administrator 525 129.91 31.55 33.28 35.11 37.04 0045 Criminalist Supervisor 549 33.71 35.56 37.52 39.58 41.76 0070 Criminalist, Chief 577 38.78 40.91 43.16 45.53 48.03 0253 Cultural Affairs Supervisor 480 23.9 1 25.21 26.6 28.06 29.6 0081 Deputy City Attorney 1 530 30.66 32.35 34.13 36.01 37.99 0080 Deputy City Attorney 11 567 36.88 38.91 41.05 43.31 45.69 0079 Deputy City Attorney 111 595 42.4 . 44.73 47.19 49.79 52.53 0068 Deputy City Engineer 589 41.15 43.41 45.8 48.32 50.98 0090 Deputy City Treasurer 573 38 40.09 42.29 44.62 147.07 0035 Deputy Director of Public Works 617 47.31 49.91 52.66 55.56 58.62 0027 Deputy Director of Recreation/Beach Develo ment 607 45.01 47.49 50.1 52.86 55.77 0039 Economic Development Project Manager 548 33.54 35.38 37.33 39.38 41.55 0037 Economic Development Project Manager,Assistant 517 28.73 30.31 31.98 33.74 35.6 0474 Facilities, Development&Concession Manager 542 32.56 34.35 36.24 38.23 40.33 0131 Fire Med Coordinator 525 29.91 31.55 33.28 35.11 37.04 0130 Fire Protection Analyst 525 29.91 31.55 33.28 35.11 37.04 0184 GIS Manager 542 32.56 34.35 36.24 38.23 40.33 0023 Housing/Redevelopment Manager 568 37.07 39.11 41.26 43.53 45.92 0087 Information Systems Analyst V 556 34.9 36.82 38.85 40.99 43.24 0088 Information Systems Analyst, Principal 565 36.51 38.52 40.64 42.87 45.23 0038 Information Systems Manager 593 41.98 44.29 46.73 49.3 52.01 0199 Information Systems Manager, Library 499 26.27 27.71 29.23 30.84 32.54 0067 Information Systems Manager, Police 574 38.18 40.28 42.5 44.84 47.31 0075 Inspection Manager 561 35.79 37.76 39.84 42.03 44.34 0076 jInspector Plb/Mech Principal 514 28.3 29.861 31.5 ` 33.23 135.06 0072 Inspector, Electrical Principal 514 28.3 29.861 31.5 33.23 35.06 0251 Investigator 497 26.01 27.44 28.95 30.54 32.22 0158 Landscape Architect 525 29.91 31.55 33.28 35.11 37.04 0095 Law Office Manager T 501 26.53 27.99 29.53 31.15 32.86 0077 Librarian, Senior 488 24.86 26.23 27.67 29.19 30.8 0066 Library Services Manager 1 546 33.2 35.03 36.96 38.99 41.13 2003 MEO MOU Final 35 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 kl 0030 Maintenance Operations Manager 571 37.63 39.7 41.88 44.18 46.61 0032 Marine Safety Division Chief 577 38.78 40.91 43.16 45.53 48.03 0441 Neighborhood Preservation Program Manager 568 37.07 39.11 41.26 43.53 45.92 0040 Park Tree Landscape Operations Manager 563 36.15 38.14 40.24 42.45 44.78 0098 Permit& Plan Check Manager 570 37.44 39.5 41.67 43.96 146.38 0209 Plan Check& Permit Supervisor 526 30.06 31.71 133.45 35.29 37.23 0099 Plan Check Engineer 556 34.9 36.82 38.85 40.99 43.24 0071 Planner,Associate 517 28.73 30.31 31.98 33.74 35.6 0074 IPlanner, Principal 568 137.07 39.11 41.26 43.53 45.92 0036 Planner, Senior 548 33.54 35.38 37.33 39.38 41.55 0444 Planning Manager 578 38.96 41.1 43.36 45.75 48.27 0022 Police Communications Manager 528 30.36 32.03 33.79 35.65 37.61 0083 Purchasing &Central Services Manager 534 31.28 33 34.82 36.73 38.75 0043 IReal Estate Services Manager 576 38.58 40.7 42.94 45.3 147.79 0093 IReal Property Agent 548 33.54 35.38 37.33 39.38 41.55 0094 Records Admin Police 528 30.36 32.03 33.79 35.65 37.61 0000 Recreation, Human &Cultural Services, Superintendent 567 36.88 38.91 41.05 43.31 45.69 0457 Special Events Coordinator 480 23.9 25.21 26.6 28.06 29.6 0044 Supervisor, Beach Operations 527 30.21 31.87 33.62 35.47 37.42 0047 Supervisor, Building Maintenance 527 30.21 31.87 33.62 35.47 37.42 0073 Supervisor, Comb/Strctrl Insp 533 31.12 32.83 34.64 36.55 38.56 0473 Supervisor, Development& Petro-Chemical 529 30.51 32.19 33.96 35.83 37.8 0048 Supervisor, Mechanical Maintenance 527 30.21 31.87 33.62 35.47 37.42 0049 Supervisor, Park Maintenance 527 30.21 31.87 33.62 35.47 37.42 0133 Supervisor, Parking &Camping Facilities 514 28.3 29.86 31.5 33.23 35.06 0046 Supervisor, Recreation Senior 514 28.3 29.86 31.5 33.23 35.06 0050 Supervisor, Street&Sewer Maintenance 527 30.21 31.87 33.62 35.47 37.42 0051 Supervisor, Tree, Landscape, Pest Control 527 30.21 31.87 33.62 35.47 37.42 0052 Supervisor,Water Distribution 527 30.21 31.87 33.62 35.47 37.42 0053 Supervisor, Water Production 527 30.21 31.87 33.62 35.47 37.42 0086 _Systems Analyst 518 28.87 30.46 32.14 33.91 35.78 0034 Traffic Engineer,Associate 543 32.72 34.52 36.42 38.42 40.53 0033 Transportation Manager 586 40.55 42.78 45.13 47.61 50.23 0041 Water Operations Manager 591 41.57 43.86 46.27 48.81 51.49 EFFECTIVE DECEMBER 21, 2002 0032 IMarine Safety Division Chief 1 577 38.78 40.91 43.16 45.53 48.03 EFFECTIVE MARCH 29, 2003 WE on, \. /.' 1WE I , m M 0032 Marine Safe Division Chief 48.03 577 38.78 40.91 43.16 45.53 2003 MEO MOU Final 36 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 EXHIBIT B DELTA DENTAL PLAN BROCHURE A copy of the Delta Dental Plan Brochure may be obtained from the Administrative Services Department 2003 MEO MOU Final 37 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 EXHIBIT C DELTA DENTAL CARE PLAN BROCHURE A copy of the Delta Care Plan Brochure may be obtained from the Administrative Services Department 2003 MEO MOU Final 38 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 EXHIBIT D EMPLOYEE HEALTH PLAN BROCHURE A copy of the Employee Health Plan Brochure may be obtained from the Administrative Services Department 2003 MEO MOU Final 39 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 EXHIBIT E RETIREE SUBSIDY MEDICAL PLAN An employee who has retired from the city shall be entitled to participate in the city sponsored medical insurance plans and the city shall contribute toward monthly premiums for coverage in an amount as specified in accordance with this Plan, provided: A. At the time of retirement the employee has a minimum of ten (10) years of continuous city service or is granted an industrial disability retirement; and B. At the time of retirement, the employee is employed by the city; and C. Following official separation from the city, the employee is granted a retirement allowance by the California Public Employees' Retirement System. The city's obligation to pay the monthly premium as indicated shall be modified downward or cease during the lifetime of the retiree upon the occurrence of any one of the following: 1. During any period the retired employee is eligible to receive or receives health insurance coverage at the expense of another employer, the payment will be suspended. "Another employer' as used herein means private employer or public employer or the employer of a spouse. As a condition of being eligible to receive the premium contribution as set forth in this plan, the city shall have the right to require any retiree to annually certify that the retiree is not receiving or eligible to receive any such health insurance benefits from another employer. If it is later discovered that a misrepresentation has occurred, the retiree will be responsible for reimbursement of those amounts inappropriately expended and the retiree's eligibility to receive further benefits will cease. 2. On the first of the month in which a retiree or dependent reaches age 65 or on the date the retiree or dependent can first apply and become eligible, automatically or voluntarily, for medical coverage under Medicare (whether or not such application is made) the city's obligation to pay monthly premiums may be adjusted downward or eliminated. Benefit coverage at age 65 under the city's medical plans shall be governed by applicable plan document. 3. In the event of the death of any employee, whether retired or not, the amount of the retiree medical insurance subsidy benefit which the deceased employee was receiving at the time of his/her death would be eligible to receive if he/she were retired at the time of death, shall be paid on behalf of the spouse or family for a period not to exceed twelve (12) months. 2003 MEO MOU Final 40 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 SCHEDULE OF BENEFITS A. Minimum Eligibility for Benefits - With the exception of an industrial disability retirement, eligibility for benefits begin after an employee has completed ten (10) years of continuous service with the City of Huntington Beach. Said service must be continuous unless prior service is reinstated at the time of his/her rehire in accordance with the city's Personnel Rules. B. Disability Retirees - Industrial disability retirees with less than ten (10) years of service shall receive a maximum monthly payment toward the premium for health insurance of $121. Payments shall be in accordance with the stipulations and conditions which exist for all retirees. Payment shall not exceed dollar amount which is equal to the full cost of premium for employee only. C. Maximum Monthly Subsidy Payments- All retirees, including those retired as a result of disability whose number of years of service prior to retirement exceeds ten (10), shall be entitled to maximum monthly payment of premiums by the city for each year of completed city service as follows: Maximum Monthly Payment for Retirements After: Years of Service Subsidy 10 $ 121 11 136 12 _ _ 151 13 166 14 181 15 196 16 211 17 226 18 241 19 256 20 271 21 286 22 300 23 315 24 330 25 344 Note: The above payment amounts may be reduced each month as dependent eligibility ceases due to death, divorce or loss of dependent child status. However, the amount,shall not be reduced if such reduction would cause insufficient funds needed to pay the full premium for the employee and the remaining dependents. In the event no reduction occurs and the remaining benefit premium is not sufficient to pay the premium amount for the employee and the eligible dependents, said needed excess premium amount shall be paid by the employee. 2003 MEO MOU Final 41 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 INDEMNITY HEALTH PLAN, EMPLOYEES/RETIREES' YEAR 2003 Benefits City Plan - Employees City Plan - Subsidized Non-Subsidized Retirees Retirees COBRA-eligibles Deductible $250 per person $250 per person $500 per family $500 per family Maximum Out of Pocket $2,000 per person $2,000 per person $4,000 per family $4,000 per family Co-Insurance PPO 90% of UCR 90% of UCR Non-PPO 70% of UCR 70% of UCR Note: Retirees who elect to participate in HMO shall be entitled to benefits of the program chosen. 2003 MEO MOU Final 42 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 RETIREE SUBSIDY MEDICAL PLAN/MISCELLANEOUS PROVISIONS A. Eli ibili 1. The effective start-up date of the Retiree Subsidy Medical Plan for the various employee groups shall be the first of the month following retirement date. 2. A retiree may change plans, add dependents, etc., during annual open enrollment. The Administrative Services Department shall notify covered retirees of this opportunity each year. 3. Years of service computed for the Retiree Subsidy Medical Plan are actual years of completed service with the City of Huntington Beach. 4. When a retiree is eligible for medical plan coverage at the expense of another employer due to post-retirement employment of the retiree or spouse of the retiree, the retiree and his/her spouse must take that coverage regardless of benefit level and shall be deleted from any City Plan coverage. Exceptions to this requirement are limited to the following: a. A retiree is not required to enroll in such "other' medical plan coverage if there is significant disparity between the benefits provided by the "other' medical plan and the Retiree Subsidy Medical Plan as defined below. "Significant disparity" means coverage available under the "other' medical plan is restrictive or limited in one or more of the following ways: 1) No in-patient hospitalization coverage. 2) No major medical benefits 3) Annual deductible is $1,000 or greater per person. 4) Major medical benefits are paid at 60% or less of covered expenses. b. The Risk Manager will have the authority to provide additional exceptions following review of the "other" medical plan policy. Exceptions will be made only if the "other' medical plan benefit provisions are comparable to the guidelines under B above. c. Miscellaneous Provisions: 1. Benefits provided under the Retiree Subsidy Medical Plan will be coordinated with the "other' medical plan as the primary carrier. 2003 MEO MOU Final 43 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 2. The city shall have the right to require any retiree to provide a copy of the "other" medical plan policy for review by the Risk Manager. 5. When a retiree becomes eligible for the other group coverage and then becomes no longer eligible, he/she may have the subsidy reinstated and regain Retiree Subsidy Medical Plan coverage. 6. Dependents of a retiree may follow him/her into the Retiree Subsidy Medical Plan or they may choose to exercise COBRA rights along with the retiree. 7. When a retiree becomes 65 and has eligible dependents under 65, said dependents are eligible to exercise COBRA rights. 8. When a retiree is under 65 and his/her spouse is over 65, the spouse is not covered. B. Benefits: 1. Retiree Subsidy Medical Plan includes Managed Health Network (MHN), Prescription Card System (PCS), Orange County Foundation for Medical Care (OCFMC) and Medical Stop Loss insurance. 2, City Plans are the primary payer for active employees age 65 and over, with Medicare the secondary payer. Retirees age 65 and over have no City Plan options and are eligible only for Medicare. 3. Premium payments are to be received at least one month in advance of the coverage period. C. Subsidies: 1. The subsidy payments will pay for: a. Retiree Subsidy Medical Plan. b. HMO. c. Part A of Medicare for those retirees not eligible for paid Part A. 2. Subsidy payments will not pay for: a. Part B Medicare. b. Regular City Employee Indemnity Plan. c. Any other employee benefit plan. 2003 MEO MOU Final 44 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 d. Any other commercially available benefit plan. e. Medicare supplements D. Medicare: 1. All persons are eligible for Medicare coverage at age 65. Those with sufficient credit quarters of Social Security will receive Part A of Medicare at no cost. Those without sufficient credited quarters are still eligible for Medicare at age 65, but will have to pay for Part A of Medicare if the individual elects to take Medicare. In all cases, Part B of Medicare is paid for by the participant. 2. When a retiree and his/her spouse are both 65 or over, and neither is eligible for paid Part A of Medicare, the subsidy shall pay for Part A for each of them or the maximum subsidy, whichever is less. 3. When a retiree at age 65 is eligible for paid Part A of Medicare and his/her spouse is not eligible for paid Part A, the spouse shall not receive subsidy. When a retiree at age 65 is not eligible for paid Part A of Medicare and his/her spouse who is also age 65 is eligible for paid Part A of Medicare, the subsidy shall be for the retiree's Part A only. E. Cancellation: 1. For retirees/dependents eligible for paid Part A of Medicare, the following cancellation provisions apply: a. Coverage for a retiree under the Retiree Subsidy Medical Plan will be eliminated on the first day of the month in which the retiree reaches age 65. If such retiree was covering dependents under the Plan, dependents will be eligible for COBRA continuation benefits effective as of the retiree's 65th birthday. b. Dependent coverage will be eliminated upon whichever of the following occasions comes first: 1) After 36 months of COBRA continuation coverage, or 2) When the covered dependent reaches age 65 in the event such dependent reaches age 65 prior to the retiree reaching - age 65. c. At age 65 retirees are eligible to make application for Medicare. Upon being considered "eligible to make application", whether or not application has been made for Medicare, the Retiree Subsidy Medical Plan will be eliminated. 2003 MEO MOU Final 45 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 2. See provisions under "Benefits", "Subsidies", and "Medicare" for those retirees/dependents not eligible for paid Part A of Medicare. I Retiree Subsidy Medical Plan and COBRA participants shall be notified of non-payment of premium by means of a certified letter from Employee Benefits in accordance with provisions of the Memorandums of Understanding. 4. A retiree who fails to pay premiums due for coverage and is in arrears for sixty (60) days shall be terminated from the Plan and shall not have reinstatement rights. 2003 MEO MOU Final 46 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 EXHIBIT F VEHICLE USE ASSIGNMENT ADMINISTRATIVE REGULATION See Administrative Regulations 2003 MEO MOU Final 47 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 EXHIBIT G PHYSICAL EXAMINATION DESCRIPTION I. Complete Health History II. Complete Physical Examination by Physician III. Computer Printout: A. Physiological Tests: 1. Temperature 2. Height 3. Weight 4. Vision 5. Audiometry (Hearing Screening) 6. Blood Pressure 7. Pulse 8. Chest X-Ray 9. EKG 10. History 11. Tonometry (Glaucoma) for patients 35 and over. 12. Spirometry (Breathing) B. Laboratory Tests: 1. Blood Chemistry Screening Tests: SGPT Triglycerides SGOT Glucose Fasting LDH BUN Alk. Phosphatase Creatinine Total Bilirubin Uric Acid Total Protein Calcium Albumin-Serum Inorganic Phosphate Globulin Sodium Cholesterol Postassium 2. Complete Blood Count 3. Urinalysis 4. Stool Test for Blood 5. RPR 6. Pap.Smear on Females 7. HDL IV. Examination Findings: A. Consultation with Physician B. Written Report of Findings 2003 MEO MOU Final 48 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 EXHIBIT H - 9/80 WORK SCHEDULE This work schedule is known as the "9/80". The 9/80 work schedule is designed to be in compliance with the requirements of the Fair Labor Standards Act (FLSA) and all other applicable laws. In the event that there is a conflict with the current rules, practices and/or procedures regarding work schedules and leave plans, then the rules listed below shall govern. 9/80 WORK SCHEDULE DEFINED The 9/80 work schedule shall be defined as working nine (9) days for eighty (80) hours in a two week pay period by working eight (8) days at nine (9) hours per day and working one (1) day for eight (8) hours (Friday), with a one-hour lunch during each work shift, totaling forty (40) hours in each FLSA work week. The 9/80 work schedule shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Administrator or designee. A. Forty (40) Hour FLSA Work Week — The actual FLSA work week is from Friday at mid- shift (p.m.) to Friday at mid-shift (a.m.). No employee working the 9/80 work schedule will be able to flex their Friday start time nor the time they take their lunch break, which will be from 12:00 p.m. to 1:00 p.m. on Fridays. All employee work shifts will start at 8:00 a.m. on their Friday worked. The start of the FLSA work week is 12:00 noon Friday. B. Two Week Pay Period — The pay period for employees starts Friday mid-shift (p.m.) and continues for fourteen (14) days until Friday mid-shift (a.m.). During this period, each week is made up of four (4) nine (9) hour work days (thirty-six (36) hours) and one (1) four (4) hour Friday and those hours equal forty (40) work hours in each work week (e.g. the Friday is split into four (4) hours for the a.m. shift, which is charged to work week one and four (4) hours for the p.m. shift, which is charged to work week two). C. A/B Schedules — To continue to provide service to the public every Friday, employees are to be divided between two schedules, known as the "A" schedule and the "B" schedule, based upon the departmental needs. For identification purposes, the "A" schedule shall be known as the schedule with a day off on the Friday in the middle of the pay period, or, "off on payday", the "B" schedule shall have the first Friday (p.m.) and the last Friday (a.m.) off, or "working on payday". An example is listed below: AM 2 / SSchedule 4 4 - - 9 9 9 9 - - - - 9 9 9 9 4 4 B Schedule - - - - 9 9 9 9 4 4 - - 9 9 9 9 - - D. A/B Schedule Changes — FLSA-non-exempt employees cannot change schedules without prior approval of their supervisor, Department Head, and the Human Resources Manager or designee. The purpose of this authorization is to review the impact on overtime. FLSA exempt employees may change A/B schedules at the beginning of any pay period with supervisor and Department Head approval. E. Emergencies — All employees on the 9/80 work schedule are subject to be called to work any time to meet any and all emergencies or unusual conditions which, in the 2003 MEO MOU Final 49 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 opinion of the City Administrator, Department Head or designee may require such service from any of said employees. OVERTIME DEFINED FLSA Non-Exempt Employees —All non-exempt employees under the 9/80 work schedule shall earn overtime for all hours worked after the first forty (40) hours in an FLSA work week (Friday 12:00:00 p.m. to Friday 11:59:59 a.m.) as required under FLSA. Employees are required to obtain supervisor authorization prior to working any overtime. 1. Overtime Compensation —As stated in Memorandum-of-Understanding 2._ Compensatory Time -As stated in Memorandum-of-Understanding LEAVE BENEFITS When an employee is off on a scheduled workday under the 9/80 work schedule, then nine (9) hours of eligible leave per workday shall be charged against the employee's leave balance or eight (8) hours shall be charged if the day off is a Friday. All leaves shall continue under the current accrual, eligibility, request and approval requirements. 1. General Leave —As stated in Memorandum-of-Understanding 2. Sick Leave —As stated in Memorandum-of-Understanding 3. Administrative Leave —As stated in Memorandum-of-Understanding 4. Executive Leave —As stated in Memorandum-of-Understanding 5. Bereavement Leave —As stated in Memorandum-of-Understanding 6. Holidays - a. For a recognized city holiday, eight (8) hours, as stated in Section XII.B, are earned for each holiday. For the charging of hours on a scheduled holiday, the employee must use eight (8) hours of holiday time off and one (1) hour from the employees General Leave, Compensatory Time, Administrative Leave, or Executive Leave banks for a nine (9) hour workday charge or eight (8) hours holiday time off for a Friday. b. If a holiday falls on an FLSA non-exempt employee's Friday off, the employee must then take the work shift before or after the holiday off with supervisor and Department Head approval. If the employee cannot take the work shift before or after the holiday off the employee will be granted eight (8) hours of general leave. c. If a holiday falls on an FLSA exempt employee's Friday off, the employee must then take a work shift off within the same work week with supervisor and Department Head approval. FLSA exempt employees shall not be granted any administrative/general leave or any added compensation for not taking a work shift off on a scheduled holiday. 2003 MEO MOU Final 50 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 7. Jury Duty— The provisions of the Personnel Rules shall continue to apply, however, if an FLSA exempt employee is called to serve on jury duty during a normal Friday off, Saturday, or Sunday, or on a city holiday, then the jury duty shall be considered the same as having occurred during the employees day off work, therefore, the employee will receive no added compensation. 2003 MEO MOU Final 51 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 EXHIBIT I - 4/10 WORK SCHEDULE This work schedule is known as the "4/10". The 4/10 work schedule is designed to be in compliance with the requirements of the Fair Labor Standards Act (FLSA). In the event that there is a conflict with the current rules, practices and/or procedures regarding work schedules and leave plans, then the rules listed below shall govern. 4/10 WORK SCHEDULE DEFINED The 4/10 work schedule shall be defined as working eight (8) days for eighty (80) hours in a two week pay period by working eight (8) days (Monday through Thursday, Fridays off) at ten (10) hours per day, plus a one-hour lunch during each work shift, totaling forty (40) hours in each FLSA work week. The 4/10 work schedule shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Administrator or designee. All employees on the 4/10 work schedule are subject to be called to work any time to meet any and all emergencies or unusual conditions which, in the opinion of the City Administrator, Department Head or designee may require such service from any of said employees. OVERTIME DEFINED FLSA Non-Exempt Employees —All non-exempt employees under the 4/10 work schedule shall earn overtime for all hours worked after the first forty (40) hours in an FLSA work week as required under FLSA. Employees are required to obtain supervisor authorization prior to working any overtime. 1. Overtime Compensation—As stated in Memorandum-of-Understanding 2. Compensatory Time —As stated in Memorandum-of-Understanding LEAVE BENEFITS When an employee is off on a scheduled workday under the 4/10 work schedule, then ten (10) hours of eligible leave per workday shall be charged against the employee's leave balance. All leaves shall continue under the current accrual, eligibility, request and approval requirements. 1. General Leave —As stated in Memorandum-of-Understanding 2. Sick Leave —As stated in Memorandum-of-Understanding 3. Administrative Leave —As stated in Memorandum-of-Understanding 4. Executive Leave —As stated in Memorandum-of-Understanding 5. Bereavement Leave—As stated in Memorandum-of-Understanding 2003 MEO MOU Final 52 12/11/02 9:01 AM Exhibit A to Res.No.2002-132 6. Holidays - a. For a recognized city holiday, eight (8) hours, as stated in Section XII.B, are earned for each holiday. For the charging of hours on a scheduled holiday, the employee must use eight (8) hours of holiday time off and two (2) hour from the employees General Leave, Compensatory Time, Administrative Leave, or Executive Leave banks for a ten (10) hour workday. b. If a holiday falls on an FLSA non-exempt employee's Friday off, the employee must then take the work shift before or after the holiday off with supervisor and Department Head approval If the employee cannot take the work shift before or after the holiday off the employee will be granted eight(8) hours of general.leave. c. If a holiday falls on an FLSA exempt employee's Friday off, the employee must then take a work shift off within the same work week with supervisor and Department Head approval. FLSA exempt employees shall not be granted any administrative/general leave or any added compensation for not taking a work shift off on a scheduled holiday. 7. Jury Duty- The provisions of the Personnel Rules shall continue to apply, however, if an FLSA exempt employee is called to serve on jury duty during a normal Friday off, Saturday, or Sunday, or on a city holiday, then the jury duty shall be considered the same as having occurred during the employees day off work, therefore, the employee will receive no added,compensation. 2003 MEO MOU Final 53 12/11/02 9:01 AM Res. No. 2002-132 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an regular meeting thereof held on the 16tn day of December, 2002 by the following vote: AYES: Coerper, Green, Cook, Houchen, Hardy NOES: Sullivan, Boardman ABSENT: None ABSTAIN: None City Clerk and ex-officio C rk of the City Council of the City of Huntington Beach, California