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HomeMy WebLinkAboutCity Council - 2004-8 RESOLUTION NO. 2004-5 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH MODIFYING SALARY AND BENEFITS FOR CALENDAR YEAR 2004 FOR NON-REPRESENTED EMPLOYEES WHEREAS, the City Council of the City of Huntington Beach desires to modify salary and benefits for non-represented employees for calendar year 2004, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach as follows: SECTION 1. Benefits for non-represented employees shall be modified as reflected in EXHIBIT "A," effective as indicated. SECTION 2. Salary for non-represented employees shall be as reflected in EXHIBIT "B," effective as indicated. SECTION 3. Except as modified, existing benefits shall remain in effect. SECTION 4. Any resolution in conflict herewith, whether by minute action or resolution of the City Council heretofore approved, is hereby repealed. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 2nd day of Feb r Mayor ATTEST: APPROVED AS TO FORM: dws�i ' �•,, r City Clerk ity Attorney 41101 REVIEWED AND APPROVED: INITIATED AND APPROVED: City inistrator Director of dministrath ervices g104reso/non-rep-emp/2/4/04 NON-ASSIATED EMPLOYEE BENEFITS ROLUTION TABLE OF CONTENTS EXHIBIT A -NON-ASSOCIATED EMPLOYEES BENEFIT PROVISIONS 3 SECTION I—SPECIAL PAY 3 A. Education Reimbursement 3 B. Shorthand Skill Pa v 3 C. Assigned Vehicle/Auto Allowance 3 1, Department Heads 3 2, Designated Division Heads 3 3. Others 4 D. City Paid Physical Examinations 4 E. Bilingual Skill 4 F. Process Owner Assignment Pay 4 SECTION II—HOURS OF WORKIOVERTIME/TIME OFF 5 A. Compensatory Time/Administrative Leave/Executive Leave 5 B. Direct Deposit 5 C. Flexible and Alternative Work Schedules 5 SECTION III—HEALTHAND OTHER INSURANCE BENEFITS b A. Medical,Dental and Vision Insurance 6 B. Life and Accidental Death and Dismemberment Insurance 11 C. Long Term Disability Insurance 11 D. Miscellaneous 11 E. Retiree Medical Coverage for Retirees Not Eligible for the City Medical Retiree Subsidy 11 F. Post-65 Supplemental Medicare Coverage 12 SECTION IV—RETIREMENT 12 A. Benefits 12 1. Public Employees'Retirement System 12 2. Self-Funded Supplemental Retirement Benefit 12 3. Medical Insurance for Retirees 13 4. Two Percent(2%)at A e¢ 55 Formula 13 5. Pre-Retirement Optional Settlement 2 Death Benefit 13 6. Fourth Level of 1959 Survivor Benefits 13 B. Public Employees' Retirement System Reimbursement and Reporting 13 1. Employees' Contribution 13 SECTION V-LEA VE BENEFITS 14 A. General Leave 14 1. Accrual 14 2. Eligibility and Approval 14 3. Family Sick Leave 14 4. Conversion to Cash 14 B. Holidays 15 2004 NA Resolution Final.doc i 1/28/2004 11:33 AM C. Sick Leave 15 D. Bereavement Leave 17 SECTION VI—RETIREE SUBSID Y MEDICAL PLAN 17 1. Minimum Eligibility for Benefits 18 2. Disability Retirees 18 3. Maximum Monthly Subsidy Payments 19 SECTION VII—R ULES GOVERNING LAYOFF, RED UCTION IN LIEU OF LAYOFF AND RE-EMPLOYMENT 20 A. Part 1 -Layoff Procedures 24 1. General Provisions: 20 2, Service Credit: _ 20 3. Transfer or Reduction to Vacancies in Lieu of Layoff: 21 4. Order of Layoff: 21 5. Notification of Employees: 22 B. Part 2-Bumping Rights 23 1. Voluntary Reduction or Bumping in Lieu of Layoff: 23 2. Reinstatement/Reemployment Lists 23 3. Qualifications Appeal 23 4. Qualifications Appeal Hearing: 24 C. Part 3-Reemployment 24 1. Reemployment: 24 2. Status on Reemployment: 25 EXHIBIT B-NON-ASSOCIATED SA LARY S CUED ULE 26 EXHIBIT C-RETIREE MEDICAL PLAN 27 EXHIBIT D- 9180 WORK SCHEDULE 30 2004 NA Resolution Final.doc ii 1/28/2004 11:33 AM EXHIBIT A - NON-ASSOCIATED EMPLOYEES BENEFIT PROVISIONS SECTION I — SPECIAL PAY A. Education Reimbursement 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. 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. 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. B. Shorthand Skill Pav Effective December 21, 2002 the city shall end shorthand skill pay. All employees receiving shorthand skill pay prior to December 21, 2002 shall continue to receive shorthand skill pay. Those employees receiving shorthand skill pay have successfully passed a shorthand skills test and receive additional compensation in the amount of forty-six dollars and fifteen cents ($46.15) per bi-weekly pay period. Shorthand skills will not be required for positions classified as Executive Assistant, Administrative Assistant, and Administrative Secretary (Confidential). C. Assigned Vehicle/Auto Allowance 1. Department Heads Appointed Department Heads and the City Clerk, City Treasurer and City Attorney shall have the option of an assigned city vehicle or an auto allowance of two hundred thirty dollars and seventy-seven cents ($230.77) per bi-weekly pay period plus reimbursement of out-of-town travel at the approved mileage rate. 2. Designated Division Heads Non-Associated employees who were Division Heads assigned a city vehicle as of July 2, 1983 shall have the option of an assigned city vehicle or an automobile allowance one hundred sixty one dollars and fifty-four cents ($161.54) per bi-weekly pay period plus reimbursement for out-of-town travel at the approved mileage rate. 2004 NA Resolution Final.doc 3 1128/04 11:33 AM 3. Others Non-Associated employees who are regularly required to travel to perform official city business but do not have an assigned vehicle or automobile allowance shall be provided with a vehicle for such business. D. City Paid Physical Examinations Non-Associated employees shall be provided, once every two years, with a city paid physical examination comparable to the current class physical examination or reimbursed the amount authorized for said physical examination. No more than one-half of the eligible employees shall receive examinations in any one fiscal year. Department Heads shall be required to take the scheduled physical examination. Said exam shall be comprehensive in nature and shall include: 1. A complete medical history, physical exam and review of results by physician. 2. Health testing including vision, hearing, breathing, chest x-ray and stress EKG. 3. Laboratory test including standard chemical test, blood count, HDL, urinalysis and stool test for blood. E. Bilinqual Skill 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 base 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. F. Process Owner Assignment Pav Those employees performing assignments designated by the city as "process owner" assignments shall receive premium pay equal to ten percent (10%) of the employee's base hourly rate. Process owner assignments are designated by the employee's department head and approved by the City Administrator or his designee. Designated employees are responsible for JDEdwards applications setup, design, troubleshooting and training. Process owners have system coordination responsibilities as distinguished from users of the system. 2004 NA Resolution Final.doc 4 1/28/2004 11:33 AM SECTION II — HOURS OF WORKIOVERTIMEITIME OFF A. Compensatory Time/Administrative Leave/Executive Leave Non-Associated "nonexempt" employees shall receive overtime pay or compensatory time for hours worked over forty (40) hours in a work week at time and one half of the employee's Fair Labor Standards Act (FLSA) regular rate of pay. The employee's supervisor shall determine if employee receives overtime pay or compensatory time. The employee's supervisor shall approve the scheduling of compensatory time used. Once per fiscal year an employee may cash out up to sixty (60) hours of compensatory time. The employee shall give payroll two (2) weeks advance notice of their decision to exercise such option. Non-Associated "Exempt" employees shall not be eligible for overtime compensation.—"Exempt" Non-Associated employees, other than department heads, shall be credited with (40) hours of administrative leave upon working 40 hours beyond their normal work schedule in each calendar year. Department heads may grant additional administrative leave to "Exempt" Non-Associated employees who work more than 75 hours of overtime per year. "Exempt" department heads shall be credited with 80 hours of administrative leave per year. B. Direct Deposit All Non-Associated employees are required to utilize direct deposit of payroll checks. C. Flexible and Alternative Work Schedules Effective February 1, 2003, with supervisor and Department Head approval, Non- Associated civic center (city hall and police department) 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. Effective February 1, 2003 all employees will be required to take a one-hour lunch break each work shift regardless of work schedule. Effective February 1, 2003, Non-Associated civic center (city hall and police department) employees will have the option of working a 5/40 or 9/80 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 with a one-hour lunch during each work shift, totaling a forty (40) hours work week. 2004 NA Resolution Final.doc 5 1/28/2004 11:33 AM 2. 9/80 Work Schedule The 9/80 work schedule, as outlined in Exhibit D, 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. SECTION III — HEALTH AND OTHER INSURANCE BENEFITS A. Medical, Dental and Vision Insurance 1) Medical, Dental and Vision Insurance The city shall continue to make available group medical, dental and vision benefits to all Non-Associated employees. 2) City Paid Medical, Dental, and Vision Insurance — Employee and Dependents The city will assume payment, subject to the limitations set forth in Article III.A.3 for employees and dependents medical, dental, and vision insurance effective the first of the month following one complete calendar month of employment. 2004 NA Resolution Final.doc 6 1/28/2004 11:33 AM 9 0 3) Year 2004 Health and Other Insurance Benefit Premiums, Employer Contribution, and Employee Contribution a. Monthly Premiums January 1, 2004 through March 31, 2004. City Health Delta Delta Monthly VSP Premium Plan Net Dental Dental Vision POS HMO (PPO) (HMO) EE $481.40 $312.76 $51.18 $24.38 $18.07 EE + 1 951.96 685.31 97.86 41.46 18.07 EE + 2 or more 1,165.54 903.25 138.83 63.40 18.07 Effective April 1, 2004 the City Plan POS and Health Net HMO will not be available to Non-Associated employees. April 1, 2004 through December 31, 2004. Monthly Blue Shield Blue Shield Blue Shield Kaiser . Premium High Option Low Option Permanente: HMO 90110 PPO 80120 PPO HMO- EE $366.21 $322.32 $253.46 $270.75 EE + 1 802.01 705.88 555.06 592.94 EE + 2 or more 1,047.37 921.84 724.87 779.76 Monthly Delta Delta VSP Premium Dental Dental (PPO) (HMO) Vision EE $51.18 $24.38 $18.07 E E + 1 97.86 41.46 18.07 EE + 2 or more 138.83 63.40 18.07 b. _Employer Contribution The City's maximum monthly employer contribution for health and other insurance premiums are set forth in the charts below. The City Administrator is authorized to modify the City's maximum monthly employer contribution (e.g. the "employer contribution" described below in the chart for April 1, 2004 through December 31, 2004), to reflect changes necessary to make the City's maximum monthly employer contribution the same as the "employer contribution" or "cap" provided to another represented employee association in the City. 2004 NA Resolution Final.doc 7 1/28/2004 11:33 AM 0 0 The change to the City's maximum monthly employer contribution will become effective the beginning of the pay period after the City Administrator changes the monthly maximum monthly employer contribution. The City Administrator's authorization to modify the City's maximum monthly employer contribution shall expire at 12:00 p.m. on Friday, July 2, 2004. January 1, 2004 through March 31, 2004. Monthly City Health Delta Delta Employer Plan Net Dental Dental VSP Contribution POS HMO (PPO) (HMO) Vision EE $429.93 $330.19 $42.88 $23.00 $17.58 EE + 1 758.41 611.67 81.82 39.11 17.58 EE + 2 or more 907.50 776.34 116.36 59.81 17.58 April 1, 2004 through December 31, 2004. Monthly Blue Shield Blue Shield Employer High Option Low Option Blue Shield Pe Kaiser Contribution 90/10 PPO 80/20 PPO HMO HMO EE $373.77 $373.77 $274.03 $274.03 EE + 1 702.25 702.25 555.51 555.51 EE + 2 or more 851.34 851.34 720.18 720.18 Monthly Delta Delta VSP Employer Dental Dental Contribution (PPO) (HMO) Vision EE $42.88 $23.00 $17.58 EE + 1 81.82 39.11 17.58 EE + 2 or more 116.36 59.81 17.58 In no event shall the employee be entitled to the difference between the employer contribution and the premiums for insurance plan(s) selected by the employee. 2004 NA Resolution Final.doc 8 1/28/2004 11:33 AM c. Employee Contributions Employee contributions to health and other insurance plans will be taken on a pre-tax basis. The employee paid contributions translate to the following on a monthly basis: January 1 , 2004 through March 31, 2004: Monthly City Health Delta Delta Employee Plan Net Dental Dental VSP Contribution POS HMO (PPO) (HMO) Vision EE $51.47 $0.00 $8.30 $1.38 $0.49 EE + 1 193.55 73.64 16.04 2.35 0.49 EE + 2 or more 258.04 126.91 22.47 3.59 0.49 April 1, 2004 through December 31, 2004: Monthly Blue Shield Blue Shield Kaiser Employee Blue Shield High Option Low Option Permanente Contribution 90/10 PPO 80/20 PPO HMO HMO EE $0.00 $0.00 $0.00 $0.00 EE + 1 99.76 3.63 0.00 37.43 EE + 2 or more 196.03 70.50 4.69 59.58 Monthly Delta Delta VSP Employee Dental Dental Contribution (PPO) (HMO) Vision EE $8.30 $1.38 $0.49 EE + 1 16.04 2.35 0.49 EE + 2 or more 22.47 3.59 0.49 2004 NA Resolution Final.doc 9 1/28/2004 11:33 AM The employee paid contributions translate to the following on a bi-weekly (per paycheck) basis: January 1, 2004 through March 31, 2004: Bi-Weekly City Health Delta Delta VSP Employee Plan Net Dental Dental Contribution POS HMO (PPO) (HMO) Vision EE $23.76 $0.00 $3.83 $0.64 $0.23 EE + 1 89.33 33.99 7.40 1.08 0.23 EE + 2 or more 119.10 58.57 10.37 1.66 0.23 April 1, 2004 through December 31, 2004: Bi-Weekly Blue Shield Blue Shield Kaiser Employee Blue Shield High Option Low Option Permanente Contribution 90/10 PPO 80/20 PPO HMO HMO EE $0.00 $0.00 $0.00 $0.00 EE + 1 46.04 1.68 0.00 17.28 EE + 2 or more 90.48 32.54 2.16 27.50 Bi-Weekly Delta Delta VSP Employee Dental Dental Contribution (PPO) (HMO) Vision EE $3.83 $0.64 $0.23 EE + 1 7.40 1 1.08 0.23 EE + 2 or more 10.37 1 1.66 0.23 d. Future Premiums - The City "caps" its employer contributions toward monthly group medical, dental and vision plan premiums, by category (EE, EE + 1, and EE + 2 or more) and plan, at the rate in effect April 1, 2004 for the year ending December 31, 2004. 4) 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 the Administrative Services Department Employee Benefits), 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. 5) Section 125 Plan - This plan allows employees to use pre-tax salary to pay for regular childcare, adult dependent care and/or medical expenses. 2004 NA Resolution Final.doc 10 1/28/2004 11.33 AM 0 0 B. Life and Accidental Death and Dismemberment Insurance Each Non-Associated 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/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. C. 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 Non-Associated employee may use accumulated sick leave, general leave, compensatory time off, administrative leave, executive leave pay. Subsequent to the thirty (30) day waiting period, the employee will be covered by an insurance plan paid for by the city providing sixty-six and two- thirds percent (66 2/3%) of the first $12,500 of the employee's basic monthly earnings up to a maximum monthly benefit of$8,332.50. The maximum benefit period for disability due to injury or illness shall be to age sixty-five (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/she is fitted by reason of education, training or experience." Rehabilitation benefits are provided in the event the individual, due to disability, must engage in other occupation. Survivor's benefits continue the plan payment for three (3) months beyond death. A copy of the plan is on file in the Administrative Services Department. D. Miscellaneous When a Non-Associated employee is on a leave of absence without pay for reason of medical disability, the city shall maintain the city paid 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. E. Retiree Medical Coverage for Retirees Not Eligible for the City Medical Retiree Subsidy Plan Employees who retire from the City after January 1, 2004 and are granted a retirement allowance by the California Public Employees' Retirement System and are not eligible for the City's Retiree Subsidy Medical Plan may choose to participate in City sponsored medical insurance plans until the first of the month in which they turn age sixty-five (65). The retiree shall pay the full premium for City sponsored medical insurance for themselves and/or qualified dependents without any City subsidy. 2004 NA Resolution Final.doc 11 1/28/2004 11:33 AM 0 0 Employees who retire from the City and receive a retirement allowance from the California Public Employees' Retirement System and are not eligible for the City's Retiree Subsidy Medical Plan and choose not to participate in City sponsored medical insurance upon retirement permanently lose eligibility for this insurance. However, if a retiree who is not eligible for the City's Retiree Subsidy Medical Plan chooses not to participate in city sponsored medical insurance plans because the retiree has access to other group medical insurance, and subsequently loses eligibility for that group medical insurance, the retiree and their qualified dependents will have access to city sponsored medical insurance plans reinstated. Eligibility for Retiree Medical Coverage terminates the first of the month in which the retiree or qualified dependent turns age sixty-five (65). F. Post-65 Supplemental Medicare Covera-ge Retirees who are participating in the Retiree Subsidy Medical Plan as of January 1, 2004 and all future retirees who meet the criteria to participate in City sponsored medical insurance, with or without the Retiree Medical Subsidy Plan, may participate in City sponsored medical insurance plans that are supplemental to Medicare, after a contract is in place between the City and a health insurance provider. A retiree or qualified dependent must choose to participate in City sponsored medical insurance plans that are supplemental to Medicare beginning the first of the month in which the retiree or qualified dependent turns age sixty-five (65). The retiree shall pay the full premium to participate in City sponsored medical insurance plans that are supplemental to Medicare for themselves or qualified dependents without any City subsidy. Retirees or qualified dependents, upon turning age 65, who choose not to participate in City sponsored medical insurance plans that are supplemental to Medicare permanently lose eligibility for this insurance. SECTION IV— RETIREMENT A. Benefits 1. Public Employees' Retirement System Non-Associated employees shall be entitled to retirement benefits appropriate to his/her class as defined in the contract between the Board of Administration, Public Employees' Retirement System and the City Council of the City of Huntington Beach. 2. Self-Funded Supplemental Retirement Benefit In the event a Non-Associated employee 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 2004 NA Resolution Final.doc 12 1/28/2004 11:33 AM 0 0 or her life alone. This payment shall be made only to the member (Non- Associated employee), shall be payable by the city during the life of the member, and upon that member's death, the city's obligation shall cease. Unless previously excluded by employment or resolution, eligibility for this benefit is limited to employees hired before December 27, 1997. 3. Medical Insurance for Retirees a. Upon retirement, whether service or disability connected, each Non- Associated employee shall be entitled to cause self, spouse and dependents to participate fully in the city's group health insurance program at the equivalent of the city's group premium rate in accordance with the provisions specified by Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). Such participation shall be at employee's expense and upon terms, conditions and restrictions currently in effect. b. As an alternative to the benefit described in paragraph IV.A.3.a above, the city will provide a financial contribution towards the cost of retiree medical premiums as described in Section VI. 4. Two Percent (2%) at A-ge 55 Formula Non-Associated miscellaneous employees shall be covered by the two percent at age 55 formula (2% @ 55) as identified in Section 21354. 5. Pre-Retirement Optional Settlement 2 Death Benefit Non-Associated employees shall be covered by the Pre-Retirement Optional Settlement 2 Death Benefit as identified in Section 21548 when approved by the City Council. fi. Fourth Level of 1959 Survivor Benefits Non-Associated employees shall be covered by the Fourth Level of the 1959 Survivor Benefit as identified in Section 21574 when approved by the City Council. B. Public Em to ees' Retirement System Reimbursement and Re ortin 1. Employees' Contribution Non-Associated employees shall be reimbursed 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 (PERS). The above PERS pickup is not base salary but is done pursuant to Section 14(h)(2) of the Internal Revenue Code. 2004 NA Resolution Final.doc 13 1/28/2004 11,33 AM SECTION V — LEAVE BENEFITS A. General Leave 1. Accrual Employees will accrue General Leave at the accrual rates outlined below. General leave may be used for any purpose, including vacation, sick leave, and personal leave. General leave for non-associated employees shall be accrued as follows: Years of Service General 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 forty (640) hours. 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 Family Code Section 297, et. seq. 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 a. Pay Off at Termination — An employee shall be paid for unused general leave upon termination of employment at which time such terminating employee shall receive compensation at their current salary rate for all unused, earned general leave to which they are entitled up to and including the effective date of their termination. 2004 NA Resolution Final.doc 14 1/28/2004 1133 AM b. Conversion to Cash — An employee shall have two opportunities within the fiscal year to convert into a cash payment or deferred compensation up to and not to exceed, a total of one hundred-twenty (120) hours. The maximum conversion per fiscal year is not to exceed one hundred-twenty (120) hours. The employee shall give payroll two (2) weeks advance notice of their decision to exercise such option. c. One Week Minimum Vacation Requirement The City Administrator may require certain positions which handle money or transfer funds to 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 Day (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 or by the Governor of the State of California to be a state holiday and adopted as an employee holiday by the City Council of the City of Huntington Beach. For Civic Center holiday closure purposes, holidays which fall on Sunday shall be observed the following Monday, and those falling on Saturday shall be observed the preceding Friday. C. Sick Leave 1. Accrual — No employee shall accrue sick leave. 2. Credit — Employees assigned to Non-Associated 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. Sick leave shall not be used to extend absences due to work related (industrial) injuries or illnesses, this provision shall be added to Personnel Rule 18.10. 2004 NA Resolution Final 15 1/2812004 11:33 AM 0 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). 5. Pay Off at Termination a. Non Associated employees with continuous service with the city since 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 seven hundred and twenty hours (720) of unused, accumulated sick leave, except as provided in paragraph V.C.5.d 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. Non-Associated 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 V.C.2.c below. c. Except as provided in paragraph V.C.5.d below, no Non-Associated employee shall be paid at termination for more than 720 hours of unused, accumulated sick lave. 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. Non-Associated 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 V.C.5.a and b 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. To the extent that any such "capped" amount of excess 2004 NA Resolution Final.doc 16 1/28/2004 11:33 AM 0 0 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 had accumulated another 48 hours. Employee is then sick for 120 hours. Employee's maximum sick leave "cap" for compensation at termination is now reduced by 72 hours to 928.) D. Bereavement Leave Employees shall be entitled to bereavement leave not to exceed twenty-four (24) 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. SECTION VI — 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. 2004 NA Resolution Final.doc 17 1/28/2004 11:33 AM 0 0 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. D. Schedule of Benefits 1. 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. 2. 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. 2004 NA Resolution Final.doc 18 1/28/2004 11:33 AM 9 0 3. 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) years, 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. 2904 NA Resolution Final.doc 19 1/28/2004 11:33 AM SECTION VII — RULES GOVERNING LAYOFF, REDUCTION IN LIEU OF LAYOFF AND RE-EMPLOYMENT The following procedures shall not apply to Department Heads and the Assistant City Administrator. A. Part "I - Layoff Procedures 1 . General Provisions: a.) 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. b. 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 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. c. A department shall reduce staff by identifying which positions within the department are to be eliminated. d. The employee who has the least city-wide service credit in the class within the department shall have city-wide 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. e. if a deadline within this procedure falls on a day the City Hall is closed, the deadline shall be the next day City Hall is open. 2. Service Credit: a. 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. b. Except as required by law, leaves of absence without pay shall not earn service credit. c. 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. 2004 NA Resolution Final.doc 20 1/28/2004 11:33 AM 9 0 3. Transfer or Reduction to Vacancies in Lieu of Layoff: a. 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: 1) The employee has the necessary qualifications to perform the duties of the position. 2) The employee shall be given the opportunity, in order of service credit, to accept a transfer to a vacant position in the same class within the city, provided the employee has the necessary qualifications to perform the duties of the position. 3) 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. a) 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. b) If the employee refuses to accept a transfer or reduction pursuant to A. or B., above, the employee shall be laid off. c) 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. d) 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. 4. 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. 2004 NA Resolution Final.doc 21 1/28/2004 11:33 AM b. No promotional probationary employee or permanent employee within a class in the department shall be laid off until all temporary, non-permanent 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. 5. 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) 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 3., 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 2004 NA Resolution Final.doc 22 1/28/2004 11:33 AM 0 0 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. B. Part 2 - Bumping Rights 1. Voluntary Reduction or Bumping in Lieu of Layoff: a. 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. b. 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. c. 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 Resources 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 Resources Managers decision, the employee may appeal pursuant to the provisions of Sections 3 and 4 below. 2. Reinstatement/Reemployment Lists 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 pursuant to Part 3. Reemployment 3. 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 Resources Manager within five (5) calendar days of the employee's receipt of 2004 NA Resolution Final.doc 23 1/28/2004 11:33 AM written notice of the decision and reason(s) for denial. The employee's appeal shall be in writing and shall include supporting facts or documents supporting the appeal. 4. Qualifications Appeal Hearing: a. Upon receipt of an appeal, the Human Resources 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 the 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. b. Appeal hearings shall be limited to two (2) hours, except as otherwise agreed by the parties or directed by the hearing officer. c. 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. C. Part 3 - Reemployment 1. Reemployment: a. 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. b. Names of persons placed on the reemployment lists shall remain on the list for two (2) years from the date of layoff or reduction. c. Vacancies shall be filled from the reemployment list for a class, starting at the top of the list, providing that the person meets the necessary qualifications for the position. d. 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 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. 2004 NA Resolution Final.doc 24 1/28/2004 11:33 AM i • Any employee who is dismissed from the city service for cause shall have his or her name removed from all reemployment lists. e. Reemployment lists shall be available affected employees upon reasonable request. f. Qualifications appeals involving reemployment rights shall be resolved in the same manner as that identified in Part 2., Section 4. 2. Status on Reemployment: a. Persons re-employed from layoff within a two (2) year period from the date of layoff shall receive the following considerations and benefits: 1) Service credit held upon layoff shall be restored, but no credit shall be added for the period of layoff. 2) Prior service credit shall be counted toward sick leave and vacation accruals. 3) Employees may cash in sick leave upon layoff or at any time after layoff in the manner and amount set forth in existing Non-Associated Employees Benefit Provision. Sick leave shall be paid to an employee when the reemployment list(s) expire(s), if not previously paid. 4) 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. 5) 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. 6) The probationary status of the employee shall resume if incomplete. b. Employees who have reduced 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 2004 NA Resolution Final.doc 25 1/28/2004 11:33 AM 0 0 EXHIBIT B - NON-ASSOCIATED SALARY SCHEDULE As of December 20, 2003 0466 Non-Exempt Administrative Secretary NA 413 17.10 18.04 19.03 20.08 21.18 0279 Non-Exempt Personnel Assistant 414 17.18 18.13 19.13 20.18 21.29 0447 Non-Exempt Payroll Technician 420 17.73 18.70 19.73 20.81 21,95 0446 Non-Exempt Payroll Technician,Sr 439 19.48 20.55 21.68 22.87 24.13 0278 Non-Exempt Administrative Assistant 442 19.76 20.85 22.00 23.21 24.49 0061 Nan-Exem t Executive Assistant 470 22.73 23.98 25.30 26.69 28.16 0005 Exempt Administrative Analyst NA 497 26.01 27.44 28.95 30.54 32.22 0453 Exempt Personnel Analyst 499 26.27 27.71 29.23 30.84 32.54 0443 Exempt Payroll Analyst 505 27.06 28,55 30.12 31.78 33.53 0063 Exempt Admin Analyst,Sr NA 525 29.91 31.55 33.28 35.11 37.04 0064 Exempt Budget Analyst, Sr 525 29.91 31.55 33.28 35.11 37.04 0464 Exempt Personnel Analyst,Senior 525 29.91 31.55 33.28 35.11 37.04 0062 Exempt Admin Analyst, Principal NA 544 32.88 34.69 36.60 38.61 40.73 0060 Exempt Personnel Analyst Principal 544 32.88 34.69 36.60 38.61 40.73 0054 Exempt Risk Manager 576 38.58 40.70 42.94 45.30 47.79 0006 Exempt Human Resources Manager 593 41.98 44.29 46.73 49.30 52.01 0055 Exempt Finance Officer 597 142.82 45.18 47.66 50.28 53.05 0078 Exempt Assistant City Attorney 614 146.62 49.18 51.89 54.74 57.75 0004 Exempt Director of Comm&Spec Pro' 592 41.77 44.07 46.49 49.05 51.75 0012 Exempt Director of Orn Effectiveness 592 41.77 44.07 46.49 49.05 51.75 0007 Exem t Director of Library Services 611 45.92 48.45 51.11 53.92 56.89 0009 Exempt Director of Building &Safety 622 48.51 51.18 54.00 56.97 60.10 0013 Exempt Director of Admin Services 629 50.24 53.00 55.92 59.00 62.24 0014 Exempt Director of Community Services 629 50.24 53.00 55.92 59.00 62.24 0008 Exempt Director of Econ Development 629 50.24 53.00 55.92 59.00 62.24 0000 Exempt Director of Information Services 629 50.24 53.00 55.92 59.00 62.24 0021 Exempt Director of Planning 629 50.24 53.00 55.92 59.00 62.24 0010 Exempt Director of Public Works 645 54.42 57.41 60.57 63.90 67.41 0015 Exempt Fire Chief 653 56.63 59.74 63.03 66.50 70.16 0011 Exempt Police Chief 653 56.63 59.74 63.03 66.50 70.16 0020 Exem t Assistant Ci Administrator 658 58.07 61.26 64.63 68.18 7i.93 2004 NA Resolution Final.doc 26 1/28/2004 11:33 AM • i EXHIBIT C - RETIREE MEDICAL PLAN RETIREE SUBSIDY MEDICAL PLANIMISCELLANEOUS PROVISIONS A. Eligibility: 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. Employee Benefits 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 $1,500 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 Exhibit C.A.4.a above. 2004 NA Resolution Final.doc 27 1/28/2004 11:33 AM 0 c. Miscellaneous Provisions: 1. Benefits provided under the Retiree Subsidy Medical Plan will be coordinated with the "other" medical plan as the primary carrier. 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. Subsidies: 1. The subsidy payments will pay for: a. City sponsored medical insurance plans. b. 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. Any other employee benefit plan. c. Any other commercially available benefit plan. d. 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 2004 NA Resolution Final.doc 28 1/28/2004 11:33 AM Medicare if the individual elects to take Medicare. In all cases, the participant pays for Part B of Medicare. 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. 2. See provisions under "Subsidies" and "Medicare" for those retirees/dependents not eligible for paid Part A of Medicare. 3. 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 Non- Associated Employees Benefit Resolution. 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. 2004 NA Resolution Final.doc 29 1128/2004 11:33 AM EXHIBIT D - 9180 WORK SCHEDULE This work schedule is known as `°9/80". The 9/80 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. 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 workweek 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 workweek 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: A Sched4e4 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. 2004 NA Resolution Final.doc 30 1/28/2004 11:33 AM 0 0 E. Emergencies —All employees on the 9180 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 9180 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 Section ILA of the Non-Associated Resolution. 2. Compensatory Time —As stated in Section ILA of the Non-Associated Resolution, LEAVE BENEFITS When an employee is off on a scheduled workday under the 9180 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 Section V.A of the Non-Associated Resolution, 2. Sick Leave —As stated in Section V.C. of the Non-Associated Resolution. I Administrative Leave —As stated in Section ILA of the Non-Associated Resolution. 4. Executive Leave —As stated in Section ILA of the Non-Associated Resolution. 5. Bereavement Leave —As stated in Section V.D of the Non-Associated Resolution. 6. Holidays - a. For a recognized city holiday, eight (8) hours, as stated in Section V.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. 2004 NA Resolution Final.doc 31 1/28/2004 11:33 AM 0 0 c. It a holiday falls on an FLSA 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. 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. 2004 NA Resolution Final.doc 32 1/28/2004 11:33 AM Res. No. 2004-8' 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 2nd day of February, 2004 by the following vote: AYES: Coerper, Hardy, Green, Boardman, Cook NOES: Sullivan ABSENT: Houchen ABSTAIN: None City Clerk and ex-officio Qferk of the City Council of the City of Huntington Beach, California