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HomeMy WebLinkAboutMSOA - Marine Safety Officers Association - aka - MSMA - Marine Safety Management Association - 2000-02-22Council/Agency Meeting Held: Deferred/Continued to: W Approved ❑ Conditionally Approved ❑ Denied City Clerk's Signature Council Meeting Date: February 22, 2000 Department ID Number: AS 00-003 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS p- SUBMITTED BY: RAY SILVER, City Administrators -- x PREPARED BY: JOHN P. REEKSTIN, Director of Administrative Services SUBJECT: MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE MARINE SAFETY OFFICERS' ASSOCIATIONS �, No 0 J 2M Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: The City and the Marine Safety Officers' Association (MSOA) have completed the meet and confer process with agreement on a new Memorandum of Understanding (MOU). Funding Source: Funding is included in the FY 99/00 City budget. Recommended Action: Approve Resolution No. ?=-V, a resolution approving the implementing of the Memorandum of Understanding between the Huntington Beach Marine Safety Officers' Association and the City of Huntington Beach for 10101199 — 0913012000. Alternative Action(s): Refer back to the meet and confer process to modify the proposed Memorandum of Understanding with the Marine Safety Officers' Association. Analysis: The Marine Safety Officers' Association (MSOA) represents thirteen Marine Safety Officers and Lieutenants. The MSOA representatives and City representatives exchanged proposals and after several negotiation sessions, a tentative agreement was reached on December 16, 1999. The City and MSOA have agreed to a new MOU for a one- year period from October 1, 1999 through September 30, 2000. The MOU included a three percent salary increase effective January 8, 2000 and a three percent salary increase effective on April 1,2000. The City agrees to pay for all health costs through the year 2000 and the MSOA agrees that the Maximum City contribution for medical, dental and vision will be the rates in effect on January 1, 2000. Further, the MSOA agrees to Personnel Rule revisions as outlined in Attachment #1. The City agreed to approve acting pay for MSO Lieutentant when the Marine Safety Division Chief is absent. The City also agreed to include the languages of German, Japanese and French to the bilingual pay plan. & 15 I- _.'QUEST FOR COUNCIL ACT. ,V MEETING DATE: February 22, 2000 DEPARTMENT ID NUMBER: AS 00-003 Environmental Status: Not applicable. Attachment(s): 1 Summary of Tentative Agreement 2 Resolution to adopt the Memorandum of Understanding 1*�u.00- 1000-T1 3 MSOA MOU Legislative Draft RCA Author: William H. Osness MSOA MOU.doc -2- 2/9/00 8:10 AM ATTACHMENT #1 Marine Safety Officers Association Agreement Summary Term October 1, 1999 to September 20, 2000 Salary Three percent January 8, 2000 Three percent April 1, 2000 Bilingual Pay In addition to Spanish, Vietnamese and Sign Language, agree to include French, German and Japanese. Health One HMO in Year 2001 with cap on City -paid health premium at year 2000 rates. Bereavement Pay Include Grandparents Assigmnent Pay Twelve and one half percent for MSOA Lieutenant when Marine Safety Chief is absent. ATTACHMENT #2 RESOLUTION NO. 2 0 0 0— 2 4 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING AND IMPLEMENTING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE HUNTINGTON BEACH MARINE SAFETY OFFICERS' ASSOCIATION AND THE CITY OF HUNTINGTON BEACH FOR 10/1/99 - 9/30/2000 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 Marine Safety Officers' Association (MSOA), 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 October 1, 1999 through September 30, 2000. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 22 ATTEST: City Clerk 01 REVIEWED AND APPROVED: " LiL-�C1 City Ad istrator day of February , 2000. APPROVED AS TO FORM: City Attorney INITIATED AND APPROVED: DepGty City Administrator/ Administrative Services 2000reso:MSOA PREAMBLE......................................................................................................................................................................... I ARTICLEI - TERM OF MOU............................................................................................................................................1 ARTICLE H - REPRESENTATIONAL UNIT/CLASSIFICATIONS................................................................................ 2 ARTICLE III - MANAGEMENT RIGHTS........................................................................................................................ 2 ARTICLE IV - EXISTING CONDITIONS OF EMPLOYMENT......................................................................................2 ARTICLEV - SALARY SCHEDULE.................................................................................................................................2 ARTICLEVI - SPECIAL PAY............................................................................................................................................3 A. EDUCATIONAL TUITION..............................................................................................................................................3 B. ACTING ASSIGNMENT................................................................................................................................................. 4 C. ASSIGNMENT PAY...................................................................................................................................................... 4 D. HOLIDAY PAY-IN-LIEU............................................................................................................................................... 4 E. BILINGUAL SKILL....................................................................................................................................................... 4 ARTICLE VH - UNIFORMS, CLOTHING, TOOLS AND EQUIPMENT.......................................................................5 ARTICLE VIII - HOURS OF WORK/OVERTIME...........................................................................................................5 A. HOURS OF WORK DEFINED......................................................................................................................................... 5 B. OVERTIME/COMPENSATORY TIME............................................................................................:.................................. 5 C. SHIFT EXCHANGE ........................ ARTICLE IX - HEALTH AND OTHER INSURANCE BENEFITS.................................................................................6 A. MEBI6AL HEALTH..................................................................................................................................................... 6 a. Health Premiums................................................................................................................................................................... 6 b. Health Insurance Caps............................................................................................................................................................ 6 C. Employee Paid Premiums........................................................................................................................................................6 d. Two -Tier Health Premium...................................................................................................................................................... 6 e. Dependent Health Coverage................................................................................................................................................... 7 f Medical Plan Changes Effective September 1 1998............................................................................................................... 7 g. Plan Deductibles... ................................................................................................................................................................. 7 h. Chiropractic Services............................................................................................................................................................. 8 ARTICLEX - RETIREMENT.............................................................................................................................................9 A. BENEFITS ................................. ......................................................................................................... .........................9 B. PUBLIC EMPLOYEES' RETIREMENT SYSTEM REIMBURSEMENT AND REPORTING........................................................... 10 ARTICLEXI - LEAVE BENEFITS..................................................................................................................................10 A. VACATION............................................................................................................................................................... 10 B. SICK LEAVE............................................................................................................................................................. 11 C. FAMILY SICK LEAVE................................................................................................................................................. I 1 D. BEREAVEMENT LEAVE.............................................................................................................................................. 12 ARTICLEXH - CITY RULES..........................................................................................................................................12 ARTICLE XIH - MISCELLANEOUS...............................................................................................................................12 A. SALARY UPON APPOINTMENT................................................................................................................................... 12 B. PHYSICAL EXAMINATIONS........................................................................................................................................ 12 C. CONDITIONING TIME................................................................................................................................................ 12 ARTICLE XIV - CITY COUNCIL APPROVAL..............................................................................................................12 0032946.01 i 02/14/00 5:48 PM • A • 174BLE OF CONTENTS EXHIBIT A - MSOA SALARY SCHEDULE.................................................................................................................... 14 EXHIBIT B - DELTA CARE DENTAL BROCHURE...................................................................................................... 15 EXHIBIT C - DELTA DENTAL PLAN BROCHURE.........................................................................................I............ 16 EXHIBIT D- RETIREE MEDICAL PLAN....................................................................................................................... 17 RETIREESUBSIDY MEDICAL PLAN............................................................................................................................ 17 SCHEDULEOF BENEFITS.............................................................................................................................................. 18 A. Minimum Eligibility for Benefits......................................................................................................................... 18 B. Disability Retirees.............................................................................................................................................. 18 C. Maximum Monthly Subsidy Payments................................................................................................................. 18 INDEMNITY HEALTH PLAN, EMPLOYEES/RETIREESI.......................................................................................... 20 RETIREE SUBSIDY MEDICAL PLAN/MISCELLANEOUS PROVISIONS................................................................. 20 A. Eligibility...........................................................................................................................................................20 B. Bene its.............................................................................................................................................................. 21 C. Subsidies............................................................................................................................................................22 D. Medicare............................................................................................................................................................22 E. Cancellation.......................................................................................................................................................23 EXHIBITE- PERSONNEL RULE CHANGE.................................................................................................................. 25 0032946.01 ii 02/14/00 5:48 PM - MEMORANDUM OF UNDERSTANDING Between THE CITY OF HUNTINGTON BEACH (Hereinafter called CITY) and THE HUNTINGTON BEACH MARINE SAFETY OFFICERS' ASSOCIATION (Hereinafter called ORGANIZATION or MSOA) PREAMBLE 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. 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 is made, to become effective October 1, 1999, and it is agreed as follows: ARTICLE I - TERM OF MOU This Memorandum of Understanding shall be in effect for a term commencing on October 1, 1999 and ending at midnight on September 30, 2000. No further improvements or changes in the salaries and monetary benefits of the employees represented by the Association shall take effect during the term of this agreement and the Association expressly waives any right to request any improvements or changes in salaries or monetary benefits for the employees represented by the Association which would take effect. prior to October 1, 2000, and the City of Huntington Beach, through its representatives, shall not be required to meet and confer as to any such request. 0032946.01 -1- 02/14/00 5:48 PM I►yi&'%7Wirell, ARTICLE II - REPRESENTATIONAL UNIT/CLASSIFICATIONS It is recognized that the Marine Safety Officers' Association is the employee organization which has the right to meet and confer in good faith with the City on behalf of the employees of the Huntington Beach Community Services Department within the following classification and assignment titles: Marine Safety Lieutenant Marine Safety Officer/Boat Operator Marine Safety Officer ARTICLE III - MANAGEMENT RIGHTS Except as expressly abridged or modified herein, the City retains all rights, powers and authority with respect to the management and direction of the performance of marine safety services and the work forces performing such services, provided that nothing herein shall change the City's obligation to meet and confer as to the effects of any such management decision upon wages, hours and terms and conditions of employment or be construed as granting the Director or the City the right to make unilateral changes in wages, hours, and terms and conditions of employment. Such rights include, but are not limited to, consideration of the merits, necessity, level or organization of City services, including establishing manning requirements, overtime assignments, number and location of work stations, nature of work to be performed, contracting for any work or operation, reasonable employee performance standards, including reasonable work and safety rules and regulations in order to maintain the efficiency and economy desirable for the performance of City services. The parties agree to meet and confer during the term of this agreement on revisions, changes, modifications and additions to the Personnel Rules and/or Department Rules when requested by City. 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 between City and the Association. ARTICLE V - SALARY SCHEDULE Classification and Salary Rates -- Employees shall be compensated at monthly salary rates by classification title and salary range during the term of this agreement as set out in Exhibit A attached hereto and incorporated herein. 0032946.01 2 02/14/00 5:48 PM IVISOA MOU ARTICLE VI - SPECIAL PAY A. Educational Tuition: 1. Criteria --.The existing Marine Safety Officers' Education Incentive Plan shall be maintained as follows: Education Incentive Level College Units Maximum Training Points Years of Service Continuing Education College Units Required Annually Monthl y Amount 1 30 10 1 6 $ 50 2 60 20 2 3 75 3 90 30 2 3 100 4 120 3 3 150 5 150 4 0 150 2. Stipulations: a. College major shall be Marine Science, Police Science, Business Administration, Oceanography, and Fire Science. b. Initial eligibility must be approved by the Director of Community Services. An acceptable yearly performance evaluation, signed by the Director of Community Services is required. No incentive pay taken away without just cause. c. Training points approved by the Director may be substituted for college units, on the following schedule: 10 of 30; 20 of 60; 30 of 90. Each twenty hours completed of approved seminars, institutes, etc., are credited with one training point. d. Pay to be effective on the first of each month following approval. e. After 120 units or B.A., approved training points may be substituted for college units without limit. f. Repeat college course credited as determined by the college. g. Repeat approved seminars, institutes, etc., credited as determined by the Director of Community Services. h. All college units require grade of "C" or better to qualify. 0032946.01 3 02/14/00 5:48 PM MSOA MOU Obtaining transcripts or other acceptable documentation is each employee's responsibility. Employee may choose between approved training points or college units where a choice is available. No change allowed once choice is made, no double credit allowed. B. Acting Assignment: 1. Permanent employee shall receive additional compensation for hours worked in the higher level assignment at the rate of twelve and one-half percent (12 1 /2%) of the employee's regular hourly rate. 2. When formally assigned to perform in the absence of the Operations Lieutenant or Marine Safety Chief due to vacation, compensatory time off, sick leave and training; permanent unit employees shall be compensated for each full hour worked at the rate specified in Paragraph B1 above. C. Assignment Pav: Each Marine Safety Officer assigned to duty as a boat operator (Marine Safety Officer/Boat Operator) shall receive pay as set forth in Exhibit A. Assignment as Marine Safety Officer/Boat Operator is normally for a period of seven months per year, at the discretion of the Director of Community Services and assignment as the relief Marine Safety Officer/Boat Operator is normally for a period of five months per year. D. Holiday Pay -In -Lieu: Employees represented by the Association and actively employed by the City, in addition to regular compensation, shall receive each month 1/12 of the total holiday hours (80) earned for the year. They shall be entitled to an additional eight hours of pay at their regular rate for any day declared by the President of the United States to be a national holiday, or any day declared by the Governor of the State of California to be a state holiday, if such day is adopted by the City Council of the City of Huntington Beach as a special holiday for City employees (i.e., day of mourning). E. Bilingual Skill: Permanent employees who are required by their Department Head to use their bilingual abilities, as part of their job assignment shall be paid an additional five percent (5%) over their regular monthly salary. Employees who are required by their Department Head to utilize the bilingual skills may be required to be tested and certified by the Personnel Director as to their language proficiency in order to be eligible for said compensation. Eligibility for bilingual pay shall be limited to the following languages; Spanish, Vietnamese, French, German, Japanese and sign language. 0032946.01 4 02/14/00 5:48 PM MSOA MOU ARTICLE VII - UNIFORMS, CLOTHING, TOOLS AND EQUIPMENT The City shall continue the existing practice of providing and replacing uniforms and safety equipment. ARTICLE VIII - HOURS OF WORK/OVERTIME A. Hours of Work Defined: For purposes of this article, approved vacation time, sick leave and compensation time shall count as hours worked. B. Overtime/Compensatory Time: 1. Paid Overtime -- Employees shall receive time and one half their salary rate for all time worked in excess of forty (40) hours during any given payroll week. 2. Compensatory Time -- Employees may elect to receive compensatory time off (to be accrued to a maximum of 120 hours) in lieu of such overtime pay. 3. Court Time: a. Court Standby -- Employees required to be on standby for a court appearance during other than their scheduled working hours shall receive a minimum of two (2) hours straight time pay (including differentials) for both morning and afternoon court sessions. b. Court Appearance -- Employees required to appear in court during other than their scheduled working hours shall receive a minimum of three (3) hours pay (including differentials) at time and one half. 4. Holidays Worked -- Employees who work on a recognized City holiday shall be compensated at time and one-half of their base pay for hours worked. C. Shift Exchange: The Department shall allow employees to exchange work schedules and shifts among those of equal rank and ability, providing prior approval is obtained from the Department Director and the payback of the shift exchange is completed within sixty (60) calendar days. 0032946.01 5 02/14/00 5:48 PM MSOA MOU ARTICLE IX - HEALTH AND OTHER INSURANCE BENEFITS A. Health: 1. Medical: a. The City shall continue to provide group medical benefits to all employees with coverage and other benefits comparable to the group medical plan currently in effect. 2. Dental -- Employees shall continue to be covered by dental plan benefits equal to those currently being provided by the City as modified in Exhibit B and C. The Delta Plan shall include a twenty-five ($25) deductible per person per year. 3. Optical -- The optical plan benefits will provide for one (1) pair of eyeglasses every twelve (12) months, subject to the terms and conditions of the current policy. 4. Eligibility Criteria and Cost: a. 1999 Premiums -- The City shall contribute toward the cost of the 1999 premium for medical, dental and vision as outlined below. b. Health Insurance Caps -- The City "caps" its contribution toward employee monthly health insurance premiums by category and plan at the rate effective January 1, 2000, for the year ending December 31, 2001: Monthly VSP Premiums City Plan HealthNet PacifiCare Delta Delta Care Safeguard (Vision) Dental Employee Only $283.28 $165.06 $165.06 $36.99 $$22.12 $16.20 $17.58 Employee + One $560.18 $361.66 $361.66 $70.65 $37.61 $29.16 $17.58 Employee + Family $685.86 $476.68 $476.68 $100.37 $57.51 $37.22 '$17.58 c. Employee Paid Premiums -- Employees hired prior to November 2, 1998, the City shall pay medical, dental and vision premiums subject to 4a and 4b above. d. Two -Tier Health Premium -- Employees hired on or after the November 2, 1998 of this agreement, the City's contribution toward medical insurance shall be at the highest HMO rate of (1) employee only, (2) employee + one, or (3) employee + family. 0032946.01 6 02/14/00 5:48 PM MSOA MOU e. Dependent Health Coverage -- The City will assume payment for dependent health insurance, subject to paragraph 4d above, effective the first of the month following the month during which the employee completes one (1) year of full time continuous service with the City. f. Medical Plan Changes Effective September 1, 1998: 1) Prescription Program -- Employee shall be required to obtain the generic drug, if available, unless the physician specifically prescribes a brand name drug. If the physician does not authorize a generic substitution, the employee is responsible only for the higher co -payment cost. If the employee requests the brand name drug, he/she will pay the difference between the generic and the brand name cost in addition to the co -payment cost. 2) Outpatient Surgery - The plan will pay ninety percent (90%) for PPO providers and seventy percent (70%) for non-PPO providers of allowable, usual, customary and reasonable charges after the annual deductible has been met. This applies to outpatient surgical facilities, outpatient services in a hospital, surgeons, anesthesiologist and all pre- admission testing. 3) Elective Surgeries - Due to advances in medical technology, the current Second Surgical Opinion is outdated. The Plan shall require that the attending physician call OCPPO on all proposed, elective surgeries for a determination of second surgical opinion requirements. OCPPO will have the authority to waive or require a second opinion. OCPPO will provide the patient with a list of Board Certified surgeons in the same specialty. The charges for the second surgical consultant will continue to be paid at one hundred percent (100%) and not subject to the deductible. 4) Subsidized Retiree Medical - Benefits to be paid at the rate of ninety percent (90%) for PPG's and seventy percent (70%) for Non -PPG's of allowable, usual, customary and reasonable charges after the annual deductible has been met. 5) The Association agrees to one HMO for the 2001 plan year. g. Plan Deductibles - The Medical Insurance Plan deductible shall be One Hundred Fifty Dollars ($150) per person; and the maximum deductible per family shall be Four Hundred Fifty Dollars ($450) during any period of benefit entitlement as described in the City's Employee Health Plan. 0032946.01 7 02/14/00 5:48 PM MSOA MOU h. Chiropractic Services - Chiropractic limits are provided under major medical to a maximum of 24 treatments or $2,000 per year. B. Life Insurance: City will provide $10,000 of term life insurance without evidence of insurability other than evidence of working a full time duty at City cost. Optional insurance is available at the employee's own cost. C. Accidental Death and Dismemberment Insurance: 1. The existing long-term disability program provided employees by the City shall remain in effect. This program provides for each incident of illness or injury, pay up to sixty (60) calendar days at the employee's salary rate (excluding overtime but including any special pay in effect at the time of illness of injury). After the sixty (60) calendar day period, the employee will be covered by an insurance plan paid for by the City which will provide 66 2/3% of the employee's salary rate (excluding overtime and any special pay) up to a maximum of $10,000 a month in accordance with the following: Disability Due to Accident Disability Due to Illness First 60 Days Regular Pay Regular Pa Next 24 Months 66 2/3% of Base Pay 66 2/3% of Base Pa To age 65 66 2/3% of Base Pa None Days and months refer to calendar days and months. 2. Plan integrated with Worker's Compensation, Social Security and other non -private program benefits to which entitled. 3. Disability is defined as the inability to perform all of the duties of regular occupation during two (2) years and thereafter the inability to engage in any employment or occupation for which he is fitted by reason of education, training or experience. 4. Rehabilitation benefits are provided in the event the individual, due to disability, must engage in other occupation. Plan will provide 66 2/3% of difference between regular pay and pay of other occupation. 5. Survivors' benefit continues plan payment for three (3) months beyond death. 6. The terms and conditions of the disability insurance coverage are set forth in the policy, a copy of which is on file in the Personnel Division of the Administrative Services Department. In the event of any conflict between the policy and this article, the policy shall control. The City may change insurance companies, policies, or self - insure this benefit, provided that the plans shall remain comparable to that currently in effect. 0032946.01 8 02/14/00 5:48 PM MSOA MOU ARTICLE X - RETIREMENT A. Benefits: 1. Public Employees' Retirement System: The City will provide, for all employees represented by the Association whose retirement is effective or whose death occurs after July 1, 1978, Public Employees' Retirement System retirement benefits computed by utilizing the two percent (2%) at age fifty (50) formula commonly referred to as the California Highway Patrol Retirement Plan. 2. Self -Funded Supplemental Retirement Benefit: In the event a member elects Option #2 (Section 21333) or Option #3 (Section 21334) of the Public Employees' Retirement Law, and the member is a unit employee who was hired before the adoption of this MOU, the City shall pay the difference between such elected option and the unmodified allowance which the member would have received for his or her lift 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's obligation shall cease. The method of funding this benefit shall be at the sole discretion of the City. This benefit is vested for employees hired before November 2, 1998. All unit employees hired on or after November 2, 1998 shall not be eligible for this benefit. (Note: The options provide that 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). 3. Medical Insurance for Retirees: a. 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 the City's Employee Health Plan or an HMO plan offered by the City at the retiree's own expense for the maximum time period required by Federal Law (COBRA), or 2) Employees retiring after approval of this MOU may participate in the Retiree Medical Plan described in Exhibit C. 3) Employees who have been placed on industrial disability retirement subsequent to January 31, 1974 shall be eligible to continue to participate in the existing group medical benefit plan at their own cost. Participation shall cease upon the earliest of the following: 0032946.01 9 02/14/00 5:48 PM MSOA MOU a) The expiration of three (3) calendar years following the date of the industrial disability retirement, and b) The retiree obtaining eligibility for coverage under a comparable medical plan. Retirees who cease to participate may exercise any conversion privileges then in existence. B. Public Employees' Retirement System Reimbursement and Reporting: Employees' Contribution- Each employee covered by this agreement shall be reimbursed an amount equal to 9% of the employee's base salary plus education incentive pay as pickup of a portion of each employee's PERS contribution. The above PERS pickup is not base salary but is done pursuant to Section 414(h)(2) of the Internal Revenue Code. ARTICLE XI - LEAVE BENEFITS A. Vacation: The purpose of annual vacation is to provide a rest period which will enable each employee to return to work physically and mentally refreshed. 1. Accrual: Permanent employees in City service, having an average work week of forty (40) hours, shall accrue annual vacations with pay in accordance with the following - Years of Service Vacation Allowance First through Fourth Year 112 hours Fifth through Ninth Year 136 hours Tenth through Fourteenth Year 160 hours Fifteenth Year and Thereafter 192 hours 2. Eligibility and Permission: a. All employees shall be entitled to annual vacation with pay except under the following circumstances: 1) Employees who have not completed six (6) months continuous service with the City. 2) Employees who work less than full-time. 3) Employees on leave of absence. 0032946.01 10 02/14/00 5:48 PM MSOA MOU b. For the purpose of computing vacation, an employee's anniversary date shall be the most recent date on which he commenced full-time City employment. c. No vacation may be taken until the completion of six (6) months of service. Permanent, part-time employees assigned a work schedule of less than 30 and more than 20 hours per week shall receive vacation in one-half the amounts set forth above. Employees assigned to a work week of less tan 40 and more than 30 hours per week shall receive vacation in three -fourths the amounts set forth above. d. No employee shall be permitted to take a vacation in excess of actual time earned and vacation shall not be accrued in excess of 320 hours. Vacations shall be taken only with permission of the department head; however, the department head shall schedule all vacations with due consideration for the wish of the employee and particular regard for the need of the department. 3. Conversion to Cash -- An employee may elect to take up to 80 hours of pay per fiscal year for accrued vacation in lieu of time off. It is the intent of the parties that employees will take vacation during the fiscal year. a. Cash Advance -- Upon two week written notification to the Director of Finance, each employee shall be entitled to receive his earned vacation pay, less deductions, in advance, prior to his regular scheduled annual vacation. Such advancements are limited to one during each employee's anniversary year. b. Pay -Off at Termination -- No employee shall be paid for unused vacation other than upon termination of employment at which time such terminating employee shall receive compensation at his current salary rate for all unused, earned vacation to which he is entitled up to and including the effective date of his termination. B. Sick Leave: As of July 31, 1974, all sick leave accumulation was frozen for purposes of payoff upon termination and no additional time will be accumulated. Salary continuation for approved sick leave is covered under Article IX.D above. C. Family Sick Leave: Sick leave may be used for an absence due to illness of the employee's spouse or child when the employee's presence is required at home, provided that such absences shall be limited to five (5) days per calendar year. 0032946.01 11 02/14/00 5:48 PM MSOA MOU D. Bereavement Leave: Employees shall be entitled to Bereavement Leave not to exceed three (3) working days per calendar year in instance of death in the immediate family. Immediate family is defined as father, mother, sister, brother, spouse, children, stepfather, stepmother, stepsisters, stepbrothers, mother-in-law, father-in-law, stepchildren, or grandparents. ARTICLE XII - CITY RULES The City and the Association agree to implement the rule changes and accordingly revise the Personnel Rules as described in Exhibit E. ARTICLE XIII - MISCELLANEOUS A. Salary Upon Appointment: When an appointment of a recurrent lifeguard to the classification of Marine Safety Officer occurs, the salary step upon appointment shall be determined in the same manner as salary step upon promotions under the City's Personnel Rules. B. Physical Examinations: The City agrees to pay for bi-annual physical examinations, to include stress EKG, when authorized by the Department Head, with the understanding that results thereof may be utilized for corrective action and the determination of the employee's continued ability to perform duties of the position. A copy of the physical examination shall be provided to the employee upon his request. C. Conditioning Time: Unit employees may be allowed up to one hour on each regularly scheduled shift to be used for physical conditioning. ARTICLE XIV - CITY COUNCIL APPROVAL It is the understanding of the City and the Association that this Memorandum of Understanding is of no force or effect whatsoever 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 day of 12000. 0032946.01 12 02/14/00 5:48 PM U MSOA MOU CITY OF HUNTINGTON BEACH A Municipal Corporation By: �1,•. Ra Silver Cit Administrator By: - ohn P. Reekstin Director of Administrative Services By: A,� ,j� � William H. Osness Personnel Director By: aniel assidy Chief Negotiator APPROVED AS TO FORM By: G it Hutton City Attorney HUNTINGTON BEACH MARINE SAFETY OFFICERS' ASSN. By- By - By: Ma Reid OA Representative 0032946.01 13 02/14/00 5:48 PM C 5 v 6) EXHIBIT A MARINE SAFETY OFFICERS SALARY SCHEDULE EFFECTIVE JANUARY 8, 2000 4532 Marine Safety Officer 444 3459 3650 3851 4062 4286 4534 Marine Safety Officer/Boat Operator 469 3922 4137 4364 4603 4856 1560 Marine Safety Lieutenant 491 4374 4615 4868 5135 5418 EFFECTIVE APRIL 1, 2000 4532 Marine Safety Officer 450 3565 3761 3967 4186 1 4416 4534 Marine Safety Officer/Boat Operator 475 4038 4260 4494 4742 5002 1560 Marine Safety Lieutenant 497 4508 4756 5018 5293 5584 0032946.01 -14- 02/14/00 5:48 PM EXHIBIT B DELTA CARE DENTAL PLAN BROCHURE A copy of the Delta Dental Plan Brochure may be obtained from the Personnel Division 0032946.01 15 02/14/00 5:48 PM EXHIBIT C DELTA DENTAL DENTAL PLAN BROCHURE A copy of the Delta Care Plan Brochure may be obtained from the Personnel Division 0032946.01 16 02/14/00 5:48 PM EXHIBIT D 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 the Federal Government or State Government mandates an employer -funded health plan or program for retirees, or mandates that the City make contributions toward a health plan (either private or public) for retirees, the City's contribution rate as set forth in this plan shall first be applied to the mandatory plan. If there is any excess, that excess may be 0032946.01 17 02/14/00 5:48 PM applied toward the City medical plan as supplemental coverage provided the retired employee pays the balance necessary for such coverage, if any. 4. 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. 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: 0032946.01 18 02/14/00 5:48 PM Maximum Monthly Payment for Retirements After: Years of Service 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1011 /92 $ 121 136 151 166 181 196 211 226 241 256 271 286 300 315 330 344 (Vote: 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. 0032946.01 19 02/14/00 5:48 PM INDEMNITY HEALTH PLAN, EMPLOYEES/RETIREES' Benefits'l City Plan - Employees Non -Subsidized Retirees COBRA -eligibles Deductible per person Deductible per family Maximum Out of Pocket $150 $450 $1000 per person $2000 per family City Plan - Subsidized Retirees $200 $500 $1500 per person $3000 per family Note: Retirees who elect to participate in Health Net or Family Health Plan (FHP) shall be entitled to benefits of the program chosen. RETIREE SUBSIDY MEDICAL PLAN/MISCELLANEOUS 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. Personnel 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 ' This summary lists only those benefit provisions that differ between active and subsidized Retiree Plans. The Employee Health Plan Document should be consulted for detailed questions about specific benefits. Benefits are subject to modification through the meet and confer process. 0032946.01 20 02/14/00 5:48 PM 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. 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 Preferred Provider Organization (OCPPO) and Medical Stop Loss insurance. 0032946.01 21 02/14/00 5:48 PM 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. Health Net. c. PacifiCare. d. 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. d. Any other commercially available benefit plan. e. Medicare supplements 3. Employees who retire on or after the following dates shall be eligible for the subsidy based on years of completed service with the City. October 1, 1987: MEO, MEA, POA, MSOA, FA and PMA. July 1, 1988: Non -Represented. Retirees who retire prior to the above dates are not eligible for any subsidy benefit. 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 0032946.01 22 02/14/00 5:48 PM 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. 2. See provisions under "Benefits","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 Personnel in accordance with provisions of the Memorandums of Understanding. 0032946.01 23 02/14/00 5:48 PM k. 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. 0032946.01 24 02/14/00 5:48 PM f EXHIBIT E 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 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 Personnel Director, 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. c) 5-20 — Duration of Employment Lists Employment lists shall remain in effect for one (1) year from the date of the last examination, unless sooner exhausted. Promotional lists and entry level employment lists may be extended prior to expiration date by the Personnel Director when requested by the Department Head, for additional periods but in 0032946.01 25 02/14/00 5:48 PM no event shall an employment list remain in effect for more than two (2) years. Names placed on such lists shall be merged with others already on the list in order of scores. 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 polo 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 Personnel Director regarding such belief. If the Personnel Director concurs, the department head may order the employee to submit to a medical or psychological examination. The 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 examiner and the employee shall be advised of the basis for the Department Head's belief that the employee is unable to perform the duties of his/her job. The examination shall be restricted to the specific issue, which gave rise to the request for an examination. The report of the examiner shall be limited to a conclusion that the employee is either able or unable to perform the duties of his/her job. The department head shall review the medical or psychological report and shall consult with the Personnel Director 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 0032946.01 26 02/14/00 5:48 PM 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 the Personnel Director, 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. 5. 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 included in the competitive service and shall not be subject to these rules and regulations. 6. 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 Personnel Director 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 0032946.01 27 02/14/00 5:48 PM 14-1, may be approved by the City Administrator, upon recommendation of the department head through the Personnel Director. Such recommendation shall include the reason(s) for the adjustment, whether the advancement is to be permanent or temporary, and an effective date. b) 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 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 PERS 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 PERS pursuant to Government Section 21154 or otherwise refuses to cooperate with PERS 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 0032946.01 28 02/14/00 5:48 PM 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. c) 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 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 Personnel Director." 8. Rule 19 — Grievance Procedure Non -Disciplinary Matters a) 19-5 Grievance Procedure 1) Step 4 — City Administrator 0032946.01 29 02/14/00 5:48 PM 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 the Personnel Director 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 Personnel Director, 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 Personnel Director. 2) Step 5 — Personnel Board Hearing Hearing. As soon as practicable thereafter, the Personnel Director 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 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. 9. Rule 20 — Review Prnr•e ,ram, Disciplinary Matters 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 0032946.01 30 02/14/00 5:48 PM For disciplinary demotions, suspensions or dismissals, an employee shall be gEveR 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. 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 Personnel Director. 2) Hearing As soon as practicable thereafter, the Personnel Director 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 0032946.01 31 02/14/00 5:48 PM 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 Personnel Director 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. 10. Rule 21 — Grievance Procedures - General a) 21-7 Hearing Officers 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. 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 to select 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 0032946.01 32 02/14/00 5:48 PM 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 Personnel Director, 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: 7-3. Personnel Direction Motion of Unit Modification — The Personnel Director 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 Personnel Director shall give written notice of the proposed Unit Modification of Modifications to all employee organizations that may be affected by the proposed change. Said written notification shall contain the Personnel Director's rationale for the proposed change including all information which justifies the change pursuant to the criteria established in Section 6-5 for Appropriateness of Units. Additionally, the Personnel Director shall provide all affected employee organizations with all correspondence, memoranda, and other documents which relate to any input regarding the Unit Modification which may have been received by the City or from affected employees and/or sent by the City to affected employees; 2) Following receipt of the Personnel Director's Proposal for Unit Modification any affected employee organization shall be afforded not less than thirty (30) days to receive input from its members regarding the proposed change and to formulate a written and/or oral response to the Motion for Unit Modification to the Personnel Commission; 3) The Personnel Commission shall conduct a noticed Public Hearing regarding the Motion for Unit Modification at which time all affected employee organizations and other interested parties shall be heard. The Personnel Commission shall make a determination regarding the proposed Unit Modification which determination may include a -granting of the motion, a denying of the motion, or other appropriate orders relating to the appropriate creation of Bargaining Units. Following the Personnel Commission's determination of the composition of the appropriate Unit or Units, it shall give written notice of such determination to all affected employee organizations; 0032946.01 33 02/14/00 5:48 PM 4) Any party who chooses to appeal from the decision of the Personnel Commission is entitled to appeal in accordance with the provision of Section 14-4 of Resolution Number 3335. 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 limited to automation or other technological changes, it is the policy of the City that steps be taken by the Personnel 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 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. 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. 0032946.01 34 02/14/00 5:48 PM 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 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. 0032946.01 35 02/14/00 5:48 PM 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. 3. Notification of Employees a) The Personnel 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 Personnel Director 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 Personnel Director 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 0032946.01 36 02/14/00 5:48 PM credit shall be jointly reviewed by the Personnel Director 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 Personnel Director of the dispute. Within five (5) calendar days after the dispute is reviewed, the employee shall be notified in writing of the decision. 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 Personnel Director'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 Personnel Director's decision, the employee may appeal pursuant to the provisions of Sections 3 and 4 below. b) Reinstatement/Re-employment 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 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 Personnel 0032946.01 37 02/14/00 5:48 PM Director within five (5) calendar days of the employee's receipt of 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. d) Qualifications Appeal Hearing 1) Upon receipt of an appeal, the Personnel Director 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 two 0032946.01 38 02/14/00 5:48 PM • (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 HBMEA 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. 0032946.01 39 02/14/00 5:48 PM Res. No. 2000-24 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 a regular meeting thereof held on the 22nd day of February, 2000 by the following vote: AYES: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer NOES: None ABSENT: None ABSTAIN: None City Clerk and ex-officio Oferk of the City Council of the City of Huntington Beach, California ATTACHMENT #3 OA 1 O TABLE OF CONTENTS PREAMBLE......................................................................................................................................................................... I ARTICLEI - TERM OF MOU............................................................................................................................................ I ARTICLE II - REPRESENTATIONAL UNIT/CLASSIFICATIONS................................................................................ 2 ARTICLE III - MANAGEMENT RIGHTS........................................................................................................................ 2 ARTICLE IV - EXISTING CONDITIONS OF EMPLOYMENT......................................................................................2 ARTICLEV - SALARY SCHEDULE.................................................................................................................................2 ARTICLEVI - SPECIAL PAY............................................................................................................................................2 A. EDUCATIONAL TUITION..............................................................................................................................................2 B. ACTING ASSIGNMENT................................................................................................................................................. 4 C. ASSIGNMENT PAY...................................................................................................................................................... 4 D. HOLIDAY PAY-IN-LIEU............................................................................................................................................... 4 E. BILINGUAL SKILL....................................................................................................................................................... 4 ARTICLE VII - UNIFORMS, CLOTHING, TOOLS AND EQUIPMENT.......................................................................4 ARTICLE VIII - HOURS OF WORK/OVERTIME...........................................................................................................5 A. HOURS OF WORK DEFINED......................................................................................................................................... 5 B. OVERTIME/COMPENSATORY TIME............................................................................................................................... 5 C. SHIFT EXCHANGE....................................................................................................................................................... 5 ARTICLE IX - HEALTH AND OTHER INSURANCE BENEFITS.................................................................................5 A. Nlmic-AL HEALTH..................................................................................................................................................... 5 a. Health Premiums................................................................................................................................................................... 6 b. Health Insurance Caps............................................................................................................................................................ 6 C. Employee Paid Premiums....................................................................................................................................................... 6 d. Two -Tier Health Premium...................................................................................................................................................... 6 e. Dependent Health Coverage................................................................................................................................................... 6 f. Medical Plan Changes Effective September 1 1998............................................................................................................... 6 9. Plan Deductibles.................................................................................................................................................................... 7 h. Chiropractic Services............................................................................................................................................................. 7 ARTICLEX - RETIREMENT.............................................................................................................................................8 A. BENEFITS...................................................................................................................................................................8 B. PUBLIC EMPLOYEES' RETIREMENT SYSTEM REIMBURSEMENT AND REPORTING............................................................. 9 ARTICLEXI - LEAVE BENEFITS..................................................................................................................................10 A. VACATION............................................................................................................................................................... 10 B. SICK LEAVE............................................................................................................................................................. 11 C. FAMILY SICK LEAVE................................................................................................................................................. 11 D. BEREAVEMENT LEAVE.............................................................................................................................................. 11 ARTICLEXII - CITY RULES..........................................................................................................................................11 ARTICLE XIII - MISCELLANEOUS...............................................................................................................................12 A. SALARY UPON APPOINTMENT................................................................................................................................... 12 B. PHYSICAL EXAMINATIONS........................................................................................................................................ 12 C. CONDITIONING TIME................................................................................................................................................ 12 ARTICLE XIV - CITY COUNCIL APPROVAL..............................................................................................................12 0032946.01 i 02/14/00 5:33 PM O. M O fABLE OF CONTENTS EXHIBIT A - MSOA SALARY SCHEDULE.................................................................................................................... 14 EXHIBIT B - DELTA CARE DENTAL BROCHURE..................................................................................................... 14 EXHIBIT C - DELTA DENTAL PLAN BROCHURE...................................................................................................... 16 EXHIBIT D- RETIREE MEDICAL PLAN....................................................................................................................... 17 RETIREESUBSIDY MEDICAL PLAN............................................................................................................................ 17 SCHEDULEOF BENEFITS.............................................................................................................................................. 18 A. Minimum Eli i bilityfor Benefits......................................................................................................................... 18 B. Disability Retirees.............................................................................................................................................. 18 C. Maximum Monthly Subsidy Pa my ents................................................................................................................. 18 INDEMNITY HEALTH PLAN, EMPLOYEES/RETIREES1.......................................................................................... 20 RETIREE SUBSIDY MEDICAL PLAN/MISCELLANEOUS PROVISIONS................................................................. 21 A. Eli i�ity...........................................................................................................................................................21 B. Bene tts.............................................................................................................................................................. 22 C. Subsidies............................................................................................................................................................22 D. Medicare............................................................................................................................................................23 E. Cancellation.. ..................:.. ................................................................................................................................23 EXHIBIT E- PERSONNEL RULE CHANGE.................................................................................................................. 25 0032946.01 ii 02/14/00 5:33 PM MEMORANDUM OF UNDERSTANDING Between THE CITY OF HUNTINGTON BEACH (Hereinafter called CITY) and THE HUNTINGTON BEACH MARINE SAFETY OFFICERS' ASSOCIATION (Hereinafter called ORGANIZATION or MSOA) 1=F-11iv, 1=14� 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. 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 is made, to become effective October 1, 1997 1999, and it is agreed as follows: ARTICLE I - TERM OF MOU This Memorandum of Understanding shall be in effect for a term commencing on October 1, 1997 1999 and ending at midnight on September 30, 1999 2000. No further improvements or changes in the salaries and monetary benefits of the employees represented by the Association shall take effect during the term of this agreement and the Association expressly waives any right to request any improvements or changes in salaries or monetary benefits for the employees represented by the Association which would take effect prior to October 1, 1999 2000, and the City of Huntington Beach, through its representatives, shall not be required to meet and confer as to any such request. 0032946.01 -1- 02/14/00 5:33 PM MSOA MOU ARTICLE II - REPRESENTATIONAL UNIT/CLASSIFICATIONS It is recognized that the Marine Safety Officers' Association is the employee organization which has the right to meet and confer in good faith with the City on behalf of the employees of the Huntington Beach Community Services Department within the following classification and assignment titles: Marine Safety Lieutenant Marine Safety Officer/Boat Operator Marine Safety Officer ARTICLE III - MANAGEMENT RIGHTS Except as expressly abridged or modified herein, the City retains all rights, powers and authority with respect to the management and direction of the performance of marine safety services and the work forces performing such services, provided that nothing herein shall change the City's obligation to meet and confer as to the effects of any such management decision upon wages, hours and terms and conditions of employment or be construed as granting the Director or the City the right to make unilateral changes in wages, hours, and terms and conditions of employment. Such rights include, but are not limited to, consideration of the merits, necessity, level or organization of City services, including establishing manning requirements, overtime assignments, number and location of work stations, nature of work to be performed, contracting for any work or operation, reasonable employee performance standards, including reasonable work and safety rules and regulations in order to maintain the efficiency and economy desirable for the performance of City services. The parties agree to meet and confer during the term of this agreement on revisions, changes, modifications and additions to the Personnel Rules and/or Department Rules when requested by City. 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 between City and the Association. ARTICLE V - SALARY SCHEDULE Classification and Salary Rates -- Employees shall be compensated at monthly salary rates by classification title and salary range during the term of this agreement as set out in Exhibit A attached hereto and incorporated herein. ARTICLE VI - SPECIAL PAY A. Educational Tuition: 0032946.01 2 02/14/00 5:33 PM MSOA MOU 1. Criteria --.The existing Marine Safety Officers' Education Incentive Plan shall be maintained as follows: Education Incentive Level College Units Maximum Training Points Years of Service Continuing Education College Units Required Annually Monthl y Amount 1 30 10 1 6 $ 50 2 60 20 2 3 75 3 90 30 2 3 100 4 120 3 3 150 5 150 4 0 150 2. Stipulations: a. College major shall be Marine Science, Police Science, Business Administration, Oceanography, and Fire Science. b. Initial eligibility must be approved by the Director of Community Services. An acceptable yearly performance evaluation, signed by the Director of Community Services is required. No incentive pay taken away without just cause. c. Training points approved by the Director may be substituted for college units, on the following schedule: 10 of 30; 20 of 60; 30 of 90. Each twenty hours completed of approved seminars, institutes, etc., are credited with one training point. d. Pay to be effective on the first of each month following approval. e. After 120 units or B.A., approved training points may be substituted for college units without limit. f. Repeat college course credited as determined by the college. g. Repeat approved seminars, institutes, etc., credited as determined by the Director of Community Services. h. All college units require grade of "C" or better to qualify. i. Obtaining transcripts or other acceptable documentation is each employee's responsibility. 0032946.01 3 02/14/00 5:33 PM MSOA MOU Employee may choose between approved training points or college units where a choice is available. No change allowed once choice is made, no double credit allowed. B. Acting Assignment: 1. Permanent employee shall receive additional compensation for hours worked in the higher level assignment, beginning with the first full shift of werL at the rate of twelve and one-half percent (12 1/2%) of the employee's regular hourly rate. 2. When formally assigned to perform in the absence of the Operations Lieutenant or Marine Safety Chief due to vacation, compensatory time off, sick leave and training; permanent unit employees shall be compensated for each full hour worked at the rate specified in Paragraph B1 above. C. Assignment Pay: Each Marine Safety Officer assigned to duty as a boat operator (Marine Safety Officer/Boat Operator) shall receive pay as set forth in Exhibit A. Assignment as Marine Safety Officer/Boat Operator is normally for a period of seven months per year, at the discretion of the Director of Community Services and assignment as the relief Marine Safety Officer/Boat Operator is normally for a period of five months per year. D. Holiday Pay -In -Lieu: Employees represented by the Association and actively employed by the City, in addition to regular compensation, shall receive each month 1/12 of the total holiday hours (80) earned for the year. They shall be entitled to an additional eight hours of pay at their regular rate for any day declared by the President of the United States to be a national holiday, or any day declared by the Governor of the State of California to be a state holiday, if such day is adopted by the City Council of the City of Huntington Beach as a special holiday for City employees (i.e., day of mourning). E. Bilingual Skill: Permanent employees who are required by their Department Head to use their bilingual abilities as part of their job assignment shall be paid an additional five percent (5%) over their regular monthly salary. Employees who are required by their Department Head to utilize the bilingual skills may be required to be' tested and certified by the Personnel Director as to their language proficiency in order to be eligible for said compensation. Eligibility for bilingual pay shall be limited to the following languages; Spanish, Vietnamese, French, German, Japanese and sign language. ARTICLE VII - UNIFORMS, CLOTHING, TOOLS AND EQUIPMENT The City shall continue the existing practice of providing and replacing uniforms and safety equipment. 0032946.01 4 02/14/00 5:33 PM MSOA MOU ARTICLE VIII - HOURS OF WORK/OVERTIME A. Hours of Work Defined: For purposes of this article, approved vacation time, sick leave and compensation time shall count as hours worked. B. Overtime/Compensatory Time: 1. Paid Overtime -- Employees shall receive time and one half their salary rate for all time worked in excess of forty (40) hours during any given payroll week. 2. Compensatory Time -- Employees may elect to receive compensatory time off (to be accrued to a maximum of 120 hours) in lieu of such overtime pay. 3. Court Time: a. Court Standby -- Employees required to be on standby for a court appearance during other than their scheduled working hours shall receive a minimum of two (2) hours straight time pay (including differentials) for both morning and afternoon court sessions. b. Court Appearance -- Employees required to appear in court during other than their scheduled working hours shall receive a minimum of three (3) hours pay (including differentials) at time and one half. 4. Holidays Worked -- E� ^+� OGteber 1, 1992, Employees who work on a recognized City holiday shall be compensated at time and one-half of their base pay for hours worked. C. Shift Exchange: The Department shall allow employees to exchange work schedules and shifts among those of equal rank and ability, providing prior approval is obtained from the Department Director and the payback of the shift exchange is completed within sixty (60) calendar days. ARTICLE IX - HEALTH AND OTHER INSURANCE BENEFITS A. mat Health: 1. Medical: a. The City shall continue to provide group medical benefits to all employees with coverage and other benefits comparable to the group medical plan currently in effect. 2. Dental -- Employees shall continue to be covered by dental plan benefits equal to those currently being provided by the City as modified in Exhibit B and C. The Delta Plan shall include a twenty-five ($25) deductible per person per year. 0032946.01 5 02/14/00 5:33 PM MSOA MOU 3. Optical -- The optical plan benefits will provide for one (1) pair of eyeglasses every twelve (12) months, subject to the terms and conditions of the current policy. 4. Eligibility Criteria and Cost: a. #ea-Ith 1999 Premiums -- The Cit 1998 nnntrib Lien toward health GeSts to be effestirve Septembe1998. The City shall contribute toward the cost of the 1999 premium for medical, dental and vision as outlined below. b. Health Insurance Caps -- The City "caps" its contribution toward employee monthly health insurance premiums by category and plan at the rate effective January 1, 1999 2000, for the year ending December 31, 1999 2001: . Monthly VSP Premiums City Plan HealthNet PacifiCare Delta Delta Care Safeguard (Vision) Dental Employee Only $260.00 $170.13 $157.95 $39.01 $28.48 $16.20 $17.58 $283.28 165.06 $165.06 $36.99 $22.12 Employee + One 526.00 372.47 346.09 7459 36.51 29.16 17.58 $560.18 $361.66 $361.66 $70.65 $37.61 Employee + Family 644.00 489.64 456.16 105.96 55.83 37.22 17.58 $685.86 $476.68 $476.68 $100.37 $57.51 c. Employee Paid Premiums -- Employees hired prior to adeption November 2, 1998, the City shall pay medical, dental and vision premiums subject to 4a and 4b above. d. Two -Tier Health Premium -- Employees hired on or after the November 2, 1998 of this agreement, the City's contribution toward medical insurance shall be at the highest HMO rate of (1) employee only, (2) employee + one, or (3) employee + family. e. Dependent Health Coverage -- The City will assume payment for dependent health insurance, subject to paragraph 4d above, effective the first of the month following the month during which the employee completes one (1) year of full time continuous service with the City. f. Medical Plan Changes Effective September 1, 1998: 1) Prescription Program -- Employee shall be required to obtain the generic drug, if available, unless the physician specifically prescribes a 0032946.01 6 02/14/00 5:33 PM MSOA MOU brand name drug. If the physician does not authorize a generic substitution, the employee is responsible only for the higher co -payment cost. If the employee requests the brand name drug, he/she will pay the difference between the generic and the brand name cost in addition to the co -payment cost. 2) Outpatient Surgery - The plan will pay ninety percent (90%) for PPO. providers and seventy percent (70%) for non-PPO providers of allowable, usual, customary and reasonable charges after the annual deductible has been met. This applies to outpatient surgical facilities, outpatient services in a hospital, surgeons, anesthesiologist and all pre- admission testing. 3) Elective Surgeries - Due to advances in medical technology, the current Second Surgical Opinion is outdated. The Plan shall require that the attending physician call OCPPO on all proposed, elective surgeries for a determination of second surgical opinion requirements. OCPPO will have the authority to waive or require a second opinion. OCPPO will provide the patient with a list of Board Certified surgeons in the same specialty. The charges for the second surgical consultant will continue to be paid at one hundred percent (100%) and not subject to the deductible. 4) Subsidized Retiree Medical - Benefits to be paid at the rate of ninety percent (90%) for PPG's and seventy percent (70%) for Non-PPO's of allowable, usual, customary and reasonable charges after the annual deductible has been met. 5) The Association agrees to one HMO for the 2001 plan year. g. Plan Deductibles - The Medical Insurance Plan deductible shall be One Hundred Fifty Dollars ($150) per person; and the maximum deductible per family shall be Four Hundred Fifty Dollars ($450) during any period of benefit entitlement as described in the City's Employee Health Plan. h. Chiropractic Services - Chiropractic limits are provided under major medical to a maximum of 24 treatments or $2,000 per year. B. Life Insurance: City will provide $10,000 of term life insurance without evidence of insurability other than evidence of working a full time duty at City cost. Optional insurance is available at the employee's own cost. C. Accidental Death and Dismemberment Insurance: 0032946.01 7 02/14/00 5:33 PM MSOA MOU 1. The existing long-term disability program provided employees by the City shall remain in effect. This program provides for each incident of illness or injury, pay up to sixty (60) calendar days at the employee's salary rate (excluding overtime but including any special pay in effect at the time of illness of injury). After the sixty (60) calendar day period, the employee will be covered by an insurance plan paid for by the City which will provide 66 2/3% of the employee's salary rate (excluding overtime and any special pay) up to a maximum of $10,000 a month in accordance with the following: Disability Due to Accident Disability Due to Illness First 60 Days Regular Pay Regular Pa Next 24 Months 66 2/3% of Base Pay 66 2/3% of Base Pa To age 65 66 2/3% of Base Pay None Days and months refer to calendar days and months. 2. Plan integrated with Worker's Compensation, Social Security and other non -private program benefits to which entitled. 3. Disability is defined as the inability to perform all of the duties of regular occupation during two (2) years and thereafter the inability to engage in any employment or occupation for which he is fitted by reason of education, training or experience. 4. Rehabilitation benefits are provided in the event the individual, due to disability, must engage in other occupation. Plan will provide 66 2/3% of difference between regular pay and pay of other occupation. 5. Survivors' benefit continues plan payment for three (3) months beyond death. 6. The terms and conditions of the disability insurance coverage are set forth in the policy, a copy of which is on file in the Personnel Division of the Administrative Services Department. In the event of any conflict between the policy and this article, the policy shall control. The City may change insurance companies, policies, or self - insure this benefit, provided that the plans shall remain comparable to that currently in effect. ARTICLE X - RETIREMENT A. Benefits: 1. Public Employees' Retirement System: The. City will provide, for all employees represented by the Association whose retirement is effective or whose death occurs after July 1, 1978, Public Employees' Retirement System retirement benefits computed by utilizing the two percent (2%) at age fifty (50) formula commonly referred to as the California Highway Patrol Retirement Plan. 0032946.01 8 02/14/00 5:33 PM MSOA MOU 2. Self -Funded Supplemental Retirement Benefit: In the event a member elects Option #2 (Section 21333) or Option #3 (Section 21334) of the Public Employees' Retirement Law, and the member is a unit employee who was hired before the adoption of this MOU, the City shall pay the difference between such elected option and the unmodified allowance which the member would have received for his or her lift 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's obligation shall cease. The method of funding this benefit shall be at the sole discretion of the City. This benefit is vested for employees GOyered by this agreement hired before November 2, 1998. All unit employees hired on or after the adoption of this nnni i November 2, 1998 shall not be eligible for this benefit. (Note: The options provide that 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). 3. Medical Insurance for Retirees: a. 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 the City's Employee Health Plan or an HMO plan offered by the City at the retiree's own expense for the maximum time period required by Federal Law (COBRA), or 2) Employees retiring after approval of this MOU may participate in the Retiree Medical Plan described in Exhibit C. 3) Employees who have been placed on industrial disability retirement subsequent to January 31, 1974 shall be eligible to continue to participate in the existing group medical benefit plan at their own cost. Participation shall cease upon the earliest of the following: a) The expiration of three (3) calendar years following the date of the industrial disability retirement, and b) The retiree obtaining eligibility for coverage under a comparable medical plan. Retirees who cease to participate may exercise any conversion privileges then in existence. B. Public Employees' Retirement System Reimbursement and Reporting: Employees' Contribution: Each employee covered by this agreement shall be reimbursed an amount equal to 9% of the employee's base salary plus education 0032946.01 9 02/14/00 5:33 PM MSOA MOU incentive pay as pickup of a portion of each employee's PERS contribution. The above PERS pickup is not base salary but is done pursuant to Section 414(h)(2) of the Internal Revenue Code. ARTICLE XI - LEAVE BENEFITS A. Vacation: The purpose of annual vacation is to provide a rest period which will enable each employee to return to work physically and mentally refreshed. 1. Accrual: Permanent employees in City service, having an average work week of forty (40) hours, shall accrue annual vacations with pay in accordance with the following: Years of Service Vacation Allowance First through Fourth Year 112 hours Fifth through Ninth Year 136 hours Tenth through Fourteenth Year 160 hours Fifteenth Year and Thereafter 192 hours 2. Eligibility and Permission: a. All employees shall be entitled to annual vacation with pay except under the following circumstances: 1) Employees who have not completed six (6) months continuous service with the City. 2) Employees who work less than full-time. 3) Employees on leave of absence. b. For the purpose of computing vacation, an employee's anniversary date shall be the most recent date on which he commenced full-time City employment. c. No vacation may be taken until the completion of six (6) months of service. Permanent, part-time employees assigned a work schedule of less than 30 and more than 20 hours per week shall receive vacation in one-half the amounts set forth above. Employees assigned to a work week of less tan 40 and more than 30 hours per week shall receive vacation in three -fourths the amounts set forth above. 0032946.01 10 02/14/00 5:33 PM MSOA MOU d. No employee shall be permitted to take a vacation in excess of actual time earned and vacation shall not be accrued in excess of 320 hours. Vacations shall be taken only with permission of the department head; however, the department head shall schedule all vacations with due consideration for the wish of the employee and particular regard for the need of the department. 3. Conversion to Cash -- An employee may elect to take up to 80 hours of pay per fiscal year for accrued vacation in lieu of time off. It is the intent of the parties that employees will take vacation during the fiscal year. a. Cash Advance -- Upon two week written notification to the Director of Finance, each employee shall be entitled to receive his earned vacation pay, less deductions, in advance, prior to his regular scheduled annual vacation. Such advancements are limited to one during each employee's anniversary year. b. Pay -Off at Termination -- No employee shall be paid for unused vacation other than upon termination of employment at which time such terminating employee shall receive compensation at his current salary rate for all unused, earned vacation to which he is entitled up to and including the effective date of his termination. B. Sick Leave: As of July 31, 1974, all sick leave accumulation was frozen for purposes of payoff upon termination and no additional time will be accumulated. Salary continuation for approved sick leave is covered under Article IX.D above. C. Family Sick Leave: Sick leave may be used for an absence due to illness of the employee's spouse or child when the employee's presence is required at home, provided that such absences shall be limited to five (5) days per calendar year. D. Bereavement Leave: Employees shall be entitled to Bereavement Leave not to exceed three (3) working days per calendar year in instance of death in the immediate family. Immediate family is defined as father, mother, sister, brother, spouse, children, stepfather, stepmother, stepsisters, stepbrothers, mother-in-law, father-in-law, or stepchildren, or grandparents. ARTICLE XII - CITY RULES The City and the Association agree to implement the rule changes and accordingly revise the Personnel Rules as described in Exhibit E. 0032946.01 11 02/14/00 5:33 PM MSOA MOU ARTICLE XIII - MISCELLANEOUS A. Salary Upon Appointment: When an appointment of a recurrent lifeguard to the classification of Marine Safety Officer occurs, the salary step upon appointment shall be determined in the same manner as salary step upon promotions under the City's Personnel Rules. B. Physical Examinations: The City agrees to pay for bi-annual physical examinations, to include stress EKG, when authorized by the Department Head, with the understanding that results thereof may be utilized for corrective, action and the determination of the employee's continued ability to perform duties of the position. A copy of the physical examination shall be provided to the employee upon his request. C. Conditioning Time: Unit employees may be allowed up to one hour on each regularly scheduled shift to be used for physical conditioning. ARTICLE XIV - CITY COUNCIL APPROVAL It is the understanding of the City and the Association that this Memorandum of Understanding is of no force or effect whatsoever 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 day of , 1998 2000. CITY OF HUNTINGTON BEACH A Municipal Corporation In Ray Silver City Administrator as John P. Reekstin Director of Administrative Services in William H. Osness Personnel Director am in in HUNTINGTON BEACH MARINE SAFETY OFFICERS' ASSN. 0032946.01 12 02/14/00 5:33 PM MSOA MOU Daniel Cassidy Chief Negotiator APPROVED AS TO FORM Gail Hutton City Attorney Mark Reid MSOA Representative 0032946.01 13 02/14/00 5:33 PM MSOA MOU EFFECTIVE JANUARY 8, 2000 4532 Marine Safety Officer 438 3359 3545 3739 3945 4462 4534 Marine Safety Officer/Boat Operator 463 3803 4013 4.2-33 4465 4744 1560 Marine Safety Lieutenant 485 4247 4484 4.72� 4987 5264 4532 Marine Safety Officer 444 3459 3650 3851 4062 4286 4534 Marine Safety Officer/Boat Operator 469 3922 4137 4364 4603 4856 1560 Marine Safety Lieutenant 491 4374 4615 4868 5135 5418 EFFECTIVE APRIL 1, 2000 4532 Marine Safety Officer 450 3565 3761 3967 4186 4416 4534 Marine Safety Officer/Boat Operator 475 4038 4260 4494 4742 5002 1560 Marine Safety Lieutenant 497 4508 4756 5018 5293 5584 EXHIBIT B DELTA CARE DENTAL PLAN BROCHURE 0032946.01 -14- 02/14/00 5:33 PM MSOA MOU A copy of the Delta Dental Plan Brochure may be obtained from the Personnel Division 0032946.01 15 02/14/00 5:33 PM MSOA MOU EXHIBIT C DELTA DENTAL DENTAL PLAN BROCHURE A copy of the Delta Care Plan Brochure may be obtained from the Personnel Division 0032946.01 16 02/14/00 5:33 PM MSOA MOU EXHIBIT D 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 the Federal Government or State Government mandates an employer -funded health plan or program for retirees, or mandates that the City make contributions toward a health plan (either private or public) for retirees, the City's contribution rate as set forth in this plan shall first be applied to the mandatory plan. If there is any excess, that excess may be 0032946.01 17 02/14/00 5:33 PM MSOA MOU applied toward the City medical plan as supplemental coverage provided the retired employee pays the balance necessary for such coverage, if any. 4. 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. 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 after 1 011 1Qa 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: 0032946.01 18 02/14/00 5:33 PM MSOA MOU Maximum Monthly Payment for Retirements After: Years of Service 1Oil 187 10/4a88 9 10/16/92 10 $ 49 $--80 $-121 $ 121 11 44 88 4-32 136 12 48 97 445 151 13 53 4-05 4-58 166 14 57 1 4-3 47-0 181 15 64- 4-22 4-82 196 16 65 -30 495 211 17 69 1-38 207 226 18 73 4-46 220 241 19 77 455 232 256 20 84- 4-63 244 271 21 86 4-74 257 286 22 90 1-7-9 269 300 23 94 4W 282 315 24 98 496 294 330 25 4-02 204 306 344 26 406 24-3 31-9 27 44-0 221- 334 28 445 229 344 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. 0032946.01 19 02/14/00 5:33 PM MSOA MOU INDEMNITY HEALTH PLAN, EMPLOYEES/RETIREES' 0 J 6 70% of 1 GR after ded Gfible $1 ,5�s/00� W3, 000 UAUiZlI W _ �3TTl.?Fre TW e7l rl Benefits1 City Plan - Employees City Plan - Subsidized Non -Subsidized Retirees Retirees COBRA -eligibles Deductible per person $150 $200 Deductible per family $450 $500 Maximum Out of Pocket $1000 per person $1500 per person $2000 per family $3000 per family Note: Retirees who elect to participate in Health Net or Family Health Plan (FHP) shall be entitled to benefits of the program chosen. ' This summary lists only those benefit provisions that differ between active and subsidized Retiree Plans. The Employee Health Plan Document should be consulted for detailed questions about specific benefits. Benefits are subject to modification through the meet and confer process. 0032946.01 20 02/14/00 5:33 PM MSOA MOU h RETIREE SUBSIDY MEDICAL PLAN/MISCELLANEOUS PROVISIONS 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. Personnel 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. 0032946.01 21 02/14/00 5:33 PM MSOA MOU 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 Preferred Provider Organization (OCPPO) 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. Health Net. c Family Health Plan (FH- ) pacifiCare. d. Part A of Medicare for those retirees not eligible for paid Part A. 2. Subsidy payments will not pay for: a. Part B Medicare. 0032946.01 22 02/14/00 5:33 PM MSOA MOU b. Regular City Employee Indemnity Plan. c. Any other employee benefit plan. d. Any other commercially available benefit plan. e. Medicare supplements 3. Employees who retire on or after the following dates shall be eligible for the subsidy based on years of completed service with the City. October 1, 1987: MEO, MEA, POA, MSOA, FA and PMA. July 1, 1988: Non -Represented. Retirees who retire prior to the above dates are not eligible for any subsidy benefit. 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. 0032946.01 23 02/14/00 5:33 PM MSOA MOU 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 "Benefits"," 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 Personnel 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. 0032946.01 24 02/14/00 5:33 PM MSOA MOU EXHIBIT E 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 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 Personnel Director, 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. c) 5-20 — Duration of Employment Lists Employment lists shall remain in effect for one (1) year from the date of the last examination, unless sooner exhausted. Promotional lists and entry level employment lists may be extended prior to expiration date by the Personnel Director when requested by the Department Head, for additional periods but in 0032946.01 25 02/14/00 5:33 PM MSOA MOU no event shall an employment list remain in effect for more than two-(2) years. Names placed on such lists shall be merged with others already on the list in order of scores. 2. Rule 7 — Discipline a) 7-2 — Causes for Discipline 12) AddffiGtinn to the use of narr•oilGS or habit forming drugs, use or illegal of dangerous drugs. Possession, use or sale of illegal narcotics or habit-forming drugs, while on -duty or on City property. turpitude. A plea or guHty, er a GonvqGt;en following a plea ef sect+en. 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 ■_ .. - - - -- - - - - e - -- - - OW _ . r 91711PROMM _ 0032946.01 26 02/14/00 5:33 PM MSOA MOU lop . r ge ......... W-Ma My: MA Cie* 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 Personnel Director regarding such belief. If the Personnel Director concurs, the department head may order the employee to submit to a medical or psychological examination. The 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 examiner and the employee shall be advised of the basis for the Department Head's belief that the employee is unable to perform the duties of his/her job. The examination shall be restricted to the specific issue, which gave rise to the request for an examination. The report of the examiner shall be limited to a conclusion that the employee is either able or unable to perform the duties of his/her job. The department head shall review the medical or psychological report and shall consult with the Personnel Director 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 0032946.01 27 02/14/00 5:33 PM MSOA MOU 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 the Personnel Director, 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. 5. Rule 12 — Classification Plan a) 12-10 — Temporary Employees terny. 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 included in the competitive service and shall not be subject to these rules and regulations. 6. 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 Personnel DoreGtor Department Head, through the Personnel Director and with the approval of the City Administrator may autherT a payment 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, tO ^erred salami inequities resulting from aGtinn_s 0032946.01 28 02/14/00 5:33 PM MSOA MOU by department heads or to give credit for prior city service in connection with appointments, promotions, reinstatements, transfers, reclassifications, or demotions. Other Salary adjustments within the salary range for the class, other than merit salary adjustments authorized by Section 14-1, may be approved made by the Personnel Beard City Administrator, upon recommendation of appliGatinn by the department head through the Personnel Director. Such recommendation shall include the reason(s) for the adjustment, whether the advancement is to be permanent or temporary, and an effective date. transmitted to the Bc)aFd by the Personnel DireGtGF �eget,,er with his re mmyannem�s within the salary vn-cG tl7r,-cv�Ct1-Fc..�i c.�r�-rr r r � range autherized by this rule may be either permanent er temporary, and may he effective as of the dote of nonliGatinn for sU Gh nhonge - - .......... e - - - 1.r_'VLN- �- M. 2 IMEMM - - + - - - b) 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 0032946.01 29 02/14/00 5:33 PM MSOA MOU 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 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 PERS 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 0032946.01 30 02/14/00 5:33 PM MSOA MOU 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. c) 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 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 Personnel Director." 8. Rule 19 — Grievance Procedure Non -Disciplinary Matters a) 19-5 Grievance Procedure 1) 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 the Personnel Director 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 Personnel Director, 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 Personnel Director. 2) Step 5 — Personnel Board Hearing 0032946.01 31 02/14/00 5:33 PM MSOA MOU Hearing. As soon as practicable thereafter, the Personnel Director 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 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. 9. Rule 20 — Review DrOGedl lros in Disciplinary Matters 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 grievances—ef employees arising of disGiplinary matter— may be Gensl i) rl s�orl and resolved '4level r�lncoci to the nnint norvr�igi�n matters EAyered by Rule 19 of this rosoli i}inn may administratively appeal any such disciplinary action. divi- e - - IN _10 No I. I - M�� MAAV_ AA AA AA 3W.%M1. W-MI 2 W1. 2 r _ E Mr.r."M �1 r-"- ITMW AA _ _ _ _ _ _ _ 0032946.01 32 02/14/00 5:33 PM IN _10 No I. I - M�� MAAV_ AA AA AA 3W.%M1. W-MI 2 W1. 2 r _ E Mr.r."M �1 r-"- ITMW AA _ _ _ _ _ _ _ 0032946.01 32 02/14/00 5:33 PM MSOA MOU sud- re�uest, shall rneet the requested diku with ernpleyee when so and I.le-1 W-21.010. ROOM NO b) 20-2 — Disciplinary Procedures 1) Notice of Proposed Adverse Action For disciplinary demotions, suspensions or dismissals, an employee shall be given 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 0032946.01 33 02/14/00 5:33 PM MSOA MOU 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. c) 20-53 — Appeal to Personnel Eeard Commission if the the grioGvanGe is not settled under t i+ Disciplinary action involving the termination, suspension, demotion or other reduction in pay may be appealed to the Personnel Beard Commission for de novo hearing and final determination in accordance with the following procedure: 1) Request for Appeal Within five (5) days after the t;;ne decisien is rendered under Stop 3 above employee's receipt of a final Notice of Discipline, a written statement of nrie.,an^e request for an appeal to the Personnel Commission shall be filemed with submitted to the Personnel Director. Si �G_stat statement r eyance shall cot forth in detail the nature of the- `QQ TQLeT7TLITL�f�v�-FAITGG shall l-li-r-GI�JCUT7�TT�1-f l7l GfTe �7-ZTTG g-evame� contentions of the nleyee and the nreposed solution rr �QT IV V v—�rT vor rle-... minatien 2) Hearing As soon as practicable thereafter, the Personnel Director 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) 20-64 — Supplemental Hearing by Personnel Board 0032946.01 34 02/14/00 5:33 PM MSOA MOU 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 Personnel Director 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. R. :v -_ -. ... .&7� 09Employee on Pending Final Determinatign Appeal Notwithstanding the provisions of Rule 7, Section 7-4 (Suspension with Pay), the disciplinary actionof -head,Administrator department head is involved, shall be effective pending review by the appellate authority, and no employee shall be entitled said period unless the s- of the department headAdministratormodified by suGh appellate authority to provide s The appellateorder - - - the employ demotion er dismissal an appeal to the Personnel Commission. 10. Rule 21 —Grievance Procedures -General a) 21-7 Hearing Officers 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. e b) 21-12 Time. Extension of 0032946.01 35 02/14/00 5:33 PM MSOA MOU 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. 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 to select 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 Personnel Director, 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 foI lows: 7-3. Personnel Direction Motion of Unit Modification — The Personnel Director 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 Personnel Director shall give written notice of the proposed Unit Modification of Modifications to all employee organizations that may be affected by the proposed change. Said written notification shall contain the Personnel Director's rationale for the proposed change including all information which justifies the change pursuant to the criteria established in Section 6-5 for Appropriateness of Units. Additionally, the Personnel Director shall provide all affected employee organizations with all correspondence, memoranda, and other documents which relate to any 0032946.01 36 02/14/00 5:33 PM MSOA MOU input regarding the Unit Modification which may have been received by the City or from affected employees and/or sent by the City to affected employees; 2) Following receipt of the Personnel Director's Proposal for Unit Modification any affected employee organization shall be afforded not less than thirty (30) days to receive input from its members regarding the proposed change and to formulate a written and/or oral response to the Motion for Unit Modification to the Personnel Commission; 3) The Personnel Commission shall conduct a noticed Public Hearing regarding the Motion for Unit Modification at which time all affected employee organizations and other interested parties shall be heard. The Personnel Commission shall make a determination regarding the proposed Unit Modification which determination may include a -granting of the motion, a denying of the motion, or other appropriate orders relating to the appropriate creation of Bargaining Units. Following the Personnel Commission's determination of the composition of the appropriate Unit or Units, it shall give written notice of such determination to all affected employee organizations; 4) Any party who chooses to appeal from the decision of the Personnel Commission is entitled to appeal in accordance with the provision of Section 14-4 of Resolution Number 3335. 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 limited to automation or other technological changes, it is the policy of the City that steps be taken by the Personnel 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. 0032946.01 37 02/14/00 5:33 PM MSOA MOU 4) 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. 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 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 0032946.01 38 02/14/00 5:33 PM MSOA MOU 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. 3. Notification of Employees a) The Personnel 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 0032946.01 39 02/14/00 5:33 PM MSOA MOU 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 Personnel Director 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 Personnel Director 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 Personnel Director 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 Personnel Director of the dispute. Within five (5) calendar days after the dispute is reviewed, the employee shall be notified in writing of the decision. 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 0032946.01 40 02/14/00 5:33 PM MSOA MOU 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 Personnel Director'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 Personnel Director's decision, the employee may appeal pursuant to the provisions of Sections 3 and 4 below. b) Reinstatement/Re-employment 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 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 Personnel Director within five (5) calendar days of the employee's receipt of 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. d) Qualifications Appeal Hearing 1) Upon receipt of an appeal, the Personnel Director 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 0032946.01 41 02/14/00 5:33 PM' MSOA MOU 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 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 HBMEA 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 0032946.01 42 02/14/00 5:33 PM MSOA MOU 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. 0032946.01 43 02/14/00 5:33 PM