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HomeMy WebLinkAboutMSOA - Marine Safety Officers Association - aka - MSMA - Marine Safety Management Association - 2000-12-18r p M � CITY OF HUNTINGTON BEACH: MEETING DATE: May 17, 2004 DEPARTMENT ID NUMBER: AS-04-018 Council/Agency Meeting Held: ni� L(q Deferred/Continued to: Approved ❑ Conditionally Appr ved ❑ Deni d v o Ci CI k'S nature Council Meeting Date: May 17, 2004 Departmen Number: AS-04-018 C= CITY OF HUNTINGTON BEACH REQUEST FOR ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL SUBMITTED BY: WILLIAM P. WORKMAN, ACTING CITY ADMINISTRATO -- PREPARED BY: CLAY MARTIN, DIRECTOR OF ADMINISTRATIVE SERVICES 4tt� SUBJECT: ADOPT RESOLUTIONS APPROVING SIDE LETTERS TO THE MEMORANDA OF UNDERSTANDING BETWEEN THE CITY AND HBPOA, HBPMA, AND HBMSOA REGARDING HEALTH INSURANCE \ - Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: The city and Huntington Beach Police Officers' Association, Huntington Beach Police Management Association, and the Huntington Beach Marine Safety Officers' Assocation have come to a side letter agreement regarding health and other insurance. Funding Source: Funding was adopted by the City Council with the adoption of Councilmember Coerper's December 15, 2003 H-Item titled, "H" Item for December 18, 2003, City Council Meeting Approval of Funds to Pay Part of Employees Health Insurance Costs. The increase in total annual cost to implement the side letter agreements with the Huntington Beach Police Officers' Association, Huntington Beach Police Management Association, and the Huntington Beach Marine Safety Officers' Assocation is approximately $145,300. The remainder of the funding is included in the Fiscal Year 2003/2004 budget. Recommended Action: 1. Adopt Resolution No. WA--- , a resolution of the City Council of the City of Huntington Beach amending the Memorandum of Understanding between the city and the Huntington Beach Police Officers' Association by adopting the side letter of agreement. HARCA's\POA, PMA, MSOA 2004 Health Side Letter.doc 5/10/2004 4:23 PM REQUEST FOR ACTION MEETING DATE: May 17, 2004 DEPARTMENT 1D NUMBER: AS-04-018 2. Adopt Resolution No.a60�-3s , a resolution of the City Council of the City of Huntington Beach amending the Memorandum of Understanding between the city and the Huntington Beach Police Management Association by adopting the side letter of agreement. 3. Adopt Resolution No. 'DLO0IA-�, �o, a resolution of the City Council of the City of Huntington Beach amending the Memorandum of Understanding between the city and the Huntington Beach Marine Safety Officers' Association by adopting the side letter of agreement. Alternative Action(s): Reject the resolutions and maintain the current health insurance plans and employer contributions. Analysis: Representatives of the city and the Huntington Beach Police Officers' Association (POA), Huntington Beach Police Management Association (PMA), and the Huntington Beach Marine Safety Officers' Assocation (MSOA) have completed the meet and confer process on a side letter agreement for health insurance benefits for the 2004 calendar year. Effective August 1, 2004 or sooner (July 1, 2004) the City Plan POS and Health Net HMO will no longer be available to POA, PMA, and MSOA represented employees. Starting August 1, 2004 or sooner (July 1, 2004) all POA, PMA, and MSOA represented employees will begin utilizing the Public Employees' Medical and Hospital Care Act (PEMHCA) for health insurance. PEMHCA health plans are administered by the California Public Employees' Retirement System (CalPERS), and the laws and rules governing PEMHCA are set forth in the California Government Code. The resolution authorizing the city's participation in PEMHCA program are also included on tonight's City Council agenda. Additionally, the effective date for dependent(s) medical insurance (health, dental, and vision) coverage will change from one year from date of hire to the first of the month following thirty days of employment. The current dental and vision insurance plans remain in place. Attachment(s): 1. A resolution of the City Council of the City of Huntington Beach amending the Memorandum of Understanding between the city and the Huntington Beach Police Officers' Association by adootina the side letter of aareement. Q 2s- two '1�604 1�q H:\RCA's\POA, PMA, MSOA 2004 Health Side Letter.doc 5/10/2004 4:23 PM REQUEST FOR ACTION MEETING DATE: May 17, 2004 DEPARTMENT ID NUMBER: AS-04-018 2. A resolution of the City Council of the City of Huntington Beach amending the Memorandum of Understanding between the city and the Huntington Beach Police Management Association by adoptinq the side letter of agreement. �,2S -0 o . a(3o-k 3 5 I A resolution of the City Council of the City of Huntington Beach' amending the Memorandum of Understanding between the city' and the Huntington Beach Marine Safety Officers' Association by adopting the side letter of agreement. Qs. Np_ DL0O1-\ 3( RCA Author: William McReynolds H:\RCA's\POA, PMA, MSOA 2004 Health Side Letter.doc 5/1012004 4:23 PM 3 RESOLUTION NO. 2004-36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE HUNTINGTON BEACH MARINE SAFETY OFFICERS ASSOCIATION, BY ADOPTING THE SIDE LETTER OF AGREEMENT WHEREAS, on December, 18, 2000, the City Council of Huntington Beach adopted Resolution No, 2000-123 for the purpose of adopting the 2000/03 Memorandum of Understanding (MOU) between the City and the Huntington Beach Police Marine Safety Officers' Association (HBMSOA); and On December 16, 2002, the City Council of Huntington Beach adopted Resolution No. 2002-134 which reflected changes, corrections, and clarifications to the MOU that were reflected in a Side Letter of Agreement between the City of Huntington Beach and the HBMSOA ("2002 Side Letter of Agreement"); Subsequent to the adoption of the MOU and the 2002 Side Letter of Agreement, the City of Huntington Beach and the HBMSOA agreed to changes, corrections, and clarifications to the MOU that are reflected in a Side Letter of Agreement between the City of Huntington Beach and the HBMSOA ("Side Letter of Agreement'') attached hereto as Exhibit A and incorporated herein by this reference; The Side Letter of Agreement replaces and nullifies the 2002 Side Letter of Agreement. NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Huntington Beach as follows: Section 1. The. Side Letter of Agreement attached.hereto as Exhibit A is approved and .Adopted: Section 2. The Side Letter of Agreement amends the MOU between the City of Huntington Beach and the HBMSOA. Section 3. The Side Letter of Agreement replaces and nullifies the 2002 Side Letter of Agreement. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 17th day of May , 2004. o City C lerr VM REVIEWED ANDrt OAPPROVED AS TO FORM: l' N /, Ar�,r,A.lE .ice; A, .A A r City Administrator I / �— Tity INITIAT APPROVED: Director Administra ive Services G:`RES0LUTN\20041HB%1S0A side 5-1044 doc Exhibit A Side Letter Agreement — Health and Other Insurance Benefits Between the City of Huntington Beach and the Huntington Beach Marine Safety Officers' Association .Effective: Upon City Council Approval This is to memorialize an agreement between the City of Huntington Beach (City) and the Huntington Beach Marine Safety Officers' Association (MSOA) to reflect agreed upon changes, corrections or clarifications to Article IX — Health and Other Insurance Benefits of the existing Health and Other Insurance Benefits Side Letter (adopted December 16, 2002) and Article X — Retirement and Exhibit D of the existing 2000-2003 Memorandum -of - Understanding (adopted December 18, 2000). All other terms and conditions of the existing side letters and the Memorandum -of -Understanding remain in full force and effect. Both parties agree to continue.the meet and confer process in good faith as required by the Meyer s-Milias-Brown Act. The goal of the continued meet and confer process is a new Memorandum -of -Understanding between the City and the MSOA. The subject of the continued meet and confer process shall be all issues between the parties concerning wages, hours, and other terms and conditions of employment. This agreement is to be incorporated into any future Memorandum -of - Understanding between the City and the MSOA. Article IX — Health and Other Insurance Benefits, Article X — Retirement and Exhibit D shall now read: 1 ARTICLE IX - HEALTH AND OTHER INSURANCE BENEFITS A. Health The city shall continue to make available group medical, dental and vision benefits to all association employees: 1. Eligibility Criteria and Cost: a. Year 2004 Premiums Effective January 1, 2004 health premiums for 2004 are as set forth in the chart below: Monthly City Plan Health Net Delta Dental Delta Dental VSP; Premium PO S HMO ` (PPO) (HMO),."" UIsion EE $481.40 $313.01 $48.93 $24.38 $18.07 EE + 1 951.96 685.85 93.42 41.46 18.07 EE-+ 2'or more 1,165.54 903.97 132.47 63.40 18.07 b. Emgloyer Contributions The City's maximum monthly employer_ contribution for health and other insurance premiums are set forth in the charts below. January 3, 2004 through March 26, 2004. ,Monthly City :: Health' Delta Delta VSP- Employer ` Plan ` Net Dental Dental Contribution POS HMO ti PPO , .: ( s ��;:.. HMO ( .:, ,), . Vision ,. EE $429.93 $330.19 $42.88 $23.00 $17.58 EE + 1 758.41 611.67 81.82 39.11 17.58 EE + 2 or more 907.50 776:34 116.36 59.81 17.58 2 March 27, 2004 and until the PEMHCA program is in place. Monthly City .Health Delta Delta VSP:. Employer Plan Net Dental Dental , Contribution POS : HMO PPO ) HMO, ( ) Vision EE $373.77 $274.03 $42.88 $23.00 $17.58 EE.+ 1 702.25 555.51 81.82 39.11 17.58 EE + 2 or more : 851.34 720.18 116.36 59.81 17.58 In no event shall the employee be entitled to the difference between the employer contribution and the premiums for insurance plan(s) selected by the employee. c. Employee Contributions Effective the first pay period beginning in January 2004, employee pre-tax payroll deduction contributions for 2004 premiums are set forth in the charts below: i. Bi-Weekly Employee Contributions January 3 2004 through March 26, 2004. Bi-Weekly_ , ,City , Health Delta.. , Delta VSP Employee Plan ; Net Dental Dental Contribution OS HMO:;`. PPO :(HMO)Vision,: ( ) EE $23.76 $0.00 $3.83 $0.64 $0.23 EE + 1 89.33 33.99 7.40 1.08 0.23 EE + 2 or more 119.10 58.57 10.37 1.66 0.23 March 27, 2004 and until the PEMHCA program is in place. Monthly City Health Delta Delta VSP�� Employee Plan Net Dental- Dental Contribution POS HMO (PPO ) (HMO) Vision' EE $49.68 $17.88 $3.83 $0.64 $0.23 EE + 1 1 115.25 59.91 1 7.40 1 1.08 0.23 EE + 2 or more 1 145.02 1 84.49 10.37 1 1.66 0.23 3 ii. Monthly Employee Contributions January 3, 2004 through March 26, 2004. Monthly City,. Health . :. Delta Delta VSP- Employee, Plan Net Dental Dental Contribution, POS HMO ,�' - (PRO} (HMO) Vision EE $51.47 $0.00 $8.30 $1.38 $0.49 EE + 1 193.55 73.64 16.04 2.35 0.49 EE + 2 or more 258.04 126.91 22.47 3.59 0.49 March 27, 2004 and until the PEMHCA program is in place. Monthly City Heath a_ Delta ^Delta VSP Employee,, �, Plan Net Dental Dental Contribution POS HMO �, '� � PP ) : - HMO (. - ) Vision :. EE $107.63 $38.73 $8.30 $1.38 $0.49 EE + 1 249.71 129.80 16.04 2.35 0.49 EE + 2 or more 314.20 183.07 22A7 3.59 0.49 d. Future Premiums The City "caps" its contributions toward monthly group medical, dental and vision plan premiums, by category (EE, EE + 1, and EE + 2 or more) and plan, at the year 2004 level. Until the City Council approves a successor to this Memorandum -of - Understanding, the City's 2004 contribution caps will remain in place, even if premium increases result in these additional costs being borne by the employee. e. Dependent Health Coverage until the PEMHCA program is in place The city will assume payment. for dependent coverage for the City Plan POST Health Net HMO, Delta Dental, and VSP 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. 4 2. Public Employees' Medical and Hospital Care Act The City will promptly begin the contract process with the California Public Employees' Retirement System (CaIPERS) to implement the provisions of the Public Employees' Medical and Hospital Care Act (PEMHCA), as set forth in. the California Government Code, to provide medical insurance coverage for all. employees. represented by.: the association. The contract to provide medical coverage through PEMHCA shall not be construed as a guarantee of a continuing benefit. A retiree's right to receive a City contribution, and the City's obligation to make payment on behalf of retirees, shall only exist as long as the City contracts with CaIPERS for medical insurance. In addition, while the City is in PEMHCA, its obligations to make payments on behalf of retirees shall be limited to the minimum payment required by law. The City may elect to terminate its participation in the PEMHCA program by agreement between the association and the City or if the City elects to impose termination of its participation in the PEMHCA program on the association. Until the City Council and. the CaIPERS Board approve the ..City's. participation in PEMHCA and the City, is fully participating in PEMHCA the rates and plans stated above (Article X.A.1.a) will continue to apply to all employees. a. Employer Contributions Upon the City's full participation in PEMHCA the following premiums shall apply: i. City Contribution — Health Insurance The City shall contribute on behalf of each employee, the following sum per month toward the payment of premiums for medical insurance under the PEMHCA program. (The following monthly sum represents. the parties' understanding of the,.. minimum monthly contribution required by law (and assumes the. City remains in PEMHCA throughout this time period). If the mandated minimum is increased from these figures, the City shall make the appropriate adjustments by decreasing the supplemental benefit set forth in subsection "iii" below.) 5 2004 $32.20 2005 $48.40 2006 $64.60 2007 $80.80 2008 $97.00 2009 and beyond Shall be adjusted annually by the CalPERS Board ii. City Contribution — Dental and Vision Insurance The City shall contribute on behalf of each employee, the following sum per month toward the payment of premiums for dental and vision insurance under the city sponsored programs. March 27, 2004 through December 31, 2004 O .. Monthly ' Qeta Dena Employer Dental y Denlal1 F�VS COntributie (PPS} Vis�€�n EE $42.88 $23.00 $0.00 81.82 39.11 0.00 EE + a mor 116.36 59.81 0.00 The effective date for all dental and vision coverage [i.e., employee and dependent(s)) is the first of the month following one full month of employment. Until the City Council approves a successor to this Memorandum - of -Understanding, the dental and vision insurance contribution caps will remain in place, even if dental and vision insurance cost increases result. in these additional costs being borne by the employee: lei iii. Supplemental Benefit —Health and Vision Insurance In addition to the amount specified above (Article X.A.2.a.i and X.A.2.a.ii), the City will contribute up to the following amounts as a supplemental benefit to PEMHCA health and vision insurances: The employee will have no entitlement to any portion of the supplemental benefit not utilized by the employee. Any cost for health and vision insurance benefits that exceeds the City's supplemental benefit to health insurance contribution is the responsibility of the employee and the employee will cover the cost through a payroll deduction. To the extent permitted by law an employee's payroll deduction will be pre-tax. So long as the City remains in PEMHCA the supplemental benefit to., health and vision insurance contribution shall be decreased every January 1, by an amount equal to the City's increased contribution set forth in Article X.A.2.a.i above. Each year from January 1, 2005 until January 1, 2009, the monthly -required PEMHCA contribution is expected to increase $16.20. If the monthly -required PEMHCA contribution is increased by more than $16.20 per month, then the amount of the supplemental benefit will be decreased by that higher amount. After January 1, 2009, the CalPERS Board will determine the monthly -required PEMHCA contribution; if it increases then the amount of the supplemental benefit will be decreased by that higher amount.. Until the City.Council approves a. successor to this Memorandum - of -Understanding, the supplemental benefit to health and vision insurance contribution caps will remain in place, even if health and vision insurance cost increases result in these additional costs being borne by the employee. b. Retiree (Annuitant) Coverage As required by the Government Code retired employees (annuitants) shall have available the ability to participate in the PEMHCA program. The City's requirement to provide retirees and/or annuitants medical coverage is solely governed by the Government Code requirement that requires the City to extend this benefit to 7 retirees (annuitants). While the City is contracted with CalPERS to participate in the PEMHCA program, CalPERS shall be the sole determiner of eligibility for retiree and/or annuitant to participate in the PEMHCA program. i City Contribution (Unequal Contribution Method As allowed by the Government Code and the CaIPERS Board, and requested by the association, the City shall use the Unequal Contribution Method to make City contributions on behalf of each retiree or annuitant. The following is an example of the sum per month toward the payment of premiums for medical insurance under the PEMHCA medical insurance program for a retiree or annuitant. The City shall make these payments only while the City is a participant in the PEMHCA program. 2004 $1.00 2005 $3.42 2006 $6.65 2007 $10.69 200$ $15.54 2009 and beyond Shall be adjusted annually ' by the CalPERS Board ii. City's Termination of Participation in the PEMHCA program The City's requirement to provide retirees (annuitants) medical coverage is solely governed by the Government Code requirement that PEMHCA agencies extend this benefit to retirees (annuitants). If by agreement between the association and the City or if the City elects to impose termination of its participation in the PEMHCA program retirees (annuitants) shall no longer be eligible for City provided medical insurance. In the event that the city terminates its participation in the PEMHCA program, the retiree medical subsidy program in place in Resolution No. 2000-123 Exhibit D to the Memorandum of Understanding shall be reinstated. The City shall make any necessary modifications to conform to the new City sponsored medical insurance plan. 93 c. Additional Costs for Participation in the PEMHCA program Retiree and/or Annuitant Coverage The association shall pay to the City an amount equal to $1.00 per month for each additional, retiree. and/or annuitant in. the bargaining unit who elects to participate in the PEMHCA plan but is not participating in the City sponsored retiree medical program as of the beginning of a pay period after the PEMHCA program is in place. Each January 1st the amount per month paid to the City for each retiree and/or annuitant described above shall increase by the amount PEMHCA requires the City to pay on behalf of each retiree (annuitant). Article X.A.2.b.i provides an example of expected payments per retiree or annuitant per month. In the event of passage of State Legislation, Judicial Rulings, or CalPERS Board Actions that increases the mandatory minimum monthly contribution for retirees (annuitants), the association shall pay an equal amount to the City. Payments shall be made the first of the. month.: (following implementation). ` If the association fails . to make timely payments for two Iconsecutive months, the City 'shall implement a decrease in the supplemental benefit contribution to health insurance for each unit employee by an amount equal to the total increased cost paid by the City. [For example, if the increased cost for retirees equals $6,000 per year, the monthly supplemental benefit for each employee will be decreased as follows: $6,000 divided by twelve (months) = $500, which is then divided by the number of employees receiving supplemental benefits.] ii. Excess Administrative Fees The association shall remit to the City its pro rata. share of any,... administrative fees charged by >CaIPERS that exceed that employee organization's pro-rata share of the administrative fees the City will no longer have to pay to hire employees to administer the City's plan. d. Impact of Programmatic Changes In the event of passage of State Legislation, Judicial Rulings, or a CalPERS Board Action, which in any way changes the employer's contribution to the PEMHCA medical plan, the City shall terminate its contract with CaIPERS at its earliest opportunity, unless the association pays the full cost of the change. Examples of 9 programmatic changes which would change the City's employer's contribution, include, but are not limited to, the CalPERS Board decision to assess a Contingency Fund fee, eliminating the differential contribution for retirees set forth in Government Code Section 22857(b), . and/or eliminating the ability to differentiate between the minimum insurance contribution and the supplemental benefit contribution. In order to remain within the CalPERS medical plans in the event of passage of State Legislation, Judicial Rulings, or a CalPERS Board Action that changes the employer's contribution to the CalPERS medical plan, the association shall pay the full cost of the change(s) to the employer contribution or the City shall terminate its contract with CalPERS at its earliest opportunity. The association may request termination of the City's contract with CalPERS after the announcement of State Legislation, Judicial Rulings, or a CalPERS Board Action that changes the employer's contribution to the CalPERS medical plan. 3. Medical Cash -Out If an employee is covered by a medical program outside of a city provided program (evidence of which must be supplied to Administrative Services Department), they may elect to discontinue city medical coverage and receive ninety two dollars and thirty-one cents ($92.31) bi- weekly to deposit into their Deferred Compensation account or any other pre-tax program offered by the city. 4. Section 125 Employee Plan The City shall provide an Internal Revenue Code section 125 employee plan that allows employees to use pre-tax salary to pay for regular childcare, adult dependent care and/or medical expenses as determined by the Internal Revenue Code. B. Life Insurance City will provide $25,000 of term life insurance without evidence of insurability other than evidence of working a full time duty at city cost. Each employee shall have the option, at their own expense, to purchase additional amounts of life insurance to the extent provided by the city's current providers. Evidence of insurability is contingent upon total participation in additional amounts. C. Accidental Death and Dismemberment Insurance: Each employee shall be provided with $10,000 accidental death and dismemberment insurance paid for by the city. Each employee shall have the option, at his or her own expense, to purchase additional amounts of accidental death and dismemberment insurance to the extent provided by the 10 city's current providers. Evidence of insurability is contingent upon total participation in additional amounts. D. Long Term Disability 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 Disability Due to Accident Illness First 60 Days Regular Pay Regular Pay Next 24 Months 66 2/3% of Base Pay 66 2/3% of Base Pay To age 65 66 2/3% of Base Pay None days and months refer to calendar days and months 2. Plan integrated. with Workers' 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. Survivors' benefit continues plan payment for three (3) months beyond death. 5. The terms and conditions of the disability insurance coverage are set forth in the policy, a copy of which is on file in 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. 11 ARTICLE X - RETIREMENT A. Benefits: 1. Public Employees' Retirement System: - The City shall provide the .3% @ Age 50 retirement formula set forth in California Government Code Section 21362.2 for all safety employees represented by the Association. If at any time after the implementation of the 3% at age 50 formula the City is required to make retirement contributions with respect to employees represented by the Association, the amount with respect to which each employee is reimbursed pursuant to Article IX.B.1 shall be reduced by a percentage equal to one-half of the percentage of compensation earnable the City is required to pay in retirement contributions to PERS, not to exceed 2.25%. For example, if the City is required to contribute. an amount equal to 2% of each employee's "compensation earnable." The amount of the reimbursement set forth in Article VI.0 shall be reduced from 9% of the employee's compensation earnable to 8% of the employee's compensation earnable. If, on the other hand, the City is required to contribute an amount equal to 8% of each employee's "compensation eamable," the amount of the reimbursement set forth in Article .IX.B..1 shall be reduced to 6.75.% of the employee's compensation earnable. 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. 1959 Survivors' Benefit Level IV - Members of the city's safety retirement plan shall be covered by the Fourth Level of the 1959 Survivor Benefit. 12 4. Medical Insurance for Retirees: As required by the Government Code, while the City is contracted with CalPERS to participate in the PEMHCA program, retired employees (annuitants) shall have available the ability to participate in the Public Employees' Medical and. Hospital Care Act (PEMHCA) program. CalPERS shall be the sole determiner of eligibility for retiree (annuitant) to participate in the PEMHCA program. The City's requirement to provide retirees (annuitants) medical coverage is solely governed by the Government Code requirement that PEMHCA agencies extend this benefit to retirees (annuitants). If by agreement between the association and the City or if the City elects to impose termination of its participation in the PEMHCA program retirees (annuitants) shall no longer be eligible for City provided medical insurance. In the event that the city terminates its participation in the PEMHCA program, the retiree medical subsidy program in place in Resolution No. 2000-123 Exhibit D to the Memorandum of Understanding shall be reinstated. The City shall make any necessary modifications to conform to the new City sponsored medical insurance plan. B. Public Employees' Retirement System Reimbursement and Reporting:, 1. 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 are done pursuant to Section 414(h)(2) of the Internal Revenue Code. 13 EXHIBIT D — SERVICE CREDIT SUBSIDY PLAN An employee who has retired from the City and meets the plan participation requirements shall receive a monthly Service Credit Subsidy to reimburse the retiree for the payment of qualified medical expenses incurred for the purchase of medical insurance. Plan Participation Requirements 1. At the time of retirement the employee has a minimum of ten (10) years of continuous regular (permanent) City service or is granted an industrial disability retirement; and 2. At the time of retirement, the employee is employed by the City; and 3. Following official separation from the City, the employee is granted a retirement allowance by the California Public Employees' Retirement System (CalPERS). The City's obligation to pay the Service Credit Subsidy as indicated shall be modified downward. or cease during .the lifetime of the retiree upon the occurrence of any one of the following: a. During any period the retired employee is eligible to receive or receives medical 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 Service Credit Subsidy 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 medical 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. b. 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 14 (whether or not such application is made) the City's obligation to pay Service Credit Subsidy may be adjusted downward or eliminated. c. In.the event of the death of an eligible employee, whether retired or not, the amount of the Service Credit Subsidy benefit which the deceased employee was eligible for at the time of his/her death shall be paid to the surviving spouse or dependent for a period not to exceed twelve (12) months from the date of death. 4. Minimum Eligibility for Benefits — With the exception of an industrial disability retirement, eligibility for Service Credit Subsidy begins after an employee has completed ten (10) years of continuous regular (permanent) 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. To receive the Service Credit Subsidy retirees are required to purchase medical insurance from City sponsored plans. The City shall have the right to require any retiree (annuitant) to annually certify that the retiree is purchasing -medical insurance benefits. 5. 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 $120. Payments shall be in accordance with the stipulations and conditions, which exist for all retirees. 6. Service Credit Subsidy — Payment shall not exceed dollar amount, which is equal to the qualified medical expenses incurred for the purchase of city sponsored medical insurance. 15 7. Maximum Monthly Service Credit Subsidy Payments - All retirees, including those retired as a result of disability whose number of years of service prior to retirement exceeds ten (10), continuous years of regular (permanent) service shall be entitled to maximum monthly Service Credit Subsidy by the City for each Year of completed City service as follows: Maximum Service Credit Subsidy Retirements After: Years of Service 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Service Credit Subsidy $ 120 135 150 165 180 195 210 225 240 255 270 `285 299 314 329 343 The Service Credit Subsidy will be reduced every January 1st by an amount equal to any required amount to be paid by the City on behalf of the retiree (annuitant). Article X.A.2.b.i provides an example of expected reductions per retiree per month. 8. Medicare: a. All persons are eligible for Medicare coverage at age 65. Those with sufficient credited 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, the participant pays for Part B of Medicare. b. When a retiree and his/her spouse are both 65 or over, and neither is eligible for paid Part A of Medicare, the Service Credit Subsidy shall pay for Part A for each of them or the maximum subsidy, whichever is less. c. 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 of Medicare, the spouse shall not receive the 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. 9. Cancellation: d. For retirees/dependents eligible for paid Part A of Medicare, the following cancellation provisions apply: i. Coverage for a retiree under the Service Credit Subsidy Plan will be eliminated on the first day of the month in which the retiree reaches age 65. ii. 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 Service Credit Subsidy Plan will be eliminated. 17 It is the understanding of the City of Huntington Beach and the Huntington Beach Marine Safety Officers' Association that this side letter to the existing Health and Other Insurance Benefits Side Letter (adopted December 16, 2002) and the existing 2000-2003 Memorandum -of -Understanding (adopted December 18, 2000) 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 side letter to the Memorandum -of -Understanding this (%�ay of May, 2004. CITY OF HUNTINGTON BEACH ffja�m MW William P. Workman Acting City AdministratoIr Clay Mpxdn Direc r of Administrative Services "� Steven M. Berliner Chief Negotiator HUNTINGTON BEACH MARINE SAFETY OFFICERS ASSOCIATION Kal R. Weisser President Steven J. Rkujbr Vice -Preside, GregotVS. t ro Negotiating Team Member 18 Res. No. 2004-36 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an adjourned regular meeting thereof held on the 17th day of May 2004 by the following vote: .10 s 4S8/SWWCity Clerk a �ex-officio Clerk of the City Council of the City of Huntington Beach, California r ll�!zllM t # r A,% U o `mod, a °:03�ftziol_ From I'd 4 1^' vG "A" t ?^ f ', d A � `1 � ( fib.. � _. +� I'�' � 2 � - "��" :�E T '� f , a irk, 5 Fop. �`'�'� r E E � 3 Ep- INITIATING DEPARTMENT: ADMINISTRATIVE SERVICES SUBJECT: ADOPT RESOLUTION APPROVING SIDE LETTER TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND HBPOA, HBPMA, AND HBMSOA REGARDING HEALTH INSURANCE COUNCIL MEETING DATE: May 17, 2004 Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable ;T—,HMENTS ,TIONFOEXPLAG ExLANATI ITEM. ,.... , RCA Author: William McReynolds l CITY OF HUNTINGTON BEACH-'- '' MEETING DATE: May 17, 2004 Council/Agency Meeting Held: Deferred/Continued to: pproved ❑Conditionally Approved ❑ Der]ie T_� %Soil//,/d—/ .ln,a,i J�iYiw..) -A)n DEPARTMENT ID NUMBER: AS-04-019 Council Meeting Date: May 17, 2004 ( Department ID Number: AS-*01�T- CITY OF HUTINGTON BEACH REQUEST FOR ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL LOW SUBMITTED BY: WILLIAM P. WORKMAN, ACTING CITY ADMINISTRATORIk PREPARED BY: CLAY MARTIN, DIRECTOR OF ADMINISTRATIVE SERVICES SUBJECT: ADOPT RESOLUTIONS APPROVING ELECTION OF THE CITY TO BE SUBJECT TO THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT WITH RESPECT TO THE POA, PMA, AND MSOA 4sA,3-VC' [..)QS. aoO-33 Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: The city and Huntington Beach Police Officers' Association, Huntington Beach Police Management Association, and, the Huntington Beach Marine Safety Officers' Assocation have come to an agreement to have the California Public Employees' Retirement System administer health insurance through the Public Employees' Medical and Hospital Care Act. Funding Source: Not Applicable Recommended Action: Adopt Resolution No.J�U()�\ - a resolution of the City Council of the City of Huntington Beach electing to be subject to Public Employees' Medical and Hospital Care Act with respect to the Huntington Beach Police Officers' Association and Fixing the City's Contribution for Annuitants at Different Amounts. .2. Adopt Resolution No.a resolution of the City Council of the City of Huntington Beach electing to be subject to Public Employees' Medical and Hospital Care Act with respect to the Huntington Beach Police Management Association and Fixing the City's Contribution for Annuitants at Different Amounts.�� H:\RCA's\PEMHCA Resolution.doc 5/11/2004 2:21 PM REQUEST FOR ACTION MEETING DATE: May 17, 2004 DEPARTMENT ID NUMBER: AS-04-019 3. Adopt Resolution No. aOA - ��, a resolution of the City Council of the City of Huntington Beach electing to be subject to Public Employees' Medical and Hospital Care Act with respect to the Huntington Beach Marine Safety Officers' Association and Fixing the City's Contribution for Annuitants at Different Amounts. Alternative Action(s): Reject the resolutions and maintain the current health insurance plans. Analysis: Representatives of the city and the Huntington Beach Police Officers' Association (POA), Huntington Beach Police Management Association (PMA), and the Huntington Beach Marine Safety Officers' Assocation (MSOA) have completed the meet and confer process on health insurance benefits for the 2004 calendar year. Effective August 1, 2004 or sooner (July 1, 2004) all POA, PMA, and MSOA represented employees will begin utilizing the Public Employees' Medical and Hospital Care Act (PEMHCA) for health' insurance. PEMHCA health plans are administered by the California Public Employees' Retirement System (CalPERS), and the laws and rules governing PEMHCA are set forth in the California Government Code. The resolutions agreeing to the side letter agreements are also included on tonight's City Council agenda. Attachment(s): RCA Author: William McReynolds H:\RCA's\PEMHCAResolution.doc 5/11/20042:21 PM RESOLUTION NO. 2004-33 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ELECTING TO BE SUBJECT TO PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT WITH RESPECT TO THE HUNTINGTON BEACH MARINE SAFETY OFFICERS' ASSOCIATIONAND FIXING THE CITY'S CONTRIBUTION FOR. EMPLOYEES AND THE CONTRIBUTION FOR ANNUITANTS AT DIFFERENT. A_%,IOUNTS WHEREAS, Government Code Section 22850.3 provides that a contracting agency may elect upon proper application to participate under the Public Employees' Medical and Hospital Care Act with respect to a recognized employee organization only; and Government Code Section 22857 provides that a contracting agency may fix the amount of the City's contribution for employees and the City's contribution for annuitants at different amounts provided that the monthly contribution for annuitants shall be annually increased by an amount not less than 5 percent of the monthly contribution for employees, until such time as the amounts are equal; and The City of Huntington Beach ("City") is a local agency contracting with the Public Employees' Retirement System; and The City desires to obtain for the members of the Marine Safety Officers' Association, .w.ho are employees and annuitants of the agency, the benefit of the Act and to accept the liabilities and. obligations of an City under the Act and Regulations, NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Huntington Beach as follows: Section 1. That the City does hereby elect to be subject to the provisions of the Act, Section 2. That the City's contribution for each employee shall be the amount necessary to pay the full cost of his enrollment, including the enrollment of his family members in a health benefit plan up to a maximum of $32 1-0 per month, Section 3. That the City's contribution for each annuitant shall be the amount necessary to pay the cost of his enrollment, including the enrollment of his family members in a health benefits plan up to a maximum of $1.00 per month, Section 4. That the City's contribution for each annuitant shall be increased annually by 5 percent of the monthly contribution for employees, until such time as the contributions are equal; and that the contributions for employees and annuitants shall be in addition to those amounts contributed by the City for administrative fees and to the Contingency Reserve Fund, GARESOLUTN12004TERS-PMA.doc I RF" elution 2004-33 Section 5. That the City Council appoints and directs the Director of Administrative Services to file with the Board of Administration of the Public Employees'. Retirement System a verified copy of this Resolution, and to perform on behalf of City all functions required of it under the Act `and Regulations of the Board of Administration, Section 6. That coverage under the Act be effective on or before August 1, 2004. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 17th day of May , 2004. 0 +Amisio ► City Cler Ma REVIEWED AND�AP/P�R�OV APPROVED AS TO FORM: City Administrator J�iAttorney INITIA A AP OVED: Director f Adminis ative Services G:aESOLUTN\2004\PERS-PMA.doc 2 Res. No. 2004-33 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an adjourned regular meeting thereof held on the 17th day of May 2004 by the following vote: AYES: Coerper, Hardy, Green, Cook, Houchen NOES: Sullivan, Boardman ABSENT: None ABSTAIN: None A"l-owTCity Clerk and ex-officie. Clerk of the City Council of the City of Huntington Beach, California _ r ............ i INITIATING DEPARTMENT: ADMINISTRATIVE SERVICES SUBJECT: ADOPT RESOLUTIONS APPROVING ELECTION OF THE CITY TO BE SUBJECT TO THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT WITH RESPECT TO THE POA, PMA, AND MSOA COUNCIL MEETING DATE: i May 17, 2004 ;.: RCA TT rt STAT�lS F. Ordinance Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable "i k I ® OR " OPITEW RCA Author: William McReynolds °i - �� t :. ��� ,!� ���� �£ _ �'"� e� r e s� �,� n �� cam} ate.'" .�. a, , »., a .., f :z._F,. ,.,., , ,. �.., a§ .., 1. �,. CITY OF HUNTINGTON BEACH MEETING DATE: October 6, 2003 DEPARTMENT ID NUMBER: AS-03-40 Council/Agency Meeting Held: /O - (-0 3 Deferred/Continued to: Approved ❑ Conditionally Approved ❑ Denied City Clerk's Signatu Council Meeting Date: October 6, 2003 Department ID Number: AS-03-40 CITY OF HUNTINGTON BEACH _ REQUEST FOR ACTION o C—) SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL C:)_+-<� cu C:) SUBMITTED BY: RAY SILVER, City Administrators > nFri PREPARED BY: CLAY MARTIN, Director of Administrative Services SUBJECT: ADOPT RESOLUTIONS APPROVING SIDE LETTERS TO MEMORANDA OF UNDERSTANDING BETWEEN THE CITY AND THE POLICE, OFFICERS' ASSOCIATION, THE FIRE ASSOCIATION, AND THE `nIIARINE- SAFETY . OFFICEF�S7 CASSOCIATION -� Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: The Fair Labor Standards Act requires that a written agreement be in place to allow, compensatory time to be given in lieu of paid overtime. This provision is included in the Memoranda of Understanding (MOU) between the City and the various employee associations. The MOUs with the Police Officers Association, (POA) the Huntington Beach Fire Association (HBFA) and the Marine Safety Officers' Association (MSOA) expire on September 30, 2003. This side letter would extend the agreement to provide compensatory time in lieu of paid overtime until new MOUs are in effect. Funding Source: The ability to provide compensatory time results in the reduction of paid overtime. Recommended Action: Motion to: 1. Adopt Resolution No.aU2L'�3, a resolution of the City Council of Huntington Beach amending the Memoranda of Understanding between the City of Huntington Beach and the Huntington Beach Police Officers' Association regarding compensatory time. P:\RCA\comp time side letters.doc ,2Y CC- r I 9122120031:17 PM REQUEST FOR ACTION MEETING DATE: October 6, 2003 DEPARTMENT'ID NUMBER: AS-03-40 2. Adopt Resolution No .,--,'�_D3 A a resolution of the City Council of Huntington Beach amending the Memoranda of Understanding between the City of Huntington Beach and the Huntington Beach Firefighters' Association regarding compensatory time. 3. Adopt Resolution No.abn` 5 a resolution of the City. Council of Huntington Beach amending the Memoranda of Understanding between the City of Huntington Beach and the Huntington Beach Marine Safety Officers' Association regarding compensatory time. Alternative Action(s): Allow the MOUs to expire; therefore ending the agreement, resulting in a "cash out" of all current compensatory time accrued and eliminating the ability to provide compensatory time until new MOUs are in effect. Analysis: The City is currently in negotiations for new MOUs with the POA, the HBFA and the_MSOA. The adoption of this resolution will ensure the ability to continue to provide employees compensatory time in lieu of paid overtime until new MOUs are in effect. City Clerk's 1. Resolution for POA, including Side Letter as Exhibit A a)OO '13 2. Resolution for HBFA, including Side Letter as Exhibit A aoo 3. 'Resolution for MSOA; includinq Side_letter s Exhibit A a001-'� S RCA Author. Sharon Hennegen P:\RCA\comp time side letters.doc 9/22/2003 1:17 PM a ATTACHMENT i - RESOLUTION NO. a c�o3—r1 S A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF HUNTINGTON BEACH AND HUNTINGTON BEACH MARINE SAFETY OFFICERS' ASSOCIATION REGARDING COMPENSATORY TIME WHEREAS, the City Council of the City of Huntington Beach desires to modify benefits for employees represented by the Huntington Beach Marine Safety Officers' Association, regarding compensatory time, NOW, THEREFORE, the City Council of the City of Huntington Beach resolves as follows: 1. The Side Letter of Agreement, with effective date of dc.To3,Ek1, 2003, to Memorandum of Understanding (M.O.U.) Between the City of Huntington Beach and the Huntington Beach Marine Safety Officers' Association, a copy of which is attached hereto and by reference made a part hereof, is hereby approved and ordered implemented in accordance with the terms and conditions thereof. 2. The City Administrator is authorized to execute this Side Letter on behalf of the City. 3. The Side Letter shall be effective for the term of the current M.O.U. adopted by Resolution No.,2000-a3 and such additional term as referenced in the Side Letter. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 6?!� day of , 2003. AITEST: City Clerk�- REVIEWED AND APPROVED: City A ministrator Mayor APPROVED AS TO FORM: City Attorney INITIATED AND APPROVED: Dir cto� of Community Sery es 03reso/side letter-03/9/8/03 4 Res. No. 2003-75 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an regular meeting thereof held on the 6th clay of October, 2003 by the following vote: AYES: Coerper, Green, Boardman, Cook, Houchen, Hardy NOES: None ABSENT: Sullivan ABSTAIN: None City Clerk and ex-offici Clerk of the City Council Council of the City of Huntington Beach, California Side letter of Agreement - Compensatory rime Between the City of Huntington Beach and the Huntington Beach Marine Safety Officers' Association Effective Date: October 1, 2003 This is to memorialize an agreement between the City of Huntington Beach (City) and the Huntington Beach Marine Safety Officers' Association (MSOA) to reflect agreed upon changes to compensatory time off. The City and the MSOA agree that the provisions of Article VIII(B)(2) (CompensatoryTime) will remain in effect from October 1, 2003 until such time as the parties agree to a new Memorandum of Understanding. It is the intent of the parties that this side letter satisfy the requirements of the Fair Labor Standards Act, which provides that compensatory time may be made available to employees if an agreement to do so exists. Date: 2003 i By: �f �► G William P. Workman Assistant City Administrator By:1 Kai Weisser MSOA President Approved .as to Form: �.-- Jennifer McGrath City Attorney CITY OF HUNTINGTON BEACH w �� MEETING DATE: December 16, 2002 DEPARTMENT ID NUMBER: AS-02-053 Council/Agency Meeting Held:_ Deferred/Continued to: "� City Clerk's Signatureoo­ pproved ❑ Conditionally Approved ❑ Denied Council Meeting Date: December 16, 2002 Department ID Number: AS-02-053 CITY OF HUNTINGTON BEACH �- REQUEST FOR ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL SUBMITTED BY: RAY SILVER, CITY ADMINISTRATOR -Fr—" PREPARE® BY: WILLIAM P. WORKMAN, ASSISTANT CITY ADMINISTRATOR ��- CLAY MARTIN, DIRECTOR OF ADMINISTRATIVE SERVICES SUBJECT: ADOPT RESOLUTION APPROVING SIDE LETTER TO MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE HUNTINGTON BEACH MARINE SAFETY OFFICERS' ASSOCIATION /ems Iv,,, p2 - ✓ 33 ' Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: As required by the 2000-2003 Huntington Beach Marine Safety Officers' Association Memorandum of Understanding, the city and Marine Safety Officers' Association have come to a side letter of agreement regarding health insurance for calendar year 2003. Funding Source: Funding, is included in the Fiscal Year 2002/2003 Budget. The total annual cost to implement the Side Letter of Agreement with the Huntington Beach Police Management Association is approximately $75,000. Recommended Action: Adopt Resolution No. 42466? 13j'�, a resolution of the City Council of Huntington Beach amending the Memorandum of Understanding between the City and the Huntington Beach Police Management Association by adopting the side letter of agreement. Alternative Action(s): Reject the resolution and.maintain the current health insurance premiums caps. ..ter H:\RCA's\MSOA side letter.doc -- 12/12/2002 3:48 PM r REQUEST FOR ACTION MEETING DATE: December 16, 2002 DEPARTMENT ID NUMBER: AS-02-053 Analysis: Representatives of the city and the Huntington Beach Police Management Association (PMA) have completed the meet and confer process on a side letter of agreement for health benefits for the 2003 calendar year. Effective January 4, 2002, employees will share in the cost for 2003 medical, dental, and vision increases. Depending on the category of coverage selected by each employee in the medical, dental, and vision plans, employees will be contributing through a pre-tax payroll deduction between approximately $160.00 and $890.00 per year to offset the cost of 2003 health insurance increases. Year 2003 Premiums The city "caps" its contributions for 2003 premiums at the level set forth in the chart below: Monthly City City Plan HMO Dental Dental Vision Paid .Premium (PPO) (PMI) EE $336.05 $236.31 $42.88 $23.00 $17.58 EE + 1 664.53 517.79 81.82 39.11 17.58 EE + 2'or more 813.62 682.46 116.36 59.81 17.58 Employee bi-weekly payroll deduction contributions for 2003 premiums are set forth in the chart below: Bi V1leeldy Dental Dental Employee Paid City Plan HMO (pP0)' (PMI) Vision Premium EE $12.00 $5.95 $1.89 $0.00 $0.23 EE + 1 23.72 13.05 3.66 0.00 0.23 EE + 2 or more 29.04 17.20 5.12 0.00 0.23 Attachment(s): RCA Author: William McReynolds H:\RCA's\MSOA side letter.doc -3- 12/12/2002 3:48 PM RESOLUTION NO. 2002-134 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE HUNTINGTON BEACH MARINE SAFETY OFFICERS' ASSOCIATION, BY ADOPTING THE SIDE LETTER OF AGREEMENT AND AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE THE SIDE LETTER OF AGREEMENT WHEREAS, on December 18, 2000, the City Council of Huntington Beach adopted Resolution No. 2000-123 for the purpose of adopting the 2001/03 Memorandum of Understanding (MOU) between the City and the Huntington Beach Marine Safety Officers' Association (HBMSOA); Subsequent to the adoption of the MOU, the City of Huntington Beach and the HBMSOA agreed to changes, corrections, and clarifications to the MOU that are reflected in a Side Letter of Agreement between the City of Huntington Beach and the HBMSOA ("Side Letter of Agreement") attached hereto as Exhibit A and incorporated herein by this reference. NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Huntington Beach as follows: 1. That the Side Letter of Agreement is approved and adopted. 2. That the Side Letter of Agreement amends the MOU between the City of Huntington Beach and the HBMSOA. 3. That the City Administrator is authorized to execute the Side Letter of Agreement. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16th day of December , 2002. ATTEST: vr.r Gam/ City Clerk REVIEWED AND APPROVED: City Ad " nistrator a Mayor APPROVED AS TO FORM: ity Attorney INITIATE D APPROVED: Director of dministra 've Services G:\RESOLUTN\2002\mou-hbmsoa 12502.doc 0 i Side Letter of Agreement — Health And Other Insurance Benefits Between the City of Huntington Beach and the Huntington Beach Marine Safety Officers' Association Effective Date: January 4, 2003 This is to memorialize an agreement between the City of Huntington Beach and the Huntington Beach Marine Safety Officers' Association (MSOA) to reflect agreed upon changes, corrections or clarifications to Article IX — Health and Other Insurance Benefits of the existing 2000-2003 Memorandum -of - Understanding. This agreement is to be incorporated into any future Memorandum -of - Understanding between the City of Huntington Beach and the Huntington Beach Marine Safety Officers' Association. Article IX — Health and Other Insurance Benefits shall now read: ARTICLE IX HEALTH AND OTHER INSURANCE BENEFITS A. Health: The city shall continue to make available group medical, dental and vision benefits to all MSOA employees. 1. Eligibility Criteria and Cost: a. Year 2003 Premiums The city "caps" its contributions for 2003 premiums at the level set forth in the chart below: Monthly City Paid Premium City Plan HMO Dental (PPO) Dental (PMI) Vision EE $ 336.05 $ 236.31 $ 42.88 $ 23.00 $ 17.58 EE + 1 664.53 517.79 81.82 39.11 17.58 EE + 2 or more 813.62 682.46 116.36 59.81 17.58 Z • %. ?aa.,),i3 V Employee bi-weekly payroll deduction contributions for 2003 premiums are set forth in the chart below: Bi-Weekly Dental Dental Employee Paid City Plan HMO (PPO) (PMI) Vision Premium EE $ 12.00 $ 5.95 $ 1.89 $ 0.00 $ 0.23 EE + 1 23.72 13.05 3.66 0.00 0.23 EE + 2 or more 29.04 17.20 5.12 0.00 0.23 b. Future Premiums The city "caps" its contributions toward monthly group medical, dental and vision plan premiums, by category (EE, EE + 1, and EE + 2 or more) and plan, at the year 2003 level. Until the City Council approves a successor Memorandum -of - Understanding, the city's 2003 contribution caps will remain in place in 2004 and beyond, even if premium increases result in these additional costs being borne by the employee. c. Dependent Health Coverage The city will assume payment for dependent health insurance, subject to paragraph a and b 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. 2. Medical Cash -Out: If an employee is covered by a medical program outside of a city - provided program (evidence of which must be supplied to Administrative Services Department), they may elect to discontinue city medical coverage and receive ninety two dollars and thirty-one cents ($92.31) bi- weekly to deposit into their Deferred Compensation account or any other pre-tax program offered by the city. 3. Section 125 Plan: Employees may begin utilizing this plan, which allows employees to use pre-tax salary to pay for regular childcare, adult dependent care and/or medical expenses. B. Life Insurance: City will provide $25,000 of term life insurance without evidence of insurability other than evidence of working a full time duty at city cost. Each employee shall have the option, at their own expense, to purchase additional amounts of life insurance to the extent provided by the city's current providers. Evidence of insurability is contingent upon total participation in additional amounts. C. Accidental Death and Dismemberment Insurance: Each employee shall be provided with $10,000 accidental death and dismemberment insurance paid for by the city. Each employee shall have the option, at his or her own expense, to purchase additional amounts of accidental death and dismemberment insurance to the extent provided by the city's current providers. Evidence of insurability is contingent upon total participation in additional amounts. D. Long Term Disability Insurance 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 Disability Due to Accident 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 tNone 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. "% L i 4 >U 4 D D .?- / 3 S/ 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 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. IN WITNESS WHEREOF, the parties hereto have executed this side letter to the Memorandum -of -Understanding this V day of December, 2002. HUNTINGTON BEACH CITY OF HUNTINGTO BEACH MARINE SAFETY OFFICERS' ASSOCIATION /4411 m6�-A"V— William P. Workma K ai R. Weisser, MSOA President Assistant City Ad nistrator Clay Mao Steve e t r, MSOA Vice- esident Director/of Administrative Services APPROVED AS TO FORM: J nnifer M. Grath City Attorney W] Res. No. 2002-134 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an regular meeting thereof held on the 16tn day of December, 2002 by the following vote: AYES: Sullivan, Coerper, Green, Boardman, Cook, Houchen, Hardy NOES: None ABSENT: None ABSTAIN: None dv�L-AV-- City Clerk and ex-officio C erk of the City Council of the City of Huntington Beach, Califomia Council/Agency Meeting Held: Deferred/Continued to: Approved ❑ Conditionall Approved ❑ Denied City CI rk' Signature Council Meeting Date: December 18, 2000 Department ID Nulxl�er: AS 00-044 SUBMITTED TO: SUBMITTED BY: PREPARED BY: SUBJECT: CITY OF HUNTINGTON BEAC '47 REQUEST FOR COUNCIL ACTIO ' 21 HONORABLE MAYOR AND CITY COUNCIL MEMBERS RAY SILVER, City AdministratordrIO CLAY MARTIN, Acting Director of Administrative Services; APPROVE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY & THE HUNTINGTON BEACH MARINE SAFETY OFFICERS' ASSOCIATION RztS. No, 2000— 123 Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: The City and the Huntington Beach Marine Safety Officers' Association (HBMSOA) have completed the meet and confer process with agreement on a new Memorandum of Understanding (MOU) covering October 1, 2000 through September 30, 2003. Funding Source: General Fund, $124,080 for fiscal year 2000/2001, non -departmental Contingency Account No. 10040101.79100 as approved as part of the 2000/01 budget. The total cost of this three-year agreement without the classification study is $525,000. Recommended Action: 1. Approve Resolution No. 200o-123 adopting a Memorandum of Understanding between the City of Huntington Beach and the Huntington Beach Marine Safety Officers' Association. 2. Authorize the appropriation of $6,256 to pay the increased salary and benefit costs for 2000/01. Alternative Action(s): Refer back to meet and confer process to modify the proposed Memorandum of Understanding with the Huntington Beach Marine Safety Officers' Association. Analysis: The representatives of the City and Marine Safety Officers' Association conducted numerous meet and confer meetings in 2000 to reach agreement on a new MOU. On October 24, 2000 the City and HBMSOA mutually agreed to the adoption of a new Memorandum of Understanding (MOU). REQUEST FOR COUNCIL ACTION MEETING DATE: December 18, 2000 DEPARTMENT ID NUMBER: AS 00-044 This is a three (3) year agreement to expire September 30, 2003. It includes an approximate ten percent (10%) salary increase September 30, 2000; a three percent (3%) salary increase on September 29, 2001; a two percent (2%) salary increase on September 28, 2002; and a three percent (3%) salary increase on March 29, 2003. The City Agrees to conduct a classification study to include minimum requirements, appropriate certifications, job titles and salary levels by July 2001. The total cost of this three-year agreement without the classification study is $525,000. Part of the September 2000 salary increase was included in the fiscal year 2000/01 budget. City Council needs to appropriate an additional $6,256, which was not included in the 2000/01 budget. As adopted by the City Council in March 1998, all requests for appropriation of funds must meet one of the following criteria; 1) The request is for an unanticipated emergency, 2) The request is required to implement labor negotiations, or 3) The request will be offset by related new revenues. The new appropriations being requested is required to implement labor negotiations. The City agreed to increase the City contribution to medical, dental and vision to cover any increase costs during the first two years of the MOU. The association agreed to specific cost containments in the year 2001, with the elimination of the two-tier medical for new employees. The City agreed to provide the "3% @ 50" retirement plan when other safety employees receive this plan, while the association agreed to pay for future City retirement costs up to a maximum of 2.25% from the PERS salary reimbursement. The City and Association agreed to language changes regarding acting MSO Chief appointments, preventive medical care, and employment hours of recurrent employees. A summary of the agreement is shown as Attachment 1. Environmental Status: Not Applicable. Attachment(s): RCA Author: William H. Osness MSOA RCA - PAGE 2 -2- 12/15/00 8:35 AM ATTACHMENT SUMMARY OF AGREEMENT BETWEEN THE CITY AND THE MARINE SAFETY OFFICERS' ASSOCIATION 1. Term of Contract — October 1, 2000 to September 30, 2003. 2. Salary: 10% Effective September 30, 2000 3% Effective September 29, 2001 2% Effective September 28, 2002 3% Effective March 29, 2003 3. Classification Study — Classification study to update job descriptions and determine appropriate job certifications, minimum qualifications, job titles and salary levels. To be provided to HBMSOA by March 1, 2001. 4. Retirement — Provide the "3% @ 50" retirement plan for HBMSOA at the same time it is implemented for HBPOA. When the City incurs actual costs, the HBMSOA shall pay up to 2.25% of the employers increase rate by a reduction in the employees reimbursement (EPMC). Provide Level III Survivor's Benefit if PERS permits this change. To reopen negotiations regarding Level IV Survivor's Benefit upon receipt of actuarial study from PERS. 5. Health — The City agrees to increase the City contribution to medical, dental and vision plan to cover cost for 2001 and 2002 and eliminate two -tiering of medical plan; and, the HBMSOA agrees to specific medical cost containments effective January 2001, 6. IRS Section 125 — Implement an IRS Section 125 Plan, where employees may use pre-tax dollars for annual dependent care and/or medical expenses. 7. City Rules — Amend City rules to permit a 1,500-hour recurrent position. 8. Acting Chief — Appointment of Acting MSO Chief to be made at discretion of department head. Summary MSOA 11/28/00 10:11 AM ATTACHMENT RESOLUTION NO. 2000-123 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 THE TERM OF OCTOBER 1, 2000, TO SEPTEMBER 30, 2003 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, 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 such Agreement. Such.Memorandum of Understanding shall be effective for the term October 1, 2000, to September 30, 2003. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the ATTEST: Cep C� City Clerk 12— 27,o- REVIEWED AND APPROVED: Q 5 City Admi lstrator 18th day of Mayor December 2000. APPROVED AS T FORM: Attorney C o INITIATED AND APPROVED: r C — Director o Administrative Services adl/00reso/Marine Safety Officers' MOU RLS 2000-1124 - 1 1-27-00 Res. No. 2000-123 E Res. No. 2000-123 MS®A 1M OU TABLE OF CONTENTS PREAMBLE......................................................................................................................................................................... I ARTICLEI - TERM OF MOU............................................................................................................................................1 ARTICLE H - REPRESENTATIONAL UNIT/CLASSIFICATIONS................................................................................ 2 ARTICLEIII - MANAGEMENT RIGHTS........................................................................................................................ 2 ARTICLE IV - EXISTING CONDITIONS OF EMPLOYMENT......................................................................................3 ARTICLEV - SALARY SCHEDULE.................................................................................................................................3 ARTICLEVI - SPECIAL PAY............................................................................................................................................3 A. EDUCATIONAL TUITION.................................................................................................................................................. 3 B. ACTING ASSIGNMENT..................................................................................................................................................... 4 C. ASSIGNMENT PAY........................................................................................................................................................... 4 D. HOLIDAY PAY-IN-LIEU................................................................................................................................................... 5 E. BILINGUAL SKILL............................................................................................................................................................ 5 ARTICLE VH - UNIFORMS, CLOTHING, TOOLS AND EQUIPMENT.......................................................................5 ARTICLE VHI - HOURS OF WORWOVERTIME...........................................................................................................5 A. HOURS OF WORK DEFINED.............................................................................................................................................. 5 B. OVERTIME/COMPENSATORY TIME................................................................................................................................... 5 C. SHIFT EXCHANGE........................................................................................................................................................... 6 ARTICLE IX - HEALTH AND OTHER INSURANCE BENEFITS................................................................................. 6 A. HEALTH......................................................................................................................................................................... 6 a. Health Premiums................................................................................................................................................................... 7 b. Health hisurance Caps............................................................................................................................................................ 7 C. Employee Paid Premiums....................................................................................................................................................... 7 d. Two -Tier Health Premium...................................................................................................................................................... 7 a. Health Premiums................................................................................................................................................................... 7 e. Dependent Health Coverage................................................................................................................................................... 8 f. Medical Plan Changes Effective September 1, 1998............................................................................................................... 8 g. Plan Deductibles.................................................................................................................................................................... 8 h. Medical Cash-Out.................................................................................................................................................................. 9 i. Section 125 Plan.................................................................................................................................................................... 9 B. LIFE INSURANCE............................................................................................................................................................. 9 C. ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE.................................................................................................. 9 ARTICLEX - RETIREMENT...........................................................................................................................................10 A. BENEFITS..................................................................................................................................................................... 10 B. PUBLIC EMPLOYEES' RETIREMENT SYSTEM REIMBURSEMENT AND REPORTING................................................................ 12 e ARTICLEXI - LEAVE BENEFITS..................................................................................................................................12 A. VACATION....................................................................................................................................................................12 B. SICK LEAVE................................................................................................................................................................. 3 C. FAMILY SICK LEAVE..................................................................................................................................................... 13 D. BEREAVEMENT LEAVE.................................................................................................................................................. 13 ARTICLEXII - CITY RULES..........................................................................................................................................14 ARTICLEXHI - MISCELLANEOUS...............................................................................................................................14 A. SALARY UPON APPOINTMENT........................................................................................................................................ 14 0032946.01 i 12/14/00 4:19 PM S A M ®U Res. No. 2000-123 TABLE OF CONTENTS B. PHYSICAL EXAMINATIONS............................................................................................................................................. 14 C. CONDITIONING TIME.................................................................................................................................................... 14 D. 1,500 HOUR RECURRENT EMPLOYEES........................................................................................................................... 14 ARTICLE XIV - CITY COUNCIL APPROVAL..............................................................................................................15 EXHIBIT A - MSOA SALARY SCHEDULE................................................................................................................... 16 EXHIBIT B - DELTA CARE DENTAL BROCHURE..................................................................................................... 17 EXHIBIT C - DELTA DENTAL PLAN BROCHURE..................................................................................................... 18 EXHIBIT D- RETIREE MEDICAL PLAN....................................................................................................................... 19 EXHIBIT E- PERSONNEL RULE CHANGE.................................................................................................................. 26 0032946.01 ii 12/14/00 4:19 PM Res. No. 2000-123 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, 2000, 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, 2000 and ending at midnight on September 30, 2003. 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, 2003, 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- 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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 The City and Association agree to conduct a classification study to determine which duties more appropriately describes the duties currently being performed by Huntington Beach Marine Safety Officers and Lieutenants, certificates to be required as a minimum job qualification, job titles, and salary levels. This study to be conducted internally by the Human Resources Division in conjunction with representatives of HBMSOA. The study will be provided in final form to the HBMSOA by March 1, 2001. If the HBMSOA agrees with the final report, the classifications will be presented to the Huntington Beach Personnel Commission for approval not later than the next regular Commission Meeting following agreement. In addition, the HBMSOA and City negotiators shall meet and confer regarding the appropriate salary range for each classification. If the Huntington Beach Personnel Commission approves the classifications and the HBMSOA and City representatives agree regarding the appropriate salary range for each classification, the City Council shall be asked to adopt the classifications and set the agreed to salary ranges at its next regularly scheduled meeting following agreement. This process shall occur no later than July 1, 2001. If the HBMSOA request to meet and confer regarding the final report the parties will commence meeting no later than May 1, 2001. In the event the parties reach agreement regarding the final report, through the meet and confer process, the agreement shall be presented to the Personnel Commission and the City Council for adoption. Once agreement is reached by the City and HBMSOA and have been approved by the Commission and the Council, the Special Boat Operator pay provision shall be eliminated. 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, 0032946.01 2 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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. If agreement is reached between the City and HBMSOA regarding classifications and pay, as described in Article II, this MOU shall be amended to reflect such agreement. 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, or Fire Science. 0032946.01 3 12/14/00 4:19 PM IVISOA M O U Res. Nq. 2000-123 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 601 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. 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 Assiqnment: 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. 3. Acting Chief selection shall be made at the discretion of the Department Head or designee. Seniority will not be the controlling criteria. 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 0032946.01 4 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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. Bilinqual 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. ARTICLE Vill - HOURS OF WORK/OVERTIME A. Hours of Work Defined: For purposes of this article, approved vacation time, sick leave and compensatory 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 each morning and afternoon court sessions. 0032946.01 5 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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. 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. 0032946.01 6 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 4. Eligibility Criteria and Cost: a. 2000 Premiums -- The City shall contribute toward the cost of the 2000 premium for medical, dental and vision as outlined below. 1. 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, 2000 as set forth below: 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 2. Employee Paid Premiums -- Employees hired prior to adoption date November 2, 1998, the City shall pay medical, dental and vision premiums subject to 4a and 4b above. 3. 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. This provision "Two -Tier" shall expire on December 31, 2000. b. 2001 Premiums The City "caps" its contributions toward employee monthly health insurance premiums by category and plan at the rate in effect January 1, 2001 for the year ending December 31, 2001 as set forth below: Monthly Delta Premiums* City Plan HealthNet Dental Delta Care Safeguard VSP** Employee 261.01 170.01 36.99 22.12 16.20 17.58 Only Employee 516.14 312.51 70.65 37.61 29.16 17.58 + One Employee 631.94 490.98 100.37 57.51 37.22 17.58 + Family 0032946.01 7 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 c. 2002 Premiums The City "caps" its contribution toward employee monthly health insurance premiums by category (employee, employee + one, family) and plan (medical, dental, vision) at the rate in effect January 1, 2002 for the year ending December 31, 2002. d. 2003 Premiums 1. The City will continue to pay the premium dollar rate established for 2002 until agreement is reached regarding 2003 contribution levels. 2. The City will not implement cost containment proposals in 2003 for this unit without agreement of the parties. e. Dependent Health Coverage -- The City will assume payment for dependent health insurance, subject to paragraph a and b 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. 5. Medical Plan Changes Effective September 1, 1998 January 1, 2001: a) The Association agrees to one HMO (HealthNet) beginning with the 2001 plan year. b) Plan Deductibles - The Medical Insurance Plan deductible shall be Two Hundred Fifty Dollars ($250) per person; and the maximum deductible per family shall be Five Hundred Dollars ($500) during any period of benefit entitlement as described in the City's Employee Health Plan. c) Out of Network — Non PPO co -payment reduced from seventy percent (70%) to sixty percent (60%). d) Preventive Medical Care — Part IX of the Employee Health Plan Document shall be revised to read as follows: Benefits will be provided up to $200 per person every year for preventive medical care. Such care shall include such usual preventive medical options as an every year physical exam for adults, yearly PAP tests for females, flu shots, chest x-rays, EKG and other diagnostic lab tests if certified by the physician that such procedures are included under a routine physical examination and is not in connection with the diagnosis or treatment of any illness, disease or accidental bodily injury. 0032946.01 8 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 All well baby exams for an infant for the first year of life will be allowed and is not subject to the $200 maximum benefit. All immunizations for infants/adults will be provided and coverage is not limited to the $200 maximum benefit. 6. Medical Cash -Out — Effective January 2, 2001, if an employee is covered by a medical program outside of a City -provided program (evidence of which must be supplied to Administrative Services Department, Human Resources Division), they may elect to discontinue City medical coverage and receive two hundred dollars ($200) per month to deposit into their Deferred Compensation account or any other pre-tax program offered by the City. 7. Section 125 Plan — Effective January 1, 2001, employees may begin utilizing this plan, which allows employees to use pre-tax salary to pay for regular childcare, adult dependent care and/or medical expenses. 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 Pa 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. 0032946.01 9 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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: a. 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. b. The City shall amend its contract with PERS to implement the "3% at age 50" retirement formula set forth in California Government Code Section 21362.2 for all safety employees represented by the Association at the sametime it is implemented for the Huntington Beach Police Officers' Association. At the present time, based upon actuarial studies conducted by PERS, the City is not required to make any retirement contributions with respect to employees represented by the Association. If, at any time after the implementation of the 3% at age 50 formula the City is required to make retirement contributions with respect to employees represented by the Association, the amount with respect to which each employee is reimbursed pursuant to Article XB shall be reduced by a percentage equal to one-half of the percentage of compensation earnable the City is required to pay in retirement contributions to PERS, not to exceed 2.25%. For example, if the City is required to contribute an amount equal to 2% of each employee's "compensation earnable", the amount of the reimbursement set forth in Article IXB1 shall be reduced from 9% of the employee's compensation earnable to 8% of the employee's compensation earnable. If, on the other hand, the City is required to contribute an amount equal to 8% of each employee's "compensation earnable", the amount of the reimbursement set forth in Article IXB1 shall be reduced to 6.75% of the employee's compensation earnable. 0032946.01 10 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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. PERS Reopener — The City agrees to request actuarial evaluations for Post - Retirement Survivors Allowance and 1959 Survivors Benefit Level IV and after receipt agrees to reopen negotiations on these amendments. If no agreement is reached on Level IV benefits, the City agrees to provide Level III benefits if available from PERS. 4. 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 0032946.01 11 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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 workweek 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 hours but more than 20 hours per week shall receive vacation in one-half 0032946.01 12 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 the amounts set forth above. Employees assigned to a workweek 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. 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. 0032946.01 13 12/14/00 4:19 PM MSOA MOU , Res. No. 2000-123 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. D. 1,500 Hour Recurrent Employees: The Association agrees to permit the City to implement a 1,500 work hour per year in non-HBMSOA positions, subject to official change in Personnel Rules 5-24. 0032946.01 14 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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 affect 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 , 2000. CITY OF HUNTINGTON BEACH A Municipal Corporation By: Ray-Z lver City Administrator By: (7 9 (� Clay trof in Direct Administrative Services HUNTINGTON BEACH MARINE SAFETY OFFICERS° ASSN. By: Kai Weisser, President MSOA .. . By: By: William FL Osness PersonAel, Director /> la Danitl Cassidy Chie Negotiator A ED AS TO FORM By: ail Hut on City Attorney %2 lu 0032946.01 15 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 EFFECTIVE SEPTEMBER 30, 2000 4532 Marine Safety Officer 470 3939 4256 4385 4626 4881 22.73 23.98 25.30 26.69 28.16 4534 Marine Safety Officer/Boat Operator 495 4463 4709 4967 5241 5529 25.75 1 27.17 1 28.66 1 30.24 1 31.90 1560 Marine Safety Lieutenant 517 4979 5253 5543 1 5848 1 6170 28.73 30.31 31.98 33.74 35.60 2001 CLASSIFICATION RECOMMENDATIONS Effective September 29, 2001 — Salary Increase of 3% to all classifications Effective September 28, 2002 — Salary Increase of 2% to all classifications Effective March 29, 2003 — Salary increase of 3% to all classifications 0032946.01 -16- 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 EXHIBIT B DELTA CARE DENTAL PLAN BROCHURE A copy of the Delta Dental Plan Brochure may be obtained from the Personnel Division 0032946.01 -17- 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 EXHIBIT C DELTA DENTAL DENTAL PLAN BROCHURE A copy of the Delta Care Plan Brochure may be obtained from the Personnel Division 0032946.01 18 12/14/00 4:19 PM MSOA M®U Res. No. 2000-123 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 19 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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 20 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 Maximum Monthly Payment for Retirements After: Years of Service 10/1192 10 $ 121 11 136 12 151 13 166 14 181 15 196 16 211 17 226 18 241 19 256 20 271 21 286 22 300 23 315 24 330 25 344 Note: The above payment amounts may be reduced each month as dependent eligibility ceases due to death, divorce or loss of dependent child status. However, the amount shall not be reduced if such reduction would cause insufficient funds needed to pay the full premium for the employee and the remaining dependents. In the event no reduction occurs and the remaining benefit premium is not sufficient to pay the premium amount for the employee and the eligible dependents, said needed excess premium amount shall be paid by the employee. Note: Retirees who elect to participate in Health Net 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. 0032946.01 21 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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. 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. 0032946.01 22 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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. 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. 0032946.01 23 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 D. Medicare: 1. All persons are eligible for Medicare coverage at age 65. Those with sufficient credit quarters of Social Security will receive Part A of Medicare at no cost. Those without sufficient credited quarters are still eligible for Medicare at age 65, but will have to pay for Part A of Medicare if the individual elects to take Medicare. In all cases, Part B of Medicare is paid for by the participant. 2. When a retiree and his/her spouse are both 65 or over, and neither is eligible for paid Part A of Medicare, the subsidy shall pay for Part A for each of them or the maximum subsidy, whichever is less. 3. When a retiree at age 65 is eligible for paid Part A of Medicare and his/her spouse is not eligible for paid Part A, the spouse shall not receive subsidy. When a retiree at age 65 is not eligible for paid Part A of Medicare and his/her spouse who is also age 65 is eligible for paid Part A of Medicare, the subsidy shall be for the retiree's Part A only. E. Cancellation: 1. For retirees/dependents eligible for paid Part A of Medicare, the following cancellation provisions apply: a. Coverage for a retiree under the Retiree Subsidy Medical Plan will be eliminated on the first day of the month in which the retiree reaches age 65. If such retiree was covering dependents under the Plan, dependents will be eligible for COBRA continuation benefits effective as of the retiree's 65th birthday. b. Dependent coverage will be eliminated upon whichever of the following occasions comes first: 1) After 36 months of COBRA continuation coverage, or 2) When the covered dependent reaches age 65 in the event such dependent reaches age 65 prior to the retiree reaching age 65. c. At age 65 retirees are eligible to make application for Medicare. Upon being considered "eligible to make application", whether or not application has been made for Medicare, the Retiree Subsidy Medical Plan will be eliminated. 2. See provisions under "Benefits"," Subsidies", and "Medicare" for those retirees/dependents not eligible for paid Part A of Medicare. 0032946.01 24 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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 25 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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 26 12/14/00 4:19 PM iVISOA MOU Res. No. 2000-123 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. d) 5-24 — Recurrent Employment There are a number of positions where manpower requirements are sporadic, seasonal and recurrent. In these situations employees are called to work on an as -needed basis, frequently from a roster of individuals available and qualified for such work. There is no time limit insofar as a total period of time over which an employee may work on a recurrent basis, however, they shall not exceed 1,500 work hours in any twelve) (12) month period. Recurrent appointments shall not be used on a continuing basis to fill full-time positions. 2. Rule 7 — Discipline a) 7-2 — Causes for Discipline 12) Possession, use or sale of illegal narcotics or habit-forming drugs, while on -duty or on City property. 14) Conviction of any felony or a misdemeanor with a job nexus. A plea or verdict of guilt, or a conviction following a plea of nolo contendere, is deemed to be a conviction within the meaning of this section. 15) Participating in an unlawful strike, work stoppage, slowdown, or using or attempting to use sick leave to accomplish the same purpose as a strike, work stoppage, or slowdown. 3. Rule 8 — Termination a) 8-1 — Medical Examination. Evaluation of Employee's Work Capacity. Demotion, Transfer or Termination of Appointment At any time a department head has reasonable cause to believe that an employee may not be able to perform the duties of his/her position for physical or psychological reasons, such department head shall consult with the 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. 0032946.01 27 12/14/00 4:19 PM MSOA MOU Res. No.2000-123 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 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. 0032946.01 28 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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 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 0032946.01 29 12/14/00 4:19 PM IVISOA MOU Res. No. 2000-123 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 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." 0032946.01 30 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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 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. 0032946.01 31 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 601 Rule 20 — Disciplinary Procedure and Appeal a) 20-1 — Purpose The purpose of this rule is to provide a procedure for recommending and imposing discipline against City employees, and a means by which employees may administratively appeal any such disciplinary action. b) 20-2 — Disciplinary Procedures 1) Notice of Proposed Adverse Action For disciplinary demotions, suspensions or dismissals, an employee shall be served a written Notice of Proposed Adverse Action by the employee's department head, or his/her designee, or by certified mail, prior to the proposed disciplinary action taking effect. The notice shall state the reasons for and charges upon which the proposed action is based, and the effective date of the action the right to respond and the employer's right to representation. A copy of all materials upon which the proposed action is based shall be attached to the notice. 2) Employee's Right to Respond The employee shall be given a minimum of ten (10) calendar days to respond orally and/or in writing to the charges upon which the proposed action is based. The employee's response shall be made to and/or before his/her department head. 3) Time Off The employee shall be given reasonable time off with pay to attend disciplinary meetings. 4) Final Notice of Decision After an employee has responded to or waived his/her right to respond to the proposed adverse action, the employee shall be served with a final Notice of Decision from his/her department head. The final written Notice of Decision shall state whether or not the proposed action shall be taken or modified, and the reasons therefore and effective date or the action. 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. 0032946.01 32 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 2) Hearin 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) 20-4 — 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. 0032946.01 33 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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 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 0032946.01 34 12/14/00 4:19 PM MS®A M®U Res. No. 2000-123 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. 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. 0032946.01 35 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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 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. 0032946.01 36 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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 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. 0032946.01 37 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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 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 0032946.01 38 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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 the time frame, the parties shall select the earliest date either is available to conduct the hearing. The parties shall split the cost, if any, of the hearing officer. In addition, the parties shall meet within three (3) workdays to attempt to resolve the dispute. If the dispute remains unresolved, the parties shall endeavor in good faith to submit to the hearing officer a statement of all agreed upon facts relevant to the hearing. 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 0032946.01 39 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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 employee when the reemployment list(s) expire(s), if not previously paid. 0032946.01 40 12/14/00 4:19 PM MSOA MOU Res. No. 2000-123 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 41 12/14/00 4:19 PM Res. No. 2000-123 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 18th day of December, 2000 by the following vote: AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer NOES: None ABSENT: None ABSTAIN: None e�x� City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICA TION To: Ray Silver, City Administrator From: Clay Martin, Acting Director of Administrative Services Subject: FIS 2001-09 Memorandum of Understanding Between the City of Huntington Beach and the Huntington Beach Marine Safety Officers' Association Date: November 26, 2000 As required by Resolution 4832, this Fiscal Impact Statement has been prepared for " Memorandum of Understanding Between the City of Huntington Beach and the Huntington Beach Marine Safety Officers' Association." If the City Council approves this request (total appropriation $6,256 of monies not budgeted for fiscal year 2000-2001), the estimated unappropriated, undesignated General Fund balance at September 30, 2001 will be reduced to $8,555,257. Clay M01n, Acting Director of Administrative Services N Fund Balance - General Fund Adopted Budget Current Estimate Beginning Fund Balance 10/1/2000 (unaudited) $ 9,540,000 $ 9,540,000 Plus: Estimated Revenue 127,313,303 127,313,303 Less: Estimated Expenditures (127,313,303) (127,313,303) Pending/Approved FIS's: (978,487) Less: FIS 2001-09 - (6,256) Estimated 9/30/2001 Balance (with econmic reserve) $ 9,540,000 $ 8,555,257 PREAMBLE......................................................................................................................................................................... I ARTICLEI - TERM OF MOU............................................................................................................................................ I ARTICLE H - REPRESENTATIONAL UNIT/CLASSIFICATIONS................................................................................ 2 ARTICLE III - MANAGEMENT RIGHTS........................................................................................................................ 2 ARTICLE IV - EXISTING CONDITIONS OF EMPLOYMENT......................................................................................3 ARTICLEV - SALARY SCHEDULE.................................................................................................................................3 ARTICLEVI - SPECIAL PAY............................................................................................................................................ 3 A. EDUCATIONAL TUITION.................................................................................................................................................. 3 B. ACTING ASSIGNMENT..................................................................................................................................................... 4 C. ASSIGNMENT PAY........................................................................................................................................................... 5 D. HOLIDAY PAY-IN-LIEU................................................................................................................................................... 5 E. BILINGUAL SKILL..........................................................................................................:................................................. 5 ARTICLE VII - 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........................................................................................................................................................... 6 ARTICLE IX - HEALTH AND OTHER INSURANCE BENEFITS.................................................................................6 A. DEB elaP HEALTH......................................................................................................................................................... 6 a. Health Premiums................................................................................................................................................................... 7 b. Health Insurance Caps .... .... -.................................................................................................................................................. 7 C. Employee Paid Premiums....................................................................................................................................................... 7 d. Two -Tier Health Premium...................................................................................................................................................... 7 a. Health Premiums................................................................................................................................................................... 7 e. Dependent Health Coverage................................................................................................................................................... 8 f. Medical Plan Changes Effective September 1, 1998............................................................................................................... 8 g. Plan Deductibles.................................................................................................................................................................... 9 h. Medical Cash-Out................................................................................................................................................................ 9 i. Section 125 Plan................................................................................................................................................................. 10 B. LIFE INSURANCE........................................................................................................................................................... 10 C. ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE................................................................................................ 10 ARTICLEX - RETIREMENT...........................................................................................................................................11 A. BENEFITS..................................................................................................................................................................... 11 B. PUBLIC EMPLOYEES' RETIREMENT SYSTEM REIMBURSEMENT AND REPORTING................................................................ 12 ARTICLEXI - LEAVE BENEFITS..................................................................................................................................13 A. VACATION....................................................................................................................................................................13 B. SICK LEAVE.................................................................................................................................................................. 14 C. FAMILY SICK LEAVE..................................................................................................................................................... 14 D. BEREAVEMENT LEAVE.................................................................................................................................................. 14 ARTICLEXII - CITY RULES.......................................................................................................................................... 10 ARTICLEXIII - MISCELLANEOUS...............................................................................................................................15 0032946.01 i 12/14/00 4:35 PM A. SALARY UPON APPOINTMENT........................................................................................................................................ 15 B. PHYSICAL EXAMINATIONS............................................................................................................................................. 15 C. CONDITIONING TIME.................................................................................................................................................... 15 D. 1,500 HOUR RECURRENT EMPLOYEES........................................................................................................................... 15 ARTICLE XIV - CITY COUNCIL APPROVAL..............................................................................................................15 EXHIBIT A - MSOA SALARY SCHEDULE................................................................................................................... 17 EXHIBIT A - MSOA SALARY SCHEDULE....................................................................................................................... 17 EXHIBIT B - DELTA CARE DENTAL BROCHURE............................................................... ....................... I.............. 18 EXHIBIT C - DELTA DENTAL PLAN BROCHURE..................................................................................................... 19 EXHIBIT D- RETIREE MEDICAL PLAN....................................................................................................................... 20 RETIREE SUBSIDY MEDICAL PLAN............................................................................................................................ 20 SCHEDULEOF BENEFITS.............................................................................................................................................. 21 A. Minimum Eligibility for Benefts............................................................................................................................. 21 B. Disability Retirees.................................................................................................................................................. 21 C. Maximum Monthly Subsidy Payments..................................................................................................................... 21 INDEMNITY HEALTH PLAN, EMPLOYEES/RETIREES........................................................................................... 23 RETIREE SUBSIDY MEDICAL PLAN/MISCELLANEOUS PROVISIONS................................................................. 24 A. Eli ibili................................................................................................................................................................24 B, Benefits. .................. : ....................................................................................... I ....................................................... 25 C. Subsidies.................................................................................................................................................................25 D. Medicare................................................................................................................................................................ 26 E. Cancellation........................................................................................................................................................... 26 EXHIBIT E- PERSONNEL RULE CHANGE.................................................................................................................. 28 0032946.01 ii 12/14/00 4:35 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 2000, 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 2000 and ending at midnight on September 30, 2090 2003. 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 2003, 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- 12/14/00 4:35 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 The City and Association agree to conduct a classification study to determine which duties more appropriately describes the duties currently being performed by Huntington Beach Marine Safety Officers and Lieutenants, certificates to be required as a minimum job qualification, job titles, and salary levels. This study to be conducted internally by the Human Resources Division in conjunction with representatives of HBMSOA. The study will be provided in final form to the HBMSOA by March 1, 2001. If the HBMSOA agrees with the final report, the classifications will be presented to the Huntington Beach Personnel Commission for approval not later than the next regular Commission Meeting following agreement. In addition, the HBMSOA and City negotiators shall meet and confer regarding the appropriate salary range for each classification. If the Huntington Beach Personnel Commission approves the classifications and the HBMSOA and City representatives agree regarding the appropriate salary range for each classification, the City Council shall be asked to adopt the classifications and set the agreed to salary ranges at its next regularly scheduled meeting following agreement. This process shall occur no later than July 1, 2001. If the HBMSOA request to meet and confer regarding the final report the parties will commence meeting no later than May 1, 2001. In the event the parties reach agreement regarding the final report, through the meet and confer process, the agreement shall be presented to the Personnel Commission and the City Council for adoption. Once agreement is reached by the City and HBMSOA and have been approved by the Commission and the Council, the Special Boat Operator pay provision shall be eliminated. ARTICLE III - MANAGEMENT RIGHTS 0032946.01 2 12/14/00 4:35 PM MSOA MOIL 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. If agreement is reached between the City and HBMSOA regarding classifications and pay, as described in Article 11, this MOU shall be amended to reflect such agreement. ARTICLE VI - SPECIAL PAY A. Educational Tuition: 1. Criteria -- .The existing Marine Safety Officers' Education Incentive Plan shall be maintained as follows: Education Maximum Continuing Education Incentive College Training Years of College Units Monthl Level Units Points Service Required Annually y Amount 1 30 10 1 6 $ 50 2 60 20 2 3 75 3 90 30 2 3 100 0032946.01 3 12/14/00 4:35 PM IVISOA MOU 4 1201 3 3 150 5 150 1 1 4 0 150 2. Stipulations: a. College major shall be Marine Science, Police Science, Business Administration, Oceanography, and or 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. Obtaining transcripts or other acceptable documentation is each employee's responsibility. j. 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 0032946.01 4 12/14/00 4:35 PM MSOA MOU leave and training; permanent unit employees shall be compensated for each full hour worked at the rate specified in Paragraph B1 above. 3. Acting Chief selection shall be made at the discretion of the Department Head or designee. Seniority will not be the controlling criteria. 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. ARTICLE Vill - HOURS OF WORK/OVERTIME A. Hours of Work Defined: For purposes of this article, approved vacation time, sick leave and compensatiGnory 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. 0032946.01 1 5 12/14/00 4:35 PM MSOA MOU 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 bGth each 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. 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. 0032946.01 6 12/14/00 4:35 PM MSOA MOU 4. Eligibility Criteria and Cost- a. 4-99- 2000 Premiums -- The City shall contribute toward the cost of the 1999 2000 premium for medical, dental and vision as outlined below. 1. 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, 2000 as set forth below: 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 2. Employee Paid Premiums -- Employees hired prior to adoption date November 2, 1998, the City shall pay medical, dental and vision premiums subject to 4a and 4b above. 3. 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. This provision "Two -Tier" shall expire on December 31, 2000. b. 2001 Premiums The City "caps" its contributions toward employee monthly health insurance premiums by category and plan at the rate in effect January 1, 2001 for the year ending December 31, 2001 as set forth below: Monthly Delta Premiums* City Plan HealthNet Dental Delta Care Safeguard VSP** Employee 261.01 170.01 36.99 22.12 16.20 17.58 Only Employee 516.14 312.51 70.65 37.61 29.16 17.58 + One Employee 631.94 490.98 100.37 57.51 37.22 17.58 + Family 0032946.01 7 12/14/00 4:35 PM MSOA MOU c. 2002 Premiums The City "caps" its contribution toward employee monthly health insurance premiums by category (employee, employee + one, family) and plan (medical, dental, vision) at the rate in effect January 1, 2002 for the year ending December 31, 2002. d. 2003 Premiums The City will continue to pay the premium dollar rate established for 2002 until agreement is reached regarding 2003 contribution levels. 2. The City will not implement cost containment proposals in 2003 for this unit without agreement of the parties. e. Dependent Health Coverage -- The City will assume payment for dependent health insurance, subject to paragraph 4d a and b 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. 5. Medical Plan Changes Effective September 1, 1998 January 1, 2001: Mile- -e - -- -- �. ..r. M - - ■ - _ el ■ ■ I.IF■ ■ 0032946.01 8 12/14/00 4:35 PM MSOA MOU •�' - ., . . a) The Association agrees to one HMO (HealthNet) beginning with fer the 2001 plan year. b) Plan Deductibles - The Medical Insurance Plan deductible shall be 0-ne Two Hundred Fifty Dollars ($450 $250) per person; and the maximum deductible per family shall be €Guf Five Hundred €fifty Dollars ($450 $500) during any period of benefit entitlement as described in the City's Employee Health Plan. c) Out of Network — Non PPO co -payment reduced from seventy percent (70%) to sixty percent (60%). d) Preventive Medical Care — Part IX of the Employee Health Plan Document shall be revised to read as follows: Benefits will be provided up to $200 per person every year for preventive medical care. Such care shall include such usual preventive medical options as an every year physical exam for adults, yearly PAP tests for females, flu shots, chest x-rays, EKG and other diagnostic lab tests if certified by the physician that such procedures are included under a routine physical examination and is not in connection with the diagnosis or treatment of any illness, disease or accidental bodily injury. All well baby exams for an infant for the first year of life will be allowed and is not subject to the $200 maximum benefit. All immunizations for infants/adults will be provided and coverage is not limited to the $200 maximum benefit. 6. Medical Cash -Out — Effective January 2, 2001, if an employee is covered by a medical program outside of a City -provided program (evidence of which must be supplied to Administrative Services Department, Human Resources Division), they may elect to discontinue City medical coverage 0032946.01 9 12/14/00 4:35 PM MSOA MOU and receive two hundred dollars ($200) per month to deposit into their Deferred Compensation account or any other pre-tax program offered by the City. 7. Section 125 Plan — Effective January 1, 2001, employees may begin utilizing this plan, which allows employees to use pre-tax salary to pay for regular childcare, adult dependent care and/or medical expenses. 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 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, 0032946.01 10 12/14/00 4:35 PM MSOA MOU 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: a. 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. b. The City shall amend its contract with PERS to implement the "3% at age 50" retirement formula set forth in California Government Code Section 21362.2 for all safety employees represented by the Association at the sametime it is implemented for the Huntington Beach Police Officers' Association. At the present time, based upon actuarial studies conducted by PERS, the City is not required to make any retirement contributions with respect to employees represented by the Association. If, at any time after the implementation of the 3% at age 50 formula the City is required to make retirement contributions with respect to employees represented by the Association, the amount with respect to which each employee is reimbursed pursuant to Article XB shall be reduced by a percentage equal to one-half of the percentage of compensation earnable the City is required to pay in retirement contributions to PERS, not to exceed 2.25%. For example, if the City is required to contribute an amount equal to 2% of each employee's "compensation earnable", the amount of the reimbursement set forth in Article IXB1 shall be reduced from 9% of the employee's compensation earnable to 8% of the employee's compensation earnable. If, on the other hand, the City is required to contribute an amount equal to 8% of each employee's "compensation earnable", the amount of the reimbursement set forth in Article IXB1 shall be reduced to 6.75% of the employee's compensation earnable. 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 0032946.01 11 12/14/00 4:35 PM MSOA MOU 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 GOVered by this agreement hired before November 2, 1998. All unit employees hired on or after the adeption Gf this M 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. PERS Reopener — The City agrees to request actuarial evaluations for Post -Retirement Survivors Allowance and 1959 Survivors Benefit Level IV and after receipt agrees to reopen negotiations on these amendments. If no agreement is reached on Level IV benefits, the City agrees to provide Level III benefits if available from PERS. 3 4. 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: 0032946.01 12 12/14/00 4:35 PM MSOA MOU 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. 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 hours but apd 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 13 12/14/00 4:35 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, stepchildren, or grandparents. 0032946.01 14 12/14/00 4:35 PM MSOA MOU 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. D. 1,500 Hour Recurrent Employees: The Association agrees to permit the City to implement a 1,500 work hour per year in non-HBMSOA positions, subject to official change in Personnel Rules 5-24. 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 affect 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 , 2000. 0032946.01 15 12/14/00 4:35 PM MSOA MOU CITY OF HUNTINGTON BEACH A Municipal Corporation By: By. Ray Silver City Administrator By: By: Clay Martin Director of Administrative Services By: By: William H. Osness Personnel Director By: By: Daniel Cassidy Chief Negotiator APPROVED AS TO FORM Gail Hutton City Attorney HUNTINGTON BEACH MARINE SAFETY OFFICERS° ASSN. Mark Reid MSOA Representative 0032946.01 16 12/14/00 4:35 PM MSOA MOU 4532 Marine Safety Officer 444 3459 1 3650 3854 4062 4286 4534 Marine Safety Officer/Boat Operator 469 392-2 4137 4364 4603 4&% 1560 Marine Safety Lieutenant 494 4374 4645 4868 5435 5448 4532 Marine Safety Officer 450 3565 3761 3967 4486 444-6 4534 Marine Safety Officer/Boat Operator 475 4038 4260 4494 4742 5002 1560 Marine Safety Lieutenant 497 4508 4756 5048 5293 5584 EFFECTIVE SEPTEMBER 30, 2000 4532 Marine Safety Officer 470 3939 4156 4385 4626 4881 22.73 23.98 25.30 26.69 28.16 4534 Marine Safety Officer/Boat Operator 495 4463 4709 4967 5241 5529 25.75 1 27.17 1 28.66 1 30.24 1 31.90 1560 Marine Safety Lieutenant 517 4979 5253 5543 5848 6170 28.73 30.31 31.98 33.74 35.60 2001 CLASSIFICATION RECOMMENDATIONS Effective September 29, 2001 - Salary Increase of 3% to all classifications Effective September 28, 2002 - Salary Increase of 2% to all classifications Effective March 29, 2003 - Salary increase of 3% to all classifications 0032946.01 -17- 12/14/00 4:35 PM MSOA MOU EXHIBIT B DELTA CARE DENTAL PLAN BROCHURE A copy of the Delta Dental Plan Brochure may be obtained from the Personnel Division 0032946.01 -18- 12/14/00 4:35 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 19 12/14/00 4:35 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 20 12/14/00 4:35 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 r re iremenic�ter 1 (1/�, 9�� ��ter 9 l 88 a after! 0/'1 /S2Q 8-�e ., , $B $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 21 12/14/00 4:35 PM MSOA MOU Years of Service Maximum Monthly Payment for Retirements After: 10W87 a 01V88 a OM /8s 10/1 /92 10 $-40 $-89 $4-24 $ 121 11 44 88 432 136 12 48 97 445 151 13 53 405 4-58 166 14 57 443 4-70 181 15 64 422 482 196 16 65 430 4-95 211 17 69 -1-38 207 226 18 73 446 220 241 19 77- -�55 232 256 20 84- 463 244 271 21 86 47-4- 257- 286 22 90 479 269 300 23 94 488 282 315 24 98 4-96 294 330 25 4- 2 204 306 344 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 22 12/14/00 4:35 PM MSOA MOU INDEMNITY HEALTH PLAN, EMPLOYEES/RETIREES' 0 6 0 of 1JGR after dedLiGtoble $200 $a89 V,500 $3000 e•. Benefits1 City Plan - Employees City Plan - Subsidized Non -Subsidized Retirees Retirees COBRA -eligibles $` 50 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 DlaR (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 23 12/14/00 4:35 PM MSOA MOU 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 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 24 12/14/00 4:35 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 (FHP 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 25 12/14/00 4:35 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 26 12/14/00 4:35 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 27 12/14/00 4:35 PM 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 28 12/14/00 4:35 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. d) 5-24 — Recurrent Employment There are a number of positions where manpower requirements are sporadic, seasonal and recu7rrent. In these situations employees are called to work on an as -needed basis, frequently from a roster of individuals available and qualified for such work. There is no time limit insofar as a total period of time over which an employee may work on a recurrent basis, however, they shall not exceed 1,500 work hours in any twevel (12) month period. Recurrent appointments shall not be used on a continuing basis to fill full-time positions. 2. Rule 7 — Discipline a) 7-2 — Causes for Discipline 12) AddiGtien to the use of narnotlns or habit forming drugs or illegal use of dangerous dFugs. Possession, use or sale of illegal narcotics or habit-forming drugs, while on -duty or on City property. 14) nelG n�tendery to a Gharge of a felony or any other offence involving rn�_�_�oorraal turpitude is deemed to he a nonyintion within the meaning of this sew t�. 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 -- -. - - - .._T 11=1r_Vr_WTM__- 0032946.01 29 12/14/00 4:35 PM MSOA MOU .F. - -- ... - -- - - - M1-- - - - r • - - - - - - - if- r - . . r - - •-MIM121111111111M. IN- - -2 - - - - - -- - - - - - - - -p - 2MIMMEMMSr - - Z AIL - - - - .. • - - LY - 0 • a) 8-1 — Medical Examination. Evaluation of Employee's Work Capacity. Demotion, Transfer or Termination of Appointment At any time a Ldepartment 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 Bead'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. 0032946.01 30 12/14/00 4:35 PM MSOA MOU 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 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 ternperary. 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. 0032946.01 31 12/14/00 4:35 PM iVISOA MOU 6. Rule 14 — Additional Pay and Pay Adiustments a) 14-6 — Salary Advancements to Meet Recruiting Problems or to Give Credit for Prior Service. Application for Other Advancements The Perso; ;; el Director Department Head, through the Personnel Director and with the approval of the City Administrator may authGrize 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 ^^Front salaFy ineo, lities resulting from antions by department heaadds 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 PeFSO;netBeaFd 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. transmitted to the Beard by the Personnel DiFeGtGF, together with his FeGOMmendation. AdvanGernents within the salary range a, itherizzedbythis rule me n ay be eitherpermanent orternperrary, and May be effective as of the dote of annlination for s,,nh change ...��......v a..... v, u,v date v, uNl.+„vawuv,, ,v, vuv„ v„�w, ,yv. -20W.W32 • - - - - - - •• - - - •• - 0 - .. McrATiMMMM 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 0032946.01 32 12/14/00 4:35 PM MSOA MOU 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 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 0032946.01 33 12/14/00 4:35 PM MS®A MOU 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 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. 0032946.01 34 12/14/00 4:35 PM MSOA MOU 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 Dronorll iros in Disciplinary AAafters 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 gne ces—ef employees aFisiRgout diSGipliRaFy FnatteFs awe nnRcidered diSG Used and rocnlyed at the level nlesest to the paint nr nrinin The grievaRGe PFOG i i ed for in this rlo rhos not apply +o FeView of rnatteFS GGy�"`'erJby Rule 19 of this rosolu+inn may administratively appeal any such disciplinary action. rffi Lk _ _ r r r 0032946.01 35 12/14/00 4:35 PM MSOA MOU - -VIIJ .• �Sjnfmz!'• r A - - - - - - - - .-.�� .-,-,-.-c-u.IAW��.=...=.0�.0 - -"IMINNAMM � - - - - - - u -M. R. M!- MMI-M. - � 1 - - Lew- - - • . • 1. - ffil - - - • r 0 - $ .- - ...- - - - - - - 1 - - - - - • - - - - Nail - - - .. .. . - - r r WIN W- 0 - - .. AMC- bj 20-2 — Disciplinary Procedures 1 i Notice of Proposed Adverse Action For disciplinary demotions, suspensions or dismissals, an employee shall be gig 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 0032946.01 36 12/14/00 4:35 PM MSOA MOU 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) 20-53 - Appeal to Personnel tkear-d Commission if the gri nnno is not settler: under Step 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 ti�c;sren isTendered-under Step 3 above employee's receipt of a final Notice of Discipline, a written statement of ^rievanGe request for an appeal to the Personnel Commission shall be filed w0th submitted to the Personnel Director. SUGh statement of -,hall set forth iR detail the natuFe of the 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 0032946.01 37 12/14/00 4:35 PM MSOA MOU 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 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. nrw. ._ ■_ ■ _ , i � _ t=s r _ _ r . fig . r . 20-395 — Employee Status on Pending Funal Detern4nafign Appeal Notwithstanding provisions •Rule 7, SectionI(Suspension the disciplinary• department __ _ _shall • _ effective __ pending _ _ 0 _ appellate employee shallbe entitled _ nsation during said ..! -- the --tlGn ef the department head eF Gity l . modified .. may grant full,partial,_ _ peried of _ demotion c)F dismissal an appeal to the Personnel Commission. 0032946.01 38 12/14/00 4:35 PM IVISOA MOU 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. s 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 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: 0032946.01 39 12/14/00 4:35 PM MSOA MOU 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; 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 0032946.01 40 12/14/00 4:35 PM MSOA MOU 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. 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. 0032946.01 41 12/14/00 4:35 PM MSOA MOU c) If no position in the same class is vacant, the employee shall be given the opportunity, in order of service credit, to transfer to the position in the same class that is held by an incumbent in another department with the least amount of service credit whose position the employee has the necessary qualifications to perform. 2) If an employee(s) is not eligible for transfer within the employee's class, the employee shall be offered, in order of service credit, a reduction to a vacant position in the next lower class within the City in the occupational series in lieu of layoff provided the employee has the necessary qualifications to perform the duties of the position. 3) If the employee refuses to accept a transfer or reduction pursuant to A. or B., above, the employee shall be laid off. d) If the employee(s) in the class with the least amount of service credit is in the position(s) to be eliminated or displaced by transfer, the employee shall be offered bumping rights, pursuant to Part 2, Service Credit. e) Any employee who takes a reduction to a position in a. lower class within the occupational series in lieu of layoff shall be placed on the reinstatement/reemployment list(s) pursuant to Part 3., Reemployment. 2. Order of Layoff a) Prior to implementing a layoff, vacant positions that are authorized to be filled shall be identified by Citywide occupational series. If the employee refuses to accept a position pursuant to Section 3., above, the employee shall be laid off. b) No promotional probationary employee or permanent employee within a class in the department shall be laid off until all temporary, nonpermanent part-time and non -promotional probationary employees in the class are laid off. Permanent employees whose positions have been eliminated may exercise citywide bumping rights to a lower class in the occupational series pursuant to Part 2. c) When a position in a class and/or occupational series is eliminated, any employee in the class who is on authorized leave of absence or is holding a temporary acting position in another class shall be included for determining order of service credit and be subject to these layoff procedures as if the employee was in his or her permanent position. 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 0032946.01 42 12/14/00 4:35 PM MSOA MOU 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 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 0032946.01 43 12/14/00 4:35 PM MSOA MOU 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 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 0032946.01 44 12/14/00 4:35 PM MSOA MOU 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 the 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: 0032946.01 45 12/14/00 4:35 PM MSOA MOU 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 46 12/14/00 4:35 PM INITIATING DEPARTMENT: Administrative Services SUBJECT: Memorandum of Understanding Between the City and the Huntington Beach Marine Safety Officers' Association COUNCIL MEETING DATE: December 18, 2000 Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Attached Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Attached Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR RETURWOF RCA Author: William H. Osness