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HomeMy WebLinkAboutNon-Represented Employees - Non Associated Employees - 2002-11-06tY OF HUNTINGTON B C!� MEETING DATE: NOVEMBER 6, 200 4?_ DEPARTMENT ID NUMBER' i/ -014 svc;, Council/Agency Meeting Held: ,A2 6, ,�2_ Deferred/Continued to: proved ❑ Conditionally Approved ❑ Denied Council Meeting Date: NOVEMBER 6, City Clerk's Sigh ture Department ID Number: 02-040 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION == SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, CITY ADMINISTRATOR,01f r; e-; WILLIAM P. WORKMAN ASSISTANT CITY ADMINISTRATOR= PREPARED BY: CLAY MARTIN, DIRECTOR OF ADMINISTRATIVE SERVICES SUBJECT: ADOPT RESOLUTION TO MODIFY CERTAIN BENEFITS FOR NON - REPRESENTED EMPLOYEES. Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Should the resolution that authorizes the salary and benefits for Non -Represented Employees be modified? Funding Source: Funding included in the Fiscal Year 2002/2003 budget. The total annual cost to implement the Non -Associated Resolution is $135,000. Recommended Action: Adopt Resolution No., - -Ion , a resolution of the City Council of the City of Huntington Beach modifying salary anbenefits for calendar year 2003 for Non -Represented Employees. Alternative Action(s): Do not approve the resolution and maintain the current salary and benefits for non - represented employees. Analysis: Non -Represented employees, including Department Heads and other confidential employees of the city are not represented by an employee organization. Benefits for these employees !� are established by resolution of the City Council and are modified periodically as needed. ri� 2003 NA Resolution.doc- 10/25/2002 11:49 AM RRQUEST FOR COUNCIL ACTI40? MEETING DATE: NOVEMBER 6, 209;3/P- DEPARTMENT ID NUMBER: 02-040 Proposed modified salary and benefit changes include the following: Salary Three percent (3%) salary increase effective December 21, 2002. As a point of reference the current Consumer Price Index for Urban Wage Earners and Clerical Workers averages 2.5% for the Los Angeles -Riverside -Orange County region. This is based on the period October 1, 2001 through September 30, 2002. Health Insurance 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 plan, employees will be contributing through a pre-tax payroll deduction between approximately $175.00 and $490.00 per year to offset the cost of 2003 health insurance increases. In addition, employees are subject to additional cost containment measures in the medical plans. Pre -Retirement Death Benefits for Survivors Upon approval of the City Council, two amendments will be submitted to CalPERS having to do with survivors. The Pre -retirement Optional Settlement 2 Death Benefit provides the surviving spouse of a member eligible for retirement who dies before retiring the benefits that they would be eligible for if the member were to have already been retired. The Fourth Level of 1959 Survivors Benefit provides a monthly allowance to eligible survivors of members who died before retirement. This will bring the 1959 Survivor Benefit to just below the equivalent Social Security benefit. The Fourth Level of 1959 Survivors Benefit is separately funded with the CalPERS system and requires an employee contribution. A summary of these and other changes are included as Attachment #1. Environmental Status: Not Applicable Attachment(s): RCA Author: William McReynolds 2003 NA Resolution.doc �$- 10/25/2002 11:49 AM 02 `IW Z SUMMARY OF SALARY AND BENEFIT.toe�-�mg CHANGES FOR NON -REPRESENTED EMPLOYEES ❖ Term A one-year term from December 21, 2002 through December 19, 2003 Salary 3% increase effective December 21, 2002, (the first day of the pay period under the resolution). •o• Health Year 2003 Premiums The City's contribution to medical, dental and vision shall be no more than the premium maximum for employee only, employee plus one, and employee plus two or more. ❖ Employee Cost Sharing of Benefits Year 2003 Starting January 4, 2003 employees will share in the city's total cost of providing benefits (medical, dental, vision, life, and accidental death & dismemberment) with a bi-weekly pre-tax payroll deduction in the amounts below based on the employee's category of the medical benefit. Employee Cost Pre -Tax Per Pay Annual Sharing Period EE $ 6.75 $ 175.50 EE + 1 14.00 364.00 EE + 2 or more 18.90 491.40 ❖ Joint Cafeteria Plan Study The city and two Non -Associated employees will convene an ad -hoc committee to study a cafeteria plan for employee benefits. •o• Hours of Work Flexible Scheduling Effective February 1, 2003, with supervisor and Department Head approval, Non Associated employees may flex regular scheduled start times between the hours of 7:00 a.m. to 9:00 a.m. and end times between the hours of 4:00 p.m. and 7:00 p.m. Flex schedules shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Administrator or designee. 5/40 or 9/80 Work Schedule Effective February 1, 2003, Non -Associated employees will have the option of working a 5/40 or 9/80 work schedule with supervisor and Department Head approval. Page 1 SUMMARY OF SALARY AND BENEFIT CHANGES FOR NON -REPRESENTED EMPLOYEES ❖ Retirement The city proposes amending its contract with California Public Employees Retirement System (CaIPERS) to provide the following pre -retirement death benefits, which are described by CalPERS as follows: Pre -retirement Optional Settlement 2 Death Benefit The spouse of a deceased member, who was eligible to retire for service at the time of death, may elect to receive the Pre -Retirement Optional Settlement 2 Death Benefit in lieu of the lump sum Basic Death Benefit. The benefit is a monthly allowance equal to the amount the member would have received if the member had retired from service on the date of death and selected Option 2, the highest monthly allowance a member can leave a spouse. Fourth Level of 1959 Survivor Benefit The 1959 Survivor Benefit provides a monthly allowance to eligible survivors of members who were covered by this benefit program and died before retirement. This benefit coverage is available by contract amendment for those members who are not covered by federal Social Security with their employer. Covered members are required to pay a $2 monthly fee that is deducted from their salary specifically to fund the 1959 Survivor Benefit Program. •2• Management Issues • Ending Shorthand Skill Pay • Family Sick Leave — In Compliance with Law and Standardized • Use of Sick Leave in regards to Extended Absences Page 2 A, U RESOLUTION NO. 2002 - 109 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH MODIFYING SALARY AND BENEFITS FOR CALENDAR YEAR 2003 FOR NON -REPRESENTED EMPLOYEES WHEREAS, the City Council of the City of Huntington Beach desires to modify salary and benefits for non -represented employees for calendar year 2003, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach as follows: SECTION 1. Benefits for non -represented employees shall be modified as reflected in EXHIBIT "A," effective as indicated. SECTION 2. Salary for non -represented employees shall be modified as reflected in EXHIBIT "B," effective as indicated. SECTION 3. Except as modified, existing benefits shall remain in effect. SECTION 4. Any resolution in conflict herewith, whether by minute action or resolution of the City Council heretofore approved, is hereby repealed. PASSED AND ADOPTED by the. City Council of the City of Huntington Beach at an ad, ourned regular meeting thereof held on the _ 6th day of rNovember j 2002_. Mayor ATTEST: City Clerk REVIEWED AND APPROVED: City Ad inistrator APPROVED AS TO FORM: City Attorney to V ,'Jv6A 16 .13 . p INITIATED AND APPROVED: Director of dministrative Services G:\RESOLUTN\2002\non-rep-emp.doc Res. No. 2002-109 " 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 6th day of November, 2002 by the following vote: AYES: NOES: ABSENT: ABSTAIN Green, Dettloff, Cook, Houchen, Winchell, Bauer Boardman None None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California s/ NON -ASSOCIATED EMPLOYEE BENEFITS Rhz;OLVTION TABLE OF CONTENTS EXHIBIT A -NON-ASSOCIATED EMPLOYEES BENEFIT PROVISIONS . 3 SECTIONI — SPECIAL PAY A. Education Reimbursement 3 B. Shorthand Skill Pay" ' 3 C. Assigned Vehicle/Auto Allowance 3 1. Department Heads 3 2. Designated Division Heads 3 3. Others 3 D. City Paid Physical Examinations 4 E. Bilingual Skill 4 F. Process Owner Assignment Pay 4 SECTION II — HO URS OF WORKIOVERTIME/TIME OFF A. Compensatory Time/Administrative Leave/Executive Leave B. Direct Deposit 5 C. Flexible and Alternative Work Schedules 5 SECTION III — HEALTH AND OTHER INSURANCE BENEFITS 6 A. Medical, Dental and Vision Insurance 6 B. Life and Accidental Death and Dismemberment Insurance 8 C. Long Term Disability Insurance 8 D. MisceHaneous 8 E. Employee Cost Sharing 9 F. Joint Cafeteria Plan Study 9 SECTION IV— RETIREMENT 9 A. Benefits 9 1. Public Employees' Retirement System 9 2. Self -Funded Supplemental Retirement Benefit 9 3. Medical Insurance for Retirees 10 4. Two Percent (2%) at Ape 55 Formula 10 5. Pre -Retirement Optional Settlement 2 Death Benefit 10 6. Fourth Level of 1959 Survivor Benefits 10 B. _Public Emplovees' Retirement System Reimbursement and Reporting 10 1. Employees' Contribution 10 SECTION V — LEA VE BENEFITS 11 A. General Leave 11 1. Accrual 11 2. Eligibilityand Approval 11 3. Family Sick Leave 11 4. Conversion to Cash 11 B. holidays 12 2003 NA Resolution Final.doc i 10/28/2002 4:11 PM I C. Sick Leave 12 D. Bereavement Leave 14 SECTION VI — RETIREE SUBSIDYMEDICAL PLAN 14 1. Minimum Eligibility for Benefits 15 2. Disability Retirees 15 3. Maximum Monthly Subsidy Payments 16 . SECTION VII — R ULES GOVERNING LAYOFF, RED UCTION IN LIEU OF LAYOFF AND RE-EMPLOYMENT 17 A. Part 1 - Layoff Procedures 17 1. General Provisions: 17 2. Service Credit: 17 3. Transfer or Reduction to Vacancies in Lieu of Layoff: 18 4. Order of Layoff: 18 5. Notification of Employees: 19 B. Part 2 - Bumping Rights 20 1. Voluntary Reduction or Buming in Lieu of Layoff: 20 2. Reinstatement/Reemployment Lists 20 3. Qualifications Appeal 20 4. Qualifications Appeal Hearing: 21 C. Part 3 - Reemployment 21 1. Reemployment: 21 2. Status on Reemployment: 22 EXHIBIT B - NON -ASSOCIATED SALARY SCHEDULE EXHIBIT C - RETIREE MEDICAL PLAN EXHIBIT D - 9180 WORK SCHED ULE 23 24 29 2003 NA Resolution Final.doc ii 10/28/2002 4:11 PM EXHIBIT A - NON -ASSOCIATED EMPLOYEES BENEFIT PROVISIONS SECTION I — SPECIAL PAY A. Education Reimbursement Upon approval of the Department Head and the Human Resources Manager, permanent employees may be compensated for courses from accredited educational institutions. Tuition reimbursement shall be limited to job related courses or job related educational degree objectives and requires prior approval by the Department Head and Human Resources Manager. Education costs shall be reimbursed to permanent employees on the basis of a full refund for tuition, books, parking (if a required fee) and any other required fees upon presentation of receipts. However, the maximum reimbursement shall be not more than one thousand five hundred dollars ($1,500) in any fiscal year period. Reimbursements shall be made when the employee presents proof to the Human Resources Manager that he/she has successfully completed the course with a grade of "C" or better; or a "Pass" if taken for credit. B. Shorthand Skill Pay Effective December 21, 2002 the city shall end shorthand skill pay. All employees receiving shorthand skill pay . prior to December 21, 2002 shall continue to receive shorthand skill pay. Those employees, receiving shorthand skill pay have successfully passed a shorthand skills test and receive additional compensation in the amount of forty-six dollars and fifteen cents ($46.15) per bi-weekly pay period. Shorthand skills will not be required for positions classified as Executive Assistant, Administrative Assistant, and Administrative Secretary (Confidential). C. Assigned Vehicle/Auto Allowance 1. Department Heads Appointed Department Heads and the City Clerk, City Treasurer and City Attorney shall have the option of an assigned city vehicle or an auto allowance of two hundred thirty dollars and seventy-seven cents ($230.77) per bi-weekly pay period plus reimbursement of out-of-town travel at the approved mileage rate. 2. Designated Division Heads Non -Associated employees who were Division Heads assigned a city vehicle as of July 2, 1983 shall have the option of an assigned city vehicle or an automobile allowance one hundred sixty one dollars and fifty-four cents ($161.54) per bi- weekly pay period plus reimbursement for out-of-town travel at the approved mileage rate. 3. Others Non -Associated employees who are regularly required to travel to perform official city business but do not have an assigned vehicle or automobile allowance shall be provided with a vehicle for such business. 2003 NA Resolution Final.doc 3 10/28/2002 4:11 PM 76 p D. City Paid Physical Examinations Non -Associated employees shall be provided, once every two years, with a city paid physical examination comparable to the current class physical examination or reimbursed the amount authorized for said physical examination. No more than one- half of the eligible employees shall receive examinations in any one fiscal year. Department Heads shall be required to take the scheduled physical examination. Said exam shall be comprehensive in nature and shall include: A complete medical history, physical exam and review of results by physician. 2. Health testing including vision, hearing, breathing, chest x-ray and stress EKG. 3. Laboratory test including standard chemical test, blood count, HDL, urinalysis and stool test for blood. E. Bilingual Skill Permanent employees who are required by their Department Head to use Spanish, Vietnamese, or Sign Language skills as part of their job assignment, shall be paid an additional five -percent (5%) of their base hourly rate in addition to their regular bi- weekly salary. Permanent employees may accept assignments utilizing bilingual skills in other languages on a short-term assignment with approval by the City Administrator. Such employees shall receive the additional five percent (5%) for every bi-weekly pay period that the assignment is in effect. In order to be eligible for said compensation, employee's language proficiency will be tested and certified by the Human Resources Manager or designee. F. Process Owner Assignment Pay Those employees performing assignments designated by the city as "process owner, assignments shall receive premium pay equal to ten percent (10%) of the employee's base hourly rate. Process owner assignments are designated by the employee's department head and. approved by the City Administrator or his designee. Designated employees are responsible for JDEdwards applications setup, design, troubleshooting and training. Process owners have system coordination responsibilities as distinguished from users of the system. 2003 NA Resolution Final.doc 4 10/28/2002 4:11 PM 1 SECTION II — HOURS OF WORIUOVERTIME/TIME OFF A. Compensatory Time/Administrative Leave/Executive Leave Non -Associated "non-exempt" employees shall receive overtime pay or compensatory time for hours worked over forty (40) hours in a work week at time and one half of the employee's Fair Labor Standards Act (FLSA) regular rate of pay. The employee's supervisor shall determine if employee receives overtime pay or compensatory time. The employee's supervisor shall approve the scheduling of compensatory time used. Once per fiscal year an employee may cash out up to sixty (60) hours of compensatory time. The employee shall give payroll two (2) weeks advance notice of their decision to exercise such option. Non -Associated "Exempt" employees shall not be eligible for overtime compensation. "Exempt" Non -Associated employees, other than department heads, shall be credited with (40) hours of administrative leave upon working 40 hours beyond their normal work schedule in each calendar year. Department heads may grant additional administrative leave to "Exempt" Non -Associated employees who work more than 75 hours of overtime per year. "Exempt" department heads shall be credited with 80 hours of administrative leave per year. B. Direct Deposit All Non -Associated employees are required to utilize direct deposit of payroll checks. C. Flexible and Alternative Work Schedules Effective February 1, 2003, with supervisor and Department Head approval, Non - Associated civic center (city hall and police department) employees may flex regular scheduled start times between the hours of 7:00 a.m. to 9:00 a.m. Flex schedules shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Administrator or designee. Effective February 1, 2003 all employees will be required to take a one -hour lunch break each work shift regardless of work schedule. Effective February 1, 2003, Non -Associated civic center (city hall and police department) employees will have the option of working a 5/40 or 9/80 work schedule with supervisor and. Department Head approval. In order to maintain service to the public, departmental effectiveness, productivity and/or efficiency a Department Head may assign an employee a different work schedule that is in compliance with the requirements of the Fair Labor Standards Act (FLSA) with City Administrator approval. 1. 5/40 Work Schedule The 5140 work schedule shall be defined as working five (5) eight (8) hour days Monday through Friday each week with a one -hour lunch during each work shift, totaling a forty (40) hours work week. 2. 9/80 Work Schedule The 9/80 work schedule, a; nine (9) days for eighty (80) days at nine (9) hours per outlined in Exhibit D, shall be defined as working hours in a two week pay period by working eight (8) day and working one (1) day for eight (8) hours 2003 NA Resolution Final.doc 5 10/28/2002 4:11 PM (Friday), with a one -hour lunch during each work shift, totaling forty (40) hours in each FLSA work week. The 9/80 work schedule shall not reduce service -to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Administrator or designee. SECTION III'— HEALTH AND OTHER INSURANCE BENEFITS A. Medical, Dental and Vision Insurance 1) Medical. Dental and Vision Insurance The city shall continue to make available group medical, dental and vision benefits to all Non -Associated employees. The City Administrator is authorized to modify the level of contributions (e.g. the "caps" described below), the level of benefits, co -pays, out-of-pocket maximums, and/or other components (the "benefits") of the group medical, dental and vision plans to reflect changes necessary to make the benefits comparable to the benefits provided to represented employee associations in the city. 2) City Paid Medical Dental and Vision Insurance — Employee and Dependents The city will assume payment, subject to the limitations set forth in Article III.A.2.a-b for employees and dependents medical, dental, and vision insurance effective the first of the month following one complete calendar month of employment. a. Year 2003 Premiums — The City "caps" its contributions for 2003 premiums at the level set forth in the chart below (subject to employee cost sharing provisions in Section III.E of this resolution) Monthly Premium City Plan HMO Dental (PPO) Dental (PMI) Vision EE $ 341.62 $ 225.32 $ 46.97 $ 23.00 $ 18.07 EE + 1 675.54 493.75 89.74 39.11 18.07 [EE+2ormore 827.10 650.80 127.46 59.81 18.07 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 rate in effect January 1, 2003 for the year ending December 31, 2003. 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 the Administrative Services Department Employee Benefits), they may elect to discontinue city medical coverage and receive ninety-two dollars and thirty- one cents ($92.31) bi-weekly to deposit into their Deferred Compensation account or any other pre-tax program offered by the city. 2003 NA Resolution Final.doc 6 10/28/2002 4:11 PM 4) Section 125 Plan — This plan allows employees to use pre-tax salary _to pay for regular childcare, adult dependent care and/or medical expenses. 2003 NA Resolution Final.doc 7 10/28/2002 4:11 PM f/ aOVA /®9 B. Life and Accidental Death and Dismemberment Insurance Each Non -Associated employee shall be provided with $45,000 life insurance and $45,000 accidental death and dismemberment insurance paid for by the city. Each employee shall have the option, at his/her own expense, to purchase additional amounts of life insurance and accidental death and dismemberment insurance to the extent provided by the city's current providers. Evidence of insurability is contingent upon total participation in additional amounts-. C. Long Term Disability Insurance This program provides for each incident of illness or injury, a waiting period of thirty (30) calendar days during which the Non -Associated employee may use accumulated sick leave, general leave, compensatory time off, administrative leave, executive leave pay. Subsequent to the thirty (30) day waiting period, the employee will be covered by an insurance plan paid for by the city providing sixty-six and two-thirds percent (66 2/3%) of the first $12,500 of the employee's basic monthly earnings up to a maximum monthly benefit of $8,332.50. The maximum benefit period for disability due to injury or illness shall be to age sixty- five (65). Days and months refer to calendar days and months. Benefits under the plan are integrated with sick leave, Worker's Compensation, Social Security and other non - private program benefits to which the employee may be entitled. Disability is. defined as: "The inability to perform all.of.the duties of regular occupation during two years and thereafter the inability to engage in any employment or occupation, for which he/she is fitted by reason of education, training or experience." Rehabilitation benefits are provided in the event the individual, due to disability, must engage in other occupation. Survivor's benefits continue the plan payment for three (3) months beyond death. A copy of the plan is on file in the Administrative Services Department. D. Miscellaneous When a Non -Associated employee is on a leave of absence without pay for reason of medical disability, the city shall maintain the city paid insurance premiums during the period the employee is in a non -pay status for the length of said leave, not to exceed twenty-four (24) months. 2003 NA Resolution Final.doc 8 10/28/2002 4:11 PM E. Employee Cost Sharing Starting January 4, 2003 employees will share in the city's total cost of providing benefits (medical, dental, vision, life, and accidental death & dismemberment) with a bi- weekly pre-tax payroll deduction in the amounts below based on the employee's usage category of the medical benefit. Employee Cost Sharing ' Per Pay Period Annual EE $ 6.75 $ 175.50 EE + 1 14.00 1 364.00 EE + 2 or more 18.90 491.40 Until the City Council approves changes to the Non -Associated Resolution, 2003 rate caps will remain in place in 2004 and beyond, even if premium increases result in these additional costs being borne by the employee. F. Joint Cafeteria Plan Study The city and two Non -Associated employees will convene an ad -hoc committee to study a cafeteria plan for employee benefits. The ad -hoc committee will finalize its report by June 30, 2003. The resulting report may have an effect on 2004 benefit costs. SECTION IV — RETIREMENT A. Benefits 1. Public Employees' Retirement System Non -Associated employees shall be entitled to retirement benefits appropriate to his/her class as defined in the contract between the Board of Administration, Public Employees' Retirement System and the City Council of the City of Huntington Beach. 2. Self -Funded Supplemental Retirement Benefit In the event a Non -Associated employee member elects Option #2 (Section 21456) or Option #3 (Section 21457) of the Public Employees' Retirement Law, the city shall pay the difference between such elected option and the unmodified allowance which the member would have received for his or her life alone. This payment shall be made only to the member (Non -Associated employee), shall be payable by the city during the life of the member, and upon that member's death, the city's obligation shall cease. Unless previously excluded by employment or resolution, eligibility for this benefit is limited to employees hired before December 27, 1997. 2003 NA Resolution Final.doc 9 10/28/2002 4:11 PM �to40A G9 3. Medical Insurance for Retirees a. Upon retirement, whether service or disability connected, each Non - Associated employee shall be entitled to cause self, spouse and dependents to participate fully in the city's group health insurance program at the equivalent of the city's group premium rate in accordance with the provisions specified by Consolidated `Omnibus Budget Reconciliation Act lof1985 (COBRA). Such participation shall be at employee's expense and upon terms, conditions and restrictions currently in effect. b. As an alternative to the benefit described in paragraph IV.A.3.a above, the city will provide a financial contribution towards the cost of retiree medical premiums as described in Section VI. 4. Two Percent (2%) at Age 55 Formula Non -Associated employees shall be covered by the two percent at age 55 formula (2% @ 55) as identified in Section 21354. 5. Pre -Retirement Optional Settlement 2 Death Benefit Non -Associated employees shall be covered by the Pre -Retirement Optional Settlement 2 Death Benefit as identified in Section 21548 when approved by the City Council. 6. Fourth Level of 1959 Survivor Benefits Non -Associated employees shall be covered by the Fourth Level of the 1959 Survivor Benefit as identified in Section 21574 when approved by the City Council. B. Public Employees' Retirement System Reimbursement and Reporting 1. Employees' Contribution Non -Associated employees shall be reimbursed bi-weekly in an amount equal to 7% of the employee's base salary (9% for safety employees) as a pickup of the employee's contribution or portion of such contribution to the Public Employees' Retirement System (PERS). The above PERS pickup is not base salary but is done pursuant to Section 14(h)(2) of the Internal Revenue Code. 2003 NA Resolution Final.doc 10 10/28/2002 4:11 PM A4. X6 toola -/ a llr��� r ;0 fl �� . -.�­ SECTION V - LEAVE BENEFITS A. General Leave 1. Accrual Employees will accrue General Leave at the accrual rates outlined below. General leave may be used for any purpose, including vacation, sick leave, and personal leave. 2 General leave for non -associated employees shall be accrued as follows: Years of Service General Allowance First throu h Fourth Year 176 hours Fifth through Ninth Year 200 hours Tenth through Fourteenth Year 224 hours Fifteenth Year and Thereafter 256 hours Eligibility and Approval General leave must be pre -approved except for illness, injury or family sickness, which may require a physician's statement for approval. Accrued general leave may not be taken prior to six (6) months' service except for illness, injury or family sickness. General leave accrued time is to be computed from hiring date anniversary. Members shall not be permitted to take general leave in excess of actual time earned. Members shall not accrue general leave in excess of six hundred (600) hours. Employees may not use their general leave to advance their separation date on retirement or other separation from employment. 3. Family Sick Leave As required by law, employees will be allowed to use up to one-half of their annual General Leave accrual for family sick leave, pursuant to the provisions of California Family Code Section 297, et. seq. The city will provide family and medical care leave for eligible employees that meet all requirements of State and Federal law. Rights and obligations are set forth in the Department of Labor Regulations implementing the Family Medical Leave Act (FMLA), and the regulations of the California Fair Employment and Housing Commission implementing the California Family Rights Act (CFRA). 4. Conversion to Cash a. Pay Off at Termination - An employee shall be paid for unused general leave upon termination of employment at which time such terminating employee shall receive compensation at their current salary rate for all unused, earned general leave to which they are entitled up to and including the effective date of their termination. 2003 NA Resolution Final.doc 11 110/28/2002 4:11 PM b. Conversion to Cash — Once during each fiscal year, each permanent employee shall have the option to convert into a cash payment or deferred compensation up to a total of one hundred -twenty (120) of general leave benefits. The employee shall give payroll two (2) weeks advance notice of their decision to exercise such option. c. One Week Minimum Vacation Requirement The City Administrator may require certain positions which handle money or transfer funds to take a minimum of one week, (i.e., five consecutive work days) paid vacation each calendar year. B. Holidays The following are paid eight (8) hour holidays: 1. New Year's Day 2. Martin Luther King Day (third Monday in January) 3. Presidents Day (third Monday in February) 4. Memorial Day (last Monday in May) 5. Independence Day (July 4) 6. Labor Day (first Monday in September) 7. Veteran's Day (November 11) 8. Thanksgiving Day (fourth.Thursday in November) 9. The Friday after Thanksgiving 10. Christmas Day (December 25) Any day declared by the President of the United States to be a national holiday or by the Governor of the State of California to be a state holiday and adopted as an employee holiday by the City Council of the City of Huntington Beach. For Civic Center holiday closure purposes, holidays which fall on Sunday shall be observed the following Monday, and those falling on Saturday shall be observed the preceding Friday. C. Sick Leave 1. Accrual — No employee shall accrue sick leave. 2. Credit — Employees assigned to Non -Associated shall carry forward their sick leave balance and shall no longer accrue sick leave credit. 3. Usage — Employees may use accrued sick leave for the same purposes for which it was used prior to December 25, 1999. Sick leave shall not be used to extend absences due to work related (industrial) injuries or illnesses, this provision shall be added to Personnel Rule 18.10. 4. Family Sick Leave — The city will provide family and medical care leave for eligible employees that meet all requirements of State and Federal law. Rights and obligations are set forth in the Department of Labor Regulations 2003 NA Resolution Final.doc 12 10/28/2002 4:11 PM • .,9040a /v 9 implementing the Family Medical Leave Act (FMLA), and the regulations of the California Fair Employment and Housing Commission implementing the California Family Rights Act (CFRA). 5. Pay Off at Termination a. Non Associated employees with continuous service with the city since November 20, 1978 shall be entitled to the following sick leave payoff plan: At involuntary termination by reason of disability, or by death, or by retirement, employees shall be compensated at their then current rate of pay for seventy-five percent (75%) of all unused sick leave accumulated as of July 1, 1972, plus fifty percent (50%) of unused sick leave accumulated subsequent to July 1, 1972, up to a maximum of seven hundred and twenty hours (720) of unused, accumulated sick leave, except as provided in paragraph V.C.5.d below. Upon termination for any other reason, employees shall be compensated at their then current rate of pay for fifty percent (50%) of all unused accumulated sick leave, up to a maximum of 720 hours of such accumulated sick leave. b. Non -Associated employees hired after November 20, 1978 shall be entitled to the following sick leave payoff plan: Upon termination, all employees shall be paid, at their then current salary rate, for twenty-five percent (25%) of unused, earned sick leave to 480 hours accrued, and for thirty-five percent (35%) of all unused, earned sick leave in excess of 480 hours, but not to exceed 720 hours, except as provided in paragraph V.C.2.c below. C. Except as provided in paragraph V.C.5.d below, no Non -Associated employee shall be paid at termination for more than 720 hours of unused, accumulated sick lave. However, employees may utilize accumulated sick leave on the basis of "last in, first out," meaning that sick leave accumulated in excess of the maximum for payoff may be utilized first for sick leave, as defined in Personnel Rule 18-8. d. Non -Associated employees who had unused, accumulated sick leave in excess of 720 hours as of July 5, 1980, shall be compensated for such excess sick leave remaining on termination under the formulas described in paragraphs V.C.5.a and b above. In no event shall any employee be compensated upon termination for any accumulated sick leave in excess of the "cap" established by this paragraph (i.e., 720 hours plus the amount over 720 hours existing on July 5, 1980). Employees may continue to utilize sick leave accrued after that date in excess of such "cap" on a "last in, first out" basis. To the extent that any such capped" amount of excess sick leave over 720 hours is utilized, the maximum compensable amount shall be correspondingly reduced. (Example: Employee had 1,000 hours accumulated. Six months after July 5, 1980, employee had accumulated 2003 NA Resolution Final.doc 13 10/28/2002 4:11 PM another 48 hours. Employee is then sick for 120 hours. Employee's maximum sick leave "cap" for compensation at termination is now reduced by 72 hours to 928.) D. Bereavement Leave Employees shall be entitled to bereavement leave not to exceed twenty-four (24) hours in each instance of death �in the immediate family. Immediate family is defined as father, mother, sister, brother, spouse, children, grandfather, grandmother, stepfather, stepmother, step grandfather, step grandmother, grandchildren, stepsisters, stepbrothers, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepchildren, or wards of which the employee is the legal guardian. SECTION V1— 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: 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 2003 NA Resolution Final.doc 14 10/28/2002 4:11 PM coverage at age 65 under the city's medical plans shall be governed by applicable plan document. 3. In the event of the death of any employee, whether retired or not, the amount of the retiree medical insurance subsidy benefit which the deceased employee was receiving at the time of his/her death would be eligible to receive if he/she were retired at the time of death, shall be paid on behalf of the spouse or family for a period not to exceed twelve (12) months. D. Schedule of Benefits 1. Minimum Eligibility for Benefits With the exception of an industrial disability retirement, eligibility for benefits begin after an employee has completed ten (10) years of continuous service with the City of Huntington Beach. Said service must be continuous unless prior service is reinstated at the time of his/her rehire in accordance with the city's Personnel Rules. 2. Disability Retirees Industrial disability retirees with less than ten (10) years of service shall receive a maximum monthly payment toward the premium for health insurance of $121. Payments shall be in accordance with the stipulations and conditions, which exist for all retirees. Payment shall not exceed dollar amount, which is equal to the full cost of premium for employee only. 2003 NA Resolution Final.doc 15 10/28/2002 4:11 PM � �, �,•� b { 'If' n� av 3. Maximum Monthly Subsidy Payments All retirees, including those retired as a result of disability whose number of years of service prior to retirement exceeds ten (10) years, shall be entitled to maximum monthly payment of premiums by the city for each year of completed city service as follows: Maximum Monthly Payment for Retirements After: Years of Service Subsidy 10 $121 11 136 12 151 13 166 14 181 15 196 16 211 17 226 18 241 19 256 20 271 21 286 22 300 23 315 24 330 25 344 Note: The above payment amounts may be reduced each month as dependent eligibility ceases due to death, divorce or loss of dependent child status. However, the amount shall not be reduced if such reduction would cause insufficient funds needed to pay the full premium for the employee and the remaining dependents. In the event no reduction occurs and the remaining benefit premium is not sufficient to pay the premium amount for the employee and the eligible dependents, said needed excess premium amount shall be paid by the employee. 2003 NA Resolution Final.doc 16 10/28/2002 4:11 PM SECTION VII — RULES GOVERNING LAYOFF, REDUCTION IN LIEU OF LAYOFF AND RE-EMPLOYMENT The following procedures shall not apply to Department Heads and the Assistant City Administrator. A. Part 1 - Layoff Procedures 1. General Provisions: a.) Whenever it is necessary because of lack of work or funds to reduce the staff of a city department, employees may be laid off pursuant to these rules. b. Whenever an employee is to be separated from the competitive service because the tasks assigned are to be eliminated or substantially changed due to management -initiated changes, including but not limited to automation or other technological changes, it is the policy of the city that steps be taken by the Human Resources Division on an interdepartmental basis to assist such employee in locating, preparing to qualify for, and being placed in other positions in the competitive service. This shall not be construed as a restriction on the city government in effecting economies or in making organizational or other changes to increase efficiency. c. A department shall reduce staff by identifying which. positions within the department are to be eliminated. d. The employee who has the least city-wide service credit in the class within the department shall have city-wide transfer rights in the class pursuant to Part 1., Section 3., Transfer or Reduction to Vacancies in Lieu of Layoffs, or within the occupational series pursuant to Part 2, Bumping Rights. e. If a deadline within this procedure falls on a day the City Hall is closed, the deadline shall be the next day City Hall is open. 2. Service Credit: a. Service credit means total time of full-time continuous service within the city at the time the layoff is initiated, including probation, paid leave or military leave. Permanent part-time employees earn service credit on a pro rata basis. b. Except as required by law, leaves of absence without pay shall not earn service credit. c. As between two or more employees who have the same amount of service credit, the employee who has the least amount of service in class shall be deemed to be the least senior employee. 2003 NA Resolution Final.doc 17 10/28/2002 4:11 PM - � � h � b'`-� m � � �,P (t'c.s • ice. 2DDI-lad 3. Transfer or Reduction to Vacancies in Lieu of Layoff: a. In lieu of layoff, a transfer within class shall be offered to an employee(s) with the least amount of service credit in the class designated for staff reduction within a department subject to the following: 1) The employee has the necessary qualifications to perform the duties of the position. 2) The employee shall be given the opportunity, in order of service credit, to accept a transfer to a vacant position in the same class within the city, provided the employee has the necessary qualifications to perform the duties of the position. 3) If no position in the same class is vacant, the employee shall be given the opportunity, in order of service credit, to transfer to the position in the same class that is held by an incumbent in another department with the least amount of service credit whose position the employee has the necessary qualifications to perform. a) If an employee(s) is not eligible for transfer within the employee's class, the employee shall be offered, in order of service credit, a reduction to a vacant. position in the next lower class within. the city in the occupational series in lieu of layoff provided the employee has the necessary qualifications to perform the duties of the position. b) If the employee refuses to accept a transfer or reduction pursuant to A. or B., above, the employee shall be laid off. c) If the employee(s) in the class with the least amount of service credit is in the position(s) to be eliminated or displaced by transfer, the employee shall be offered bumping rights, pursuant to Part 2. d) Any employee who takes a reduction to a position in a lower class within the occupational series in lieu of layoff shall be placed on the reinstatement/reemployment list(s) pursuant to Part 3., Reemployment. 4. Order of Layoff: a. Prior to implementing a layoff, vacant positions that are authorized to be filled shall be identified by citywide occupational series. If the employee refuses to accept a position pursuant to Section 3., above, the employee shall be laid off. b. No promotional probationary employee or permanent employee within a class in the department shall be laid off until all temporary, non -permanent part- time and non -promotional probationary employees in the class are laid off. 2003 NA Resolution Final.doc 18 10/28/2002 4:11 PM Permanent employees whose positions have been eliminated may exercise citywide bumping rights to a lower class in the occupational series pursuant to Part 2. c. When a position in a class and/or occupational series is eliminated, any employee in the class who is on authorized leave of absence or is holding a temporary acting position in another class shall be included. for determining order of service credit and be subject to these layoff procedures as if the employee was in his or her permanent position. 5. Notification of Employees: a. The Human Resources Division shall give written notice of layoff to the employee by personal service or by sending it by certified mail to the last known mailing address at least fifteen (15) days prior to the effective date of the layoff. Normally notices will be served on employees personally at work. b. Layoff notices may be initially issued to all employees who may be subject to layoff as a result of employees exercising voluntary reduction/bumping rights. c. The notice of layoff shall include the reason for the layoff, the effective date of the layoff, the employee's hire date and the employee's service credit ranking. The notice shall also include the employee's right to bump the person in a lower class with the least service credit within the occupational series provided the employee possesses the necessary qualifications to successfully perform the duties in the lower class and the employee has more service credit than the incumbent in the lower class. d. The written layoff notice given to an employee shall include notice that he or she has seven (7) calendar days from the date of personal service, or date of delivery of mail if certified, to notify the Human Resources Manager in writing if the employee intends to exercise the employee's bumping rights, if any, pursuant to Part 2., Bumping Rights. e. Whenever practicable, any employee with the least amount of service credit in a lower class within an occupational series which is identified for work force .reduction shall also be given written notice that such employee may be bumped pursuant to Part 2. This notice shall include the items referred to in 3., above. If an employee disagrees with the city's computation of service credit or listed date of hire, the employee shall notify the Human Resources Manager as soon as possible but in no case later than five (5) calendar days after the personal service or certified mail delivery. Disputes regarding date of hire or service credit shall be jointly reviewed by the Human Resources Manager and the employee and/or the employee's representative as soon as possible, but in no case later than five (5) calendar days from the date the employee notifies the Human Resources Manager of the dispute. ' Within five (5) 2003 NA Resolution Final.doc 19 10/28/2002 4:11 PM � b -AO calendar days after the dispute is reviewed, the employee shall be notified in writing of the decision. B. Part 2 e Bumping Rights 1. Voluntary Reduction or Bumping in Lieu of Layoff: a. A promotional probationary employee or permanent employee who receives a layoff notice may request a reduction to a position in a lower class within the occupational series provided the employee possesses the necessary qualifications to perform the duties of the position. b. Employees electing reduction under A. above, shall be reduced to a position authorized to be filled in a lower class within the employee's occupational series. The employee may reduce to a lower class in his/her occupational series by 1) filling a vacancy in that class, or 2) if no vacancy exists, displacing the employee in the class with the least service credit, whose position the employee has the necessary qualifications to perform. A displaced employee shall have bumping rights. c. An employee who receives a layoff notice must exercise bumping rights within seven (7) calendar days of receipt of the notice as specified in Part 1. Failure to respond within the time limit shall result in a reputable presumption that the employee does not intend to exercise any right of reduction or bumping to a lower class. The employee must carry the burden of proof to show that the employee's failure to respond within the time limits was reasonable. If the employee establishes that failure to respond within the time limit was reasonable, to the Human Resources Manager's satisfaction, the employee shall be permitted to exercise bumping rights but shall not be reinstated to a paid position until the employee to be bumped has vacated the position. If the employee disagrees with the Human Resources Manager's decision, the employee may appeal pursuant to the provisions of Sections 3 and 4 below. 2. Reinstatement/Reemployment Lists Any employee who takes a reduction to a position in a lower class within the occupational series in lieu of layoff shall be placed on the reinstatement/reemployment list pursuant to Part 3. Reemployment 3. Qualifications Appeal Any employee who is denied a reduction to a position in a lower class within the occupational series on the basis that the employee does not possess the necessary qualifications to successfully perform the duties of the lower position may appeal the decision. The appeal shall be filed with the Human Resources Manager within five (5) calendar days of the employee's receipt of 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. 2003 NA Resolution Finai.doc 20 10/28/2002 4:11 PM a� /B 9 4. Qualifications Appeal Hearing: a. Upon receipt of an appeal, the Human Resources Manager shall contact a mediator from the California State Mediation and Conciliation Service to schedule a hearing within two (2) weeks after receipt of the appeal. If the California State Mediation and Conciliation Service is not available within that time frame, the parties shall mutually select: `a person who is available within the time frame. If the California State Mediation and Conciliation Service and the person mutually selected are not available within the time frame, the parties shall select the earliest date either is available to conduct the hearing. The parties shall split the cost, if any, of the hearing officer. In addition, the parties shall meet within three (3) workdays to attempt to resolve the dispute. If the dispute remains unresolved, the parties shall endeavor in good faith to submit to the hearing officer a statement of all agreed upon facts relevant to the hearing. b. Appeal hearings shall be limited to two (2) hours, except as otherwise agreed by the parties or directed by the hearing officer. c. The hearing officer shall attempt to resolve the dispute by mutual agreement if possible. If no agreement is reached, the hearing officer shall render a decision at the conclusion of the hearing which shall be final and binding. C. Part 3 -Reemployment Reemployment: a. Employees who are laid off or reduced to avoid layoff shall have their names placed upon a reemployment list, for each class in the occupational series, in seniority order at or below the level of the class from which laid off or reduced. b. Names of persons placed on the reemployment lists shall remain on the list for two (2) years from the date of layoff or reduction. c. Vacancies shall be filled from the reemployment list for a class, starting at the. top of the list, providing that the person meets the necessary qualifications for the position. d. Names of persons are to be removed from the reemployment list for a class if on two (2) occasions they decline an offer of employment or on two (2) occasions fail to respond to offers of employment in a particular class within five (5) calendar days of receipt of written notice of an offer. Any employee who is dismissed from the city service for cause shall have his or her name removed from all reemployment lists. e. Reemployment lists shall be available affected employees upon reasonable request. 2003 NA Resolution Final.doc 21 10/28/2002 4:11 PM f. Qualifications appeals involving reemployment rights shall be resolved in the same manner as that identified in Part 2., Section 4. 2. Status on Reemployment: a. Persons re-employed from layoff within a two (2) year period from the date of layoff shall receive the following considerations -and benefits 1) Service credit held upon layoff shall be restored, but no credit shall be added for the period of layoff. 2) Prior service credit shall be counted toward sick leave and vacation accruals. 3) Employees may cash in sick leave upon layoff or at any time after layoff in the manner and amount set forth in existing Non -Associated Employees Benefit Provision. Sick leave shall be paid to an employee when the reemployment list(s) expire(s), if not previously paid. 4) Upon reinstatement the employee may have his or her sick leave re - credited by repayment to the city the cashed amount. Sick leave accumulation of less than 480 hours shall be restored upon reemployment. 5) The employee shall be returned to the salary step of the classification held at the time of the layoff and credited with the time previously served at that step prior to being laid off. 6) The probationary status of the employee shall resume if incomplete. b. Employees who have reduced to avoid layoff and are returned within two (2) years to their former class shall be placed at the salary step of the class they held at the time of reduction and have their merit increase eligibility date recalculated 2003 NA Resolution Final.doc 22 10/28/2002 4:11 PM -99 0 0.1 -1b EXHIBIT B - NON -ASSOCIATED SALARY SCHEDULE Effective December 21, 2002 Job Tyllie SA,.StiiU"S D66cripfi pay (3rade 0466 Non -Exempt Administrative Secretary NA 411,__ 17.10 18.04 J9.03 20.08 21.18 0279 Non -Exempt Personnel Assistant 414 17.18 18.13 10.13 20.18 21.29 0447 Non -Exempt Payroll Technician 420 17.73 18.70 19.73 20.81 21.95 0446 Non -Exempt Payroll Technician, Sr 439 19.48, 20.55 21.68 22.87 24.13 0278 Non -Exempt Administrative Assistant 442 19.76 20.85 22.00 23.21 24.49 0061 Non -Exempt Executive Assistant 470 22.73 23.98 25.30 26.69 28.16 0005 Exempt Administrative Analyst NA 497 26.01 27.44 28.95 30.54 32.22 0453 Exempt Personnel Analyst 499 26.27 27.71 29.23 30.84 32.54 0443 Exempt Payroll Analyst 505 27.06 28.55 30.12 31.78 33.53 0063 Exempt Admin Analyst, Sr NA 525 29.911 31.55 33.28 35.11 37.04 0064 Exempt Analyst, Sr 525 29.91 -31.55 33.28 35.11 37.04 0464 -Budget Exempt Personnel Analyst, Senior 525 29.91 31.55 33.28 35.11 37.04 0062 Exempt dmin Analyst, Principal NA 544 32.88 34.69 36.60 38.61 40.73 0060 Exempt Personnel Analyst Principal 544 32.88 34.69 36.60 38.61 40.73 0054 Exempt Risk Mana er 576 38.58 40.70 42.94 45.30 47.79 0006 Exempt Human Resources Manager 593 41.98 44.29 46.73 49.30 52.01 0055 Exempt Finance Officer 597 42.82 45.18 47.66 50.28 53.05 0078 Exempt Assistant City Attorney 614 46.62 49.18 51.89 54.74 57.75 0004 Exempt Director of Comm & Spec Pro' 592 41.77 44.07 46.49 49.05 51.75 0012 Exempt Director of Or Effectiveness 592 41.77 44.07 46.49 49.05 51.75 0007 Exempt Director of Library Services 611 45.92 48.45 51.11 53.92 56.89 0009 Exempt Director of Building & Safety 622 48.51 51.18 54.00 56.97 60.10 0013 Exempt Director of Admin Services 629 50.24, 53.00 55.92 59.00 62.24 0014 Exempt Director of Community Services 629 50.241 53.00 55.92 59.00 62.24 0008 Exempt Director of Econ Development 629 50.24 53.00 55.92 59.00 62.24 0000 Exempt Director of Information Services 629 50.24 53,00 55.92 59.00 62.24 0021 Exempt Director of Planning 629 50.24 53.00 55.92 59.00 62.24 0010 Exempt Director of Public Works 645 54.42 57.41 60.57 63.90 67.41 0015 Exempt Fire Chief 653 56.63 59.74 63.03 66.50 70.16 0011 Exempt Police Chief 653 56.63 59.74 63.03 66.50 70.16 0020 Exempt lAssistant City Administrator 658 58.07 61.26 64.63 68.18 71.93 2003 NA Resolution Final.doc 23 10/28/2002 4:11 PM go too d- /o q EXHIBIT C - RETIREE MEDICAL PLAN INDEMNITY HEALTH PLAN, EMPLOYEES/RETIREES 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. YEAR 2003 Benefits City Plan - Employees City Plan - Subsidized Non -Subsidized Retirees Retirees COBRA -eligibles Deductible $250 per person $250 per person $500 per family $500 per family Maximum Out of Pocket $2,000 per person $2,000 per person $4,000 per family $4,000 per family Co -Insurance PPO 90% of UCR 90% of UCR Non-PPO 50% of UCR 50% of UCR Maximum Out of Pocket $1000 per person $1,000 per person $2000 per family $2,000 per family Note: Retirees who elect to participate in the city provided HMO shall be entitled to benefits of the program chosen. This summary has been used to list only those benefit provisions that differ between active and subsidized Retiree Plans. Currently, there are no differences, however, this exhibit is not intended to require that future changes to active employee benefits be applied to retirees as well. 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. 2003 NA Resolution Final.doc 24 10/28/2002 4:11 PM EXHIBIT C p RETIREE MEDICAL PLAN 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. Employee Benefits shall notify covered retirees of this opportunity each year. 3. Years of service computed for the Retiree Subsidy Medical Plan are actual years of completed service with the City of Huntington Beach. 4. When a retiree is eligible for medical plan coverage at the expense of another employer due to post -retirement employment of the retiree or spouse of the retiree, the retiree and his/her spouse must take that coverage regardless of benefit level and shall be deleted from any city Plan coverage. Exceptions to this requirement are limited to the following: a. A retiree is not required to enroll in such `other" medical plan coverage if there is significant disparity between the benefits provided by the "other" medical plan and the Retiree Subsidy Medical Plan as defined below. "Significant disparity" means coverage available under the "other" medical plan is restrictive or limited in one or.more of the following ways: 1) No in -patient hospitalization coverage. 2) No major medical benefits 3) Annual deductible is $1,500 or greater per person. 4) Major medical benefits are paid at 60% or less of covered expenses. b. The Risk Manager will have the authority to provide additional exceptions following review of the `other' medical plan policy. Exceptions will be made only if the "other" medical plan benefit provisions are comparable to the guidelines under Exhibit C.A.4.a above. 2003 NA Resolution Final.doc 25 10/28/2002 4:11 PM a off- -moo fa 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 shalli have the right to require any retiree to provide a copy of the `other' medical plan policy for review by the Risk Manager. 5. When a retiree becomes eligible for the other group coverage and then becomes no longer eligible, he/she may have the subsidy reinstated and regain Retiree Subsidy Medical Plan coverage. 6. Dependents of a retiree may follow him/her into the Retiree Subsidy Medical Plan or they may choose to exercise COBRA rights along with the retiree. 7. When a retiree becomes 65 and has eligible dependents under 65, said dependents are eligible to exercise COBRA rights. 8. When a retiree is under 65 and his/her spouse is over 65, the spouse is not covered. B. Benefits: 1. Retiree Subsidy Medical Plan includes Managed Health Network (MHN), Prescription Card System (PCS), Orange County Foundation for Medical Care 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. City provided HMO. c. Part A of Medicare for those retirees not eligible for paid Part A. 2003 NA Resolution Final.doc 26 10/28/2002 4:11 PM � •a2 0U,2 / 0 9 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. 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, the participant pays for Part B of Medicare. 2. When a retiree and his/her spouse are both 65 or over, and neither is eligible for paid Part A of Medicare, the subsidy shall pay for Part A for each of them or the maximum subsidy, whichever is less. 3. When a retiree at age 65 is eligible for paid Part A of Medicare and his/her spouse is not eligible for paid Part A, the spouse shall not receive subsidy. When a retiree at age 65 is not eligible for paid Part A of Medicare and his/her spouse who is also age 65 is eligible for paid Part A of Medicare, the subsidy shall be for the retiree's Part A only. E. Cancellation: 1. For retirees/dependents eligible for paid Part A of Medicare, the following cancellation provisions apply: a. Coverage for a retiree under the Retiree Subsidy Medical Plan will be eliminated on the first day of the month in which the retiree reaches age 65. If such retiree was covering dependents under the Plan, dependents will be eligible for COBRA continuation benefits effective as of the retiree's 65th birthday. b. Dependent coverage will be eliminated upon whichever of the following occasions comes first: 1) After 36 months of COBRA continuation coverage, or 2003 NA Resolution Final.doc 27 10/28/2002 4:11 PM ' � •�to ate. r� 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 Employee Benefits in accordance with provisions of the Non - Associated Employees Benefit Resolution. 4. A retiree who fails to pay premiums due for coverage and is in arrears for sixty (60) days shall be terminated from the Plan and shall not have reinstatement rights. 2003 NA Resolution Final.doc 28 10/28/2002 4:11 PM m '�s I !� • 6L fJ (JAR � Aq Q EXHIBIT D - 9/80 WORK SCHEDULE This work schedule is known as "9/80". The 9/80 work schedule is designed to be in compliance with the requirements of the Fair Labor Standards Act (FLSA). In the event that there is a conflict with the current rules, practices and/or procedures regarding work schedules and leave plans, then the rules listed below shall govern. 9/80 WORK SCHEDULE DEFINED The 9/80 work schedule shall be defined as working nine (9) days for eighty (80) hours in a two week pay period by working eight (8) days at nine (9) hours per day and working one (1) day for eight (8) hours (Friday), with a one -hour lunch during each work shift, totaling forty (40) hours in each FLSA work week. The 9/80 work schedule shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Administrator or designee. A. Forty (40) Hour FLSA Work Week — The actual FLSA work week is from Friday at mid -shift (p.m.) to Friday at mid -shift (a.m.). No employee working the 9/80 work schedule will be able to flex their Friday start time nor the time they take their lunch break, which will be from 12:00 p.m. to 1:00 p.m. on Fridays. All employee work shifts will start at 8:00 a.m. on their Friday worked. The start of the FLSA work week is 12:00 noon Friday. B. Two Week Pay Period — The pay period for employees starts Friday mid -shift (p.m.) and continues for fourteen (14) days until Friday mid -shift (a.m..). During this period, each week is made up of four (4) nine (9) hour work days (thirty-six (36) hours) and one (1) four (4) hour Friday and those hours equal forty (40) work hours in each work week (e.g. the Friday is split into four (4) hours for the a.m. shift, which is charged to work week one and four (4) hours for the p.m. shift, which is charged to work week two). C. A/B Schedules — To continue to provide service to the public every Friday, employees are to be divided between two schedules, known as the "A" schedule and the "B" schedule, based upon the departmental needs. For identification purposes, the "A" schedule shall be known as the schedule with a day off on the Friday in the middle of the pay period, or, "off on payday", the "B" schedule shall have the first Friday (p.m.) and the last Friday (a.m.) off, or "working on payday. An example is listed below: AM F PM F"lib,",S"" ""M. T W.Th Al1ti PM F S AM PJVI. A Schedule 4 4 - - 9 9 9 9 - - - - 9 9 9 9 4 4 B Schedule - - - - 9 9 9 9 4 4 - - 9 9 9 9 - - D. A/B Schedule Changes — FLSA non-exempt employees cannot change schedules without prior approval of their supervisor, Department Head, and the Human Resources Manager or designee. The purpose of this authorization is to review the impact on overtime. FLSA exempt employees may change A/B schedules at the beginning of any pay period with supervisor and Department Head approval. 2003 NA Resolution Final.doc 29 10/28/2002 4:11 PM E. Emergencies — All employees on the 9/80 work schedule are subject to be called to work any time to meet any and all emergencies or unusual conditions which, in the opinion of the City Administrator, Department Head or designee may require such service from any of said employees. OVERTIME DEFINED FLSA Non -Exempt Employees — All non-exempt employees under- the 9/80 work schedule shall earn overtime for all hours worked after the first forty (40) hours in an FLSA work week (Friday 12:00:00 p.m. to Friday 11:59:59 a.m.) as required under FLSA. Employees are required to obtain supervisor authorization prior to working any overtime. 1. Overtime Compensation — As stated in Section II.A of the Non -Associated Resolution. 2. Compensatory Time — As stated in Section II.A of the Non -Associated Resolution. LEAVE BENEFITS When an employee is off on a scheduled workday under the 9/80 work schedule, then nine (9) hours of eligible leave per workday shall be charged against the employee's leave balance or eight (8) hours shall be charged if the day off is a Friday. All leaves shall continue under the current accrual, eligibility, request and approval requirements. 1. General Leave - As stated in Section V.A of the Non -Associated Resolution. 2. Sick Leave - As stated in Section V.0 of the Non -Associated Resolution. 3. Administrative Leave — As stated in Section II.A of the Non -Associated Resolution. 4. Executive Leave — As stated in Section II.A of the Non -Associated Resolution. 5. Bereavement Leave — As stated in Section V.D of the Non -Associated Resolution. 6. Holidays - a. For a recognized city holiday, eight (8) hours, as stated in Section V.B, are earned for each holiday. For the charging of hours on a scheduled holiday, the employee must use eight (8) hours of holiday time off and one (1) hour from the employees General Leave, Compensatory Time, Administrative Leave, or Executive Leave banks for a nine (9) hour workday charge or eight (8) hours holiday time off for a Friday. b. If a holiday falls on an FLSA non-exempt employee's Friday off, the employee must then take the work shift before or after the holiday off with supervisor and Department Head approval. If the employee cannot take the work shift before or after the holiday off the employee will be granted eight (8) hours of general leave. 2003 NA Resolution Final.doc 30 1012812002 4:11 PM c. If a holiday falls on an FLSA exempt employee's Friday off, the employee must then take the work shift before or after the holiday off with supervisor and Department Head approval. 7. Jury Duty — The provisions of the Personnel Rules shall continue to apply, however, if an FLSA exempt employee is called to serve on jury duty during a normal Friday off, Saturday, or Sunday-, or on a city holiday; then the jury duty shall be considered the same as having occurred during the employees day off work, therefore, the employee will receive no added compensation. 2003 NA Resolution Final.doc 31 10/28/2002 4:11 PM EE BE4FITS RtSOLUTION NON-ASSt,,CIATED EMPLOY TABLE OF CONTENTS Je4 EXHIBIT A -NON-ASSOCIATED EMPLOYEES BENEFIT PROVISIONS 3 SECTIONI — SPECIAL PAY 3 A. Education Reimbursement 3 B. Shorthand Skill Pay 3 C. Assigned Vehicle/Auto Allowance 3 1. Department Heads 3 2. Designated Division Heads 3 3. Others 4 D. City Paid Physical Examinations 4 E. Bilingual Skill 4 F. Process Owner Assignment Pay 4 SECTION H — HOURS OF WORK/OVERTIME/TIME OFF 5 A. Compensatory Time/Administrative Leave/Executive Leave 5 B. Direct Deposit 5 C. Flexible and Alternative Work Schedules 5 SECTION III — HEALTH AND OTHER INSURANCE BENEFITS 6 A. Health Medical, Dental and Vision Insurance 6 B. Life and Accidental Death and Dismemberment Insurance 8 C. Long Term Disability Insurance 8 D. Miscellaneous 9 E. Employee Cost Sharing 9 F. Joint Cafeteria Plan Studv 9 SECTION IV— RETIREMENT 10 A. Benefits 10 1. Public Em_ployees' Retirement S, sy tem 10 2. Self -Funded Supplemental Retirement Benefit 10 3. Medical Insurance for Retirees 10 4. Two Percent (2%) at Age 55 Formula 11 5. Pre -Retirement Optional Settlement 2 Death Benefit 11 6. Fourth Level of 1959 Survivor Benefits 11 B. Public Emplovees' Retirement System Reimbursement and Reporting 11 1. Employees' Contribution 11 SECTION V —LEAVE BENEFITS 12 A. General Leave 12 1. Accrual 12 2. Eli ig bility a, nd Approval 12 3. Family Sick Leave 12 4. Conversion to Cash 12 B. holidays 14 2003 NA Resolution Draft.doc i 10/28/2002 4:08 PM C. Sick Leave 14 D. Bereavement Leave 16 & Paternity Leave 16 SECTION VI — RETIREE SUBSIDYMEDICAL PLAN 16 1. Minimum Eli gbility for Benefits 17 i 2. Disability Retirees 17 3. Maximum Monthly Subsidy Payments 18 SECTION VII — RULES GOVERNING LAYOFF, RED UCTION IN LIEU OF LAYOFF AND RE-EMPLOYMENT 19 A. 1. Part 1 - Layoff Procedures General Provisions: 19 19 2. Service Credit: 19 3. Transfer or Reduction to Vacancies in Lieu of Layoff: 20 4. Order of Layoff. 20 5. Notification of Employees: 21 B. 1. Part 2 - Bumping Rights Voluntary Reduction or Bumping in Lieu of Layoff: 22 22 2. Reinstatement/Reemployment Lists 22 3. Qualifications Appeal 22 4. C. 1. Qualifications Appeal Hearing: Part 3 - Reemployment Reemployment: 23 23 23 2. Status on Reemployment: 24 EXHIBIT B - NON -ASSOCIATED SALARY SCHEDULE EXHIBIT C - RETIREE MEDICAL PLAN EXHIBIT D - 9180 FORK SCHED ULE 25 27 33 2003 NA Resolution Draft.doc ii 10/28/2002 4:08 PM EXHIBIT A - NON -ASSOCIATED EMPLOYEES BENEFIT PROVISIONS SECTION I — SPECIAL PAY A. Education Reimbursement Upon approval of the Department Head and the Human Resources 8#+se Manager, permanent employees may be compensated for courses from accredited educational institutions. Tuition reimbursement shall be limited to job related courses or job related educational degree objectives and requires prior approval by the Department Head and Human Resources S#-iser Manager. Education costs shall be reimbursed to permanent employees on the basis of a full refund for tuition, books, parking (if a required fee) and any other required fees upon presentation of receipts. However, the maximum reimbursement shall be not more than one thousand five hundred dollars ($1,500) in any fiscal year period. Reimbursements shall be made when the employee presents proof to the Human Resources 9f€iser Manager that he/she has successfully completed the course with a grade of "C" or better; or a "Pass" if taken for credit. B. Shorthand Skill Pay Effective December 21, 2002 the city shall end shorthand skill pay. All employees receiving shorthand skill pay prior to December 21, 2002 shall continue to receive shorthand skill pay. € Those employees receiving shorthand skill pay who have successfully passed a shorthand skills test and whe aFe Fequir d to use shorthand Fern ulaFly in their ebb shall and receive additional compensation in the amount of 9Re forty-six dollars and fifteen cents ($46.15) per bi- weekly pay period. Shorthand skills will not may be required for selected positions classified as Executive Assistant, Administrative Assistant, and Administrative Secretary (Confidential). C. Assigned Vehicle/Auto Allowance Department Heads Appointed Department Heads and the City Clerk, City Treasurer and City Attorney shall have the option of an assigned city vehicle or an auto allowance of two hundred thirty dollars and seventy-seven cents ($230.77) per bi-weekly pay period plus reimbursement of out-of-town travel at the approved mileage rate. 2. Designated Division Heads Non -Associated employees who were Division Heads assigned a city vehicle as of July 2, 1983 shall have the option of an assigned city vehicle or an automobile allowance one hundred sixty one dollars and fifty-four cents ($161.54) per bi- weekly pay period plus reimbursement for out-of-town travel at the approved_ mileage rate. 2003 NA Resolution Draft.doc 3 10/28/2002 4:08 PM 3. Others Non -Associated employees who are regularly required to travel to perform official city business but do not have an assigned vehicle or automobile allowance shall be provided with a vehicle for such business. D. City Paid Physical Examinations Non -Associated employees shall be provided, once every two years, with a city paid physical examination comparable to the current class physical examination or reimbursed the amount authorized for said physical examination. No more than one- half of the eligible employees shall receive examinations in any one fiscal year.. Department Heads shall be required to take the scheduled physical examination. Said exam shall be comprehensive in nature and shall include: 1. A complete medical history, physical exam and review of results by physician. 2. Health testing including vision, hearing, breathing, chest x-ray and stress EKG. 3. Laboratory test including standard chemical test, blood count, HDL, urinalysis and stool test for blood. E. Bilingual Skill Permanent employees who are required by their Department Head to use Spanish, Vietnamese, or Sign Language skills as part of their job assignment, shall be paid an additional five -percent (5%) of their base hourly rate in addition to their regular bi- weekly salary. Permanent employees may accept assignments utilizing bilingual skills in other languages on a short-term assignment with approval by the City Administrator. Such employees shall receive the additional five percent (5%) for every bi-weekly pay period that the assignment is in effect. In order to be eligible for said compensation, employee's language proficiency will be tested and certified by the Human Resources Of#+ser Manager or designee. F. Process Owner Assignment Pay Those employees performing assignments designated by the city as "process owner" assignments shall receive premium pay equal to ten percent (10%) of the employee's base hourly rate. Process owner assignments are designated by the employee's department head and approved by the City Administrator or his designee. Designated employees are responsible for JDEdwards applications setup, design, troubleshooting and training. Process owners have system coordination responsibilities as distinguished from users of the system. 2003 NA Resolution Draft.doc 4 10/28/2002 4:08 PM SECTION 11— HOURS OF WORK/OVERTIME/T ME OFF A. Compensatory Time/Administrative Leave/Executive Leave Non -Associated "non-exempt" employees shall receive overtime pay or compensatory time for hours worked over forty (40) hours in a work week at time and one half of the employee's Fair Labor Standards. Act (FLSA) regular rate of pay. The employee's supervisor shall determine if employee receives overtime pay or compensatory time. The employee's supervisor shall approve the scheduling of compensatory time used. Once per fiscal year an employee may cash out up to sixty (60) hours of compensatory time. The employee shall give payroll two (2) weeks advance notice of their decision to exercise such option. Non -Associated "Exempt" employees shall not be eligible for overtime compensation. IMrzrrr_r M0,-M:*r. I'll heuFs OR a weFkweek. "Exempt" Non -Associated employees, other than department heads, shall be credited with (40) hours of administrative leave upon working 40 hours beyond their normal work schedule in each calendar year. Department heads may grant additional administrative leave to "Exempt" Non -Associated employees who work more than 75 hours of overtime per year. "Exempt" department heads shall be credited with 80 hours of administrative leave per year. B. Direct Deposit All Non -Associated employees are shall be required to utilize direct deposit of payroll checks. effeGtive MaFGh 29 2002 C. Flexible and Alternative Work Schedules Effective February 1, 2003, with supervisor and Department Head approval, Non - Associated civic center (city hall and police department) employees may flex regular scheduled start times between the hours of 7:00 a.m. to 9:00 a.m. Flex schedules shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Administrator or designee. Effective February 1, 2003 all employees will be required to take.a one -hour lunch break each work shift regardless of work schedule. Effective February 1, 2003, Non -Associated civic center (city hall and police department) employees will have the option of working a 5/40 or 9/80 work schedule with supervisor and Department Head approval. In order to maintain service to the public, departmental effectiveness, productivity and/or efficiency a Department Head may assign an employee a different work schedule that is in compliance with the requirements of the Fair Labor Standards Act (FLSA) with City Administrator approval. 2003 NA Resolution Draft.doc 5 10/28/2002 4:08 PM ,io . a o oa -lb? 1. 5/40 Work Schedule The 5140 work schedule shall be defined as working five (5) eight (8) hour days Monday through Friday each week with a one -hour lunch during each work shift, totaling a forty (40) hours work week. 2. 9/80 Work Schedule The 9/80 work schedule, as outlined in. Exhibit D, shall be defined as working nine (9) days for eighty (80) hours in a two week pay period by working eight (8) days at nine (9) hours per day and working one (1) day for eight (8) hours (Friday), with a one -hour lunch during each work shift, totaling forty (40) hours in each FLSA work week. The 9180 work schedule shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Administrator or designee. SECTION III — HEALTH AND OTHER INSURANCE BENEFITS A. Heatt# Medical, Dental and Vision Insurance 1) Medical, Dental and Vision Insurance The city shall continue to make available previde group medical, dental and vision benefits to all Non -Associated employees. The City Administrator is authorized to modify the level of contributions (e.g. the "caps" described below), the level of benefits, co -pays, out-of-pocket maximums, and/or other components (the "benefits") of the group medical, dental and vision plans benefits deGo,;bedORthiGSestion to reflect changes necessary to make the benefits comparable to the these benefits provided to represented employee associations etheF maRageFs in the city. _City Paid Medical, a Dental, and Vision Insurance — Emplovee and Dependents The city will assume payment, subject to the limitations set forth in Article III.A.1.bs.2-4 for employees and dependents medical, health and dental, and vision insurance effective the first of the month following one complete calendar month 38-days of employment. 2003 NA Resolution Draft.doc 6 10/28/2002 4:08 PM r •• - - NOM .. .. 1 Cm OEM" Z rr-Tr. I .. ._ .. 2003 NA Resolution Draft.doc 7 10/28/2002 4:08 PM Sze • a o a /off a. Year 2003 Premiums - The City "caps" its contributions for 2003 premiums at the level set forth in the chart below (subject to employee cost sharing provisions in Section III.E of this resolution) Monthly Premium City Plan HMS "' Dental " (PPO) Dental (PMI) Vision EE $ 341.62 $ 225.32 $ 46.97 $ 23.00 $ 18.07 EE + 1 675.54 493.75 89.74 39.11 18.07 EE + 2 or more 827.10 650.80 127.46 59.81 18.07 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 rate in effect January 1, 2003 for the year ending December 31, 2003. 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 the Administrative Services Department Employee Benefits), they may elect to discontinue city medical coverage and receive ninety-two dollars and thirty-one cents ($92.31) bi-weekly to deposit into their Deferred Compensation account or any other pre-tax program offered by the city. 4. Section 125 Plan - This plan allows employees to use pre-tax salary to pay for regular childcare, adult dependent care and/or medical expenses. B. Life and Accidental Death and Dismemberment Insurance Each Non -Associated employee undeF age sixty five (W shall be provided with $45,000 life insurance and $45,000 accidental death and dismemberment insurance paid for by the city. Each employee shall have the option, at his/her own expense, to purchase additional amounts of life insurance and accidental death and dismemberment insurance to the extent provided by the city's current providers. Evidence of insurability is contingent upon total participation in additional amounts. C. Long Term Disability Insurance This program provides for each incident of illness or injury, a waiting period of thirty (30) calendar days during which the Non -Associated employee may use accumulated sick leave, aPA-general leave, compensatory time off, administrative leave, executive leave pay. Subsequent to the thirty (30) day waiting period, the employee will be covered by an insurance plan paid for by the city providing sixty-six and two-thirds percent (66 2/3%) of the first $12,500 of the employee's basic monthly earnings up to a maximum monthly benefit of $8,332.50. The maximum benefit period for disability due to injury or illness shall be to age sixty- five (65). 2003 NA Resolution Draft.doc 8 10/28/2002 4:08 PM yam. a 40 0 4 /: 9 Days and months refer to calendar days and months. Benefits under the plan are integrated with sick leave, Worker's Compensation, Social Security and other non - private program benefits to which the employee may be entitled. Disability is defined as: "The inability to perform all of the duties of regular occupation during two years and thereafter the inability to engage in any employment or occupation, for which he/she is fitted by reason of education, training or experience. Rehabilitation benefits are provided in the event the individual, due to disability, must engage in other occupation. Survivor's benefits continue the plan payment for three (3) months beyond death. A copy of the plan is on file in the Administrative Services Department, - Employee BeRefito 1)'V;oinR D. Miscellaneous When a Non -Associated employee is on a leave of absence without pay for reason of medical disability, the city shall maintain the city paid insurance premiums during the period the employee is in a non -pay status for the length of said leave, not to exceed twenty-four (24) months. E. Employee Cost Sharing Starting January 4, 2003 employees will share in the city's total cost of providing benefits (medical, dental, vision, life, and accidental death & dismemberment) with a bi-weekly pre-tax payroll deduction in the amounts below based on the employee's usage category of the medical benefit. Employee Cost Per Pay Annual Sharing Period EE $ 6.75 $ 175.50 EE t 1 14.00 364.00 :EE + 2 or more :l 18.90 1 491.40 j Until the City Council approves changes to the Non -Associated Resolution, 2003 rate caps will remain in place in 2004 and beyond, even if premium increases result in these additional costs being borne by the employee. F. Joint Cafeteria Plan Study The city and two Non -Associated employees will convene an ad -hoc committee to study a cafeteria plan for employee benefits. .. The ad -hoc committee will finalize its report by June 30, 2003. The resulting report may have an effect on 2004 benefit costs. 2003 NA Resolution Draft.doc 9 10/28/2002 4:08 PM ✓ /W Y ;'��-�,e Al SECTION IV — RETIREMENT A. Benefits 1. Public Employees' Retirement System Non -Associated employees shall be entitled to retirement benefits appropriate to his/her class as -.defined in the contract between the -Board of Administration, Public Employees' Retirement System and the City Council of the City of Huntington Beach. 2. Self -Funded Supplemental Retirement Benefit In the event a Non -Associated employee member elects Option #2 (Section 21456) or Option #3 (Section 21457) of the Public Employees' Retirement Law, the city shall pay the difference between such elected option and the unmodified allowance which the member would have received for his or her life alone. This payment shall be made only to the member (Non -Associated employee), shall be payable by the city during the life of the member, and upon that member's death, the city's obligation shall cease. Unless previously excluded by employment or resolution, eligibility for this benefit is limited to employees hired before December 27, 1997. 3. Medical Insurance for Retirees a. Upon retirement, whether service or disability connected, each Non Associated employee shall be entitled to cause self himself eF heFself, spouse and dependents to participate fully in the city's group health insurance program at the equivalent of the city's group premium rate in accordance with the provisions specified by Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) COBRA (Federal Law). Such participation shall be at employee's expense and upon terms, conditions and restrictions currently in effect. b. As an alternative to the benefit described in paragraph IVI.A.34.a above, the city will provide a financial contribution towards the cost of retiree medical premiums as described in Section VI1. 1 2003 NA Resolution Draft.doc 10 10/28/2002 4:08 PM �Zo • oto 6 lO� - -••- - - ATNTIMM - - - •- I OWN- -�- - 5"Me :- ....... MMI N17' - - - . _ WIN• _ - - =- 10 ._ 4. Two Percent (2%) at Age 55 Formula Non -Associated employees shall be covered by the two percent at age 55 formula (2% @ 55) as identified in Section 21354. 5. Pre -Retirement Optional Settlement 2 Death Benefit Non -Associated employees shall be covered by the Pre -Retirement Optional Settlement 2 Death Benefit as identified in Section 21548 when approved by the City Council. 6. Fourth Level of 1959 Survivor Benefits Non -Associated employees shall be covered r by the Fourth Level of the 1959 Survivor Benefit as identified in Section 21574 when approved by the City Council. B. Public Employees' Retirement System Reimbursement and Reporting Employees' Contribution Non -Associated employees shall be reimbursed bi-weekly in an amount equal to 7% of the employee's base salary (9% for safety employees) as a pickup of the employee's contribution or portion of such contribution to the Public Employees' Retirement System (PERS). The above PERS pickup is not base salary but is done pursuant to Section 14(h)(2) of the Internal Revenue Code. 2003 NA Resolution Draft.doc 11 10/28/2002 4:08 PM ICJ ��LO. SECTION V — LEAVE BENEFITS A. General Leave 1. Accrual Employees will accrue General Leave at the accrual rates outlined below. General leave may be used for:any purpose, including vacation, sick leave, and personal leave. General leave for non -associated employees shall be accrued as follows: Years of Service General Allowance First throu h Fourth Year 176 hours Fifth through Ninth Year 200 hours Tenth through Fourteenth Year 224 hours Fifteenth Year and Thereafter 256 hours 2. Eligibility and Approval General leave must be pre -approved except for illness, injury or family sickness, which may require a physician's statement for approval. Accrued general leave may not be taken prior to six (6) months' service except for illness, injury or family sickness. General leave accrued time is to be computed from hiring date anniversary. Members shall not be permitted to take general leave in excess of actual time earned. Members shall not accrue general leave in excess of six hundred (600) hours. Employees may not use their general leave to advance their separation date on retirement or other separation from employment. 3. Family Sick Leave As required by law, employees will be allowed to use up to one-half of their annual General Leave accrual for family sick leave, pursuant to the provisions of California Family Code Section 297, et. seq. The city will provide family and medical care leave for eligible employees that meet all requirements of State and Federal law. Rights and obligations are set forth in the Department of Labor Regulations implementing the. Family Medical Leave Act (FMLA), and the regulations of the California Fair Employment and Housing Commission implementing the California Family Rights Act (CFRA). 4. Conversion to Cash a. Pay Off at Termination — An employee shall be paid for unused general leave upon termination of employment at which time such terminating employee shall receive compensation at their his/he current salary rate for all unused, earned general leave to which they are he/she is entitled up to and including the effective date of their his/her termination. 2003 NA Resolution Draft.doc 12 10/28/2002 4:08 PM hO .Z O vL / D, b. Conversion to Cash - Once during each fiscal year, each permanent employee shall have the option to convert into a cash payment or deferred compensation up to a total of one hundred -twenty (120) of general leave benefits. The employee shall give payroll two (2) weeks advance notice of their hT,6 mar decision to exercise such option. group mediGal plan afteF retirement may G use the pFemiiums to be aid by the i`ity Gut of any available f„Rds due and ewinn them „RdeF terms _rt£_the d. One Week Minimum Vacation Requirement The City Administrator may require certain positions which handle money or transfer funds to take a minimum of one week, (i.e., five consecutive work days) paid vacation each calendar year. 2003 NA Resolution Draft.doc 13 10/28/2002 4:08 PM i B. Holidays The following are paid eight (8) hour holidays: 1. New Year's Day 2. Martin Luther King Day (third Monday in January) 3. Presidents Day (third Monday in February) 4. Memorial Day (last Monday in May) 5. Independence Day (July 4) 6. Labor Day (first Monday in September) 7. Veteran's Day (November 11---u ;less desi9n ted—asa d;#arent—date--bY City ) 8. Thanksgiving Day (fourth Thursday in November) 9. The Friday after Thanksgiving 10. Christmas Day (December 25) 11. Any day declared by the President of the United States to be a national holiday or by the Governor of the State of California to be a state holiday and adopted as an employee holiday by the City Council of the City of Huntington Beach. For Civic Center holiday closure purposes, holidays which fall on Sunday shall be observed the following Monday, and those falling on Saturday shall be observed the preceding Friday. C. Sick Leave 1. Accrual — No employee shall accrue sick leave after DeGer beF 24, 1 o00 2. Credit — Employees assigned to Non -Associated shall carry forward their sick leave balance and shall no longer accrue sick leave credit. 3. Usage — Employees may use accrued sick leave for the same purposes for which it was used prior to December 25, 1999. Sick leave shall not be used to extend absences due to work related (industrial) injuries or illnesses, this provision shall be added to Personnel Rule 18.10. 4. Family Sick Leave The city will provide family and medical care leave for eligible employees that meet all requirements of State and Federal law. Rights and obligations are set forth in the Department of Labor Regulations implementing the Family Medical Leave Act (FMLA), and the regulations of the California Fair Employment and Housing Commission implementing the California Family Rights Act (CFRA). 2003 NA Resolution Draft.doc 14 10/28/2002 4:08 PM �o • � d � !!a2/J�—/O 9 5. Pay Off at Termination a. Non Associated employees with continuous service with the city since November 20, 1978.shall be entitled to the following sick leave payoff plan: At involuntary termination by reason of disability, or by' death, or, by retirement, employees shall be compensated at their then current rate of pay for seventy-five percent (75%) of all unused sick leave accumulated as of July 1, 1972, plus fifty percent (50%) of unused sick leave accumulated subsequent to July 1, 1972, up to a maximum of seven hundred and twenty hours (720) of unused, accumulated sick leave, except as provided in paragraph V.C.5.d below. Upon termination for any other reason, employees shall be compensated at their then current rate of pay for fifty percent (50%) of all unused accumulated sick leave, up to a maximum of 720 hours of such accumulated sick leave. b. Non -Associated employees hired after November 20, 1978 shall be entitled to the following sick leave payoff plan: Upon termination, all employees shall be paid, at their then current salary rate, for twenty-five percent (25%) of unused earned sick leave to 480 hours accrued, and for thirty-five .percent (3.5%) of all unused, earned sick leave in excess of 480 hours, but not to exceed 720 hours, except as provided in paragraph V.C.2.c below. c. Except as provided in paragraph V.C.S.d below, no Non -Associated employee shall be paid at termination for more than 720 hours of unused, accumulated sick lave. However, employees may utilize accumulated sick leave on the basis of "last in, first out," meaning that sick leave accumulated in excess of the maximum for payoff may be utilized first for sick leave, as defined in Personnel Rule 18-8. d. Non -Associated employees who had unused, accumulated sick leave in excess of 720 hours as of July 5,. 1980, shall be compensated for such excess sick leave remaining on termination under the formulas described in paragraphs V.C.5.a and b above. In no event shall any employee be compensated upon termination for any accumulated sick leave in excess of the "cap" established by this paragraph (i.e., 720 hours plus the amount over 720 hours existing on July 5, 1980). Employees may continue to utilize sick leave accrued after that date in excess of such "cap" on a "last in, first out" basis. To the extent that any such "capped" amount of excess sick leave over 720 hours is utilized, the maximum compensable amount shall be correspondingly reduced. (Example: Employee had 1,000 hours accumulated. Six months after July 5, 1980, employee had accumulated another 48 hours. Employee is then sick for 120 hours. Employee's maximum sick leave "cap" for compensation at termination is now reduced by 72 hours to 928.) 2003 NA Resolution Draft.doc 15 10/28/2002 4:08 PM D. Bereavement Leave Employees shall be entitled to bereavement leave not to exceed twenty-four (24) hours in each instance of death in the immediate family. Immediate family is defined as father, mother, sister, brother, spouse, children, grandfather, grandmother, stepfather, stepmother, step grandfather, step grandmother, grandchildren, stepsisters, stepbrothers, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepchildren, or wards of which the employee is the legal guardian: _ .. - . _.Sir_. -- -. SECTION VI — RETIREE SUBSIDY MEDICAL PLAN An employee who has retired from the city shall be entitled to participate in the city sponsored medical insurance plans and the city shall contribute toward monthly premiums for coverage in an amount as specified in accordance with this Plan, provided: A. At the time of retirement the employee has a minimum of ten (10) years of continuous city service or is granted an industrial disability retirement; and B. At the time of retirement, the employee is employed by the city; and C. Following official separation from the city, the employee is granted a retirement allowance by the California Public Employees' Retirement System. The city's obligation to pay the monthly premium as indicated shall be modified downward or cease during the lifetime of the retiree upon the occurrence of any one of the following: 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 2003 NA Resolution Draft.doc 16 10/28/2002 4:08 PM 13 f/ monthly premiums may be adjusted downward or eliminated. Benefit coverage at age 65 under the city's medical plans shall be governed by applicable plan document. 3. In the event of the death of any employee, whether retired or not, the amount of the retiree medical insurance subsidy benefit which the deceased employee was receiving at the time of=his/her death would be eligible to receive if he/she were retired at the time of death, shall be paid on behalf of the spouse or family for a period not to exceed twelve (12) months. D. Schedule of Benefits 1. Minimum Eligibility for Benefits With the exception of an industrial disability retirement, eligibility for benefits begin after an employee has completed ten (10) years of continuous service with the City of Huntington Beach. Said service must be continuous unless prior service is reinstated at the time of his/her rehire in accordance with the city's Personnel Rules. 2. Disability Retirees Industrial disability retirees with less than ten (10) years of service shall receive a maximum monthly payment toward the premium for health insurance of $121. Payments shall be in accordance with the stipulations and conditions, which exist for all retirees. Payment shall not exceed dollar amount, which is equal to the full cost of premium for employee only. 2003 NA Resolution Draft.doc 17 10/28/2002 4:08 PM s �yi 3. Maximum Monthly Subsidy Payments All retirees, including those retired as a result of disability whose number of years of service prior to retirement exceeds ten (10) years, shall be entitled to maximum monthly payment of premiums by the city for each year of completed city service as follows: Maximum Monthly Payment for Retirements After: Years of Service Subsidy 10 $121 11 136 12 151 13 166 14 181 15 196 16 211 17 226 18 241 19 256 20 271 21 286 22 300` 23 315 24 330 25 344 Note: The above payment amounts may be reduced each month as dependent eligibility ceases due to death, divorce or loss of dependent child status. However, the amount shall not be reduced if such reduction would cause insufficient funds needed to pay the full premium for the employee and the remaining dependents. In the event no reduction occurs and the remaining benefit premium is not sufficient to pay the premium amount for the employee and the eligible dependents, said needed excess premium amount shall be paid by the employee. 2003 NA Resolution Draft.doc 18 10/28/2002 4:08 PM i 0'a /C SECTION VII — RULES GOVERNING LAYOFF, REDUCTION IN LIEU OF LAYOFF AND RE-EMPLOYMENT The following procedures shall not apply to Department Heads and the Assistant City Administrator. A. Part 1 - Layoff Procedures 1. General Provisions: a.) Whenever it is necessary because of lack of work or funds to reduce the staff of a city department, employees may be laid off pursuant to these rules. b. Whenever an employee is to be separated from the competitive service because the tasks assigned are to be eliminated or substantially changed due to management -initiated changes, including but not limited to automation or other technological changes, it is the policy of the city that steps be taken by the Human Resources Division on an interdepartmental basis to assist such employee in locating, preparing to qualify for, and being placed in other positions in the competitive service. This shall not be construed as a restriction on the city government in effecting economies or in making organizational or other changes to increase efficiency. c. A department shall reduce staff by identifying which positions within the department are to be eliminated. d. The employee who has the least city-wide service credit in the class within the department shall have city-wide transfer rights in the class pursuant to Part 1., Section 3., Transfer or Reduction to Vacancies in Lieu of Layoffs, or within the occupational series pursuant to Part 2, Bumping Rights. e. If a deadline within this procedure falls on a day the City Hall is closed, the deadline shall be the next day City Hall is open. 2. Service Credit: a. Service credit means total time of full-time continuous service within the city at the time the layoff is initiated, including probation, paid leave or military leave. Permanent part-time employees eam service credit on a pro rata basis. b. Except as required by law, leaves of absence without pay shall not earn service credit. c. As between two or more employees who have the same amount of service credit, the employee who has the least amount of service in class shall be deemed to be the least senior employee. 2003 NA Resolution Draft.doc 19 10/28/2002 4:08 PM 17/9 ,-AI-1 • • a�d0J_ /109 3. Transfer or Reduction to Vacancies in Lieu of Layoff: a. In lieu of layoff, a transfer within class shall be offered to an employee(s) with the least amount of service credit in the class designated for staff reduction within a department subject to the following: 1) The employee -has e the necessary.qualifications to perform the duties of the position. 2) The employee shall be given the opportunity, in order of service credit, to accept a transfer to a vacant position in the same class within the city, provided the employee 'has the necessary qualifications to perform the duties of the position. 3) If no position in the same class is vacant, the employee shall be given the opportunity, in order of service credit, to transfer to the position in the same class that is held by an incumbent in another department with the least amount of service credit whose position the employee has the necessary qualifications to perform. a) If an employee(s) is not eligible for transfer within the employee's class, the employee shall be offered, in order of service credit, a reduction to a vacant position in the next lower class within the city in the occupational series in lieu of layoff provided. the employee has the necessary qualifications to perform the duties of the position. b) If the employee refuses to accept a transfer or reduction pursuant to A. or B., above, the employee shall be laid off. c) If the employee(s) in the class with the least amount of service credit is in the position(s) to be eliminated or displaced by transfer, the employee shall be offered bumping rights, pursuant to Part 2. d) Any employee who takes a reduction to a position in a lower class within the occupational series in lieu of layoff shall be placed on the reinstatement/reemployment list(s) pursuant to Part 3., Reemployment. 4. Order of Layoff: a. Prior to implementing a layoff, vacant positions that are authorized to be filled shall be identified by citywide occupational series. If the employee refuses to accept a position pursuant to Section 3., above, the employee shall be laid off. b. No promotional probationary employee or permanent employee within a class in the department shall be laid off until all temporary, non -permanent part- time and non -promotional probationary employees in the class are laid off. 2003 NA Resolution Draft.doc 20 10/28/2002 4:08 PM %7i9 • of 0 O %� ���//// ddJ� Permanent employees whose positions have been eliminated may exercise citywide bumping rights, to a lower class in the occupational series pursuant to Part 2. c. When a position in a class and/or occupational series is eliminated, any employee in the class who is on authorized leave of absence or is holding a temporary acting <position in another class shall be included for determining order of service credit and be subject to these layoff procedures as if the employee was in his or her permanent position. 5. Notification of Employees: a. The Human Resources Division shall give written notice of layoff to the employee by personal service or by sending it by certified mail to the last known mailing address at least fifteen (15) days prior to the effective date of the layoff. Normally notices will be served on employees personally at work. b. Layoff notices may be initially issued to all employees who may be subject to layoff as a result of employees exercising voluntary reduction/bumping rights. c. The notice of layoff shall include the reason for the layoff, the effective date of the layoff, the employee's hire date and the employee's service credit ranking. The notice shall also include the employee's right to bump: the person in a lower class with the least service credit within the occupational series provided the employee possesses the necessary qualifications to successfully perform the duties in the lower class and the employee has more service credit than the incumbent in the lower class. d. The written layoff notice given to an employee shall include notice that he or she has seven (7) calendar days from the date of personal service, or date of delivery of mail if certified, to notify the Human Resources Manager 9#+seF in writing if the employee intends to exercise the employee's bumping rights, if any, pursuant to Part 2., Bumping Rights. e. Whenever practicable, any employee with the least amount of service credit in a lower class within an occupational series which is identified for work force reduction shall also be given written notice that such employee may be bumped pursuant to Part 2. This notice shall include the items referred to in 3., above. f. If an employee disagrees with the city's computation of service credit or listed date of hire, the employee shall notify the Human Resources Manager 8#iser as soon as possible but in no case later than five (5) calendar days after the personal service or certified mail delivery. Disputes regarding date of hire or service credit shall be jointly reviewed by the Human Resources Manager 9ftiser and the employee and/or the employee's representative as soon as possible, but in no case later than five (5) calendar days from the date the employee notifies the Human Resources Manager Off{ser of the 2003 NA Resolution Draft.doc 21 10/28/2002 4:08 PM hd. dOo "�G9 dispute. Within five (5) calendar days after the dispute is reviewed, the employee shall be notified in writing of the decision. B. Part 2 - Bumping Rights Voluntary. Reduction or Bumpinq in Lieu of Layoff: a. A promotional probationary employee or permanent employee who receives a layoff notice may request a reduction to a position in a lower class within the occupational series provided the employee possesses the necessary qualifications to perform the duties of the position. b. Employees electing reduction under A. above, shall be reduced to a position authorized to be filled in a lower class within the employee's occupational series. The employee may reduce to a lower class in his/her occupational series by 1) filling a vacancy in that class, or 2) if no vacancy exists, displacing the employee in' the class with the least service credit, whose position the employee has the necessary qualifications to perform. A displaced employee shall have bumping rights. c. An employee who receives a layoff notice must exercise bumping rights within seven (7) calendar days of receipt of the notice as specified in Part 1. Failure to respond within the time limit shall result in a reputable presumption that the employee does not intend to exercise any right of reduction or bumping to a lower class. The employee must carry the burden of proof to show that the employee's failure to respond within the time limits was reasonable. If the employee establishes that failure to respond within the time limit was reasonable, to the Human Resources Manager's Offfse�s satisfaction, the employee shall be permitted to exercise bumping rights but shall not be reinstated to a paid position until the employee to be bumped has vacated the position. If the employee disagrees with the Human Resources Manager's OfAGef''s decision, the employee may appeal pursuant to the provisions of Sections 3 and 4 below. 2. Reinstatement/Reemployment Lists Any employee who takes a reduction to a position in a lower class within the occupational series in . lieu of. layoff shall be placed on ' the reinstatement/reemployment list pursuant to Part 3. Reemployment 3. Qualifications Appeal Any employee who is denied a reduction to a position in a lower class within the occupational series on the basis that the employee does not possess the necessary qualifications to successfully perform the duties of the lower position may appeal the decision. The appeal shall be filed with the Human Resources Manager 8#+Eer 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. 2003 NA Resolution Draft.doc 22 10/28/2002 4:08 PM % • 0?6 oa 9 4. Qualifications Appeal Hearing: a. Upon receipt of an appeal, the Human Resources Manager 8ffiGer shall contact a mediator from the California State Mediation and Conciliation Service to schedule a hearing within two (2) weeks after receipt of the appeal. If the California State Mediation and Conciliation Service is not available within that -time frame, the parties -shall mutually select a person who is available within the time frame. If the California State Mediation and Conciliation Service and the person mutually selected are not available within the time frame, the parties shall select the earliest date either is available to conduct the hearing. The parties shall split the cost, if any, of the hearing officer. In addition, the parties shall meet within three (3) workdays to attempt to resolve the dispute. If the dispute remains unresolved, the parties shall endeavor in good faith to submit to the hearing officer a statement of all agreed upon facts relevant to the hearing. b. Appeal hearings shall be limited to two (2) hours, except as otherwise agreed by the parties or directed by the hearing officer. c. The hearing officer shall attempt to resolve the dispute by mutual agreement if possible. If no agreement is reached, the hearing officer shall render a decision at the conclusion of the hearing which shall be final and binding. C. Part 3 -Reemployment 1. Reemployment: a. Employees who are laid off or reduced to avoid layoff shall have their names placed upon a reemployment list, for each class in the occupational series, in seniority order at or below the level of the class from which laid off or reduced. b. Names of persons placed on the reemployment lists shall remain on the list for two (2) years from the date of layoff or reduction. c. Vacancies shall be filled from the reemployment list for a class, starting at the top of the list, providing that the person meets the necessary qualifications for the position. d. Names of persons are to be removed from the reemployment list for a class if on two (2) occasions they decline an offer of employment or on two (2) occasions fail to respond to offers of employment in a particular class within five (5) calendar days of receipt of written notice of an offer. Any employee who is dismissed from the city service for cause shall have his or her name removed from all reemployment lists. e. Reemployment lists shall be available affected employees upon reasonable request. 2003 NA Resolution Draft.doc 23 10/28/2002 4:08 PM i 2. f. Qualifications appeals involving reemployment rights shall be resolved in the same manner as that identified in Part 2., Section 4. Status on Reemployment: a. Persons re-employed from layoff within a two (2) year period from the date of layoff shall receive the following considerations and benefits: 1) Service credit held upon layoff shall be restored, but no credit shall be added for the period of layoff. 2) Prior service credit shall be counted toward sick leave and vacation accruals. 3) Employees may cash in sick leave upon layoff or at any time after layoff in the manner and amount set forth in existing Non -Associated Employees Benefit Provision. Sick leave shall be paid to an employee when the reemployment list(s) expire(s), if not previously paid. 4) Upon reinstatement the employee may have his or her sick leave re - credited by repayment to the city the cashed amount. Sick leave accumulation of less than 480 hours shall be restored upon reemployment. 5) The employee shall be returned to the salary step of the classification held at the time of the layoff and credited with the time previously served at that step prior to being laid off. 6) The probationary status of the employee shall resume if incomplete. b. Employees who have reduced to avoid layoff and are returned within two (2) years to their former class shall be placed at the salary step of the class they held at the time of reduction and have their merit increase eligibility date recalculated 2003 NA Resolution Draft.doc 24 10/28/2002 4:08 PM N C 7" 0 N 00 N O O N .A O co .D FZ �. �. �. �. .. o �. .. .. �. �. .. .. .• .. .. .. .. .. o .. .. a .. ..imi-3.. .. .. .. .. .. .. .. .. .. .. .■ .. .. .. .. u o n o .. • � u v �� i■ �� a i� i �� �� � u. � . . .. .. .. .. .. .. .. . .. .. . . , o �` �` '• . . . . ,• . . • � o � ,• a .• .• .. . .• i. I m _2 W W z eA Y Cl) ppCR m v Cl) r Cl) n 2 m C r m Effective December 21, 2002 Jobljpe� ,,'OLsA s6tu"S,,-: D escription 'Pa "" IB D 0466 Non -Exempt Administrative Secretary NA 413 17.10 18.04 19.03 20.08 21.18 0279 Non -Exempt Personnel Assistant 414 17.18 18.13 19.13 20.18 21.29 0447 Non -Exempt Payroll Technician 420 17.73 18.70 19.73 20.81 21.95 0446 Non -Exempt Payroll Technician, Sr 439 19.48 20.55 21.68 22.87 24.13 0278 'Non -Exempt Administrative Assistant 442 19.76 20.85 22.00 23.21 24.49 0061 Non -Exempt Executive Assistant 470 22.73 23.98 25.30 26.69 28.16 0005 Exempt Administrative Analyst NA 497 26.01 27.44 28.95 30.54 32.22 0453 Exempt Personnel Analyst 499 26.27 27.71 29.23 30.84 32.54 0443 Exempt Payroll Analyst 505 27.06 28.55 30.12 31.78 33.53 0063 Exempt Admin Analyst, Sr NA 525 29.91 31.55 33.28 35.11 37.04 0064 Exempt Analyst, Sr 525 29.91 31.55 33.28 35.11 37.04 0464 -Budget Exempt Personnel Analyst, Senior 525 29.91 31.55 33.28 35.11 37.04 0062 Exempt dmin Analyst, Principal NA 544 32.88 34.69 36.60 38.61 40.73 0060 Exempt Personnel Analyst Principal 544 32.88 34.69 36.60 38.61 40.73 0054 Exempt Risk Manager 576 38.58 40.70 42.94 45.30 47.79 0006 Exempt Human Resources Manager 593 41.98 44.29 46.73 49.30 52.01 0055 Exempt Finance Officer 597 42.82 45.18 47.66 50.28 53.05 0078 Exempt Assistant City Attorney 614 46.62 49.18 51.89 54.74 57.75 0004 Exempt Director of Comm & Spec Pro' 592 41.77 44.07 46.49 49.05 51.75 0012 Exempt of Or Effectiveness 592 41.77 44.07 46.49 49.05 51.75 0007 -Director Exempt _Director Director of Library Services 611 45.92 48.45 51.11 53.92 56.89 0009 Exempt of Building & Safety 622 48.51 51.18 54.00 56.97 60.10 0013 Exempt Director of Admin Services 629 50.24 53.00 55.92 59.00 62.24 0014 Exempt Director of Community Services 629 50.24 53.00 55.92 59.00 62.24 0008 Exempt Director of Econ Development 629 50.24 53.00 55.92 59.00 62.24 0000 Exempt Director of Information Services 629 50.24 53.00 55.92 59.00 62.24 0021 Exempt Director of Planning 629 50.24 53.00 55.92 59.00 62.24 0010 Exempt Director of Public Works 645 54.42. 57.41 60.57 63.90 67.41 0015 Exempt Fire Chief 653 56.63 59.74 63.03 66.50 70.16 0011 Exempt Police Chief 653 56.63 59.74 63.03 66.50 70.16 0020 Exempt Assistant City Administrator 658 58.07 61.26 64.63 68.18 71.93 2003 NA Resolution Draft.doc 26 10/28/2002 4:08 PM EXHIBIT C - RETIREE MEDICAL PLAN INDEMNITY HEALTH PLAN, EMPLOYEES/RETIREES This summary lists only those benefit provisions that differ between active and subsidized Retiree Plans. The Employee Health Plan Document should be consulted fordetailed questions about specific benefits. Benefits are subject to modification through the meet and confer process. YEAR 2002 $289 $209 $599 $500 YEAR 200 NenPPQ 50% of LJGR 50% of LJGR ersee $1-, $2000-per family $2,000 peF family Benefits City Plan - Employees City Plan - Subsidized Non -Subsidized Retirees Retirees COBRA -eligibles Deductible $250 per person $250 per person $500 per family $500 per family Maximum Out of Pocket $2,000 per person $2,000 per person $4,000 per family $4,000 per family Co -Insurance PPO 90% of UCR 90% of UCR Non-PPO 50% of UCR 50% of UCR Maximum Out of Pocket $1000 per person $1,000 per person $2000 per family $2,000 per family 2003 NA Resolution Draft.doc 27 10/28/2002 4:08 PM Note: Retirees who elect to participate in the city provided HMO Health Ne shall be entitled to benefits of the program chosen. This summary has been used to list only those benefit provisions that differ between active and subsidized Retiree Plans. Currently, there are no differences, however, this exhibit is not intended to require that future changes to active employee benefits be applied to retirees as well. 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. 2003 NA Resolution Draft.doc 28 10/28/2002 4:08 PM EXHIBIT C RETIREE MEDICAL PLAN RETIREE SUBSIDY MEDICAL PLAN/MISCELLANEOUS PROVISIONS A. Eligibility: The effective start-up date of the Retiree Subsidy Medical Plan for the various employee groups shall be the first of the month following retirement date. 2. A retiree may change plans, add dependents, etc., during annual open enrollment. Employee Benefits shall notify covered retirees of this opportunity each year. 3. Years of service computed for the Retiree Subsidy Medical Plan are actual years of completed service with the City of Huntington Beach. 4. When a retiree is eligible for medical plan coverage at the expense of another employer due to post -retirement employment of the retiree or spouse of the retiree, the retiree and his/her spouse must take that coverage regardless of benefit level and shall be deleted from any city Plan coverage. Exceptions to this requirement are limited to the following: a. A retiree is not required to enroll in such `other' medical plan coverage if there is significant disparity between the benefits provided by the "other" medical plan and the Retiree Subsidy Medical Plan as defined below. "Significant disparity" means coverage available under the "other" medical plan is restrictive or limited in one or more of the following ways: 1) No in -patient hospitalization coverage. 2) No major medical benefits 3) Annual deductible is $1,500 or greater per person. 4) Major medical benefits are paid at 60% or less of covered expenses. b. The Risk Manager will have the authority to provide additional exceptions following review of the "other" medical plan policy. Exceptions will be made only if the "other" medical plan benefit provisions are comparable to the guidelines under Exhibit C.A.4.a above. 2003 NA Resolution Draft.doc 29 10/28/2002 4:08 PM /I13 r/ . m c. Miscellaneous Provisions: 1. Benefits provided under the Retiree Subsidy Medical Plan will be coordinated with the "other' medical plan as the primary carrier. 2. The city shall have the right to require any retiree to provide a copy of the "other" medical plan policy for review by the Risk Manager. 5. When a retiree becomes eligible for the other group coverage and then becomes no longer eligible, he/she may have the subsidy reinstated and regain Retiree Subsidy Medical Plan coverage. 6. Dependents of a retiree may follow him/her into the Retiree Subsidy Medical Plan or they may choose to exercise COBRA rights along with the retiree. 7. When a retiree becomes 65 and has eligible dependents under 65, said dependents are eligible to exercise COBRA rights. 8. When a retiree is under 65 and his/her spouse is over 65, the spouse is not covered. B. Benefits: 1. Retiree Subsidy Medical Plan includes Managed Health Network (MHN), Prescription Card System (PCS), Orange County Foundation for Medical Care 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. City provided HMO Health Net. c. Part A of Medicare for those retirees not eligible for paid Part A. 2003 NA Resolution Draft.doc 30 10/282002 4:08 PM 1.3 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. 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, the participant pays for Part B of Medicare. 2. When a retiree and his/her spouse are both 65 or over, and neither is eligible for paid Part A of Medicare, the subsidy shall pay for Part A for each of them or the maximum subsidy, whichever is less. 3. When a retiree at age 65 is eligible for paid Part A of Medicare and his/her spouse is not eligible for paid Part A, the spouse shall not receive subsidy. When a retiree at age 65 is not eligible for paid Part A of Medicare and his/her spouse who is also age 65 is eligible for paid Part A of Medicare, the subsidy shall be for the retiree's Part A only. E. Cancellation: 1. For retirees/dependents eligible for paid Part A of Medicare, the following cancellation provisions apply: a. Coverage for a retiree under the Retiree Subsidy Medical Plan will be eliminated on the first day of the month in which the retiree reaches age 65. If such retiree was covering dependents under the Plan, dependents will be eligible for COBRA continuation benefits effective as of the retiree's 65th birthday. b. Dependent coverage will be eliminated upon whichever of the following occasions comes first: 1) After 36 months of COBRA continuation coverage, or 2003 NA Resolution Draft.doc 31 10/28/2002 4:08 PM Aef 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 Employee Benefits in accordance with provisions of the Non - Associated Employees Benefit Resolution. 4. A retiree who fails to pay premiums due for coverage and is in arrears for sixty (60) days shall be terminated from the Plan and shall not have reinstatement rights. 2003 NA Resolution Draft.doc 32 10/28/2002 4:08 PM EXHIBIT D - 9/80 WORK SCHEDULE This work schedule is known as "9/80". The 9/80 work schedule is designed to be in compliance with the requirements of the Fair Labor Standards Act (FLSA). In the event that there is a conflict with the current rules, practices and/or procedures regarding work schedules and leave plans, then the rules listed below shall govern. 9/80 WORK SCHEDULE DEFINED The 9/80 work schedule shall be defined as working nine (9) days for eighty (80) hours in a two week pay period by working eight (8) days at nine (9) hours per day and working one (1) day for eight (8) hours (Friday), with a one -hour lunch during each work shift, totaling forty (40) hours in each FLEA work week. The 9/80 work schedule shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Administrator or designee. A. Forty (40) Hour FLSA Work Week — The actual FLSA work week is from Friday at mid -shift (p.m.) to Friday at mid -shift (a.m.). No employee working the 9/80 work schedule will be able to flex their Friday start time nor the time they take their lunch break, which will be from 12:00 p.m. to 1:00 p.m. on Fridays. All employee work shifts will start at 8:00 a.m. on their Friday worked. The start of the FLSA work week is 12:00 noon Friday. B. Two Week Pay Period — The pay period for employees starts Friday mid -shift (p.m.) and continues for fourteen (14) days until Friday mid -shift (a.m.). During this period, each week is made up of four (4) nine (9) hour work days (thirty-six (36) hours) and one (1) four (4) hour Friday and those hours equal forty (40) work hours in each work week (e.g. the Friday is split into four (4) hours for the a.m. shift, which is charged to work week one and four (4) hours for the p.m. shift, which is charged to work week two). C. A/B Schedules — To continue to provide service to the public every Friday, employees are to be divided between two schedules, known as the "A" schedule and the "B" schedule, based upon the departmental needs. For identification purposes, the "A" schedule shall be known as the schedule with a day off on the Friday in the middle of the pay period, or, "off on payday", the "B" schedule shall have the first Friday (p.m.) and the last Friday (a.m.) off, or "working on payday". An example is listed below: Aid PIVi h` Ail Pll PM ""ntl T•: �II,.Th F. ;;F;:::--:S '` S E�''T; W F . A Schedule 4 4 - - 9 9 9 9 - - - - 9 9 9 9 4 4 B Schedule - - - - 9 9 9 9 4 4 - - 9 9 9 9 - - D. A/B Schedule Changes — FLSA non-exempt employees cannot change schedules without prior approval of their supervisor, Department Head, and the Human Resources Manager or designee. The purpose of this authorization is to review the impact on overtime. FLSA exempt employees may change A/B schedules at the beginning of any pay period with supervisor and Department Head approval. 2003 NA Resolution Draft.doc 33 10/28/2002 4:08 PM E. Emergencies — All employees on the 9/80 work schedule are subject to be called to work any time to meet any and all emergencies or unusual conditions which, in the opinion of the City Administrator, Department Head or designee may require such service from any of said employees. OVERTIME DEFINED FLSA Non -Exempt Employees — All non-exempt employees under the 9/80 work schedule shall earn overtime for all hours worked after the first forty (40) hours in an FLSA work week (Friday 12:00:00 p.m. to Friday 11:59:59 a.m.) as required under FLSA. Employees are required to obtain supervisor authorization prior to working any overtime. 1. Overtime Compensation — As stated in Section II.A of the Non -Associated Resolution. 2. Compensatory Time — As stated in Section ILA of the Non -Associated Resolution. LEAVE BENEFITS When an employee is off on a scheduled workday under the 9/80 work schedule, then nine (9) hours of eligible leave per workday shall be charged against the employee's leave balance or eight (8) hours shall be charged if the day off is a Friday. All leaves shall continue under the current accrual, eligibility, request and approval requirements. 1. General Leave — As stated in Section V.A of the Non -Associated Resolution. 2. Sick Leave — As stated in Section V.0 of the Non -Associated Resolution. 3. Administrative Leave — As stated in Section II.A of the Non -Associated Resolution. 4. Executive Leave — As stated in Section II.A of the Non -Associated Resolution. 5. Bereavement Leave — As stated in Section V.D of the Non -Associated Resolution. 6. Holidays - a. For a recognized city holiday, eight (8) hours, as stated in Section V.B, are earned for each holiday. For the charging of hours on a scheduled holiday, the employee must use eight (8) hours of holiday time off and one (1) hour from the employees General Leave, Compensatory Time, Administrative Leave, or Executive Leave banks for a nine (9) hour workday charge or eight (8) hours holiday time off for a Friday. b. If a holiday falls on an FLSA non-exempt employee's Friday off, the employee must then take the work shift before or after the holiday off 2003 NA Resolution Draft.doc 34 10/28/2002 4:08 PM �70 0 ♦off with supervisor and Department Head approval. If the employee cannot take the work shift before or after the holiday off the employee will be granted eight (8) hours of general leave. c. If a holiday falls on an FLSA exempt employee's Friday off, the employee must then take the work shift before or after the holiday off with supervisor and Department Head approval. 7. Jury Duty — The provisions of the Personnel Rules shall continue to apply, however, if an FLSA exempt employee is called to serve on jury duty during a normal Friday off, Saturday, or Sunday, or on a city holiday, then the jury duty shall be considered the same as having occurred during the employees day off work, therefore, the employee will receive no added compensation. 2003 NA Resolution Draft.doc 35 10/28/2002 4:08 PM RCA ROUTING SHEET INITIATING DEPARTMENT: ADMINISTRATIVE SERVICES SUBJECT: RESOLUTION FOR NON -REPRESENTED EMPLOYEES COUNCIL MEETING DATE: November 6, 2003 RCA AITTACHMENTS STATUS 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 EXPLANATION FORMI'SSI'NG ATTACHMENTS. REVIEWED RETURNED FORWARDED -_ Administrative Staff r� Assistant City Administrator Initial City Administrator Initial City Clerk EXPLANATION FOR RETURN OF ITEM: RUA Author: William McReynolds