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HomeMy WebLinkAbout09-57 - Mandatory Unpaid Furlough for CMPA, CMPMA, and CMCEA for period of Aug. 2, 2009-Aug. 29, 2010RESOLUTION NO. 09-57 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, APPROVING THE RESPECTIVE EMPLOYEE ASSOCIATION SIDE LETTER AGREEMENTS AND A MANDATORY UNPAID FURLOUGH FOR THE COSTA MESA POLICE ASSOCIATION, COSTA MESA POLICE MANAGEMENT ASSOCIATION AND COSTA MESA CITY EMPLOYEES ASSOCIATION DURING AUGUST 2, 2009 - AUGUST 29, 2010. THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY RESOLVES AS FOLLOWS: WHEREAS, the local, state and national economy is seeing unprecedented economic losses resulting in related decreases in revenues; and WHEREAS, the City's 2009-10 Fiscal Year General Fund budgets face an estimated $19.9 Million shortfall due to sharper declines in projected revenues, particularly sales taxes and transient occupancy taxes, rising labor costs, and the State of California budget; and WHEREAS, projected loss of revenues requires the City to take actions in Ll addition to those actions taken to date, potentially including additional reductions to operating budgets, staff layoffs, reduction in employee compensation, reduction of personnel staffing requirements, application for Federal Stimulus funding, retirement incentives, suspension of benefit plans, implementation of cost recovery programs, renegotiation of contracts and further utilization of undesignated unreserved General Fund balance; and WHEREAS a part of the City's Budget Development Strategies was to balance the City's current 2009-2010 Operating Budget, it was necessary to obtain the concurrence of the employee associations to agree to concessions. The City and the employee associations have met and conferred in good faith and have agreed to the conditions set forth in the attached side letter agreements, Exhibits A, B & C. WHEREAS, an unpaid Mandatory Furlough Plan is a viable method for achieving savings through reduction of hours paid to employees; and WHEREAS, it is in the City's best interest to support and encourage such a program; and NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF COSTA MESA that an unpaid Mandatory Furlough Plan should be implemented during August 2, 2009 — August 29, 2010 upon the declaration by Council Resolution, as follows: 1. Participation in the Mandatory Furlough Plan is required for employees in the following Employee groups: a. Costa Mesa Police Association, and b. Costa Mesa Police Management Association, and c. Costa Mesa City Employees Association. 2. The amount of the unpaid furlough for each employee shall be 5% of the employee's regular hours, which is equivalent to 104 hours. 3. The Mandatory Furlough Plan shall be conducted according to the Mandatory Furlough Plan Guidelines, incorporated herein by reference and contained in a valid applicable side letter agreement with each respective employee association. PASSED AND ADOPTED this 4th day of August, 2009. ATTEST: Juli olcik, City Clerk Allan R. Mansoor, Mayor APPROVED AS TO FORM: Kimberly Hall Barlow, City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, JULIE FOLCIK, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 09-57 and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 4th day of August, 2009, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: MANSOOR, LEECE, FOLEY, MONAHAN BEVER NONE IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 5th day of August, 2009. J IE FOLCI , CITY CLERK (SEAL) Side Letter of Agreement September 1, 2007 —August 31, 2010 Memorandum of Understanding between the Costa Mesa Police Association (OMPA) and the City of Costa Mesa EXHIBIT A This side letter agreement ("Letter") is entered into by and between the City of Costa Mesa ("City") and the Costa Mesa Police Association ("CMPA"). As part of the City's Budget Development Strategies to balance the City's current 2009-2010 Operating Budget, it was necessary to obtain the concurrence of CMPA to agree to concessions. The City and CMPA have met and conferred in good faith and agree that the current September 1, 2007 — August 31, 2010 CMPA Memorandum of Understanding ("MOU") shall be supplemented with the following amendments: I. 5% Salary Reduction: CMPA agrees to the equivalent of a 5% reduction in salary through a Mandatory Furlough Program effective August 2, 2009 and ending August 28, 2010. The Mandatory Furlough Program will provide for a 5% reduction in work hours (104 hours per year) with a commensurate reduction in payment for the hours not worked. The Mandatory Furlough Program Guidelines are attached as Exhibit A. H. Article 5 - Retirement: The City agrees to amend the CalPERS contract to offer the "2 -Years Additional Service Credit" optional benefit. III. Article 7 — Retiree Medical: The City and CMPA agree to the suspension of the VantageCare RHS (Post Retirement Health) Plan and suspension of both the one percent (1%) contribution from employees and the one percent (1%) match deposited by the City on behalf of each full-time employee. Plan contributions will be suspended for 26 pay periods. IV. Article 10.4 — P.O.S.T Incentive Program: CMPA agrees to postpone the discussion regarding a bonus or percentage for exemplary training above the Advanced POST Certificate for Sergeants until the next contract negotiations. V. Article 14.1— Vacation Leave: Effective August 2, 2009 through August 28, 2010, in conjunction with the implementation of the Mandatory Furlough Plan, the City agrees to temporarily amend the existing vacation policy as follows: The maximum levels as established in the current 2007 — 2010 MOU are as follows: Years of Service 1-2 3-4 5-9 10-14 15-19 20+ Maximum Accrual 184.0 232.0 280.0 328.0 376.0 424.0 Upon reaching the maximum level, the biweekly accrual of vacation leave hours will be distributed in the following manner: 1. One-half of the benefit will be paid as monetary compensation to the employee at the employee's then current hourly base rate of pay. 2. The remaining one-half benefit will be placed in the employee's Secondary Vacation Leave Bank. In scheduling vacation hours, an employee can choose to use either vacation hours from their Primary Vacation Leave Bank or Secondary Vacation Leave Bank. The Secondary Vacation Leave Bank hours may be counted as vacation hours used in determining eligibility for the annual vacation cash out. However, hours in the Secondary Vacation Leave Bank may not be cashed out unless an employee separates from service. Effective August 29, 2010, employees will no longer accrue vacation leave and will no longer receive vacation cash out beyond the maximum level as established in the 2007- 2010 MOU. It is the responsibility of the employee to manage accrued vacation time off to not exceed the cap or maximum amount allowed. The City and CMPA agree to discuss the elimination of the Secondary Vacation Leave Bank or reduction of hours in the Secondary Vacation Leave Bank during the next contract negotiations. VI. Article. 30 — Physical Fitness Committee: CMPA agrees to postpone the discussion regarding establishing a joint committee to explore physical fitness testing until September 1, 2009. VII. MOU Provisions: All remaining MOU provisions remain in effect as this is a temporary side letter agreement with the City and CMPA. REPRESENTATIVES OF THE COSTA MESA POLICE ASSOCIATION DANA POTTS CMPA Vice President DAMIAN. ',Member PAUL L. BECKMAN CMPA Team Member REPRESENTATIVES OF THE CITY OF COSTA MESA STEPHEN N. MANDOKI Administrative Services Director :•:: Budget • Officer LANCE M. NAKAMOTO Human Resources Administrator KASAMA LEE Principal Human Resources Analyst &�/� �nz /�� HILDEMAN RV CREA n Member Human Resources Analyst EXHIBIT A Mandatory Furlough Program Guidelines Costa Mesa Police Association The Costa Mesa Police Association agrees to the equivalent of a five percent (5%) reduction in salaries through a Mandatory Furlough Program. The Mandatory Furlough Program will provide for a five percent (5%) reduction in work hours (104 hours per year) with a commensurate reduction in payment for the hours not worked. I. Effective Dates of Program — The Mandatory Furlough Program will be effective August 2, 2009 — August 28, 2010 unless otherwise specified in these guidelines. II. Usage of Furlough Leave — Employees must utilize a total of 104 hours of furlough leave by August 28, 2010. Employees may not use more than 40 hours of furlough leave within any three week period. It is the employee's responsibility to monitor their furlough leave bank to ensure they use all of their leave time during the assigned time period. When an employee submits a timely furlough leave request and the Supervisor and/or the Chief of Police must deny it due to the operational needs of the City and/or Department and the employee is unable to schedule alternative hours off prior to August 28, 2010, an exception may be granted by the Chief of Police with a written explanation from the employee's supervisor and advance approval from the City Manager. If such an exception is granted, employee will be allowed additional time to utilize the remainder of their 104 furlough leave hours, but no later than December 19, 2010. III. Scheduling of Furlough Leave — CMPA and Police Management agree to discuss procedures for requesting and scheduling furlough leave. Every effort will be made to accommodate the employee's request. However, it is recognized that business operations of the City have priority. Should a request for furlough leave be denied and the employee disagrees with the reasons for denial, the employee may submit a written petition to the Chief of Police or designee for a final decision on the matter. The Chief of Police or designee shall respond to any such petition within five (5) business days of receiving the petition, and the Chief of Police or designee's decision shall be final. If the Chief of Police or designee fails to respond within the prescribed time limit, the request for furlough leave will be deemed to have been approved. It is agreed by CMPA and the City that the grievance procedure shall not apply to disputes concerning furlough leave. At no time, will a furlough leave request be approved, if such approval would result in staffing levels dropping below the minimum. Once a furlough leave request has been approved, it may not be cancelled unless there is an emergency situation or upon mutual agreement by management and the employee. If an employee has not scheduled 52 hours of furlough leave by December 5, 2009 (for use by February 27, 2010) and the remaining balance of furlough leave by June 19, 2010 (for use by August 28, 2010), management reserves the right to assign employees to take their furlough leave time on a specific day. In this case, management may not assign more than ten (10) hours in a pay period unless mutually agreed upon by management and the employee. IV. Retirement — In most cases, unpaid furlough leave will not affect an employee's CalPERS service credit. Employees must be paid 1,720 hours within a year to earn one full year of service credit. Furlough leave would not change the payrate that is reported to Ca1PERS. However, it can reduce special compensation that is paid as a factor of earnings. Therefore, in some cases, final compensation could be reduced, but only for members with earnings based special compensation whose highest 12 month period at retirement includes furlough leave. V. Cafeteria Plan Benefits — Employees shall receive continued medical, dental, vision, life insurance and other cafeteria plan benefits including the City's flex contribution. Employees will be responsible for the same employee contributions. If an employee's check for a pay period which includes furlough leave is not sufficient to cover a particular deduction in its entirety, the deduction will not be taken from that check, but will be deducted from the following paycheck. VI. Furlough Leave as Hours Worked— Furlough leave will be counted as hours worked for the purposes of calculating overtime, earning and computing paid leave accrual, completion of probationary period, promotion eligibility, computing seniority and merit increase eligibility. Employees will not be eligible for overtime compensation during the same 24- hour day in which they have taken furlough leave unless the employee has been assigned to mandatory overtime or receives prior approval from the Chief of Police or designee. Furlough leave will not be considered hours worked for other forms of compensation. VII. New Employees — Employees hired after August 2, 2009 will be required to participate in the Mandatory Furlough Program. The amount of furlough leave hours required will be prorated based on four (4) hours for each pay period remaining through August 28, 2010 to a maximum of 104 hours. VIII. Separating Employees — Employees who separate employment from the City prior to August 28, 2010 will have the number of required furlough leave hours prorated. The amount of furlough leave hours required will be prorated based on four (4) hours for each pay period worked since August 2, 2009 to a maximum of 104 hours. Employees who have not met the prorated required hours must schedule the remaining furlough leave hours prior to their separation from employment. IX. Employees on Unpaid Leaves of Absences — Employees on approved unpaid leaves of absences (excluding suspensions for disciplinary purposes) may run their furlough leave concurrently with their leave of absence. X. Employees on Medical, Military, or Administrative Leaves of Absences — Employees on medical leaves (FMLA, PDL, CFRA or leaves due to work related injuries), military leave, or administrative leave will be required to participate in the Mandatory Furlough Program upon returning to work. The deadline to utilize furlough leave hours will be extended by the equivalent amount of time the employee was on leave since August 2, 2009, but no longer than one year. For example, if an employee is out on leave for five months, he/she will be required to utilize 104 hours of furlough leave by January 31, 2011. EXHIBIT B Side Letter of Agreement September 1, 2007 — August 31, 2010 Memorandum of Understanding between the Costa Mesa Police Management Association (CMPMA) and the City of Costa Mesa This side letter agreement ("Letter") is entered into by and between the City of Costa Mesa ("City") and the Costa Mesa Police Management Association ("CMPMA"). As part of the City's Budget Development Strategies to balance the City's current 2009-2010 Operating Budget, it was necessary to obtain the concurrence of CMPMA to agree to concessions. The City and CMPMA have met and conferred in good faith and agree that the current September 1, 2007 - August 31, 2010 CMPMA Memorandum of Understanding ("MOU") shall be supplemented with the following amendments: I. 5% Salary Reduction: CMPMA agrees to the equivalent of a 5% reduction in salary through a Mandatory Furlough Program effective August 2, 2009 and ending August 28, 2010. The Mandatory Furlough Program will provide for a 5% reduction in work hours (104 hours for the year) with a commensurate reduction in payment for the hours not worked. The Mandatory Furlough Program Guidelines are attached as Exhibit A- 11. Article 5 - Retirement: The City agrees to amend the Ca1PERS contract to offer the "2 -Years Additional Service Credit" optional benefit. III. Article 7 - Retiree Medical: The City and CMPMA agree to the suspension of the VantageCare RHS (Post Retirement Health) Plan and suspension of both the one percent (1%) contribution from employees and the one percent (10/6) match deposited by the City on behalf of each full-time employee. Plan contributions will be suspended for 26 pay periods. V. Article 14.1- Vacation Leave: Effective August 30, 2009 through August 28, 2010, in conjunction with the implementation of the Mandatory Furlough Plan, the City agrees to temporarily amend the existing vacation policy as follows: The maximum levels as established in the current 2007 - 2010 MOU are as follows: Years of Service 1-2 3-4 5-9 �- 10-14 15-19 20+ Maximum Accrual 184.0 232.0 280.0 328.0 376.0 424.0 M Upon reaching the maximum level, the biweekly accrual of vacation leave hours will be placed in the employee's Secondary Vacation Leave Bank. The maximum level for the Secondary Vacation Leave Bank will be established at 104 hours. Once the maximum accrual in the Secondary Vacation Leave Bank is reached, the additional accruals will be paid as compensation to the employee at the employee's then current hourly base rate of pay. In scheduling vacation hours, an employee can choose to use either vacation hours from their Primary Vacation Leave Bank or Secondary Vacation Leave Bank. The Secondary Vacation Leave Bank hours may be counted as vacation hours used in determining eligibility for the annual vacation cash out. However, hours in the Secondary Vacation Leave Bank may not be cashed out unless an employee separates from service. Effective August 29, 2010, employees will no longer accrue vacation leave and will no longer receive vacation cash out beyond the maximum level as established in the 2007- 2010 MOU. It is the responsibility of the employee to manage accrued vacation time off to not exceed the cap or maximum amount allowed. The remaining balance in the Secondary Vacation Leave Bank must be used by January 2, 2011. V. Article 30 — Physical Fitness Committee: CMPMA agrees to postpone the discussion regarding establishing a joint committee to explore physical fitness testing until September 1, 2009. Vi. MOU Provisions: All remaining MOU provisions remain in effect as this is a temporary side letter agreement with the City and CMPMA. REPRESENTATIVES OF THE COSTA MESA POLICE ASSOCIATION � LI- LT. ALLNIeWdGINS�c-tea CMPMA Represe five `T LT. T CMPMA Representative �I oA 'tC LT. BOB CISZEK CMPMA Representative REPRESENTATIVES OF THE CITY OF COSTA MESA ZAK MUMM'110-N-0 Administrative Services Director BO BYO Bu t & esearc Officer NA ANCE M. KAMOTO Human Resources Administrator KASAMA LEE Principal Human Resources Analyst EXHWIT A Mandatory Furlough Program Guidelines Costa Mesa Police Management Association The Costa Mesa Police Management Association agrees to the equivalent of a five percent (5%) reduction in salaries through a Mandatory Furlough Program. The Mandatory Furlough Program will provide for a five percent (5%) reduction in work hours (104 hours for the year) with a commensurate reduction in payment for the hours not worked. I. Effective Dates of Program — The Mandatory Furlough Program will be effective August 2, 2009 — August 28, 2010 unless otherwise specified in these guidelines. H. Usage of Furlough Leave — Employees must utilize a total of 104 hours of furlough leave by August 28, 2010. Employees may not use more than 40 hours of furlough leave within any three week period. It is the employee's responsibility to monitor their furlough leave bank to ensure they use all of their leave time during the assigned time period. When an employee submits a timely furlough leave request and the Supervisor and/or the Chief of Police must deny it due to the operational needs of the City and/or Department and the employee is unable to schedule alternative hours off prior to August 28, 2010, an exception may be granted by the Chief of Police with a written explanation from the employee's supervisor and advance approval from the City Manager. If such an exception is granted, employee will be allowed additional time to utilize the remainder of their 104 furlough leave hours, but no later than December 19, 2010. III. Scheduling of Furlough Leave — CMPMA and Chief of Police agree to discuss procedures for requesting and scheduling furlough leave. Every effort will be made to accommodate the employee's request. However, it is recognized that business operations of the City have priority. Should a request for furlough leave be denied and the employee disagrees with the reasons for denial, the employee may submit a written petition to the Chief of Police or designee for a final decision on the matter. The Chief of Police or designee shall respond to any such petition within five (5) business days of receiving the petition, and the Chief of Police or designee's decision shall be final. If the Chief of Police or designee fails to respond within the prescribed time limit, the request for furlough leave will be deemed to have been approved. It is agreed by CMPMA and the City that the grievance procedure shall not apply to disputes concerning furlough leave. At no time, will a furlough leave request be approved, if such approval would result in staffing levels dropping below the minimum. Once a furlough leave request has been approved, it may not be cancelled unless there is an emergency situation or upon mutual agreement by management and the employee. The Chief of Police reserves the right to assign employees to take their leave time if it is necessary to prevent a potential negative impact on Departmental operations. IV. Retirement — In most cases, unpaid furlough leave will not affect an employee's CalPERS service credit. Employees must be paid 1,720 hours within a year to earn one full year of service credit. Furlough leave would not change the payrate that is reported to Ca1PERS. However, it can reduce special compensation that is paid as a factor of earnings. Therefore, in some cases, final compensation could be reduced, but only for members with earnings based special compensation whose highest 12 month period at retirement includes furlough leave. V. Cafeteria Plan Benefits — Employees shall receive continued medical, dental, vision, life insurance and other cafeteria plan benefits including the City's flex contribution. Employees will be responsible for the same employee contributions. If an employee's check for a pay period which includes furlough leave is not sufficient to cover a particular deduction in its entirety, the deduction will not be taken from that check, but will be deducted from the following paycheck. VI. Furlough Leave as Hours Worked — Furlough leave will be counted as hours worked for the purposes of calculating overtime, earning and computing paid leave accrual, completion of probationary period, promotion eligibility, computing seniority and merit increase eligibility. Employees will not be eligible for overtime compensation during the same 24- hour day in which they have taken furlough leave unless the employee has been assigned to mandatory overtime or receives prior approval from the Chief of Police or designee. Furlough leave will not be considered hours worked for other forms of compensation. VII. Exempt Employees — Exempt employees will be considered non-exempt employees under the Fair Labor Standards Act (FLSA) guidelines in any FLSA workweek in which one or more hours of unpaid furlough time off occurs. Such employees will be eligible for hourly pay for any work performed during that FLSA workweek, just as non-exempt employees would be. Such employees may also be eligible for overtime compensation during any such FLSA workweek according to applicable FLSA guidelines. During a week in which a furlough occurs, employees must use leave accruals for partial day absences, may not telecommute or perform services for the City outside regular working hours unless specifically authorized to do so. On actual furlough days, FLSA exempt employees may not come to work unless approved by the Chief of Police or designee. VIII. Separating Employees — Employees who separate employment from the City prior to August 28, 2010 will have the number of required furlough leave hours prorated. The amount of furlough leave hours required will be prorated based on four (4) hours for each pay period worked since August 2, 2009 to a maximum of 104 hours. Employees who have not met the prorated required hours must schedule the remaining furlough leave hours prior to their separation from employment. IX. Employees on Unpaid Leaves of Absences — Employees on approved unpaid leaves of absences (excluding suspensions for disciplinary purposes) may run their furlough leave concurrently with their leave of absence. X. Employees on Medical, Military, or Administrative Leaves of Absences — Employees on medical leaves (FMLA, PDL, CFRA or leaves due to work related injuries), military leave, or administrative leave will be required to participate in the Mandatory Furlough Program upon returning to work. The deadline to utilize furlough leave hours will be extended by the equivalent amount of time the employee was on leave since August 2, 2009, but no longer than one year. For example, if an employee is out on leave for five months, he/she will be required to utilize 104 hours of furlough leave by January 31, 2011. Side Letter of Agreement September 1, 2004 — August 31, 2009 Memorandum of Understanding between the Costa Mesa City Employees' Association (CMCEA) and the City of Costa Mesa EXHIBIT C This side letter agreement ("Letter") is entered into by and between the City of Costa Mesa ("City") and the Costa Mesa City. Employees Association ("CMCEA"). As part of the City's Budget Development Strategies to balance the City's current 2009-2010 Operating Budget, it was necessary to obtain the concurrence of CMCEA to agree to concessions. The City and CMCEA have met and conferred in good faith and agree that the current September 1, 2004 — August 31, 2009 CMCEA Memorandum of Understanding ("MOU") shall be amended as follows: I. Article 2 — Term of Agreement: The City and CMCEA agree to extend the current MOU for an additional year. The new expiration date of the MOU will be August 31, 2010. 11. 5% Salary Reduction: CMCEA agrees to the equivalent of a 5% reduction in salary through a Mandatory Furlough Program effective August 2, 2009 and ending August 28, 2010. The Mandatory Furlough Program will provide for a 5% reduction in work hours (104. hours per year) with a commensurate reduction in payment for the hours not worked. The Mandatory Furlough Program Guidelines are attached as Exhibit A. IH.Article 6 - Retirement: The City agrees to offer the "2 -Years Additional Service Credit" optional benefit. IV. Article 7.6 — Retired Employees' Medical Program: The City and CMCEA agree to the suspension of the VantageCare RHS (Post Retirement Health) Plan and suspension of both the one percent (1%) contribution from employees and the one percent (1%) match deposited by the City on behalf of each full-time employee. Plan contributions will be suspended for 26 pay periods. V. Article 8.2 — Vacations: Effective, August 2, 2009 through August 28, 2010, the City agrees to temporarily amend the existing vacation policy as follows: The maximum levels as established in the current 2004 — 2009 MOU are as follows: Years of Service 1-2 3-4 5-9 10-14 15-19 20+ Maximum Accrual 184.0 232.0 280.0 328.0 376.0 424.0 Upon reaching the maximum level, the biweekly accrual of vacation leave hours will be placed in the employee's Secondary Vacation Leave Bank. The maximum levels for the Secondary Vacation Leave Bank will be established at 104 hours. Once the maximum accrual in the Secondary Vacation Leave Bank is reached, the employee will stop accruing additional vacation leave. If an employee has a Secondary Vacation Leave Bank, hours in that bank will be used first. Effective August 30, 2010, employees will no longer accrue vacation leave beyond the maximum level as established in the 2007 — 2009 MOU. It is the responsibility of the employee to manage accrued vacation time off to not exceed the cap or maximum amount allowed. If after August 30, 2010 an employee still has a Secondary Vacation Leave Bank balance, the employee will still be required to use hours in the secondary bank first. VI. Article 5.9 — Class A and B License Incentive Pay The City agrees to implement the previously agreed to provision regarding Class A and B License Incentive Pay. Effective August 2, 2009, eligible employees assigned to positions requiring daily operation of equipment requiring a valid Class A/B California Driver's License shall receive an annual $700 incentive bonus, subject to the following eligibility criteria: A. Eligib — The employee must meet all of the following in order to be eligible for the annual bonus incentive: • Employee must be assigned to a position requiring daily operation of equipment requiring a valid Class AB California Driver's License • As a condition of employment, employee must obtain and maintain the required California Driver's license and endorsements (airbrakes, tanker, and manual transmission) Employee must have a rating of "meets standards" or higher on the employee's most recent annual performance evaluation Employee must have successfully completed probation Employee must have successfully passed the DMV medical examination B. Payment of Annual Incentive — Upon implementation, each eligible employee shall receive a pro -rated incentive based upon the number of pay periods between August 2, 2009 and the employee's anniversary date subject to satisfactory performance and recommendation from the employee's supervisor. In following years, eligible employees shall receive this annual incentive bonus on their respective anniversary date. Employees must receive a rating of "meets standards" or higher on their most recent annual performance evaluation and submit a copy of their current Class AB California Driver's License and current DMV medical ceiliffication prior to receipt of the bonus. The amount of the annual bonus will be reported to CaIPERS as "compensation earnable". C. Lapse of License — Any eligible employees assigned to positions requiring daily operation of equipment requiring a valid Class AB California Driver's License who allow their Class AB California's Driver's Licenses to lapse may be subject to discipline up to and including termination. Any annual incentive bonus to be paid on their next anniversary date will be reduced on a prorated basis. D. DOT Drug and Alcohol Testing Regulations — Eligible employees assigned to positions requiring daily operation of equipment requiring a valid Class AB California Driver's License will be subject to the DOT Drug and Alcohol Testing Regulations and the City's Drug & Alcohol Policy adopted pursuant to the DOT Regulations. E. License and DMV Physical Fees — Any employees who successfully renew their Class AB California Driver's Licenses or acquire a new license upon starting a new assignment requiring a Class AB California Driver's License shall, upon submission of a receipt by -the employee, be reimbursed by the City for the difference in fee charged by the DMV between such license and a Class C Driver's license. The cost of the DMV physical/medical exam will be scheduled and paid by the City, .provided such exam is performed by the City's designated provider/physician. VII. "Me Tod' Clause: The City will make all reasonable efforts to establish and implement equivalent cost -savings methods with all represented Associations with respect to the 5% salary reduction. The City and CMCEA agree that specific methods for cost -savings may differ depending upon each Association. In the event that any represented Association agrees to alternative salary reduction solutions, the parties agree to re -open this agreement for further negotiations. VIII. MOU Provisions: All remaining MOU provisions remain in effect. REPRESENTATIVES OF THE CITY OF COSTA MESA . �i�C.C1G 7t7✓ STEPHEN N. MANDOKI LANCE M. NAKAMOTO Administrative Services Director Human Resources Administrator B BBY KASAMA LEE Budget &"eseh Officer Principal Human Resources Analyst REPRESENTATIVES F THE COSTA MESA CITY EMPLOYEES ASSOCIATION >e 4%- % C za LARR)(LYtNPt BILL E. HOYLE pr ntative CMCEA President PATRICK A. BAUER kf IN A. AG AR CMCEA Vice President CMCEA Team Member b ndd - 2- a Wf. / _e-_, WANDA J. QRS CMCEA Team Member . - IOAr%A 112 HELEN R. NENADAL CMCEA TeamM b G , KELLY . VUCINIC CMCEA Team Member (�& (AU ELLEN M. HERTER CMCEA Team Member DEAN P. RODIA. CMCEA Team Member 0111-39 V Mandatory Furlough Program Guidelines Costa Mesa City Employees Association The Costa Mesa City Employees Association agrees to the equivalent of a five percent (5%) reduction in salaries through a Mandatory Furlough Program. The Mandatory Furlough Program will provide for a five percent (5%) reduction in work hours (104 hours per year) with a commensurate reduction in payment for the hours not worked. I. Effective Dates of Program — The Mandatory Furlough Program will be effective August 2, 2009 — August 28, 2010 unless otherwise specified in these guidelines. II. Usage of Furlough Leave — Employees must utilize a minimum of 26 hours of furlough leave by November 30, 2009, a cumulative total of 52 hours of furlough leave by February 28, 2010, a cumulative total of 78 hours of furlough leave by May 31, 2010 and a total of 104 hours of furlough leave by August 28, 2010. Employees may not use more than 40 consecutive hours within a three week period. It is the employee's responsibility to monitor their furlough leave bank to ensure they use all of their leave time during the assigned time period. When an employee submits a timely furlough leave request and the Supervisor and/or the Department Director must deny it due to the operational needs of the City and/or Department and the employee is unable to schedule alternative hours off prior to August 28, 2010, an exception may be granted by the Department Director with a written explanation from the employee's supervisor and advance approval from the City Manager. If such an exception is granted, employee will be allowed additional time to utilize the remainder of their 104 furlough leave hours, but no later than December 19, 2010. III. Scheduling of Furlough Leave — Procedures for requesting and scheduling furlough leave will be determined bytthe Department Director. Every effort will be made to accommodate the employee's request. However, it is recognized that business operations of the City have priority. Should a request for furlough leave be denied and the employee disagrees with the reasons for denial, the employee may submit a written petition to the Department Director or designee for a final decision on the matter. The Department Director or designee shall respond to any such petition within five (5) business days of receiving the petition, and the Department Director or designee's decision shall be final. It is agreed by CMCEA and the City that the grievance procedure shall not apply to disputes concerning furlough leave. At no time, will a furlough leave request be approved, if such approval would result in staffing levels dropping below the minimum. Once a furlough leave request has been approved, it may not be cancelled unless there is an emergency situation or upon mutual agreement by management and the employee. Management reserves the right to assign employees to take their leave time if it is necessary to prevent a potential negative impact on Departmental operations. IV. Alternative Work Week Schedules — Alternative work week schedules will continue to be honored subject to operational need. Managers and supervisors will review alternative work week schedules and furlough days on a case-by-case basis to determine the impact on operations and if necessary will work individually with their employees to come up with alternatives to their current work schedules. V. Retirement — In most cases, unpaid furlough leave will not affect an. employee's CalPERS service credit: Employees must be paid 1,720 hours within a year to earn one full year of service credit. Furlough leave would not change the payrate that is reported to Ca1PERS. However, it can reduce special compensation that is paid as a factor of earnings. Therefore, in some cases, final compensation could be reduced, but only for members with earnings based special compensation whose highest 12 month period at retirement includes furlough leave. VI. Cafeteria Plan Benefits — Employees shall receive continued medical, dental, vision, life insurance and other cafeteria plan benefits including the City's flex contribution. Employees will be responsible for the same employee contributions. If an employee's check for a pay period which includes furlough leave is not sufficient to cover a particular deduction in its entirety, the deduction will not be taken from that check, but will be deducted from the following paycheck. VII. Furlough Leave as Hours Worked — Furlough leave will be counted as hours worked for the purposes of calculating overtime, earning and computing paid leave accrual, completion of probationary period, promotion eligibility, computing seniority and step increase eligibility. Furlough leave will not be considered hours worked for other forms of compensation. VIII. New Employees — Employees hired after August 2, 2009 will be required to participate in the Mandatory Furlough Program. The amount of furlough leave hours required will be prorated based on four (4) hours for each pay period remaining through August 28, 2010 to a maximum of 104 hours. IX. Separating Employees — Employees who separate employment from the City prior to August 28, 2010 will have the number of required furlough leave hours prorated. The amount of furlough leave hours required will be prorated based on four (4) hours for each pay period worked since August 2, 2009 to a maximum of 104 hours. Employees who have not met the prorated required hours must schedule the remaining furlough leave hours prior to their separation from employment. X. Employees on Unpaid Leaves of Absences — Employees on approved unpaid leaves of absences (excluding suspensions for disciplinary purposes) may run their furlough leave concurrently with their leave of absence. XI. Employees on Medical, Military, or Administrative Leaves of Absences —Employees on medical leaves (FMLA, PDL, CFRA or leaves due to work related injuries), military leave, or administrative leave will be required to participate in the Mandatory Furlough Program upon returning to work. The deadline to utilize furlough leave hours will be extended by the equivalent amount of time the employee was on leave since August 2, 2009, but no longer than one year. For example, if an employee is out on leave for five months, he/she will be required to utilize 104 hours of furlough leave by January 31, 2011.