HomeMy WebLinkAboutContracts & Agreements_251-2017 MEMORANDUM OF UNDERSTANDING
BETWEEN THE
CITY OF REDLANDs
AND THE
REDLANDS ASSOCIATION OF
DEPARTMENT DIRECTORS
JULY 1, 2018 - JUNE 30, 2023
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MEMORANDUM OF UNDERSTANDING
Between
The City of Redlands
And
Redlands Association of Department Directors
July 1, 2018 -June 30, 2023
Article 1 Term of Memorandum of Understanding ............ ............... 1
ArtUcle 2 Preamble ... .. .1
TABLE f�F t1C Q�e jTENTS ...........
ArRecognition ............. ........... . ........1
Article 4 Terms and Conditions of Employment ........... 1
Article 5 Salaries and Additional Compensation Adjustments ............ 1
Article 6. Retirement ............... ............. ............3
Article 7 Tuition Reimbursement ............ ,4
Article S Educational Incentive ........... . . 4
Article 9 Auto Allowance......... ............. 4
Article 10 Uniform Allowance.............. ............. 5
Article 11. Insurance ............. ............ ., 5
Article 12 lifetime medical ............ ............ 5
Article 13 HOLIDAYS.......... ............ . . 6
Article 14. Annual Leave .............. ,.........6
Article 15 Accrual Payment on Retirement. ..7
Article 16 Employee Severance Compensation ....... 7
Article 17 family Medical Care Leaves ............. 7
Article 18. Deferred Compensation .... ..........7
Article 19 Flexible Savings Plan . ............ ............ g
Article 20 Employee Assistance Program ............. g
Article 21 Bereavement Leave........ ............. g
Article 22. Management Rights .............. ............. ............8
Article 23. Savings Clause ............... ............ ,,,,g
Article 24 Zipper Clause ............. .............. 8
Article 25 Signatures .......... ............. ................ 9
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Article T. TERM OF MEMORANDUM OF UNDERSTANDING
Except where expressly stated otherwise herein, the City of Redlands ("City") and the Redlands
Association of Department Directors ("Unit") agree that the provisions of this Memorandum of
Understanding (MOU) shall become effective on July 1, 2018 and shall expire on June 30, 2023
Article 2, PREAMBLE
It is the Intent and purpose of this MOU to set forth the understanding of the parties reached as a result
of meeting and conferring in good faith regarding, but not limited to, matters relating to the wages, hours,
and terms and conditions of employment between the City and the Unit
Article 3. RECOGNITION
A Unit employee shall be defined as an employee of the City and assigned to the Unit by the City Manager
In accordance with City policies and procedures. The Unit consists of
DEPARTMENT DIRECTOR CLASSIRCATION TITLES
Development Services Director
Management Services Director
Director of Municipal Utilities and Public Works Engineering/City
Engineer
Fire Chief
..._
Human Resources/ Risk Management Director
Police Chief
Quality of Life Director
Article4. TERMS AND CONDITIONS OF EMPLOYMENT
A Unit employees serve at the will and pleasure of the City Manager The appointment of a person to
a Department Director position will be made by the City Manager
B The various forms of compensation and benefits described In this MOU are the result of the City's
recognition that Unit employees should be compensated appropriately for exhibiting accountability,
cost effectiveness, the ability to apply new technologies and maximize the utilization of human,
physical and fiscal resources to enhance the mission of the City, and for stimulating the
development of people and establishing methods which facilitate the meeting of City goals and
objectives
Article 5. SALARIES AND ADDITIONAL COMPENSATIONADJUSTMENTS
A All Unit Employees shall receive the following salary increases The Salary Range Table is established
to provide the minimum and maximum salary levels for each Unit employee position Further, all
Unit employees are responsible for the employee contribution to Social Security and Medicare
1 Effective the first payroll period following July 1, 2018, all Unit employees will receive a three
percent (3%) increase to base salary
2 Effective the first payroll period following July 1, 2019, all Unit employees will receive a three
percent (3%) increase to base salary over the prior year
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3 Effective the first payroll period following July 1, 2020, all Unit employees will receive a three
percent (3%) Increase to base salary over the prior year
Unit employees shall not receive any increase to base salary or other compensation during the term
of this MOU, other than those Increases and compensation expressly set forth in this MOU Further,
all Unit employees are responsible for the employee contribution to Social Security and Medicare
B The City recognizes that to recruit and retain well-qualified Department Directors and enhance their
management capabilities in areas such as leadership and accountability, Unit employees should be
compensated appropriately for exhibiting accountability, cost effectiveness, the ability to apply new
technologies and maximize the utilization of human, physical and fiscal resources, for exerting
leadership to enhance the mission of the City, and for stimulating the development of people and
methods which will facilitate the meeting of City goals and objectives
C To facilitate and enhance effectiveness and productive efforts of Unit employees, salary and benefit
levels will be reviewed on a periodic basis and may be adjusted from time to time, within the budget
appropriation levels established by the City Council This review will consist of the following two
components
1 Performance Evaluations
Progression In the salary range for all Unit Employees shall be based on the employee's
performance The City Manager shall be responsible for evaluating such performance
2 Compensation (Salary and Fringe Benefits) Survey
The compensation philosophy of the City is to establish a compensation package that will attract
the highest caliber individuals Therefore, the second component will contain comparisons with
other similar agencies within the appropriate job market These factors will be utilized to consider
salary and benefit levels that will facilitate continuation of this philosophy
D Eligibility for one-time per year performance-based distributions The City shall make available for
the purpose described herein, the cash equivalent of the value of a 2% base salary increase for all
filled positions within the Unit Prior to the conclusion of the applicable fiscal year, the City
Manager shall in his or her sole discretion have the authority to utilize any or all of the allocated
funds to provide a one-time cash distribution to anyone or more Unit members Subject to the
limitation that the cumulative value of the City Manager-distributed one-time payments shall not
exceed the total value of allocated funds for that fiscal year, there is no minimum or maximum
amount that the City Manager may award to any Individual Unit employee Additionally, the City
Manager also has discretion to issue one-time awards
In exercising his discretion in this regard, only employees in the Unit that have exhibited what the City
Manager in his or her sole discretion determines to be "exceptional" performance during the
applicable fiscal year, shall be eligible for receipt of a one-time distribution The distribution shall not
impact the Unit employee's salary range or step
Available one-time payment funds not distributed In the designated fiscal year, shall not accumulate
and carry over into any future fiscal year and instead, shall be returned to the City for other Council-
determined uses
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Article 6. RETIREMENT
A
1 All "classic" unit members shall Individually fund 3 0% of compensation earnable as and for the
unit member's normal employee PERS contribution (The term "classic" member is defined in the
Public Employee's Pension Reform Act of 2013-"PEPRA ")
2 All "classic" Unit employees shall fund 5% of compensation earnable as and for the Individual
employee's normal employee PERS contribution
3 All "classic" Unit employees shall personally fund 100% of the 7% of compensation earnable as
and for the Individual employee's normal employee PERS contribution for "miscellaneous" Unit
employees and 100% of the 9% compensation earnable as and for the individual employee's
normal employee PERS contribution for "safety" unit members)
All "classic" Unit employees' normal contributions required to be paid by the employee,whether paid
by the employer or the employee, shall be credited to the employee's CalPERS account
Whether as authorized by Government Code sections 20692, 20636(c)(4) or any other statutory or
legal basis,the City shall not report to CalPERS as any type of compensation, any portion of the normal
employee PERS contributions required by PERS which are funded by the employee
To the extent that this MQU mandates payment by the City of a part of the above "classic" unit
member's normal employee PERS contribution, the City shall make said payments on a pre-tax basis
to the extent authorized to do so by the IRS and the Franchise Tax Board
B AB 340
1 AB 340, the Public Employee's Pension Reform Act of 2013 — "PEPRA" (signed by the Governor
on 09/07/12,) shall in its entirety be given full force and effect as it may from time to time exist
2 Unit employees who are "new members" as defined in the above AB 340, shall Individually pay
an Initial Member CALPERS contribution rate of 50% of the normal cost rate (as defined and
calculated by CalPERS) for the Defined Benefit Plan In which said newly hired member is
enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly
situated employees, whichever Is greater (AB 340—Government Code section 7522 30)
3 Unit employees who are "new members," as defined in the above AB 340, on and after January
1, 2013, shall be enrolled in either the AB 340 retirement plan of 2%@62 (Government Code
section 7522 20(a), for "miscellaneous" new members, or the 2 7% at 57 retirement plan for
"safety" new members (Section 7522 25), with final pensionable compensation (as defined for
new members in Government Code § 7522 34) being determined by reference to the highest
average annual pensionable compensation earned during a period of 36 consecutive months
(Government Code § 7522 32(a) )
C Consistent with the proposal provisions above, that "classic" employees individually fund part, and
eventually 100% of the statutorily mandated employee PERS contributions, said member-funded
payments shall not be made pursuant to Government Code section 20692 and shall not be reported
to PERS as special compensation as was authorized by Government Code section 20636(c)(4)
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D As regards "classic" members, the City shall continue to include in Its contract with CaIPERS, the
following provisions
HIGHEST SINGLE YEAR
SURVIVOR CONTINUANCE
2% @ 55 RETIREMENT FORMULA
("MISCELLANEOUS")
3%at 50 RETIREMENT FORMULA
("SAFETY")
Article 7. TUITION REIMBURSEMENT
A The City will reimburse each Unit employee for actual costs of fees, tuition and books, for such
employee's attendance at an accredited institution of higher learning, at the rate up to the cost at
University of California, Riverside (UCR) for the same or similar course
B Unit employees must submit a request form with documents describing the course and program and
cost to the Human Resources Director for approval prior to beginning class
C To be eligible for reimbursement, a Unit employee must submit evidence of actual payment of
expenses incurred and satisfactory completion of course work with a grade of "C" or better or
equivalent
D Unit employees may use up to one thousand dollars ($1000) of tuition assistance per fiscal year to
attend training, conferences, and/or seminar of their choosing
Article B EDUCATIONAL INCENTIVE
Educational Incentives for the Fire Chief and Police Chief positions shall apply to the persons serving in
such positions as of the calendar year 2008 Upon the separation of service from the City by either the
person serving as Fire Chief or Police Chief, the respective educational incentive for such positions shall
be eliminated
Article 9 AUTO ALLOWANCE
A The City shall provide vehicles and/or allowances as follows
Management Services Director $100 per month
Development Services Director
Director of Municipal Utilities and Public Works Engineering/City Engineer Vehicle
Police Chief Vehicle
Fire Chief Vehicle
Quality of Life Director $150
B Unit employees receiving an Auto Allowance or assigned a City vehicle must provide the following
1 Proof of valid insurance with acceptable levels as set by the City
2 Proof of valid, class C California driver license
C Unit employees must participate In the City DMV Pull Notice Program
D if assigned,a City-owned vehicle may be used by a Unit employee for City business and for commuting
to and from the employee's residence The City will incur all costs related to the provision of the
vehicle, including maintenance and insurance The Unit employee shall be responsible for ensuring
the City's vehicle is appropriately secured when parked at the employee's residence
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Article 10. UNIFORMALLOWANCE
The Police Chief and Fire Chief who wear their uniforms for public ceremonies or for operational necessity
are entitled to a stipend equal to that received by the respective safety management employees
Article 11. INSURANCE
A MEDICAL INSURANCE
The City shall pay the entire premium for each Unit employee and all eligible dependents under the
PERS health insurance program.
B ALTERNATIVE COVERAGE
The City shall provide a stipend of$350, on a monthly basis, for those employees with alternative
medical coverage who opt for the stipend in lieu of the medical insurance benefit.
C INSURANCE ADJUSTMENT
In July of each year, the City shall pay each Unit employee a cash payment in the amount of one
hundred and fifty dollars ($150) to offset the co-payments and deductibles for medical insurance
plans
D DENTAL INSURANCE
The City shall pay the full monthly premium for dental insurance under the Principal Financial dental
plan or its equivalent for each Unit employee and all eligible dependents
E VISION REIMBURSEMENT
The City shall contribute the entire monthly premium for Unit employees and their eligible
dependents for a vision insurance plan with Medical Eye Services or an equivalent insurance plan as
approved by the City
F DISABILITY
All Unit employees shall pay the premium for the City's Disability Insurance Program
G LIFE AND ACCIDENTAL DEATH & DISMEMBERMENT INSURANCE
All Unit employees shall be covered by the City's group term life insurance and accidental death and
dismemberment (AD&D) insurance plan The City will pay the premiums for life insurance coverage
amounts of$25,000 for basic life and $25,000 for accidental death and dismemberment policies
H in an effort to support a healthy life-style for all Unit employees, the City will provide a paid
membership for Unit employees and their families to the Redlands YMCA
Article 12. LIFETIMEMEDICAL
Unit employees who achieve fifteen (15) years of service with the City shall be entitled to Lifetime
Medical coverage for themselves and their dependents upon separation of service from the City
"Lifetime Medical" means equivalent health insurance and dental insurance as provided by the City to
its then existing Unit employees through the CalPERS or similar group medical plan up to the cost of
similar CaIPERS plans Employees who promote into a director-level role after January 1, 2009 shall
maintain their lifetime medical benefit if they previously held that benefit in their previous City of
Redlands positions
Unit employees hired after January 1, 2009 whom achieve three (3) years of service shall be entitled to
a "medical bridge" program for themselves upon separation from the City until they become Medicare-
eligible "Medical Bridge" is defined as employee-only coverage, and Unit employees who are eligible
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for bridge insurance will be entitled to the least expensive equivalent health, vision and dental
insurance plan as provided by the City to it's the existing Directors through the CalPERS medical plan
until the employee reaches the age of Medicare eligibility at which time the benefit will cease Unit
employees who receive the medical bridge program can select coverage for dependents, however, the
additional cost must be paid for by the respective Unit employee and will not be paid for by the City
Further, Unit employees hired prior to January 1, 2009, who have achieved three (3) years of service
with the City, shall be entitled to the medical bridge Insurance upon separation from the City if the
employee has failed to achieve the fifteen (15) years of service requirement for the Lifetime medical
benefit
Article 13. HOLIDAYS
A The following paid holidays will be observed on the day specified
New Year's Day January 1st
Martin Luther King's Birthday 3rd Monday in January
Presidents' Day 3rd Monday in February
Memorial Day Last Monday in May
Independence Day July 4th
Labor Day 1st Monday in September
Columbus Day 2nd Monday In October
Veteran's Day November 11th
Thanksgiving Day 4 th Thursday in November
Day After Thanksgiving Day Day After 4 h Thursday in November
Christmas Eve December 24th
Christmas Day December25th
B Any holiday listed in this Section which falls on Sunday will be observed on the following
Monday
C Any holiday listed in this Section which falls on Saturday will be observed on Friday
D In any instance where a Unit employee Is required during a designated holiday to render services
during any or all of what would have been regularly scheduled hours, the paid holiday shall be
banked and the employee shall have the option of utilizing the holiday during the thirty(30)
calendar day period immediately following the holiday. Failure to timely take the banked holiday
off, shall result in loss of the holiday, with no cash or other compensation for the holiday
Article 14 ANNUAL LEAVE
A Unit employees shall combine existing Sick Leave and vacation balances as well as Floating Holidays
and Executive Leave to Annual Leave
B The purpose of Annual Leave is to provide Unit employees the ability to accrue time for Vacation,
Sick Leave and personal leave situations
C Individual Unit employees shall accrue Annual Leave hours at a rate of 392hoursperyear(15 07
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hours per payroll period), regardless of years of service, whether at the City or elsewhere
D The maximum Annual Leave balance shall be 900 hours
No Unit employee shall accrue Annual Leave above 900 hours
E As a matter of City policy, Unit employees are encouraged to use annual leave
F Each Unit employee may convert up to 392 hours of accrued Annual Leave per calendar year
to salary compensation or apply to a deferred compensation account This conversion can be made
with a two week notice to payroll
Article 15. ACCRUAL PAYMENT ON RETIREMENT
Upon service or medical retirement under the PERS retirement plan, or in the event of the death of a
Unit employee prior to retirement, PERS members with less than fifteen (15) years of service with the
City may elect one of the following options for payment of unused annual leave
A Convert all remaining annual leave accrued at the time of retirement to cash value at the final rate
of pay and apply said cash value to applicable premiums payable under the City's medical insurance
program for the Unit employee and eligible dependents until the cash value is exhausted In the
event that the Unit employee dies prior to exhaustion of the cash value of said benefits, the
remaining cash value may be applied towards the premiums of covered dependents until exhausted,
subject to the conditions and limitations of the applicable insurance policy
B At the time of service retirement, disability retirement, or at the death of an active Unit employee,
one hundred percent (100%) of accrued annual leave may be converted to cash or applicable
deferred compensation plan at the prevailing hourly rate
Article 16. EMPLOYEE SEVERANCE COMPENSATION
In recognition that Unit employees serve at the will and pleasure of the City Manager, the City Manager
may offer severance pay to any Unit employee who is terminated involuntarily or pursuant to a
negotiated separation of service in an amount equal to three to six month's salary The amount of such
severance pay shall be determined by the City Manager and may be included in the terms of a
contractual agreement between the Unit employee and the City made at the time the Unit employee is
hired or promoted
Article 17. FAMILYMEDICAL CARE LEAVES
A Family Leave shall be granted in accordance with the California Rights Act of 1991 and the Family
and Medical Leave Act of 1993, and any amendments thereto and implementing regulations for
those respective statutes The City's Human Resources Department shall be responsible for
administration of all leave taken pursuant to this Article 17
B Unit employees may utilize up to twelve weeks of Annual Leave for leaves of absence that fall under
the provisions of the FMLA and CFRA This Annual Leave is in addition to any other paid or unpaid
leave, which may be granted under the provisions of FMLA and CFRA Annual Leave shall be used
prior to the unpaid leave provisions of FMLA and CFRA
Article 18. DEFERRED COMPENSATION
All Unit employees are eligible to participate in the City's Deferred Compensation Plans, 457 (B) and
401 (A), as provided for in State and Federal Tax Codes The City will contribute $1,125 per year plus 2%
of salary to a 401 (A) plan for each Unit employee Each Unit employee may contribute additional
deferred compensation to the 457 (B) Plan in accordance with Plan provisions
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Upon retirement, Unit employees shall deposit the cash value of vacation leave, incentive payouts,
floating holidays, and executive leave to the program in the maximum amount allowable
Unit employees born before January 1, 1970, will deposit twenty five (25%) percent of their
annual leave sale to the 401 (a) program Unit employees born on, or after, January 1, 1970 and
on, or prior to December 31St, 1976, will deposit 15%of their annual leave sales to the 401 (a)
program Those Unit employees born after December 31, 1976, will not deposit any of their
annual leave sale to the 401 (a) program
Article 19. FLEnBLESAVINGSPLAN
The City offers Flexible Spending Accounts (FSA) to all Unit employees An FSA allows an employee to
make pre-tax deductions for qualifying medical, dental and vision expenses, and dependent care
expenses The plan is established and administered in accordance with Section 125 of the Internal
Revenue Service code
Article 20 EMPLOYEEASSISTANCEPROGRAM
The City offers all Unit employees an employee assistance program Confidentiality regarding a Unit
employee's use of this program will be maintained in full compliance with State and Federal Regulations
Article 21. BEREAVEMENT LEAVE
All Unit employees receive two working days of paid Bereavement Leave for the death of a member of
an employee's immediate family (defined as spouse, state-registered domestic partners, children,
parents, brother, sister, grandfather, grandmother, mother-In-law, father-in-law, step-father, step-
mother, and step-children)
Article 22. MANAGEMENT RIGHTS
Management rights shall consist of the exclusive right to determine the mission of Its constituent
departments, commissions, boards, set standards of service, determine the procedures and standards of
selection for employment and promotion, direct its employees, take disciplinary action, relieve its
employees from duty because of lack of work or for other legitimate reasons, maintain the efficient of
work, maintain the efficient of governmental operations, determine the methods, means and personnel
by which government operations are to be conducted, determine the content of job classifications, take
all necessary actions to carry out its mission In emergencies, exercise complete control and discretion
over Its organization and the technology of performing its work
Article 23 SAVINGS CLA USE
If any provision of this MOU, or the application of any provision, should be rendered invalid by court or
legislative action, the remaining portions of this Agreement shall remain in full force and effect
Article 24. ZIPPER CLAUSE
The City and the Unit agree that all negotiable items have been discussed during the negotiations leading
to this MOU, including salaries and benefits, and conditions of employment, and therefore the City and
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the Unit further agree that negotiations will not be reopened on any Item during the term of this MOU,
except by mutual agreement of the City and the Unit, or as expressly provided otherwise in this MOU
Article 25. .SIGNATURES
CITY Of REDIANDS REDLANDS ASSOCIATION OF
DEPARTMENT DIRECTORS- RAD❑
U m Mark Garcia 0.
PAUL W FOSTER, MAYOR DATE
PRESIDENT
ADOPTED,SIGNED AND APPROVED THIS STH DAY
OF DECEMBER,2017 3!
ATTEST
Je a Donaldson, City Clerk
City of Redlands l DEPARTMENT DIRECTORS MOU 2018-2023
RADD Approv