HomeMy WebLinkAboutContracts & Agreements_66-2014_CCv0001.pdf MEMORANDUM OF UNDERSTANDING
CITY OF REDLANDs
AND THI.
REDLANDS ASSOCIATION OF
DEPARTMENT DIRECTORS
JULY 1 , 2013 - JUNE 30, 2015
MEDIVIORANDUAl OF UNDERSTANDING
Between
The City of Redlands
And
Redlands Association of Department Directors
TABLE OFCONTENT-S
Article 1. Term of Memorandum of Understanding............................................................. 1
Article2. Preamble............................................................................................................. 1
Article3. Recognition.......................................................................................................... 1
Article 4. Terms and Conditions of Employment..................................................................1
Article 5. Salaries and Additional Compensation Adjustments............................................. 1
Article6. Retirement ..........................................................................................................3
Article 7. Tuition Reimbursement ....................................................................................... 4
Article 8. Educational Incentive........................................................................................... 4
Article9. Auto Allowance ...................................................................................................4
Article 10. Uniform Allowance.............................................................................................. 5
Article11. Insurance............................................................................................................. 5
Article 12. lifetime medical...................................................................................................6
Article 13. HOLIDAYS ..........................................................................................•................. 6
Article14. Annual Leave .......................................................................................................7
Article 15. Accrual Payment on Retirement...........................................................................7
Article 16. Employee Severance Compensation................................................
Article 17. Family Medical Care Leaves.................................................................................. 8
Article 18. Deferred Compensation....................................................................................... 8
Article 19. Flexible Savings Plan ............................................................................................ 8
Article 20. Employee Assistance Program.............................................................................. 8
Article 21. Bereavement Leave ............................................................................................. 8
Article 22. Management Rights............................................................................................. 9
Article23. Savings Clause......................................................................................................9
Article24. Signatures............................................................................................................9
7174818.7 xe0 3a-ols
Article 1. TEEM OFMEMO RANDIJ.rqOFUiVDERSTANDIN
G
Except where expressly stated otherwise herein, the City and Redlands Association of Department
Directors agree that the provisions of this Memorandum of Understanding (MOU) shall become
effective on July 1, 2013 and shall expire on June 30, 2015.
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 of Redlands (hereinafter referred to
as "City") and the Redlands Association of Department Directors (hereinafter referred to as "Unit").
Article 3. REcOGNITION
A unit employee shall be defined as an employee of the City and assigned to the RADD unit by the City
Manager in accordance with City policies and procedures. The Unit consists of:
_DEPARTMENT _
DIRECTOR
--- CLASSIFICATION-
Assistant City
Mapager
Development Services Director -
Chief Information Officer
Director of Muniapal Utilities and Public Works /City Engineer
Finance Director
Fire Chief
Human Resources Director
Police Chief
Quality of Life Director
Article 4. TERMS AND CONDITIONS OF EmpLoYMENT
A. Employees in Department Director positions 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 Department Directors 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. SALARIESANDADDITIONAL CoAfPFNsATioNADjusTmENTs
A. There shall be a 3% base salary increase effective the first payroll period commencing on or after
City Council adoption of both this 2013-2015 MOU and necessary CaIPERS resolutions allowing for
modifications by the City to the amount of employer payment of normal member CaIPERS
contributions as set forth in Article 6 below, and actual implementation of said modified employer
funding of normal member contributions.
B. In addition to and concurrent with provision of the 3% base salary increase described in Article 5(A)
above, the incumbent Director of Municipal Utilities and Public Works Engineering/City Engineer,
Mr. Mousavipour, shall be provided an unadjusted base salary increase of five thousand dollars
<$5i000.00.\ The above 3% base 5B|3ry increase shall be calculated upon the base salary aSfirst
adjusted h«the $5,OOO.00increase.
L All Unit employees are responsible for the employee contribution toSocial Security and Medicare.
D. The Salary Range Table (Appendix A) is established to provide the rnininnurn and maximum salary
levels for each Department Director position.
E. The City recognizes that to recruit and retain well-qualified Department Directors and enhance their
management capabilities in areas such as leadership and accountability, Department Directors
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 ofCity goals and objectives.
F. Tofacilitate and enhance effectiveness and productive efforts ofDepartment Directors, 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 for compensation for Department
Directors. This review will consist ofthe following two components.
1. Performance Evaluations:
Progression in the salary range for Department Directors shall be based on the Director's
performance. The City Manager shall be responsible for evaluating the Director's performance.
2. Compensation (Salary and Fringe Benefits) Survey:
The compensation philosophy for the City of Redlands 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 toconsider salary and benefit levels that will facilitate continuation ofthis philosophy.
G. Eligibility for one-time per year performance-based distributions. At the commencement of each
fiscal year which commences on or after City Council adoption of the 2013-2015 MOU, 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 SO|8 discretion have the authority to utilize any or all of the
allocated funds to provide a one-time cash distribution to any One 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 rninirnurn or maximum
amount that the City Manager may award to any individual unit member. Additionally, the City
Manager also has discretion tnissue noone-time awards.
In exercising his discretion in this regard, it is only that individual(s) in the unit that has exhibited
what the City Manager in his 5O|e discretion determines to be "exceptional" performance during the
applicable fiscal year, that shall be eligible for receipt of a one-time distribution. The distribution
shall not impact the unit member's salary range orstep.
Available one-time payment funds not distributed }nthe designated fiscal year, shall not accumulate
and carryover into any future fiscal year and instead, shall be returned to the City for other Council-
determined uses.
7/48/8.7 ncoss-o}x
City ofRedlands | DEPARTMENT DIRECTORS NY0U2Uz3-2O15
nxDDApp/ova|
Article 6. RETIREMENT
A.
I. Effective the first payroll period commencing OnOrafter City Council adoption ofthe 3OI]-2015
K4(]U and adoption by the [Qund| and implementation Of necessary CaIPERS pe8}|utiOn/S\
addressing the amount ofemployer funding of "classic" normal member employee [a|PEKS
contributions, all "classic" unit members shall individually fund 3.096 of compensation earnable
as and for the unit member's normal employee PERS contribution. /The term "'classic" member
iSdefined inthe Public Employee's Pension Reform Act of3O13-"PEPRA."\
Z. Effective the first payroll period commencing on or after July l, 2014` all "classic" unit members
shall fund 596 of compensation earnab|e as and for the individual member's normal employee
PERS contribution.
3. Effective the first payroll COrnrnenCing On or after January I, 2015, all "classic" unit rnernb8r3
shall personally fund I00Y6 of the 7% of compensation 8arnable as and for the individual
member's normal employee PERS contribution for "miscellaneous" Unit members and 10096of
the 996 compensation earnab|e as and for the individual member's normal employee PERS
contribution for"safety" unit members).
All "classic" member normal contributions required to be paid by the member, whether paid by the
employer or the member, shall be credited to the member's CaIPERS account.
The City shall adopt the necessary resolution(s) so that individual member contributions made by
the annp|Oy8e may be excluded from taxable income pursuant to Section 414(h)/2\ of the United
States Internal Revenue Code.
Whether as authorized by Government Code § 20692, 20636/c\(4) or any other statutory or legal
basis, the City shall not report to [aIPERS as any type of compensation, any portion of the normal
employee PERS contributions required 6yPERS which are funded bythe employee.
To the extent that this 2013-20I5 W1OU mandates payment by the City of 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
l. A854O, the Public Employee's Pension Reform Act of2O13 — ''PEPRA" (signed bythe Governor
onO9/O7/12,) shall inits entirety be given full force and effect asitmay from time totime exist,
during and after the term ofthe 2Ol3-15K4OU, a5described below. Any provision inthe 2Ol3'
15K4OUxvhichcontradictsanyprovisionofAB340sha|| be deemed null and void, with the
contrary AB34Oprovision(s) being given full force and effect. Therefore, noprovision ofAB34O
shall be deemed t0impair any provision ofthe IO13-l5 MOUorany M[)U,Agreement, Rule Or
Regulation predating the IO13-I5K4OU.
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 Ca|PERS) 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 isgreater. (AB 34D—Government Code section 7522.3O)
7/*8/8,7 xEoy5*/8
City ofRedlands | DEPARTMENT DIRECTORS MOU 2013-2015
3. Unit employees who are "new noernbens," as defined inthe above AB340, mnand 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 2.796 at 57 retirement plan for
"8afet»" new members (Section 7522.25), with final pensionable compensation (as defined for
new members inGovernment Code § 75Z2.34) being determined byreference tothe highest
average annual pensionable compensation earned during aperiod of36consecutive months.
(Government Code § 7522.]Z(a).)
C. Consistent with the proposal provisions above, that "c|@ssicyemployees individually fund part, and
eventually 1OOY6ofthe statutorily mandated employee PIERS contributions, said member-funded
payments shall not be made pursuant to Government Code section 20692 and shall not be reported
toPIERS asspecial compensation aswas authorized byGovernment Code section 20G36(c)(4).
D. As regards "classic" members, the City shall continue to include in its contract with CalPERS, the
following provisions.
HIGHEST SINGLE YEAR
SURVIVOR CONTINUANCE
2% @ 55RETIREMENT FORMULA
(-MISCELLANEOUS")
3Y6at5URETIREMENT FORMULA
("SAFETY")
Article 7. TuiTIONREmB0RSEME.1WT
A. The City will reimburse Department Directors for actual costs Of fees, tuition and books, for
attendance at an accredited institution of higher learning, at the rate up to the cost at University of
California, Riverside (UCR) for the same Orsimilar course.
B. Department Directors 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, Department Directors must submit evidence of actual payment of
expenses incurred and satisfactory completion Of course work with 8 grade of "[" or better or
equivalent.
Article 8. EbucATIONAL LA& EWIVE
Educational Incentives for the Fire Chief and Police Chief positions shall apply tothe persons serving in
such positions as of the calendar year 2008. Upon the separation of Service from the City by either the
person serving aoFire Chief or Police Chief, the respective educational incentive for such positions shall
be eliminated.
Article 9. AuToALLOWANCE
A. The City shall provide vehicles and/or allowances asfollows:
Development Services Director $1O0per month
774818�7 ns015-019
City nfRedlands | DEPARTMENT DIRECTORS
Finance Director $100 per month
Director of Municipal Utilities and Public Works Engineering/City Engineer Vehicle
Police Chief Vehicle
Fire Chief Vehicle
Quality of Life Director $150.00 per month
(effective the first
payroll period
commencing on or
after City Council
adoption of the 2013-
2015 MOU)
B. Department Directors receiving an Auto Allowance or assigned a City vehicle must provide the
following:
1. Proof of valid insurance with acceptable levels asset by the City.
2. Proof of valid, class C California driver license.
C. Department Directors must participate in the City DMV Pull Notice Program.
D. If assigned, a City-owned vehicle may be used by a Department Director for City business and for
commuting to and from the Director's residence. The City will incur all costs related to the provision
of the vehicle, including maintenance and insurance. The Department Director shall be responsible
for ensuring the City's vehicle is appropriately secured when parked at the Director's residence.
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. ftsuRANcE
A. MEDICAL INSURANCE
The City shall pay the entire premium for each Director and all eligible dependents under the PERS
health insurance program.
7748I n.7 RE035-018
City of Redlands ( DEPARTMENT DIRECTORS MOU 2013-2015
RAI DD Approval
B. ALTERNATIVE COVERAGE
The City shall provide astipend of$35[\ Onamonthly basis, for those employees with alternative
medical coverage who opt for the stipend inlieu Ofthe medical insurance benefit.
C. INSURANCE ADJUSTMENT
In July of each year, the City shall pay each Director a cash payment in the amount of one hundred
and fifty dollars ($15O)tooffset 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 Director and all eligible dependents.
E. VISION REIMBURSEMENT
The City shall reimburse each Director two hundred twenty five dollars ($225.00) per year for the
purchase of prescription frames and lenses and/or contact lenses for the employee and/or his/her
eligible dependents.
F. DISABILITY
The Employee shall pay the premium for the City's Disability Insurance Program.
G. LIFE AND ACCIDENTAL DEATH & DISMEMBERMENT INSURANCE
Department Directors shall becovered bythe 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$35,OOOfor basic life and $25,OOOfor accidental death and dismemberment
policies.
Article 12. LIFETIME MEDICAL
Department Directors who achieve 15 years of service with the City of Redlands 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 as provided by the City to its then existing
Directors through the CaIPERS medical plan. Department Directors hired after January 1, 2009, shall not
beentitled tothis benefit.
Article 13. HOLIDAYS
A. The following paid holidays will beobserved onthe day specified.
New Year's Day S
Martin Luther King's Birthday
3 Monday in January
Presidents'Day
3 Monday in February
Memorial Day Last Monday in May
Independence Day July 4
St
Labor Day 1 Monday in September
Columbus Day 2 Monday in October
Veteran's Day November 11
th
Thanksgiving Day
4 Thursday in November
Day After Thanksgiving Day Day After 4 Thursday in November
Christmas Eve December 24
77*o|o7 ncna
Christmas Day December
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. Christmas Eve Day shall be observed as a holiday if Christmas Day falls on a Tuesday, Wednesday,
Thursday or Friday.
E. Effective the first payroll period commencing on or after the City Council adoption of the 2013-
2015 MOU, in any instance where a Director 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 Director 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. Effective January 1, 2009, Department Directors 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 Department Directors the ability to accrue time for
Vacation, Sick Leave and personal leave situations.
C. Effective the first payroll period commencing on or after City Council adoption of the 2013-2015
MOU, individual Department Directors shall accrue Annual Leave hours at a rate of 392hours
per year (15.07 hours per payroll peiod), regardless of years of service, whether at the City of
Redlands or elsewhere.
D. Effective January 1, 2009, the maximum Annual Leave balance shall be 900 hours.
Department Directors shall not accrue Annual Leave above 900 hours
E. As a matter of City policy, Department Directors are encouraged to use annual leave.
F. Department Directors may convert up to 300 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 ONRETIREM NT
Upon service or medical retirement under the PERS retirement plan, or in the event of the death of an
Department Director prior to retirement, PERS members with less than fifteen (15)years 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 employee and eligible dependents until the cash value is exhausted. In the event
that the member 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 member, one
hundred percent (100%) of accrued annual leave may be converted to cash or applicable deferred
compensation plan at the prevailing hourly rate.
7'74818,7 RF035-018
City of Redlands I DEPARTMENT DIRECTORS MOU 2013-2015
RADD Approval
Artidel& YEETION
In recognition that Department Directors serve at the will and pleasure of the City Manager, the City
Manager may offer severance pay to any Department Director who is terminated involuntarily or
pursuant to a negotiated separation of service in an amount up to three months salary. The amount of
such severance pay shall be determined bythe City Manager and may b8included inthe terms ofa
contractual agreement between the Department Director and the City made at the time the
Department Director ishired Urpromoted.
ArtidelZ FA-mm Y MEDICAL CARE LE,4 vEs
A. Family Leave shall be granted in accordance with the California Rights Act of 1991 and the Family
and Medical Leave Act ofI993, and any amendments thereto and implementing regulations for
those respective statutes. The City's Human Resources Department shall beresponsible for
administration of all leave taken pursuant to this Section.
B. Employees may utilize up to twelve weeks of Annual Leave for leaves of absence that fall under the
provisions ofthe FIVILA and CFRA. This Annual Leave iSinaddition toany other paid orunpaid leave,
which may begranted under the provisions ofFM[Aand CFRA. Annual Leave shall beused prior tO
the unpaid leave provisions ofFK4[Aand [FRA.
Ar*ic&p18 DEFERRED COMPENSATION
[1eD@rt08Df Directors are eligible to participate in City Deferred Compensation Plans 457 /13\
and 401 //\\ @8provided for iDState and Federal Tax Codes. The City will contribute $1,125
per year plus 2% Ofsalary tO @ 401 //\\ Dl8O for [}8p8dmeOt Directors. Employees may
individually contribute additional deferred compensation tOthe 457 /[]\ Plan iOaccordance with
Plan OrUViSiOD8.
Artidel5ll. REXIBLESAVINGS PLAN
The City will offer Flexible Spending Accounts (FSA) to all Department Directors. An FSA allows an
onnp|Oyeetornakepre-taxdedurtionsforqua|if»ingrncdica|, denta| andvisiOnewpenseS, and
dependent care expenses. The plan is established and administered in accordance with Section 125 of
the Internal Revenue Service code.
Artide20.) EMPLoYEEASSIS-'TANCEPROGRAM
The City offers Department Directors an employee assistance program. Confidentiality regarding a
Director's use ofthis program will be maintained in full compliance with State and Federal Regu|ations,
Artide2l. BER-EAVEMBNTLEAm
Department Directors receive two working days of paid Bereavement Leave for the death of member
of the 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). Department Directors may be a||0vved to use accrued Sick Leave as
Bereavement Leave with full pay not tVexceed three days.
77*n|xJ uE035y/8
City ofRedlands | DEPARTMENT DIRECTORS
Article22. MANAGEMENTRIGHTS
Management rights shall consist of the exclusive right to determine the mission of its constituent
departments, commissions, boards; se{ 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 Oflack ofwork 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 Vfjob classifications; take
all necessary actions tQcarry out its mission in emergencies; exercise complete control and discretion
over its organization and the technology Ofperforming its work.
Article23. SA-IWGsCLAusE
If any provision of this W1C>U, 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. SIGNATURES
REDLANDS ASSOCIATION OF
CITY OF REDLANDS
DEPARTMENT DIRECTORS- RADD
PETE AGUILAR, MAYOR PRESIDENT I DATE
DATE
VICE PRESIDENT
ADOPTED,SIGNED AND APPROVED THIS 60,111 DAY
2014
ATTEST:
Sam Irwin,
'
'
774818,' ncu 5-om