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HomeMy WebLinkAbout2021-12-07; City Council; ; Side Letter Agreements with the Carlsbad Police Officers’ Association, Carlsbad Police Management Association and Carlsbad City Employees’ Association on Modifications toMeeting Date: Dec. 7, 2021 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Debbie Porter, Senior Management Analyst debbie.porter@carlsbadca.gov, 760-621-1221 Judy von Kalinowski, Human Resources Director judy.vonkalinowski@carlsbadca.gov, 760-473-4670 Subject: Side Letter Agreements with the Carlsbad Police Officers’ Association, Carlsbad Police Management Association and Carlsbad City Employees’ Association on Modifications to the City’s Calculation of Overtime as required by the Fair Labor Standards Act District: All Recommended Action Adopt a resolution approving side letter agreements1 with the Carlsbad Police Officers’ Association, Carlsbad Police Management Association and Carlsbad City Employees’ Association to modify the city’s calculation of overtime under the federal Fair Labor Standards Act and authorizing the City Manager to address any related past underpayments. Executive Summary/Discussion The federal Fair Labor Standards Act is the primary wage and hour law that governs public employees. Recent clarifications to this law require the city to adjust the way it calculates overtime to remain in accordance with the law. Representatives of the city and the three employee associations listed above have met and conferred in good faith and have reached agreements to modify articles of their respective memoranda of understanding to clarify the city’s calculation and payment of overtime as required by law. The 2016 U.S. Ninth Circuit Court of Appeals decision in the case of Flores v. City of San Gabriel clarified that the Fair Labor Standards Act requires all cash an employee receives back as taxable income from the employer’s contribution to the employee’s healthcare plan benefit to be included in the employee’s regular rate of pay for purposes of calculating the employee’s 1 A side letter agreement is used by parties to a labor memorandum of understanding to memorialize an agreement that is not part of the memorandum, to clarify issues in the memorandum, or to modify the memorandum. Dec. 7, 2021 Item #3 Page 1 of 34 overtime pay. Before this ruling, the prevailing view among all cities was that these cash payments made in lieu of health benefits were not to be included in an employee’s regular rate of pay for overtime calculation purposes. In October 2019, the City of Carlsbad began including these payments in its overtime calculations. These side letter agreements will modify the current memorandum of understanding to reflect this. These agreements also relate to modifications to the city’s payment of Fair Labor Standards Act compensatory time. The Fair Labor Standards Act requires payments of unused compensatory time to be paid at the employee’s regular rate of pay. These amendments to the memoranda of understanding conform with this rule. The change will be fully implemented in January 2022. The terms of the current memoranda of understanding between the City and the associations are: • Carlsbad Police Officers’ Association from Jan. 1, 2019, to Dec. 31, 2021 • Carlsbad Police Management Association from Jan. 1, 2019, to Dec. 31, 2021 • Carlsbad City Employees’ Association from Jan. 1, 2020, to Dec. 31, 2022. Fiscal Analysis The estimated annual cost of the changes to the city’s calculation of overtime based on the Fair Labor Standards Act for employees represented by the Carlsbad Police Officers’ Association, Carlsbad Police Management Association and Carlsbad City Employees’ Association is $20,000. The impact to fiscal year 2021-22, from January 2022 to June 2022, is estimated to be $10,000, and the estimated cost of providing retroactive payments to individual employees for any underpayments of overtime is not expected to exceed $100,000. No additional appropriations are required because of savings in the current fiscal year from vacant full-time positions. Next Steps With the City Council’s approval, staff will implement the changes outlined in the side letter agreements. Staff will also seek to obtain settlement agreements to provide retroactive payments to individual employees for any underpayments of overtime. Environmental Evaluation (CEQA) This action does not constitute a “project” within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. Public Notification and Outreach This item was noticed in keeping with the Ralph M. Brown Act and it was available for public viewing and review at least 72 hours before the scheduled meeting date. Exhibits 1. City Council resolution 2. Revisions of articles in the memorandum of understanding between the city and the Carlsbad Police Officers’ Association 3. Revisions of articles in the memorandum of understanding between the city and the Carlsbad Police Management Association Dec. 7, 2021 Item #3 Page 2 of 34 4. Revisions of articles in the memorandum of understanding between the city and the Carlsbad City Employees’ Association Dec. 7, 2021 Item #3 Page 3 of 34 Exhibit 1 RESOLUTION NO. 2021-260 A RESOLUTION OF THE CITY COUNCIL OF. THE CITY OF CARLSBAD, CALIFORNIA, APPROVING SIDE LETTER AGREEMENTS WITH THE CARLSBAD POLICE OFFICERS' ASSOCIATION, CARLSBAD POLICE MANAGEMENT ASSOCIATION AND CARLSBAD CITY EMPLOYEES' ASSOCIATION TO MODIFY ARTICLES OF THE MEMORANDA OF UNDERSTANDING BETWEEN THE CITY AND THESE ASSOCIATIONS RELATING TO THE CALCULATION OF OVERTIME UNDER THE FAIR LABOR STANDARDS ACT AND AUTHORIZING THE CITY MANAGER TO ADDRESS ANY RELATED PAST UNDERPAYMENTS WHEREAS, recent clarifications to the Fair Labor Standards Act require the city to adjust the way it calculates Fair Labor Standards Act overtime; and WHEREAS, representatives of the City of Carlsbad an.d the Carlsbad Police Officers' Association, Carlsbad Police Management Association and Carlsbad City Employees' Association have met an~ conferred in good faith pursuant to the Meyers-Milias-Brown Act (Cal. Government Code, § 3500 et seq.) regarding the way the city calculates Fair Labor Standards Act overtime; and WHEREAS, the representatives have reached agreements, which they submitted to the City Council for consideration and approval; and WHEREAS, the City Council of the City of Carlsbad, California ha~ determined the need to approve the agreements in the form of Side Letter Agreements (Attachments A, B and C); and WHEREAS, the City Council has further determined the need to resolve any individual claims of underpaid overtime related to the adjustments in the Side Letter Agreements. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. The above recitations are true and correct. 2. That the Side Letter Agreements between the Carlsbad Police Officers' Association, Carlsbad Police Management Association and Carlsbad City Employees' Association and the City of Carlsbad (Attachments A, B and C) are _approved and the city manager is directed to execute them. 3.. That the city manager or designee, in consultation with the city attorney, is authorized to resolve any individual claims of underpaid overtime related to the adjustments in the Side Letter Agreement, including executing any settlement agreements with the claimants. Dec. 7, 2021 Item #3 Page 4 of 34 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the zlli day of December 2021, by the following vote, to wit: AVES: NAYS: ABSENT: Hall, Blackburn, Bhat-Patel, Acosta, Norby. None. None. (SEAL) Dec. 7, 2021 Item #3 Page 5 of 34 DocuSign Envelope ID: BD3F36D4-A77A-4401-BFF7-417844C7682B SIDE LETTER AGREEMENT BETWEEN THE THE CARLSBAD POLICE OFFICER'S ASSOCIATION AND THE CITY OF CARLSBAD RELATING TO FLSA OVERTIME Attachment A The City of Carlsbad (hereinafter referred to as "city") and the Carlsbad Police Officers' Association, (hereinafter referred to as the "CPOA") entered into a Memorandum of Understanding ("MOU") with a term beginning on January 1, 2019 and terminating on December 31, 2021. The city and the CPO A are collectively referred to herein as the "Parties." Background and Overview This Agreement relates to modifications to the city's payment of Fair Labor Standards Act ("FLSA") overtime for unused benefit credits received as taxable income in accordance with Flores v. San Gabriel (2016) 824 F.3d 890. Pursuant to the Flores decision, the city began including unused benefit credits received as taxable income into the regular rate of pay for FLSA overtime on October 7, 2019. This Agreement also relates to modifications to the city's payment ofFLSA compensatory time. The FLSA requires that payments of unused compensatory time are paid at the regular rate. The city intends to change its method of paying for compensatory time according to FLSA following the 2021 calendar year cashout of unused compensatory time. The specific provisions contained in this Agreement are intended to supersede any previous agreements, whether oral or written, regarding the matters contained in this Agreement. The Parties have satisfied their obligations to meet and confer in good faith in accordance with the Meyers-Milias-Brown Act ("MMBA") in response to the city's determination. Except as provided here, all wages, hours, and other terms and conditions of employment presently in the city's MOU with the CPOA remain in full force and effect. This Agreement will become effective the first day of the first full pay period following Council approval in open session. The Parties mutually agree to replace Articles 17 and 25 in their entirety with the following: ARTICLE 17. OVERTIME Overtime Pay: Each employee covered by this agreement shall be entitled to overtime compensation at the premium rate of one and one-half (1-1/2) times the employee's regular rate of pay for all time worked, or regarded as having been worked because the employee is on an approved paid leave, in excess of the employee's regularly scheduled work day and/or in excess of forty ( 40) hours per work week for non-sworn employees or eighty (80) hours per fourteen (14) day work period for sworn employees. The regular rate of pay shall be calculated in conformance with the FLSA. Dec. 7,2021 Item #3 Page 6 of 34 DocuSign Envelope ID: BD3F36D4-A77A-4401-BFF7-417844C7682B Attachment A 17.1 Comp. Time Option: Each employee shall have the option (with the exception of"Pay Only Details") of receiving compensatory time off at the premium rate in lieu of cash, subject to a maximum accumulation of one hundred and fifty (150) hours of compensatory time off. The employee will be paid out the FLSA overtime premium at the regular rate of pay when compensatory time is selected. For every hour of overtime worked, 1.5 hours will be added to the comp time bank, if selected. While an employee has accumulated the maximum number of hours of compensatory time off, he/she shall receive all overtime compensation in cash until such time as the employee's compensatory time off bank is no longer at the maximum. An employee may use such compensatory time within a reasonable period after making the request if the use of compensatory time does not unduly disrupt the operations of the department. Required use of overtime to backfill staff shall not be considered to unduly disrupt operations. Any accrued and unused compensatory time through December 31, 2019 will be cashed out on the last pay date in June 2020. Effective January 1, 2020, all accrued and unused compensatory time during the calendar year will be cashed out on the last pay date of the calendar year. No compensatory time may be accrued beginning on the last pay period of the calendar year through the end of the calendar year. At any time an employee may elect to "cash out" any portion of his/her accrued compensatory time balance at his/her base rate of pay by requesting this "cash out" on his/her time card. Upon separation from the city service an employee who has a balance of unused compensatory time shall be paid out the remainder of their compensatory balance. 17.2 Comp. Time Exception: Special details where the city is reimbursed for employees' compensation from an outside entity shall be for pay only. Employees volunteering for such details are not eligible for compensatory time off in lieu of cash. ARTICLE 25 FLEXIBLE BENEFITS PROGRAM 25.1 Employees represented by the CPOA will participate in a flexible benefits program that includes medical insurance, dental insurance, vision insurance, AD&D insurance and flexible spending accounts (FSAs ). Each of these components is outlined below. 25.2 Benefits Credits and Medical Insurance: During the entire term of this agreement, represented employees will be covered by the Public Employees' Medical and Hospital Care Act (PEMHCA) and will be eligible to participate in the CalPERS Health Program. The city will pay on behalf of all employees covered by this agreement and their eligible dependents and those retirees designated in Section 25.5 of this Article, the minimum amount per month required under Government Code Section 22892 of the PEMHCA for medical insurance through the California Public Employees' Retirement System (CalPERS). If electing to enroll for medical benefits, the employee must select one medical plan from the variety of medical plans offered. The city shall contribute monthly amounts ( called "Benefits Credits") on behalf of each active employee and eligible dependents toward the payment of medical premiums under the CalPERS Health Program. The city contribution shall be based on the employee's medical 2 Dec. 7,2021 Item #3 Page 7 of 34 DocuSign Envelope ID: BD3F36D4-A77A-4401-BFF7-417844C7682B Attachment A coverage level and shall include the mandatory payments to CalPERS. If the actual total premiums exceed the city's total contributions, the employee will pay the difference. Waiver Provision: CPOA-represented employees who do not wish to participate in the CalPERS Health Program will have the choice of waiving the city's medical insurance program, provided they can show that they are covered under another group insurance program The benefits credits associated with waiving medical coverage will be set equal to 50% of the benefit credits associated with Employee Only medical coverage level. If this results in a situation where the unused benefit credits associated with any medical plan exceed the benefit credits associated with waiving medical coverage, the benefit credits associated with waiving medical coverage will be set equal to one dollar ($1) above the unused benefit credits associated with that medical plan. Excess and Unused Benefits Credits: If the Benefits Credits exceeds the cost of the medical insurance purchased by the employee, the employee will have the option of using any "excess credits" to purchase city-sponsored dental insurance, vision insurance, accidental death and dismemberment (AD&D) insurance or to contribute to a healthcare or dependent care flexible spending account (FSA). Unused Benefits Credits will be paid to the employee in cash and reported as taxable income and included in the calculation of the regular rate of pay under the FLSA. The Benefits Credits for calendar year 2019 shall increase as shown in the table below. To provide CPOA represented employees with the value of the increase in 2019 Benefits Credits, with the payroll for the first full pay period after ratification of this Memorandum by the City Council, the city shall make a one-time taxable (non-PERSable) cash payment equal to the increase in benefits credits for CPOA members employed by the city on that date. The increase: in Benefits Credits shall be given to each employee based on the employee's medical coverage level in the pay period in which the cash amount is paid and pro-rated based on the employee's benefit-eligibility date (i.e., the date they became eligible for city benefits). Employees hired during subsequent pay periods in calendar year 2019 shall receive a cash payment for this increase in Benefits Credits in the pay period in which they become benefit-eligible. Medical Prior Monthly 2019 Monthly Monthly Coverage Level Benefits Credits Benefits Credits Increase Employee $573.00 $577.00 $4.00 Employee+ 1 $1,146.00 $1,158.00 $12.00 Family $1,502.00 $1,528.00 $26.00 Waive Medical $286.50 $416.68 $130.18 Effective the pay periods that include 1/1/2020, 1/1/2021 and 12/31{2021 the city monthly benefit credits associated with each medical coverage level will be set to dollar amounts that equate to 80% of the average health (medical, dental and vision) premium for Employee, Employee Plus One and Family coverage levels, rounded to.the nearest whole dollar based on the premiums that will take effect on January 1 of the respective calendar year. 3 Dec. 7,2021 Item #3 Page 8 of 34 DocuSign Envelope ID: DCBDF2B5-217C-4E83-9B76-92E42967DF8E SIDE LETTER AGREEMENT BETWEEN THE THE CARLSBAD POLICE MANAGEMENT ASSOCIATION AND THE CITY OF CARLSBAD RELATING TO FLSA OVERTIME Attachment B The City of Carlsbad (hereinafter referred to as "city") and the Carlsbad Police Management Association, (hereinafter referred to as the "CPMA") entered into a Memorandum of Understanding ("MOU") with a term beginning on January 1, 2019 and terminating on December 31, 2021. The city and the CPMA are collectively referred to herein as the "Parties." Background and Overview This Agreement relates to modifications to the city's payment of Fair Labor Standards Act ("FLSA") overtime for unused benefit credits received as taxable income in accordance with Flores v. San Gabriel (2016) 824 F.3d 890. Pursuant to the Flores decision, the city began including unused benefit credits received as taxable income into the regular rate of pay for FLSA overtime on October 7, 2019. The amendments to the MOU set forth below conform with this decision and the FLSA. This Agreement also relates to modifications to the city's payment ofFLSA compensatory time. The FLSA requires that payments of unused compensatory time are paid at the regular rate. The city intends to change its method of paying for compensatory time according to FLSA following the 2021 calendar year cashout of unused compensatory time. The amendments to the MOU set forth below conform with this DOL Final Rule and the FLSA. The specific provisions contained in this Agreement are intended to supersede any previous agreements, whether oral or written, regarding the matters contained in this Agreement. The Parties have satisfied their obligations to meet and confer in good faith in accordance with the Meyers-Milias-Brown Act ("MMBA") in response to the city's determination. Except as provided here, all wages, hours, and other terms and conditions of employment presently in the city's MOU with the CPMA remain in full force and effect. This Agreement will become effective the first day of the first full pay period following Council approval in open session. The Parties mutually agree to replace Articles 12 and 18 in their entirety with the following: ARTICLE 12. OVERTIME 12.1 Overtime Pay: Lieutenants shall be entitled to overtime compensation for all time worked ( or regarded as having been worked because the employee is on an approved paid leave) in excess of the employee's regularly scheduled work day and/or in excess of eighty (80) hours per fourteen (14) day work period. The regular rate of pay shall be calculated in conformance with the FLSA. 1 Dec. 7, 2021 Item #3 Page 10 of 34 DocuSign Envelope ID: DCB0F285-217C-4E83-9876-92E42967DF8E Attachment B 12.2 Comp. Time Option: Lieutenants shall have the option (with the exception of"Pay Only Details") of earning compensatory time off hours at the rate of 1.5 hours per overtime hour worked in lieu of cash, subject to a maximum accumulation of one hundred and fifty (150) hours of compensatory time off. The Lieutenant will be paid out the FLSA overtime premium at the regular rate of pay when compensatory time is selected. For every hour of overtime worked, 1.5 hours will be added to the comp time bank, if selected. When a Lieutenant has accumulated the maximum number of hours of compensatory time off, he/she shall receive all overtime compensation in cash until such time as the Lieutenant's compensatory time off bank is no longer at the maximum. 12.3 Comp. Time Exception: Special details where the city is reimbursed for employees' . compensation from an outside entity shall be for pay only. Lieutenants volunteering for such details are not eligible for compensatory time off in lieu of cash. ARTICLE 18. FLEXIBLE BENEFITS PROGRAM 18.1 Employees represented by the CPMA will participate in a flexible benefits program that includes medical insurance, dental insurance, vision insurance, AD&D insurance and flexible spending accounts (FSAs). Each of these components is outlined below. 18.2 Benefits Credits and Medical Insurance: During the entire term of this agreement, represented employees will be covered by the Public Employees' Medical and Hospital Care Act (PEMHCA) and will be eligible to participate in the CalPERS Health Program. The city will pay on behalf of all employees covered by this agreement and their eligible dependents and those retirees designated in Section 18.6 of this Article, the minimum amount per month required under Government Code Section 22892 of the PEMHCA for medical insurance through the California Public Employees' Retirement System (CalPERS). If electing to enroll for medical benefits, the employee must select one medical plan from the variety of medical plans offered. The city shall contribute monthly amounts ( called "Benefits Credits") on behalf of each active employee and eligible dependents toward the payment of medical premiums under the CalPERS Health Program. The city contribution shall be based on the employee's medical coverage level and shall include the mandatory payments to CalPERS. If the actual total premiums exceed the city's total contributions, the employee will pay the difference. Waiver Provision: CPMA-represented employees who do not wish to participate in the CalPERS Health Program will have the choice of waiving the city's medical insurance program, provided they can show that they are covered under another group insurance program. The benefits credits associated with waiving medical coverage will be set equal to 50% of the benefit credits associated with Employee Only medical coverage level. If this results in a situation where the unused benefit credits associated with any medical plan exceed the benefit credits associated with waiving medical coverage, the benefit 2 Dec. 7,2021 Item #3 Page 11 of 34 DocuSign Envelope ID: DCB0F2B5-217C-4E83-9B76-92E42967DF8E Attachment B credits associated with waiving medical coverage will be set equal to one dollar ($1) above the unused benefit credits associated with that medical plan. Excess and Unused Benefits Credits: If the Benefits Credits exceeds the cost of the medical insurance purchased by the employee, the employee will have the option of using any "excess credits" to purchase city-sponsored dental insurance, vision insurance, accidental death and dismemberment (AD&D) insurance or to contribute to a healthcare or dependent care flexible spending account (FSA). Unused Benefits Credits will be paid to the employee in cash and reported as taxable income and included in the calculation of the regular rate of pay under the FLSA. The Benefits Credits for calendar year 2019 shall increase as shown in the table below. To provide CPMA represented employees with the value of the increase in 2019 Benefits Credits, with the payroll for the first full pay period after ratification of this Memorandum by the City Council, the city shall make a one-time taxable (non- PERSable) cash payment equal to the increase in benefits credits for CPMA members employed by the city on that date. The increase in Benefits Credits shall be given to each employee based on the employee's medical cove~age level in the pay period in which the cash amount is paid and pro-rated based on the employee's benefit-eligibility date (i.e., the date they became eligible for city benefits). Employees hired during subsequent pay periods in calendar year 2019 shall receive a cash payment for this increase in Benefits Credits in the pay period in which they become benefit-eligible. Medical Prior Monthly 2019 Monthly Monthly Coverage Level Benefits Credits Benefits Credits Increase Employee $573.00 $577.00 $4.00 Employee+ 1 $1,146.00 $1,158.00 $12.00 Family $1,502.00 $1,528.00 $26.00 Waive Medical $286.50 $416.68 $130.18 Effective the pay periods that include 1/1/2020, 1/1/2021 and 12/31/2021 the city monthly benefit credits associated with each medical coverage level will be set to dollar amounts that equate to 80% of the average health (medical, dental and vision) premium for Employee, Employee Plus One and Family coverage levels, rounded to the nearest whole dollar based on the premiums that will take effect on January 1 of the respective calendar year. 18.3 Dental Insurance CPMA employees may choose to enroll in or opt out of the city-sponsored dental insurance plan at any coverage level. 18.4 Vision Insurance CPMA employees may choose to enroll in or opt out of the city-sponsored vision insurance plan at any coverage level. 3 Dec. 7,2021 Item #3 Page 12 of 34 DocuSign Envelope ID: B72B0C97-59BB-4D0B-ABE7-BF52194307AA SIDE LETTER AGREEMENT BETWEEN THE THE CARLSBAD. CITY EMPLOYEES' ASSOCIATION AND THE CITY OF CARLSBAD RELATING TO FLSA OVERTIME Attachment C The City of Carlsbad (hereinafter referred to as "city") and the Carlsbad City Employees' Association, (hereinafter referred to as the "CCEA") entered into a Memorandum of Understanding ("MOU") with a term beginning on January 1, 2021 and terminating on December 31, 2022. The city and the CCEA are collectively referred to herein as the "Parties." Background and Overview This Agreement relates to modifications to the city's payment of Fair Labor Standards Act ("FLSA") ove1iime for unused benefit credits received as taxable income in accordance with Flores v. San Gabriel (2016) 824 F.3d 890. Pursuant to the Flores decision, the city began including unused benefit credits received as taxable income into the regular rate of pay for FLSA overtime on October 7, 2019. The amendments to the MOU set forth below conform with this decision and the FLSA. This Agreement also relates to modifications to the city's payment ofFLSA compensatory time. The FLSA requires that payments of unused compensatory time are paid at the regular rate. The city intends to change its method of paying for compensatory time according to FLSA following the 2021 calendar year cashout of unused compensatory time. The amendments to the MOU set forth below conform with this DOL Final Rule and the FLSA. The specific provisions contained in this Agreement are intended to supersede any previous agreements, whether oral or written, regarding the matters contained in this Agreement. The Parties have satisfied their obligations to meet and confer in good faith in accordance with the Meyers-Milias-Brown Act ("MMBA") in response to the city's determination. Except as provided here, all wages, hours, and other terms and conditions of employment presently in the city's MOU with the CCEA remain in full force and effect. This Agreement will become effective the first day of the first full pay period following Council approval in open session. The Parties mutually agree to replace Articles 14 and 34 in their entirety with the following: Article 14 Overtime 1. Overtime Any employee required to perform in excess of forty ( 40) hours in a seven (7) day cycle and/or in excess of an employee's scheduled work day shall receive compensation at the rate of time and one-half his/her regular rate of pay, except as outlined in Section 2 below. The regular rate of pay shall be calculated in conformance with the FLSA. 1 Dec. 7, 2021 Item #3 Page 14 of 34 DocuSign Envelope ID: B72B0C97-59BB-4D0B-A8E7-BF52194307AA , Attachment C In determining an employee's eligibility for overtime, paid leaves shall be included in the total hours worked. Excluded from the total hours worked are duty free lunches, travel time to and from work, and time spent conducting bona fide volunteer activities. There shall be no pyramiding of overtime. Hours worked by an employee in any workday or workweek on which premium rates have once been allowed shall not be used again in any other overtime calculation other than computing total actual hours worked. Time worked shall be computed by rounding to the nearest quarter of an hour. 2. Request for Temporary Shift Adjustment (Flex Time) 3. An employee may request that the employee's normal workday be temporarily altered in order to accumulate a credit of work hours that may be used to take time off during the employee's FLSA work week and same pay period without loss of pay. If the request is approved by management, pay for hours worked during this temporary shift adjustment shall be paid at the straight time rate. The FLSA work week for employees on a 9/80 schedule begins four ( 4) hours after the regularly scheduled starting time for their Friday shift and ends one hundred sixty eight (168) hours later (at four (4) hours after the regularly scheduled starting time for their Friday shift). For all others the work week is from Monday at 12:00 a.m. to Sunday at 11 :59 p.m. Call Back Pay Call back duty occurs when an employee is requested and accepts the request to return to duty on a non-regularly scheduled work shift. Call back does not occur and regular overtime.rules and pay apply (e.g., no minimum) when an employee is held over from his/her prior shift or is working prior to his/her regularly scheduled shift or if the assignment has been scheduled in advance and the employee is provided with at least twenty four (24) hours notice of said assignment. Coming Back To Work If the employee has to come to work to resolve the problem, (i.e., the work is not completed remotely via phone/computer) the employee called back to duty shall be credited with a minimum of two (2) hours work commencing at the time the employee begins their commute to work. The employee shall be paid for travel time to and from the call back assignment up to a maximum total travel time (to and from) ~fthree (3) hours. Travel time is included as part of the call back minimum compensation. Mileage reimbursement for expenses to the work site will not be compensated. Some example scenarios are shown below. Example 1 Time spent commuting to work is 2 hours Time spent at work is 1 hour Time spent commuting back home is 2 hours Total paid time for this scenario would be 4 hours (maximum 3 hours for commute/travel time plus 1 hour at work). 2 Dec. 7,2021 Item #3 Page 15 of 34 DocuSign Envelope ID: B72B0C97-59BB-4D0B-A8E7-BF52194307AA 4. Example 2 Time spent commuting to work is 15 minutes Time spent at work is 30 minutes Time spent commuting back home is 15 minutes Attachment C Total paid time for this scenario would be 2 hours (the minimum call back pay). Example 3 Time spent commuting to work is 1 hour Time spent at work is 1 hour Time spent commuting back home is 1 hour Total paid time for this scenario would be 3 hours. Performing the Work Remotely If the work is performed remotely via phone/computer the employee shall be credited for a minimum of thirty (30) minutes work commencing at the time the employee begins the callback work. If an employee receives multiple calls/messages and completes the work related to all of those calls/messages remotely and via phone/computer within the same thirty (30) minute period, the employee shall be credited for a minimum of thirty (30) minutes work. ' Compensatory Time In lieu of receiving overtime pay pursuant to Section 1 above, an employee may elect, subject to department approval, to receive compensatory time off. The employee will be paid out the overtime premium at the regular rate of pay when compensation time is earned. No employee shall accrue more than eighty (80) hours of such compensatory time. When an employee has accumulated the maximum number of hours of compensatory time off he/she shall receive all overtime compensation in cash. An employee may use such compensatory time within a reasonable period after making the request if the use of compensatory time does not unduly disrupt the operations of the department. Effective January 1, 2020, all accrued and unused compensatory time during the calendar year will be cashed out on the last pay date of the calendar year. No compensatory time may be accrued beginning on the last pay period of the calendar year through the end of the calendar year. At any time an employee may elect to "cash out" any portion of his/her accrued compensatory time balance at his/her base rate of pay by requesting this "cash out" on his/her time card. Upon separation from the city service an employee who has a balance of unused compensatory time shall be paid out the remainder of their compensatory balance. 5. Overtime Authorization All overtime requests must have the prior authorization of a supervisor prior to the commencement of such overtime work. Where prior written authorization is not feasible, 3 Dec. 7,2021 Item #3 Page 16 of 34 DocuSign Envelope ID: B72B0C97-59BB-4D0B-A8E7-BF52194307AA . 6. 7. 8. 9. Attachment C explicit verbal authorization must be obtained. Calls for service beyond the end of duty time are considered as authorized. Clothes Changing Employees are not authorized to wear their uniforms or any part thereof that is distinguishable as such unless on duty. Each employee is provided with a locker for his/her own personal convenience. An employee may or may not utilize the locker for storage and changing purposes at his/her own discretion. Nothing herein prevents an employee from wearing his/her uniform to and/or from his/her residence and work. Nothing herein prevents an employee from wearing his/her uniform while conducting personal business during lunch time. Time spent in changing clothes before or after a shift, is not considered hours worked and is not compensable in any manner whatsoever. Training Time Training time outside normally scheduled work hours shall be compensated pursuant to Code of Federal Regulations (CPR), Section 785.27, et seq. Travel time outside normally scheduled work hours shall be compensated pursuant to CPR Section 785.33, et seq. When feasible, the Department will adjust the employee's work schedule to minimize the impact of travel and training time. Travel time to and from local work-related training either before, during or after regularly scheduled work hours shall be compensated for all CCEA employees regardless of whether the employee is a driver or passenger. For the purposes of this section, "local" refers to work related training taking place in San Diego, Imperial, Orange, Riverside, San Bernardino and Los Angeles Counties. City Vehicle Use Employees who are provided with a City vehicle to travel to and from work shall not be compensated in any manner whatsoever for such travel time in the City vehicle. Refer to Administrative Order No. 3 for more information regarding use of City vehicles. This provision also applies in those situations where the radio must be left on and monitored. Court Pay 4 Dec. 7,2021 Item #3 Page 17 of 34 DocuSign Envelope ID: B72B0C97-59BB-4D0B-A8E7-BF52194307AA ) I 10. Attachment C When an employee is physically called to court for City-related business, while off duty, he/she shall be credited on an hour for hour basis for the time actually spent in court. An employee shall be credited with a minimum of two (2) hours for the court appearance. Travel time shall not be considered hours worked and shall not be compensated in any manner whatsoever. Standby Pay "Standby assignment" requires an employee to: a. Review and confirm receipt of the standby assignment schedule within the deadlines established by the applicable department; b. Carry a cellular phone during standby assignment; c. Respond to a call/message promptly without delay. If an employee has arranged for another employee to respond, the employee must notify the supervisor, the department, and dispatch of the name of the substitute employee who will respond. Callback shall be handled in accordance with each department's standby/callback policy; d. Each department's standby/callback policy shall be developed and submitted to Association representatives for meeting and conferring. In addition, the City shall provide training for the supervisors and managers responsible for administering departmental standby/callback policies and shall also provide orientation for all employees subject to the standby/callback policies; e. Abide by the City's Alcohol and Drug Policy as specified in Article 40 of this agreement during standby assignment; and abide by the rules and regulations set forth by the Department of Transportation (DOT); f. Wear appropriate clothing, safety equipment, and any other form of City identification as defined by the department when making a callback response from standby assignment; g. Accept $35.00 per day for each day on standby assignment. h. Acknowledge and agree that time on standby assignment is not considered to be compensable work time for purposes of the Fair Labor Standards Act (FLSA); provided, however, (1) individuals have not waived any rights they may have outside of this contract under the FLSA; and (2) neither the fact of these negotiations nor the changes negotiated in this agreement shall be used by either party or by any individual to the prejudice of the other party in any grievance or complaint outstanding as of the time of this agreement. 1. The Information Technology Department will implement standby duty upon ratification of this MOU and in accordance with the Information Technology Department Standby Policy dated February 23, 2018. 5 Dec. 7,2021 Item #3 Page 18 of 34 DocuSign Envelope ID: B72B0C97-59BB-4D08-A8E7-BF52194307AA Attachment C Article 34 Health Insurance/Flexible Benefits Program Employees represented by CCEA will participate in a flexible benefits program that includes medical insurance, dental insurance, vision insurance, and flexible spending accounts (FSAs). Each of these components is outlined below. A. Medical Insurance Al. Employees represented by CCEA will be covered by the Public Employees' Medical and Hospital Care Act (PEMHCA) and will be eligible to participate in the CalPERS Health Program. The City will pay on behalf of all employees covered by this agreement and their eligible dependents and those retirees designated in Section C of this Article, the minimum amount per month required under Government Code Section 22892 of the PEMHCA for medical insurance through the California Public Employees' Retirement System (CalPERS). If electing to emoll for medical benefits, the employee must select one medical plan from the variety of medical plans offered through CalPERS. The City will contribute monthly amounts ( called Benefits Credits) on behalf of each active CCEA employee and eligible dependents toward the payment of 1) medical premiums under the CalPERS Health · Program, 2) contribution of some or all of the premium for dental coverage or vision coverage and 3) contributions in the name of the employee to the City's flexible spending account(s). A2. Effective the pay period that includes January 1, 2021 and January 1, 2022, the City monthly Benefits Credits will be set to a dollar amount that equates to 80% of the average health (medical, dental and vision) premium for Employee, Employee + 1 and Family coverage levels, rounded to the nearest whole dollar based on the premiums that will take effect on January 1 of the respective calendar year. Effective the pay period that includes December 31, 2022, the City monthly Benefits Credits will change for each coverage level. The monthly Benefits Credits will be set to a dollar amount that equates to 80% of the average health (medical, dental and vision) premium for Employee, Employee + 1 and Family coverage levels, rounded to the nearest whole dollar based on the premiums that will take effect on January 1, 2023. A3. Unused Benefits Credits as outlined above will be paid to the employee in cash and reported as taxable income and included in the calculation of the regular rate of pay under the FLSA. If the amount contributed by the City (Benefits Credits) exceeds the cost of the medical insurance purchased by the employee, the employee will have the option of using any "excess credits" to purchase dental, vision, or accidental death and dismemberment (AD&D) insurance or to contribute to a healthcare or dependent care flexible spending account (FSA), instead of receiving taxable cash. A4. All active CCEA-represented employees who work three quarter-time or less will receive prorated Benefits Credits. B. Dental Insurance 6 Dec. 7, ,2021 Item #3 Page 19 of 34 DocuSign Envelope ID: B72B0C97-59BB-4D0B-A8E7-BF52194307AA Attachment C Represented employees will be eligible to enroll in or waive enrollment in a City- sponsored dental plan at any coverage level. C. Vision Insurance Represented employees will be eligible to enroll in or waive enrollment in a City- sponsored vision insurance plan at any coverage level. · D. Retirees Each retired employee who was a member of this bargaining unit is eligible to be covered by the Public Employees' Medical and Hospital Care Act and is eligible to participate in the California Public Employees' Retirement System (CalPERS) Health Program. Represented employees who retire from the City, either service or disability, shall be eligible to continue their enrollment in the CalPERS Health Program when they retire, provided that the individual is enrolled or eligible to enroll in a CalPERS medical plan at the time of separation from employment and their effective date of retirement is within 120 days of separation. The City will contribute the minimum amount per month required under Government Code Section 22892 of the PEMHCA toward the cost of each retiree's enrollment in the CalPERS Health Program. Employees who retire from the City, either service or disability, shall be eligible to elect, upon retirement, to participate in the City's dental and/or vision insurance programs as a retiree. The cost of such dental and/or vision insurance for the retiree and eligible dependents shall be borne solely by the retiree. An individual who does not choose coverage upon retirement, or who chooses coverage and later drops it is not eligible to return to the City's dental and vision insurance program. The City will invoice the retiree for his/her monthly premiums for dental and/or vision insurance and the retiree must keep such payments current to ensure continued coverage. E. Waiver Provision CCEA represented employees who do not wish to participate in the CalPERS Health Program will have the choice of waiving the City's medical insurance program, provided they can show that they are covered under another group insurance program. The dollar amount paid by the City for employees who elect the waiver provision will change in the first pay period of calendar year 2021, 2022 and in the pay period that includes December 31, 2022. The Benefits Credits associated with waiving medical coverage will be set equal to 50% of the Benefits Credits associated with Employee medical coverage. If this results in a situation where the unused benefit credits associated with any medical plan exceed the benefit credits associated with waiving medical coverage, the benefit credits associated with waiving medical coverage will be set equal to one dollar ($1) above the unused benefit credits associated with that medical plan. Unused Benefits Credits as outlined above will be paid to the employee in cash and reported as taxable income and included in the calculation of the regular rate of pay under the FLSA. 7 Dec. 7,2021 Item #3 Page 20 of 34 ARTICLE 17. OVERTIME Overtime Pay: Each employee covered by this agreement shall be entitled to overtime compensation at the premium rate of one and one-half (1-1/2) times the employee’s regular rate of pay for all time worked, or regarded as having been worked because the employee is on an approved paid leave, in excess of the employee’s regularly scheduled work day and/or in excess of forty (40) hours per work week for non-sworn employees or eighty (80) hours per fourteen (14) day work period for sworn employees. The regular rate of pay shall be calculated in conformance with the FLSA. 17.1 Comp. Time Option: Each employee shall have the option (with the exception of “Pay Only Details”) of receiving compensatory time off at the premium rate in lieu of cash, subject to a maximum accumulation of one hundred and fifty (150) hours of compensatory time off. The employee will be paid out the FLSA overtime premium at the regular rate of pay when compensatory time is selected. For every hour of overtime worked, 1.5 hours will be added to the comp time bank, if selected. While an employee has accumulated the maximum number of hours of compensatory time off, he/she shall receive all overtime compensation in cash until such time as the employee’s compensatory time off bank is no longer at the maximum. An employee may use such compensatory time within a reasonable period after making the request if the use of compensatory time does not unduly disrupt the operations of the department. Required use of overtime to backfill staff shall not be considered to unduly disrupt operations. Any accrued and unused compensatory time through December 31, 2019 will be cashed out on the last pay date in June 2020. Effective January 1, 2020, all accrued and unused compensatory time during the calendar year will be cashed out on the last pay date of the calendar year. No compensatory time may be accrued beginning on the last pay period of the calendar year through the end of the calendar year. At any time an employee may elect to “cash out” any portion of his/her accrued compensatory time balance at his/her regular base rate of pay by requesting this “cash out” on his/her time card. Upon separation from the city service an employee who has a balance of unused compensatory time shall be paid out the remainder of their compensatory balance. 17.2 Comp. Time Exception: Special details where the city is reimbursed for employees’ compensation from an outside entity shall be for pay only. Employees volunteering for such details are not eligible for compensatory time off in lieu of cash. ARTICLE 25 FLEXIBLE BENEFITS PROGRAM 25.1 Employees represented by the CPOA will participate in a flexible benefits program that includes medical insurance, dental insurance, vision insurance, AD&D insurance and flexible spending accounts (FSAs). Each of these components is outlined below. Dec. 7, 2021 Item #3 Page 22 of 34 25.2 Benefits Credits and Medical Insurance: During the entire term of this agreement, represented employees will be covered by the Public Employees’ Medical and Hospital Care Act (PEMHCA) and will be eligible to participate in the CalPERS Health Program. The city will pay on behalf of all employees covered by this agreement and their eligible dependents and those retirees designated in Section 25.5 of this Article, the minimum amount per month required under Government Code Section 22892 of the PEMHCA for medical insurance through the California Public Employees’ Retirement System (CalPERS). If electing to enroll for medical benefits, the employee must select one medical plan from the variety of medical plans offered. The city shall contribute monthly amounts (called “Benefits Credits”) on behalf of each active employee and eligible dependents toward the payment of medical premiums under the CalPERS Health Program. The city contribution shall be based on the employee’s medical coverage level and shall include the mandatory payments to CalPERS. If the actual total premiums exceed the city’s total contributions, the employee will pay the difference. Waiver Provision: CPOA-represented employees who do not wish to participate in the CalPERS Health Program will have the choice of waiving the city’s medical insurance program, provided they can show that they are covered under another group insurance program. The benefits credits associated with waiving medical coverage will be set equal to 50% of the benefit credits associated with Employee Only medical coverage level. If this results in a situation where the unused benefit credits associated with any medical plan exceed the benefit credits associated with waiving medical coverage, the benefit credits associated with waiving medical coverage will be set equal to one dollar ($1) above the unused benefit credits associated with that medical plan. Excess and Unused Benefits Credits: If the Benefits Credits exceeds the cost of the medical insurance purchased by the employee, the employee will have the option of using any “excess credits” to purchase city-sponsored dental insurance, vision insurance, accidental death and dismemberment (AD&D) insurance or to contribute to a healthcare or dependent care flexible spending account (FSA). Unused Benefits Credits will be paid to the employee in cash and reported as taxable income and included in the calculation of the regular rate of pay under the FLSA. The Benefits Credits for calendar year 2019 shall increase as shown in the table below. To provide CPOA represented employees with the value of the increase in 2019 Benefits Credits, with the payroll for the first full pay period after ratification of this Memorandum by the City Council, the city shall make a one-time taxable (non- PERSable) cash payment equal to the increase in benefits credits for CPOA members employed by the city on that date. The increase in Benefits Credits shall be given to each employee based on the employee’s medical coverage level in the pay period in which the cash amount is paid and pro-rated based on the employee’s benefit-eligibility date (i.e., the date they became eligible for city benefits). Employees hired during subsequent pay periods in calendar year 2019 shall receive a cash payment for this increase in Benefits Credits in the pay period in which they become benefit-eligible. Dec. 7, 2021 Item #3 Page 23 of 34 Medical Coverage Level Prior Monthly Benefits Credits 2019 Monthly Benefits Credits Monthly Increase Employee $573.00 $577.00 $4.00 Employee + 1 $1,146.00 $1,158.00 $12.00 Family $1,502.00 $1,528.00 $26.00 Waive Medical $286.50 $416.68 $130.18 Effective the pay periods that include 1/1/2020, 1/1/2021 and 12/31/2021 the city monthly benefit credits associated with each medical coverage level will be set to dollar amounts that equate to 80% of the average health (medical, dental and vision) premium for Employee, Employee Plus One and Family coverage levels, rounded to the nearest whole dollar based on the premiums that will take effect on January 1 of the respective calendar year. 25.3 Dental Insurance CPOA employees may choose to enroll in or opt out of the city-sponsored dental insurance plan at any coverage level. 25.4 Vision Insurance CPOA employees may choose to enroll in or opt out of the city-sponsored vision insurance plan at any coverage level. 25. 5 Retirees Each retired employee who was a member of this bargaining unit is covered by the Public Employees’ Medical and Hospital Care Act and is eligible to participate in the California Public Employees’ Retirement System (CalPERS) Health Program. Represented employees who retire from the city, either service or disability, shall be eligible to continue their enrollment in the CalPERS Health Program when they retire, provided that the individual is enrolled or eligible to enroll in a CalPERS medical plan at the time of separation from employment and their effective date of retirement is within 120 days of separation. The city will contribute the minimum amount per month required under Government Code Section 22892 of the PEMHCA toward the cost of each retiree’s enrollment in the CalPERS Health Program. Direct authorization may be established for automatic deduction of payments for health insurance administered by CalPERS. Employees who retire from the city, either service or disability, shall be eligible to elect, upon retirement, to participate in the city’s dental and/or vision insurance programs as a retiree. The cost of such dental and/or vision insurance for the retiree and eligible dependents shall be borne solely by the retiree. An individual who does not choose coverage upon retirement, or who chooses coverage and later drops it is not eligible to return to the city’s dental and vision insurance programs. The city will invoice the retiree for his/her monthly premiums for dental and/or vision insurance and the retiree must keep such payments current to ensure continued coverage. Dec. 7, 2021 Item #3 Page 24 of 34 ARTICLE 12. OVERTIME 12.1 Overtime Pay: Lieutenants shall be entitled to overtime compensation for all time worked (or regarded as having been worked because the employee is on an approved paid leave) in excess of the employee’s regularly scheduled work day and/or in excess of eighty (80) hours per fourteen (14) day work period. The regular rate of pay shall be calculated in conformance with the FLSA. 12.2 Comp. Time Option: Lieutenants shall have the option (with the exception of “Pay Only Details”) of earning compensatory time off hours at the rate of 1.5 hours per overtime hour worked in lieu of cash, subject to a maximum accumulation of one hundred and fifty (150) hours of compensatory time off. The Lieutenant will be paid out the FLSA overtime premium at the regular rate of pay when compensatory time is selected. For every hour of overtime worked, 1.5 hours will be added to the comp time bank, if selected. When a Lieutenant has accumulated the maximum number of hours of compensatory time off, he/she shall receive all overtime compensation in cash until such time as the Lieutenant’s compensatory time off bank is no longer at the maximum. 12.3 Comp. Time Exception: Special details where the city is reimbursed for employees’ compensation from an outside entity shall be for pay only. Lieutenants volunteering for such details are not eligible for compensatory time off in lieu of cash. ARTICLE 18. FLEXIBLE BENEFITS PROGRAM 18.1 Employees represented by the CPMA will participate in a flexible benefits program that includes medical insurance, dental insurance, vision insurance, AD&D insurance and flexible spending accounts (FSAs). Each of these components is outlined below. 18.2 Benefits Credits and Medical Insurance: During the entire term of this agreement, represented employees will be covered by the Public Employees’ Medical and Hospital Care Act (PEMHCA) and will be eligible to participate in the CalPERS Health Program. The city will pay on behalf of all employees covered by this agreement and their eligible dependents and those retirees designated in Section 18.6 of this Article, the minimum amount per month required under Government Code Section 22892 of the PEMHCA for medical insurance through the California Public Employees’ Retirement System (CalPERS). If electing to enroll for medical benefits, the employee must select one medical plan from the variety of medical plans offered. The city shall contribute monthly amounts (called “Benefits Credits”) on behalf of each active employee and eligible dependents toward the payment of medical premiums under the CalPERS Health Program. The city contribution shall be based on the employee’s medical coverage level and shall include the mandatory payments to CalPERS. If the actual total premiums exceed the city’s total contributions, the employee will pay the difference. Dec. 7, 2021 Item #3 Page 25 of 34 Waiver Provision: CPMA-represented employees who do not wish to participate in the CalPERS Health Program will have the choice of waiving the city’s medical insurance program, provided they can show that they are covered under another group insurance program. The benefits credits associated with waiving medical coverage will be set equal to 50% of the benefit credits associated with Employee Only medical coverage level. If this results in a situation where the unused benefit credits associated with any medical plan exceed the benefit credits associated with waiving medical coverage, the benefit credits associated with waiving medical coverage will be set equal to one dollar ($1) above the unused benefit credits associated with that medical plan. Excess and Unused Benefits Credits: If the Benefits Credits exceeds the cost of the medical insurance purchased by the employee, the employee will have the option of using any “excess credits” to purchase city-sponsored dental insurance, vision insurance, accidental death and dismemberment (AD&D) insurance or to contribute to a healthcare or dependent care flexible spending account (FSA). Unused Benefits Credits will be paid to the employee in cash and reported as taxable income and included in the calculation of the regular rate of pay under the FLSA. The Benefits Credits for calendar year 2019 shall increase as shown in the table below. To provide CPMA represented employees with the value of the increase in 2019 Benefits Credits, with the payroll for the first full pay period after ratification of this Memorandum by the City Council, the city shall make a one-time taxable (non- PERSable) cash payment equal to the increase in benefits credits for CPMA members employed by the city on that date. The increase in Benefits Credits shall be given to each employee based on the employee’s medical coverage level in the pay period in which the cash amount is paid and pro-rated based on the employee’s benefit-eligibility date (i.e., the date they became eligible for city benefits). Employees hired during subsequent pay periods in calendar year 2019 shall receive a cash payment for this increase in Benefits Credits in the pay period in which they become benefit-eligible. Medical Coverage Level Prior Monthly Benefits Credits 2019 Monthly Benefits Credits Monthly Increase Employee $573.00 $577.00 $4.00 Employee + 1 $1,146.00 $1,158.00 $12.00 Family $1,502.00 $1,528.00 $26.00 Waive Medical $286.50 $416.68 $130.18 Effective the pay periods that include 1/1/2020, 1/1/2021 and 12/31/2021 the city monthly benefit credits associated with each medical coverage level will be set to dollar amounts that equate to 80% of the average health (medical, dental and vision) premium for Employee, Employee Plus One and Family coverage levels, rounded to the nearest whole dollar based on the premiums that will take effect on January 1 of the respective calendar year. Dec. 7, 2021 Item #3 Page 26 of 34 18.3 Dental Insurance CPMA employees may choose to enroll in or opt out of the city-sponsored dental insurance plan at any coverage level. 18.4 Vision Insurance CPMA employees may choose to enroll in or opt out of the city-sponsored vision insurance plan at any coverage level. 18.5 Accidental Death & Dismemberment (AD&D) Insurance CPMA employees may choose to enroll in or opt out of the city-sponsored Accidental Death & Dismemberment (AD&D) insurance plan at any coverage level. 18. 6 Retirees Each retired employee who was a member of this bargaining unit is covered by the Public Employees’ Medical and Hospital Care Act and is eligible to participate in the California Public Employees’ Retirement System (CalPERS) Health Program. Represented employees who retire from the city, either service or disability, shall be eligible to continue their enrollment in the CalPERS Health Program when they retire, provided that the individual is enrolled or eligible to enroll in a CalPERS medical plan at the time of separation from employment and their effective date of retirement is within 120 days of separation. The city will contribute the minimum amount per month required under Government Code Section 22892 of the PEMHCA toward the cost of each retiree’s enrollment in the CalPERS Health Program. Direct authorization may be established for automatic deduction of payments for health insurance administered by CalPERS. Employees who retire from the city, either service or disability, shall be eligible to elect, upon retirement, to participate in the city’s dental and/or vision insurance programs as a retiree. The cost of such dental and/or vision insurance for the retiree and eligible dependents shall be borne solely by the retiree. An individual who does not choose coverage upon retirement, or who chooses coverage and later drops it is not eligible to return to the city’s dental and vision insurance programs. The city will invoice the retiree for his/her monthly premiums for dental and/or vision insurance and the retiree must keep such payments current to ensure continued coverage. Dec. 7, 2021 Item #3 Page 27 of 34 Article 14 Overtime 1. Overtime Any employee required to perform in excess of forty (40) hours in a seven (7) day cycle and/or in excess of an employee’s scheduled work day shall receive compensation at the rate of time and one-half his/her regular rate of pay, except as outlined in Section 2 below. The regular rate of pay shall be calculated in conformance with the FLSA. In determining an employee’s eligibility for overtime, paid leaves shall be included in the total hours worked. Excluded from the total hours worked are duty free lunches, travel time to and from work, and time spent conducting bona fide volunteer activities. There shall be no pyramiding of overtime. Hours worked by an employee in any workday or workweek on which premium rates have once been allowed shall not be used again in any other overtime calculation other than computing total actual hours worked. Time worked shall be computed by rounding to the nearest quarter of an hour. 2. Request for Temporary Shift Adjustment (Flex Time) An employee may request that the employee’s normal workday be temporarily altered in order to accumulate a credit of work hours that may be used to take time off during the employee’s FLSA work week and same pay period without loss of pay. If the request is approved by management, pay for hours worked during this temporary shift adjustment shall be paid at the straight time rate. The FLSA work week for employees on a 9/80 schedule begins four (4) hours after the regularly scheduled starting time for their Friday shift and ends one hundred sixty eight (168) hours later (at four (4) hours after the regularly scheduled starting time for their Friday shift). For all others the work week is from Monday at 12:00 a.m. to Sunday at 11:59 p.m. 3. Call Back Pay Call back duty occurs when an employee is requested and accepts the request to return to duty on a non-regularly scheduled work shift. Call back does not occur and regular overtime rules and pay apply (e.g., no minimum) when an employee is held over from his/her prior shift or is working prior to his/her regularly scheduled shift or if the assignment has been scheduled in advance and the employee is provided with at least twenty four (24) hours notice of said assignment. Coming Back To Work If the employee has to come to work to resolve the problem, (i.e., the work is not completed remotely via phone/computer) the employee called back to duty shall be credited with a minimum of two (2) hours work commencing at the time the employee begins their commute to work. The employee shall be paid for travel time to and from the call back assignment up to a maximum total travel time (to and from) of three (3) hours. Travel time is included as part of the call back minimum compensation. Mileage reimbursement for expenses to the work site will not be compensated. Dec. 7, 2021 Item #3 Page 28 of 34 Some example scenarios are shown below. Example 1 Time spent commuting to work is 2 hours Time spent at work is 1 hour Time spent commuting back home is 2 hours Total paid time for this scenario would be 4 hours (maximum 3 hours for commute/travel time plus 1 hour at work). Example 2 Time spent commuting to work is 15 minutes Time spent at work is 30 minutes Time spent commuting back home is 15 minutes Total paid time for this scenario would be 2 hours (the minimum call back pay). Example 3 Time spent commuting to work is 1 hour Time spent at work is 1 hour Time spent commuting back home is 1 hour Total paid time for this scenario would be 3 hours. Performing the Work Remotely If the work is performed remotely via phone/computer the employee shall be credited for a minimum of thirty (30) minutes work commencing at the time the employee begins the callback work. If an employee receives multiple calls/messages and completes the work related to all of those calls/messages remotely and via phone/computer within the same thirty (30) minute period, the employee shall be credited for a minimum of thirty (30) minutes work. 4. Compensatory Time In lieu of receiving overtime pay pursuant to Section 1 above, an employee may elect, subject to department approval, to receive compensatory time off. The employee will be paid out the overtime premium at the regular rate of pay when compensation time is earned. No employee shall accrue more than eighty (80) hours of such compensatory time. When an employee has accumulated the maximum number of hours of compensatory time off he/she shall receive all overtime compensation in cash. An employee may use such compensatory time within a reasonable period after making the request if the use of compensatory time does not unduly disrupt the operations of the department. Effective January 1, 2020, all accrued and unused compensatory time during the calendar year will be cashed out on the last pay date of the calendar year. No compensatory time may be accrued beginning on the last pay period of the calendar year through the end of the calendar year. At any time an employee may elect to “cash out” any portion of his/her accrued compensatory time balance at his/her regular base rate of pay by requesting this “cash out” on his/her time card. Upon separation from the city service an Dec. 7, 2021 Item #3 Page 29 of 34 employee who has a balance of unused compensatory time shall be paid out the remainder of their compensatory balance. 5. Overtime Authorization All overtime requests must have the prior authorization of a supervisor prior to the commencement of such overtime work. Where prior written authorization is not feasible, explicit verbal authorization must be obtained. Calls for service beyond the end of duty time are considered as authorized. 6. Clothes Changing Employees are not authorized to wear their uniforms or any part thereof that is distinguishable as such unless on duty. Each employee is provided with a locker for his/her own personal convenience. An employee may or may not utilize the locker for storage and changing purposes at his/her own discretion. Nothing herein prevents an employee from wearing his/her uniform to and/or from his/her residence and work. Nothing herein prevents an employee from wearing his/her uniform while conducting personal business during lunch time. Time spent in changing clothes before or after a shift, is not considered hours worked and is not compensable in any manner whatsoever. 7. Training Time Training time outside normally scheduled work hours shall be compensated pursuant to Code of Federal Regulations (CFR), Section 785.27, et seq. Travel time outside normally scheduled work hours shall be compensated pursuant to CFR Section 785.33, et seq. When feasible, the Department will adjust the employee’s work schedule to minimize the impact of travel and training time. Travel time to and from local work-related training either before, during or after regularly scheduled work hours shall be compensated for all CCEA employees regardless of whether the employee is a driver or passenger. For the purposes of this section, “local” refers to work related training taking place in San Diego, Imperial, Orange, Riverside, San Bernardino and Los Angeles Counties. 8. City Vehicle Use Employees who are provided with a City vehicle to travel to and from work shall not be compensated in any manner whatsoever for such travel time in the City vehicle. Refer to Administrative Order No. 3 for more information regarding use of City vehicles. Dec. 7, 2021 Item #3 Page 30 of 34 This provision also applies in those situations where the radio must be left on and monitored. 9. Court Pay When an employee is physically called to court for City-related business, while off duty, he/she shall be credited on an hour for hour basis for the time actually spent in court. An employee shall be credited with a minimum of two (2) hours for the court appearance. Travel time shall not be considered hours worked and shall not be compensated in any manner whatsoever. 10. Standby Pay “Standby assignment” requires an employee to: a. Review and confirm receipt of the standby assignment schedule within the deadlines established by the applicable department; b. Carry a cellular phone during standby assignment; c. Respond to a call/message promptly without delay. If an employee has arranged for another employee to respond, the employee must notify the supervisor, the department, and dispatch of the name of the substitute employee who will respond. Callback shall be handled in accordance with each department’s standby/callback policy; d. Each department’s standby/callback policy shall be developed and submitted to Association representatives for meeting and conferring. In addition, the City shall provide training for the supervisors and managers responsible for administering departmental standby/callback policies and shall also provide orientation for all employees subject to the standby/callback policies; e. Abide by the City’s Alcohol and Drug Policy as specified in Article 40 of this agreement during standby assignment; and abide by the rules and regulations set forth by the Department of Transportation (DOT); f. Wear appropriate clothing, safety equipment, and any other form of City identification as defined by the department when making a callback response from standby assignment; g. Accept $35.00 per day for each day on standby assignment. h. Acknowledge and agree that time on standby assignment is not considered to be compensable work time for purposes of the Fair Labor Standards Act (FLSA); provided, however, (1) individuals have not waived any rights they may have outside of this contract under the FLSA; and (2) neither the fact of these negotiations nor the changes negotiated in this agreement shall be used by either Dec. 7, 2021 Item #3 Page 31 of 34 party or by any individual to the prejudice of the other party in any grievance or complaint outstanding as of the time of this agreement. i. The Information Technology Department will implement standby duty upon ratification of this MOU and in accordance with the Information Technology Department Standby Policy dated February 23, 2018. Article 34 Health Insurance/Flexible Benefits Program Employees represented by CCEA will participate in a flexible benefits program that includes medical insurance, dental insurance, vision insurance, and flexible spending accounts (FSAs). Each of these components is outlined below. A. Medical Insurance A1. Employees represented by CCEA will be covered by the Public Employees’ Medical and Hospital Care Act (PEMHCA) and will be eligible to participate in the CalPERS Health Program. The City will pay on behalf of all employees covered by this agreement and their eligible dependents and those retirees designated in Section C of this Article, the minimum amount per month required under Government Code Section 22892 of the PEMHCA for medical insurance through the California Public Employees’ Retirement System (CalPERS). If electing to enroll for medical benefits, the employee must select one medical plan from the variety of medical plans offered through CalPERS. The City will contribute monthly amounts (called Benefits Credits) on behalf of each active CCEA employee and eligible dependents toward the payment of 1) medical premiums under the CalPERS Health Program, 2) contribution of some or all of the premium for dental coverage or vision coverage and 3) contributions in the name of the employee to the City’s flexible spending account(s). A2. Effective the pay period that includes January 1, 2021 and January 1, 2022, the City monthly Benefits Credits will be set to a dollar amount that equates to 80% of the average health (medical, dental and vision) premium for Employee, Employee + 1 and Family coverage levels, rounded to the nearest whole dollar based on the premiums that will take effect on January 1 of the respective calendar year. Effective the pay period that includes December 31, 2022, the City monthly Benefits Credits will change for each coverage level. The monthly Benefits Credits will be set to a dollar amount that equates to 80% of the average health (medical, dental and vision) premium for Employee, Employee + 1 and Family coverage levels, rounded to the nearest whole dollar based on the premiums that will take effect on January 1, 2023. A3. Unused Benefits Credits as outlined above will be paid to the employee in cash and reported as taxable income and included in the calculation of the regular rate of pay under the FLSA. If the amount contributed by the City (Benefits Credits) exceeds the cost of the medical insurance purchased by the employee, the employee will have the option of using any “excess credits” to purchase dental, vision, or accidental death and Dec. 7, 2021 Item #3 Page 32 of 34 dismemberment (AD&D) insurance or to contribute to a healthcare or dependent care flexible spending account (FSA), instead of receiving taxable cash. A4. All active CCEA-represented employees who work three quarter-time or less will receive prorated Benefits Credits. B. Dental Insurance Represented employees will be eligible to enroll in or waive enrollment in a City-sponsored dental plan at any coverage level. C. Vision Insurance Represented employees will be eligible to enroll in or waive enrollment in a City- sponsored vision insurance plan at any coverage level. D. Retirees Each retired employee who was a member of this bargaining unit is eligible to be covered by the Public Employees’ Medical and Hospital Care Act and is eligible to participate in the California Public Employees’ Retirement System (CalPERS) Health Program. Represented employees who retire from the City, either service or disability, shall be eligible to continue their enrollment in the CalPERS Health Program when they retire, provided that the individual is enrolled or eligible to enroll in a CalPERS medical plan at the time of separation from employment and their effective date of retirement is within 120 days of separation. The City will contribute the minimum amount per month required under Government Code Section 22892 of the PEMHCA toward the cost of each retiree’s enrollment in the CalPERS Health Program. Employees who retire from the City, either service or disability, shall be eligible to elect, upon retirement, to participate in the City’s dental and/or vision insurance programs as a retiree. The cost of such dental and/or vision insurance for the retiree and eligible dependents shall be borne solely by the retiree. An individual who does not choose coverage upon retirement, or who chooses coverage and later drops it is not eligible to return to the City’s dental and vision insurance program. The City will invoice the retiree for his/her monthly premiums for dental and/or vision insurance and the retiree must keep such payments current to ensure continued coverage. E. Waiver Provision CCEA represented employees who do not wish to participate in the CalPERS Health Program will have the choice of waiving the City’s medical insurance program, provided they can show that they are covered under another group insurance program. The dollar amount paid by the City for employees who elect the waiver provision will change in the first pay period of calendar year 2021, 2022 and in the pay period that includes December 31, 2022. The Benefits Credits associated with waiving medical coverage will be set equal to 50% of the Benefits Credits associated with Employee medical coverage. If this results in a situation where the unused benefit credits associated with any medical plan exceed the benefit credits associated with waiving medical Dec. 7, 2021 Item #3 Page 33 of 34 coverage, the benefit credits associated with waiving medical coverage will be set equal to one dollar ($1) above the unused benefit credits associated with that medical plan. Unused Benefits Credits as outlined above will be paid to the employee in cash and reported as taxable income and included in the calculation of the regular rate of pay under the FLSA. Dec. 7, 2021 Item #3 Page 34 of 34