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HomeMy WebLinkAbout04 - MOU's with the Newport Beach City Employees Association and Newport Beach Professional and Technical Employees AssociatioTO: FROM: CITY OF NEWPORT BEACH City Council Staff Report March 12, 2019 Agenda Item No. 4 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Grace K. Leung, City Manager - 949-644-3001, gleung@newportbeachca.gov Barbara J. Salvini, Human Resources Director - 949-644-3259, bsalvini(bnewportbeachca.gov PREPARED BY: Barbara J. Salvini, Human Resources Director PHONE: 949-644-3259 TITLE: Resolution No. 2019-21: Adopting a Memorandum of Understanding with the Newport Beach City Employees Association and Resolution No. 2019-22: Adopting a Memorandum of Understanding with the Newport Beach Professional and Technical Employees Association ABSTRACT: The Tentative Agreements regarding Memoranda of Understanding ("MOUs") between the City of Newport Beach ("City") and the Newport Beach City Employees Association ("NBCEA") and the City and the Newport Beach Professional and Technical Employees Association ("NBPTEA") were submitted at the Regular Meeting on February 26, 2019 to provide the City Council and the community an opportunity to consider the terms and costs of the agreements. The proposed MOUs are now presented for City Council's approval/adoption (or rejection) and is the final step in the meet and confer process with the NBCEA and NBPTEA. Included in the recommendation for approval of the MOUs is the associated salary schedules. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Adopt Resolution No. 2019-21, A Resolution of the City Council of the City of Newport Beach, California, Adopting a Memorandum of Understanding between the City of Newport Beach and the Newport Beach City Employees Association; c) Adopt Resolution No. 2019-22, A Resolution of the City Council of the City of Newport Beach, California, Adopting a Memorandum of Understanding between the City of Newport Beach and the Newport Beach Professional and Technical Employees Association, and 4-1 Resolution No. 2019-21: Adopting a Memorandum of Understanding with the Newport Beach City Employees Association and Resolution No. 2019-22: Adopting a Memorandum of Understanding with the Newport Beach Professional and Technical Employees Association March 12, 2019 Page 2 d) Approve Budget Amendment No. 19BA-031 appropriating $522,562 to salary and benefit accounts for the NBCEA and NBTEA unit members from unappropriated General Fund surplus fund balance for the remainder of Fiscal Year (FY) 2018/19, effective March 16, 2019 through the end of the FY. FUNDING REQUIREMENTS: The NBCEA and the NBPTEA successor MOUs and comprehensive cost estimates were provided with the Tentative Agreements at the February 26, 2019 City Council regular meeting. The fiscal impact of the NBCEA contract is estimated at $1,091,910 for the entire three-year term of the contract. The fiscal impact of the NBPTEA contract is estimated at $1,251,019 for the entire three-year term. Budget Amendments, in the amount of $522,562, are recommended for the remainder of the current fiscal year, March 16, 2019 through June 30, 2019. The Budget Amendments will increase salary and benefit appropriations from the General Fund unappropriated surplus fund balance. Q 6*9111:14 IQ ki F The following discussion was provided, in part, with the February 26, 2019 staff report and is included here for reference: The Newport Beach City Employees Association (NBCEA) and Professional and Technical Employees Association (NBPTEA) are exclusively recognized bargaining units. The NBCEA represents 93 budgeted, miscellaneous positions in administrative support, finance, library services and recreational services occupations. The NBPTEA represents 79 budgeted, miscellaneous positions in engineering, planning, and information technology occupations. Both units are affiliated with the Laborers' International Union of North America, Local 777 (LIUNA). The NBCEA was represented by President Teri Craig and the NBPTEA was represented by President Ryan Stadlman. During negotiations, City staff members, NBCEA and NBPTEA members, and respective legal and business representatives discussed topics such as wage adjustments, retirement plans, cafeteria allowance, additional pays, overtime, additional language for payment clarification, and other non -economic matters. Salient provisions of the Memoranda of Understanding between the City and the NBCEA and the NBPTEA include: • Term of three years, from January 1, 2019 through December 31, 2021 • Wage adjustments effective the first day of the pay period that includes: ➢ March 16, 2019 — 2.0% ➢ January 1, 2020 — 2.0% ➢ January 1, 2021 — 2.0% 4-2 Resolution No. 2019-21: Adopting a Memorandum of Understanding with the Newport Beach City Employees Association and Resolution No. 2019-22: Adopting a Memorandum of Understanding with the Newport Beach Professional and Technical Employees Association March 12, 2019 Page 3 • A one-time, Lump Sum Payment of $2,700 for each employee, which will not be reported to CalPERS as compensation earned/pensionable compensation • LIUNA supplemental pension plan Unit members will pick up total cost of plan participation • Revisions to the Cafeteria Plan for new employees • Restructuring of contract overtime • Revisions to leave cash outs • Revisions to the grievance procedure On February 8, 2019, the City was notified that in accordance with the NBCEA and the NBPTEA ratification procedures, the majority of members voted to approve the Tentative Agreements. The Agreements will not become effective, per Government Code §3505.1, until the governing body, i.e., City Council, takes action to adopt them. If the City Council approves adoption of the MOUs with the NBCEA and the NBPTEA, Human Resources and Payroll staff will work to implement the provisions as soon as practicable. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ("CEQA") pursuant to §15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and §15060(c)(3) (the activity is not a project as defined in §15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). 4-3 Resolution No. 2019-21: Adopting a Memorandum of Understanding with the Newport Beach City Employees Association and Resolution No. 2019-22: Adopting a Memorandum of Understanding with the Newport Beach Professional and Technical Employees Association March 12, 2019 Page 4 ATTACHMENTS: Attachment A — Resolution No. 2019-21: Adopting an MOU with the NBCEA Attachment B — Exhibit A to Attachment A (NBCEA MOU) Attachment C — Estimated Cost of 3 -Year Contract with the NBCEA Attachment D — Budget Amendment Attachment E — Resolution No. 2019-22: Adopting an MOU with the NBPTEA Attachment F — Exhibit A to Attachment E (NBPTEA MOU) Attachment G — Estimated Cost of 3 -Year Contract with the NBPTEA ATTACHMENT A RESOLUTION NO. 2019-21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, ADOPTING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH CITY EMPLOYEES ASSOCIATION WHEREAS, the City Council of the City of Newport Beach ("City Council") previously adopted Resolution No. 2001-50, the "Employer -Employee Relations Resolution," pursuant to the authority contained in the Meyers-Milias-Brown Act, Government Code §3500, of seq.; WHEREAS, the City of Newport Beach ("City") supports effective communication and collaborative working relationships with its employee associations to promote improved relations while balancing good management practices; WHEREAS, the City previously entered into a memorandum of understanding with the Newport Beach City Employees Association ("NBCEA"), a recognized employee organization, for the term of July 1, 2015 through December 31, 2018 ("2015 MOU"); WHEREAS, in accordance with Section 1(13)(1) of the 2015 MOU, its provisions remain in full force and effect after its expiration while the City and the NBCEA meet and confer on a successor memorandum of understanding; WHEREAS, representatives from the City and the NBCEA met and conferred in good faith and reached a tentative agreement on wages, benefits, and other terms and conditions of employment ("Tentative Agreement"), which are memorialized in the Memorandum of Understanding between the City and the NBCEA ("Memorandum of Understanding") attached hereto as Exhibit A and incorporated herein by this reference; WHEREAS, the City was notified on February 8, 2019 that the NBCEA had ratified said Tentative Agreement; WHEREAS, City of Newport Beach Charter Section 601 requires the City Council to provide the number, titles, qualifications, powers, duties and compensation of all officers and employees of the City; WHEREAS, Newport Beach Municipal Code Section 2.28.010 provides that, upon recommendation of the City Manager, the City Council may establish by resolution the salary range or rate for each position; 4-5 Resolution No. 2019 - Page 2 of 3 WHEREAS, the City Manager has reviewed the changes to the salary schedule for the NBCEA unit members provided in this resolution and recommends approval; WHEREAS, the City Council received and considered the Tentative Agreement at its regular meeting on February 26, 2019; WHEREAS, the City Council received and considered the Memorandum of Understanding at its regular meeting on March 12, 2019; WHEREAS, by adopting this resolution, the City Council intends to amend the salary schedule for employees represented by the NBCEA so as to be in conformance with the Memorandum of Understanding; and WHEREAS, by adopting this resolution, the City Council also desires to replace the 2015 MOU by adopting the Memorandum of Understanding attached hereto as Exhibit A to serve as the successor agreement between the City and the NBCEA for the period of January 1, 2019 through December 31, 2021. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby adopt the Memorandum of Understanding that is attached hereto and incorporated herein as Exhibit A. Wages, hours, fringe benefits and other terms and conditions of employment for employees represented by the NBCEA shall be provided in accordance with the provisions of the Memorandum of Understanding, which shall serve as the successor agreement between the City and the NBCEA for the period of January 1, 2019 through December 31, 2021. Section 2: The City's Salary Schedule shall be modified to be consistent with this resolution. Section 3: The Memorandum of Understanding shall supersede in all respects any and all terms and provisions of all prior memoranda of understanding between City and employees represented by the NBCEA, except to the extent that any term or provision of this Memorandum of Understanding expressly provides otherwise. Section 4: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Resolution No. 2019 - Page 3 of 3 Section 5: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 6: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 12th day of March, 2019. Diane B. Dixon Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE A "L,__ C Aaron C. Harp City Attorney Attachment: Exhibit A — Memorandum of Understanding 4-7 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH CITY EMPLOYEES ASSOCIATION �� \�% January 1, 2019 through December 31, 2021 FULL DOCUMENT ATTACHED TO STAFF REPORT AS ATTACHMENT B ATTACHMENT B Exhibit A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH CITY EMPLOYEES ASSOCIATION January 1, 2019 through December 31, 2021 I • MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH CITY EMPLOYEES ASSOCIATION January 1, 2019 — December 31, 2021 TABLE OF CONTENTS Preamble Section 1. General Provisions Recognition..................................................................................................................... 1 Term............................................................................................................................... 1 ReleaseTime.................................................................................................................. 2 Scope.............................................................................................................................. 2 Employee Data and Access............................................................................................ 3 Conclusiveness..............................................................................................................4 Modifications................................................................................................................... 4 AssociationDues............................................................................................................. 4 Section 2. Compensation Salary............................................................................................................................4 Overtime.......................................................................................................................... 5 StandbyDuty................................................................................................................... 6 Call -Back Duty................................................................................................................ 6 Accumulation of Compensatory Time Off........................................................................ 6 Night Shift Differential...................................................................................................... 7 Incentive Shift for Library Members................................................................................. 7 CourtTime...................................................................................................................... 7 ActingPay....................................................................................................................... 7 CertificatePay................................................................................................................. 8 Bi -lingual Pay.................................................................................................................. 8 One -Time Payment......................................................................................................... 8 Section 3. Leaves FlexLeave....................................................................................................................... 9 HolidayLeave.............................................................................................................. 10 Bereavement Leave...................................................................................................... 11 LeaveSellback.............................................................................................................. 11 4-10 Section 4. Fringe Benefits Insurance...................................................................................................................... 12 Additional Insurance Programs..................................................................................... 14 Employee Assistance Program..................................................................................... 14 RetirementBenefit......................................................................................................... 15 LIUNA Supplemental Pension....................................................................................... 16 RetireeMedical Benefit................................................................................................. 17 Tuition Reimbursement................................................................................................. 21 Section 5. Miscellaneous Provisions Reduction in Force/Layoffs............................................................................................ 21 Banding......................................................................................................................... 23 9/80 Scheduling Plan.................................................................................................... 24 Labor Management Committee..................................................................................... 24 Discipline — Notice of Intent........................................................................................... 25 GrievanceProcedure.................................................................................................... 25 Probation....................................................................................................................... 26 Salary on Reclassification............................................................................................. 28 Uniforms and Safety Equipment.................................................................................... 28 ServiceAwards............................................................................................................. 28 DirectDeposit................................................................................................................ 28 Deferred Compensation................................................................................................ 28 Separability................................................................................................................... 28 EXHIBIT A: Represented Job Classifications and Pay Rates ....................................... 31 EXHIBIT B: Approved Certificates................................................................................. 34 4-11 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH CITY EMPLOYEES ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE 1. The Newport Beach City Employees Association ("NBCEA" or "Association'), a recognized employee organization, affiliated with the Laborers' International Union of North America, Local 777 (LIUNA), and the City of Newport Beach ("City"), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment. 2. NBCEA representatives and City representatives have reached an agreement as to wages, hours and other terms and conditions of employment for the term of January 1, 2019 through December 31, 2021 and this agreement has been embodied in this MOU. 3. This MOU, upon approval by NBCEA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. SECTION 1. — General Provisions A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers Milias Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No. 2001-50, the City acknowledges that NBCEA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in those classifications specified in Exhibit "A" or as appropriately modified in accordance with the Employer/Employee Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBCEA. B. Term 1. Except as specifically provided otherwise, any ordinance, resolution or action of the City Council necessary to implement this MOU shall 4-12 2 be considered effective as of January 1, 2019. This MOU shall remain in full force and effect until December 31, 2021, and the provisions of this MOU shall continue after the date of expiration of this MOU in the event the parties are meeting and conferring on a successor MOU. 2. The provisions of this MOU shall prevail over conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions and policies of the City of Newport Beach, and federal and state statutes, rules and regulations which either specifically provide that agreements such as this prevail, confer rights which may be waived by any collective bargaining agreement, or are, pursuant to decisional or statutory law, superseded by the provisions of an agreement similar to this MOU. C. Release Time 1. Three NBCEA officers designated by the NBCEA shall collectively be granted an annual maximum of 150 hours paid release time for the conduct of NBCEA business. Such time shall be exclusive of actual time spent in collective bargaining and shall be scheduled at the discretion of the NBCEA officer. Every effort will be made to schedule this time to avoid interference with City operations. 2. Release time designees shall be identified annually and notice shall be provided to the City. Release time incurred shall be reported regularly in the form and manner prescribed by the City. 3. Activities performed on release time shall include representation of members in rights disputes, preparation for collective bargaining activities, and distribution of NBCEA written communication in the work place. 4. Each January, the City will examine the number of Release Time hours the Association used the preceding year. If the Association used in excess of 75% of the hours normally granted (150), the Association will be granted an additional 30 hours for that year. D. Scope 1. All present written rules and current established practices and employees' rights, privileges and benefits that are within the scope of representation shall remain in full force and effect during the term of this MOU unless specifically amended by the provisions of this MOU. 2. The practical consequences of a Management Rights decision on wages, hours, and other terms and conditions of employment shall be subject to the grievance procedures. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-13 3 3. Pursuant to this MOU, the City reserves and retains all of its inherent exclusive and non—exclusive managerial rights, powers, functions and authorities ("Management Rights") as set forth in Resolution No. 2001-50. Management Rights include, but are not limited to, the following: (a) the determination of the purposes and functions of City Departments; (b) the establishment of standards of service; (c) to assign work to employees as deemed appropriate; (d) the direction and supervision of its employees; (e) the discipline of employees; (f) the power to relieve employees from duty for lack of work or other legitimate reasons; (g) to maintain the efficiency of operations; (h) to determine the methods, means and personnel by which operations are to be conducted; (i) the right to take all necessary actions to fulfill the Department's responsibilities in the event of an emergency; and Q) the exercise of complete control and discretion over the manner of organization, and the appropriate technology, best suited to the performance of departmental functions. The practical consequences of a Management Rights decision on wages, hours, and other terms and conditions of employment shall be subject to the grievance procedures. E. Employee Data and Access In January and July of each year, the City shall provide NBCEA a list of all unit members including name, department, and job title. NBCEA designated officers shall be entitled to solicit membership from new employees at their work site. This solicitation shall be made from the total release time for NBCEA Officers, and shall be scheduled in a manner that is not disruptive to departmental operations. Department heads may determine appropriate times for new employee contact, but they cannot reasonably deny such contact. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-14 4 F. Conclusiveness With the exception of a separate MOU covering retirement issues, this MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the term of this MOU, neither party shall be compelled, and each party expressly waives its rights to request the other to meet and confer concerning any issue within the scope of representation except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herein. As provided in the Employer -Employee Relations Resolution No. 2001-50, the City shall determine the manner in which City services are to be provided, including whether the City should provide services directly or contract out work, including work that is currently being performed by Association members. In the event the City introduces a plan to outsource services currently being performed by Association members to achieve greater efficiency and/or cost savings, and upon request by the Association, the City shall meet and confer with Association representatives to discuss the impacts of the City's decision to contract out work. The City shall retain sole authority to decide whether or not to contract out work, including work that is currently being performed by Association members. This provision shall not limit the City's authority to enter into such an agreement for any City services. G. Modifications Any agreement, understanding, or waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. H. Association Dues 1. The collection of Association dues shall be handled through the payroll deduction process. 2. The Association and LIUNA agree to defend, indemnify and hold harmless the City for its collection of Association dues. SECTION 2. — Compensation A. Salary Base salary increases for all NBCEA represented classifications shall be as follows and as specified in Exhibit A: NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-15 5 Effective the pay period following City Council approval of this MOU, there shall be a base salary increase of two percent (2.0%) for all represented classifications. Effective the pay period that includes January 1, 2020, base salaries will be increased by two percent (2.0%) for all represented classifications. Effective the pay period that includes January 1, 2021, base salaries will be increased by two percent (2.0%) for all represented classifications. B. Overtime 1. Advanced Approval - Employees must have advanced approval from their supervisor to work overtime. 2. FLSA Overtime - Overtime earned for actual work hours in excess of 40 in the employee's defined FLSA workweek. 3. Contract Overtime — Overtime earned for an employee whose hours paid in their defined FLSA workweek exceeds 40. For purposes of calculating hours paid for contract overtime, holidays occurring during the work week count as time worked. The use of other forms of leave do not count as hours worked for purposes of calculating hours paid for determining eligibility for contract overtime. 4. Rate at Which Overtime is Calculated — Both FLSA and Contract Overtime (paid at time and one half — 1.5) shall be calculated at the regular rate of pay, except that the rate at which Contract Overtime is calculated shall not include the City's Cafeteria Plan Allowance, the opt -out Cafeteria Plan Allowance, or any cash back an employee may receive from the Cafeteria Plan Allowance by choosing benefits which cost less than the Allowance. 5. Workweek for Purposes of Calculating Overtime — For employees who work the 9/80 work schedule, their defined FLSA workweek shall begin exactly four hours after the start time of their shift on their alternating regular day off (i.e., their eight- hour day) and end exactly 168 hours later. For employees who work a 5/40 work schedule, their workweek shall begin on Saturday at 12:01 a.m. and will end exactly 168 hours later the following Saturday at 12:00 a.m. 6. Work Schedule — Regardless of the type of work schedule an employee is assigned (e.g., 5/40 and 9/80), full time employees are regularly scheduled to work forty (40) hours in their defined FLSA workweek. 7. Reporting Time - The City calculates overtime in tenths of an hour. Employees shall report their time worked to the nearest tenth of an hour. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-16 6 C. Standby Duty Defined a. To be ready to respond immediately to calls for service; b. To be reachable by telephone; C. To remain within a specified distance from his/her work station; and d. To refrain from activities which might impair the employee's ability to perform his/her assigned duties. 2. Compensation Standby duty shall be compensated at the rate of one (1) hour of overtime compensation for each eight (8) hours of such duty. Standby duty on holidays shall be compensated at the rate of two (2) hours of overtime compensation for each (8) hours of standby duty. Should the employee be required to return to work while on standby status, the provisions pertaining to compensation for call-back pay shall apply for the actual period of time the employee is in a work status. D. Call -Back Duty Defined Call-back duty requires the employee to respond to a request to return to his/her work station after the normal work shift has been completed and the employee has left his/her normal work station. Those periods of overtime which had been scheduled by the Department Director prior to the end of the normal work shift are not considered call-back duty. 2. Compensation All employees shall receive a minimum of two (2) hours pay. If an employee works more than two (2) hours, he/she shall receive pay for actual hours worked. E. Accumulation of Compensatory Time Off Unit members who are non-exempt (from overtime) may receive compensatory time off (CTO), in lieu of cash, as compensation for overtime hours worked at the rate of one -and -one-half hours (1 '/2) for each hour of overtime worked. An employee may only accrue CTO if requested and then NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-17 F C H 7 approved by the employee's supervisor. Call-back time may be converted to CTO with supervisor approval. Employees may accumulate up to eighty (80) hours of CTO. If an employee has eighty (80) hours of accrued CTO, he/she will not be able to accrue additional CTO until he/she uses CTO to reduce his/her balance below eighty (80) hours. Night Shift Differential Unit members who's regularly assigned work schedule ends no earlier than 6:00 p.m. shall receive a night shift differential of $1.00 per hour; payable for each hour worked after 6:00 p.m. Overtime worked as an extension of an assigned day shift shall not qualify an employee for night shift differential. The differential pay is paid only for hours actually worked. The parties agree that to the extent permitted by law, the shift differential pay in this section is special compensation and shall be reported to CaIPERS as such pursuant to Title 2 CCR, Section 571(a)(4) Shift Differential Pay. Incentive Shift for Library Members For NBCEA members in the Library Services Department, the Sunday work shift will be considered an "incentive" shift. Unit members working on Sunday who work a regularly scheduled shift of five hours will report their actual hours worked on their time sheet but will be paid three hours' incentive pay at the regular hourly rate. This article is not to be construed as to impact on other City rules. Court Time Employees who are required to appear in Court during their off-duty hours in connection with City business shall receive overtime compensation (if additional hours qualify as overtime) for the number of hours they spend in court, with a minimum of two (2) hours of such compensation. Acting Pay NBCEA employees will be eligible to receive "acting pay" only after completing 80 consecutive hours in the higher classification. Acting pay is 107.5% of the employee's base pay rate. Once the minimum hours requirement has been satisfied, acting pay will be granted for all hours worked above 40 hours beginning with the 41St hour worked in the higher classification. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-18 8 The parties agree that to the extent permitted by law, acting pay is special compensation and shall be reported to CalPERS as such pursuant to Title 2 CCR, Section 571(a)(3) Temporary Upgrade Pay. J. Certificate Pay Effective January 1, 2013, the Certificate Pay program was modified to eliminate "inactive" certificates and "sunset" certain active certificates. Employees currently receiving a "sunset" certificate are considered grandfathered under the program, but no further employees will be eligible; effective January 1, 2014, the pay for eligible certificates was converted from a percentage based benefit to a flat dollar amount. The complete list of eligible certificates and the corresponding benefit is listed in Exhibit B. All other procedures associated with Certificate Pay remain in effect. The parties agree that to the extent permitted by law, certificates which qualify as special compensation shall be reported to Ca1PERS as such pursuant to Title 2 CCR, Section 571 or 571.1. K. Bi-linqual Pay Upon determination of the Department Director that an employee's ability to speak, read and/or write in Spanish contributes to the Department providing better service to the public, the employee shall be eligible to receive one hundred fifty ($150.00) dollars per month (paid each pay period) in bi-lingual pay. The certification process will confirm that the employee is fluent at the street conversational level in speaking, reading and/or writing Spanish. Employees certified shall receive bi-lingual pay the first full pay period following certification. Additional languages may be certified for compensation pursuant to this section by the Department Director with the concurrence of the Human Resources Director. The parties agree that to the extent permitted by law, the Bilingual pay in this section is special compensation and shall be reported to CaIPERS as such pursuant to Title 2 CCR, Section 571(a)(4) Bilingual Premium. L. One -Time Payment Following City Council adoption of this MOU, or as soon thereafter as reasonably practicable, currently employed unit members will receive a one- time payment of $2,700.00. The parties agree that this one-time payment does not meet the criteria under California Code of Regulations 571(b) as reportable compensation for retirement purposes. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-19 9 SECTION 3. — Leaves A. Flex Leave All unit members shall accrue Flex leave at the following rates: Years of Continuous Hrs Accrued per Annual Max Allowable Service Pay Period hours Balance (hours) Less than 5 6.00 156.00 468.00 5 but less than 9 6.61 171.86 515.58 9 but less than 12 7.23 187.98 563.94 12 but less than 16 8.15 211.90 635.70 16 but less than 20 8.77 228.02 684.06 20 but less than 25 9.38 243.88 731.64 25 and over 10.00 260.00 780.00 Members shall accrue three (3) months (i.e., 39 hours) of flex leave as provided in the chart above) upon completion of three (3) months of continuous employment with the City of Newport Beach, provided however, this amount shall be reduced by any flex leave time advanced during the first three (3) months of employment. Limit on Accumulation Any flex leave earned in excess of this level will be paid on an hour for hour basis in cash (spill over pay) at the employee's hourly rate of pay. Members hired prior to July 1, 1996 shall be paid for earned flex leave in excess of the maximum permitted accrual at the member's hourly rate of pay provided that they have utilized at least eighty (80) hours of flex leave the previous calendar year. Employees accruing at the 16 years of continuous service level or above shall be required to use 120 hours of flex leave the previous calendar year. Employees who have not utilized the required amount of leave the prior calendar year shall not be eligible to accrue time above the maximum accrual limit. Employees first hired, or rehired by the City subsequent to July 1, 1996 shall not be eligible for flex leave spill over pay and shall not be entitled to accrue flex leave in excess of the flex leave accrual threshold. 2. Method of Use The Department Director shall approve all requests for flex leave taking into consideration the needs of the Department, and whenever possible the wishes of the employee. Flex leave may be granted on an hourly basis. Any fraction over an hour shall be charged to the next full hour. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-20 10 B. Holiday Leave The following days shall be observed as paid holidays (i.e., employees shall have the day off with pay) by all unit members. For each holiday, except the Floating Holiday (where the employee chooses the day off), if an employee is required to work on the holiday, they will receive their pay for the holiday and in addition, either pay or Flex Leave for the number of hours worked on the holiday. Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas Day New Year's Eve New Year's Day Washington's Birthday Memorial Day Martin Luther King Day Floating Holiday July 4 1 It Monday in Sept. November 11 4t" Thurs. in November Last'/2 of working day December 25 Last'/2 of working day January 1 3rd Monday in February Last Monday in May 3rd Monday in January July 1St - 1 day* *The floating holiday (eight (8) hours of holiday leave) is awarded on July 1. The hours are added to employees' Flex Leave account. Holidays are paid based on the employee's regular work day schedule. For example, if an employee is on a 9/80 schedule and the holiday is observed on a day that the employee is regularly scheduled to work 9 hours, the employee is entitled to receive 9 hours of holiday pay. However, if an employee is on a 9/80 schedule and the holiday is observed on a day that the employee is regularly scheduled to work 8 hours, the employee is entitled to receive 8 hours of holiday pay. Employees will receive 8 hours of holiday pay annually for the Floating Holiday. 1. Holidays listed above (except the floating holiday) occurring on a Saturday shall be observed the preceding Friday. Holidays occurring on a Sunday shall be observed the following Monday. (Half day holidays shall be observed prior to the observed holiday). 2. Holiday pay will be paid only to employees who work their scheduled day before and scheduled day after a holiday or are on authorized paid leave (e.g. leave that has been reviewed and approved by the Department Director). NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-21 11 3. In addition, for all employees an additional 8 hours of floating holiday will be added to his/her Flex leave accumulated total, on the first pay period in July each year. D. Bereavement Leave Bereavement leave shall be defined as "the necessary absence from duty by an employee because of the death or terminal illness in his/her immediate family." Unit members shall be entitled to forty (40) hours of bereavement leave per calendar year per incident (terminal illness followed by death is considered one incident). Bereavement leave shall be administered in accordance with the provisions of the Employee Policy Manual. Leave hours need not be used consecutively, but should occur in proximate time to the occurrence. For the purposes of this section, immediate family shall mean an employee's father, mother, stepfather, stepmother, brother, sister, spouse/domestic partner, child, stepchild, grandparents and the employee's spouse's/domestic partner's father, mother, brother, sister, child and grandparents. The provisions of this Section shall not diminish or reduce any rights a member may have pursuant to applicable provisions of State or Federal law. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. E. Leave Sellback During calendar year 2019, employees shall have the option (on two occasions) of selling back on an hour for hour basis, accrued flex or vacation leave. In no event shall the flex or vacation leave balance be reduced below one hundred and sixty (160) hours. Hours sold back will be subject to the Retiree Health Savings Plan Part C contributions, per Section 4 (F), Retiree Medical. For the term of this MOU the Association has elected Part C contributions for Flex at 0%. Effective in calendar year 2020 and thereafter, employees shall have the option of converting accrued Flex Leave to cash on an hour for hour basis subject to the following: On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out accrued flex leave which will be earned in the following calendar year. The employee can elect to receive the cash out in the pay period which includes June 30 and/or the pay period which includes December 15 for those Flex Leave benefits that have been earned during that portion of the year. In no event shall the flex leave balance be reduced below one hundred and sixty (160) hours. On or before December 31, 2019, each employee shall have the one-time option of cashing out all or a portion of Flex Leave benefits credited to his/her account as of that date. However, in no event shall the flex leave balance be reduced below one hundred and sixty (160) hours when the leave is cashed out. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-22 12 In addition to the above, starting in calendar year 2020, an employee who has an "unforeseen emergency" (defined as an unanticipated emergency that is caused by an event beyond the control of the employee and that would result in severe financial hardship to the employee if early withdrawal were not permitted) shall be entitled to make a request to the Director of Human Resources for a payoff of accrued flex leave. The amount of flex leave which may be paid off is limited to the amount necessary to meet the emergency. If there is an unforseen emergency, an employee can cash out Flex Leave earlier in the year than described above provided that the remaining balance is not reduced below one hundred and sixty (160) hours. SECTION 4. —Fringe Benefits A. Insurance 1. Benefits Information Committee The City has established a Benefits Information Committee (BIC) composed of one representative from each employee association group and up to three City representatives. The Benefits Information Committee has been established to allow the City to present data regarding carrier and coverage options, the cost of those options, appropriate coverage levels and other health programs. The purpose of the BIC is to provide each employee association with information about health insurance/programs and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. Medical Insurance The City has implemented an IRS qualified Cafeteria Plan. In addition to the contribution amounts listed below, the City shall contribute the minimum CalPERS participating employer's contribution towards medical insurance for employee enrolled in a CalPERS medical plan, per Government Code Section 22892. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical, dental and vision insurance/programs. Unused Cafeteria Plan funds shall be payable to the employee as taxable cash back. Employees shall be allowed to change coverages in accordance with plan rules and during regular open enrollment periods. The City's contribution towards the Cafeteria Plan is $1,725 (plus the minimum CalPERS participating employer's contribution). NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-23 13 NBCEA members who do not enroll in any medical plan offered by the City must provide evidence of group medical insurance coverage, and execute an opt -out agreement releasing the City from any responsibility or liability to provide medical insurance coverage on an annual basis. Employees hired prior to the first day of the pay period following City Council approval of this 2019-2021 MOU who elect to opt out of medical coverage offered by the City because they have provided proof of minimum essential coverage ("MEC') through another source (other than coverage in the individual market, whether or not obtained through Covered California) will receive $1,000.00 per month in taxable cash. For these same employees, if they elect medical coverage and spend less than the City contribution provided above, those unused cafeteria plan funds shall be paid to the employee as taxable cash. Employees hired after the first day of the pay period following City Council approval of this 2019-2021 MOU who elect to opt out of medical coverage offered by the City because they have provided proof of minimum essential coverage ("MEC') through another source (other than coverage in the individual market, whether or not obtained through Covered California) shall receive $500.00 per month in taxable cash. For these same employees, if they elect medical coverage and spend less than the City contribution provided above, there shall be no cash back provided. 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's plan offerings as agreed upon by the Benefits Information Committee. 5. Healthcare Reform The parties recognize that certain State and Federal laws, programs and regulations, including the Affordable Care Act, may impact future medical plan offerings., Either party may request to reopen Section 4A(2) regarding medical insurance for the purpose of discussing alternative approaches and proposals to providing healthcare coverage. In addition, should State or Federal laws concerning NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-24 14 taxation of healthcare benefits change, the parties agree to meet and discuss the impact of such change. B. Additional Insurance Programs IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. An Association member may request that medical, child care and other eligible expenses be paid or reimbursed by the Section 125 Plan out of the employee's account. The base salary of the employee will be reduced by the amount designated by the employee for reimbursable expenses. 2. Disabilitv Insurance The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all regular full time employees with the following provisions: Short -Term Disability Long -Term Disability Benefit Amount 66.67% of covered wages 66.67% of covered wages Maximum Benefit $1,846 weekly $15,000 monthly Waiting Period 30 calendar days 180 calendar days Employees shall pay one percent (1%) of base salary as a post -tax deduction for this benefit. Employees shall not be required to exhaust accrued paid leaves prior to receiving benefits under the disability insurance program. Employees may not supplement the disability benefit with paid leave once the waiting period has been exhausted. 3. Life Insurance The City shall provide life insurance for all regular full-time employees in $1,000 increments equal to one times the employee's annual salary up to a maximum of $50,000. At age 70 the City -paid life insurance is reduced by 50% of the pre -70 amount. This amount remains in effect until the employee terminates from City employment. C. Employee Assistance Program NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-25 15 City shall provide an Employee Assistance Program (EAP) through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines. D. Retirement Benefit 1. Retirement Formula The City contracts with PERS to provide retirement benefits for its employees. Pursuant to prior agreements and state mandated reform, the City has implemented first, second and third tier retirement benefits: Tier 1: For employees hired by the City on or before November 23, 2012, the retirement formula shall be the 2.5% @ 55 calculated on the basis of the single highest year. Tier 2: For employees first hired by the City between November 24 and December 31, 2012, or hired on or after January 1, 2013 and are current classic members of the retirement system, as defined in the Public Employees' Pension Reform Act (`PEPRA'), the retirement formula shall be 2% @ 60 calculated on the average 36 highest month's salary. Tier 3: For employees first hired by the City on or after January 1, 2013, and who do not meet the Tier 2 criteria because they are new members as defined by the PEPRA, the retirement formula shall be 2% @ 62 calculated on the average 36 highest month's salary. 2. Employee Contributions The Association has agreed to share in the rising cost of pension obligations. Under the terms of this MOU, unit members will contribute additional amounts toward the PERS retirement benefit, to the extent permissible by law. Should any provision be deemed invalid, the City and Association agree to meet for the purpose of renegotiating employee retirement contributions. Employees in each Tier will contribute 13% of pensionable pay toward the retirement benefit. Employee retirement contributions that are in addition to the normal PERS Member Contribution (of 7% or 8%) shall be calculated on base pay, special pays, and other pays normally reported as "PERSable" compensation, and will be made on a pre-tax basis through payroll deduction, to the extent allowable by law. It is recognized that these payments will not be reported to PERS as contributions toward either the Member or Employer rate, as provided under GC Section 20516(f). NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-26 16 Under a separate agreement, and ratified via a contract amendment with CalPERS in 2008, Tier 1 employees shall contribute 2.42% compensation earnable (as cost sharing) per Government Code section 20516(a). Tier 1 Employees - shall contribute a total employee contribution of 13% as follows: Tier 1 — Eight percent (8%) member contribution, 2.42% of compensation earnable as cost sharing per Government Code section 20516(a) and 2.58% of compensation earnable as cost sharing per Government Code section 20516(0. Tier 2 Employees - shall contribute a total employee contribution of 13% as follows: seven percent (7%) (compensation earnable) member contribution and six percent (6%) of compensation earnable as cost sharing per Government Code section 20516(f). Tier 3 Employees - The minimum statutory employee contribution for employees in Tier 3 is subject to the provisions of the Public Employees Pension Reform Act of 2012 (PEPRA) and equals 50% of the "total normal cost". Tier 3 employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code Section 20516(f), such that the total employee contribution equals 13% of pensionable compensation. The City contracts with PERS for the 4t" Level 1959 Survivors Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military Service Credit, 2% Cost of Living Adjustment and the pre -retirement option settlement 2 death benefit (Section 21548). E. LIUNA SUDDlemental Pension The Association agrees to pay any costs and/or contributions associated with its members' participation in the LIUNA Supplemental Pension Fund. The City's sole obligation is to forward the agreed upon amount to the fund. The City is not responsible for, nor does it make any representation regarding the payment of benefits to unit members. The employees' contributions to the LIUNA Supplemental Pension Fund are deemed "picked -up" and treated as employer contributions. Employees cannot opt out of the "pick-up," or receive the contributed amounts directly instead of having them paid to the plan. Participation at the same level will continue to be mandatory for members of the Association. The Association agrees with the procedural change, and acknowledges that members who leave City employment prior to vesting in the LIUNA pension NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-27 17 plan will still have no right to return of amounts contributed, or other recourse against the City concerning LIUNA. Effective the pay period following City Council approval of this MOU, unit members agree to pick up whatever the actual costs and contributions are required by LIUNA for participation in the LIUNA Supplemental Pension Fund for as long as its members participate in the LIUNA Supplemental Pension Fund. The parties are not precluded from discussing the LIUNA Supplemental Pension in future labor negotiations. The Association and LIUNA agree to defend, indemnify and hold harmless the City for its actions pursuant to this section. This includes, but is not limited to, any challenge by any member of the bargaining unit related to making contributions to the Plan or receiving benefits from the Plan. F. Retiree Medical Benefit 1. Background In 2005, the City and all Employee Associations agreed to replace the previous "defined benefit" retiree medical program with a new "defined contribution" program. The process of fully converting to the new program will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2006. b. Category 2 - Active employees hired prior to January 1, 2006, whose age plus years of service as of January 1, 2006 was less than 50 (46 for public safety employees). c. Category 3 - Active employees hired prior to January 1, 2006, whose age plus years of service was 50 or greater (46 for public safety employees) as of January 1, 2006. 2. Program Structure This is an Integral Part Trust (IPT) RHS Retiree Health Savings (RHS) plan (formerly the Medical Expense Reimbursement Program - "MERP"). a. For employees in Category 1, the program is structured as follows: Each employee will have an individual RHS account for bookkeeping purposes, called his or her "Employee Account." This account will accumulate contributions to be used for health care expense after NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-28 18 separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. Contributions will be in three parts. Part A contributions (mandatory employee contributions): 1 % of Salary. Part B contributions (employer contributions): $2.50 per month for each year of service plus year of age (updated every January 1St based on status as of December 31 st of the prior year). Part C contributions (leave settlement as determined by Association): The Association will determine the level of contribution for all employees it represents, subject to the following constraints. All employees within the Association must participate at the same level, except that Safety members and Non -safety members within an Association may have different levels. The participation level should be specified as a percentage of the leave balance on hand in each employee's leave bank at the time of separation from the City. For example, if the Association wishes to specify 50% of the leave balance as the participation level, then each member leaving the City, or cashing out leave at any other time, would have the cash equivalent of 50% of the amount that is cashed out added to the RHS, on a pre-tax basis. The remaining 50% would be paid in cash as taxable income. Individual employees would not have the option to deviate from this breakout. The Association has decided to participate in Part C contributions at the level of zero percent (0%) Flex Leave. This amount may be changed, on a go forward basis, as part of a future meet and confer process. However, the participation level must be the same for all employees within the Association. Additionally, the purpose and focus of these changes should be toward long-term, trend type adjustments. Due to IRS restrictions regarding "constructive receipt," the City will impose restrictions against frequent spikes or drops that appear to be tailored toward satisfying the desires of a group of imminent retirees. Spillover pay is not eligible for Part C contributions. Nothing in this section restricts taking leave for time off purposes. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-29 19 Part A contributions may be included in PERS compensation. Part B and Part C contributions will not be included in PERS compensation. Part A contributions begin upon enrollment in the program and are credited to each RHS Employee Account each pay period. Eligibility for Part B contributions is set at five years of vested City employment. At that time, the City will credit the first five years' worth of Part B contributions into the Employee Account (interest does not accrue during that period). Thereafter, contributions are made bi-weekly. Part C deposits, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon separation. If an employee leaves the City prior to five years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the RHS Employee Account. Such an employee will not be entitled to any Part B contributions. The exception to this is a full-time employee, participating in the program, who leaves the City due to industrial disability during the first five years of employment. In such cases, the employee will receive exactly five years' worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's RHS account at the time of separation. Distributions from RHS Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and his or her spouse and legal dependents — again only as permitted by IRS Publication 502. Qualification for dependency status will be determined by guidelines in IRC 152. If used for these purposes, distributions from the RHS accounts will not be taxable. Cash withdrawal for any other purpose is prohibited. Under recent IRS Revenue Ruling 2005-24, any balance remaining in the Employee Account after the death of the employee and his or her spouse and/or other authorized dependents (if any) must be forfeited. That particular RHS Employee Account will be closed, and any remaining funds will become general assets of the plan. The parties agree that the City's Part B contributions during active employment constitute the minimum CalPERS participating employer's NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-30 20 contribution (i.e., the CaIPERS statutory minimum amount) towards medical insurance after retirement. The parties also agree that, for retirees selecting a CaIPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's RHS account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one-time City contribution to their individual RHS accounts that equates to $100 per month for every month they contributed to the previous "defined benefit" plan, to a maximum of 15 years (180 months). This contribution will be made only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. Employees in Category 2 who had less than five years' service with the City prior to implementation of the new program will only receive Part B contributions back to January 1, 2006 when they reach five years total service. c. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active workforce. Instead, the City will contribute $400 per month into each of their RHS accounts after they retire from the City, to continue as long as the employee or spouse is still living. Each employee will contribute a flat $100 per month to the plan for the duration of their employment to partially offset part of this expense to the City. The maximum benefit provided by the City after retirement is $4,800 per year, accruing at the rate of $400 per month. There is no cash out option for these funds, and they may not be spent in advance of receipt. Employees in this category will also receive an additional one-time City contribution of $75 per month for every month they contributed to the previous plan prior to January 1, 2006, up to a maximum of 15 years (180 months). This contribution will be made to the RHS account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. 3. Administration NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-31 21 Vendors have been selected by the City to administer the program. The contract expense for program -wide administration by the vendor will be paid by the City. However, specific vendor charges for individual account transactions that vary according to the investment actions taken by each employee, such as fees or commissions for trades, will be paid by each employee. The City's Deferred Compensation Committee, or its successor committee, will have the authority to determine investment options that will be available through the plan. G. Tuition Reimbursement NBCEA members attending accredited community colleges, colleges, trade schools or universities, or recognized professional organizations or agencies may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, books, fees or other student expenses for approved job— related coursework, seminars or professional development programs. The maximum annual benefit is $2,000 per fiscal year. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Human Resources Director or designee. SECTION 5. — Miscellaneous A. Reductions in Force/Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. DEFINITIONS 1. "Layoffs" or "Laid Off' shall mean the non -disciplinary termination of employment. 2. "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted regular status in the current NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-32 22 Classification or any Classification within the Series, subject to the following: a. Credit shall be given only for continuous service subsequent to the most recent appointment to regular status in the Classification or Series; and b. Seniority shall include time spent on industrial leave, military leave, and leave of absence without pay, but shall not include time spent on any other authorized or unauthorized leave of absence. 3. "Classification" shall mean one or more full time positions identical or similar in duties not including part-time, seasonal or temporary positions. Classification within a Series shall be ranked according to pay (lowest ranking, lowest pay). 4. "Series" shall mean two or more classifications within a Department which require the performance of similar duties with the higher ranking classification(s) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities for subordinates. The City Manager shall determine those classifications following a meet and consult process which constitute a Series. 5. "Bumping Rights", "Bumping" or "Bump" shall mean (1) the right of an employee, based upon seniority within a series to bump into a lower ranking classification within the same series, (2) to be followed by, an employee being permitted to bump into a classification within a different series. The latter bumping shall be based upon unit wide seniority and shall be limited to a classification in which the employee previously held regular status. No employee shall have the right to bump into a classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience. PROCEDURE In the event the City Manager determines to reduce the number of employees within a classification, the following procedures are applicable: 1. Probationary employees within any classification shall, in that order, be laid off before regular employees. 2. Employees within a classification shall be laid off in inverse order of seniority. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-33 23 3. An employee subject to layoff in one classification shall have the right to bump a less senior employee in a lower ranking classification within a series. An employee who has bumping rights shall notify the Department Director within three (3) working days after notice of layoff of his/her intention to exercise bumping rights. 4. In the event two or more employees in the same classification are subject to layoff and have the same seniority, the employees shall be laid off following the Department Director's consideration of established performance evaluations. NOTICE Employees subject to lay-off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days' pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave and holiday leave (if any). REEMPLOYMENT Employees who are laid off shall be placed on a Department re-employment list in reverse order of layoff. The re-employment list shall expire in eighteen (18) months. In the event a vacant position occurs in the classification which the employee occupied at the time of layoff, or a lower ranking classification within a series, the employee at the top of the Department re-employment list shall have the right within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, first class postage prepaid, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re-employment list or the right to remove his or her name from the re-employment list by sending written confirmation to the Human Resources Director. SEVERANCE If an employee is laid off from their job with the City, for economic reasons, the City will grant severance pay in an amount equal to one week of pay for every full year of continuous employment service to the City of Newport Beach up to ten (10) weeks of pay. B. Banding Position vacancy announcements for available City positions shall be distributed in a manner that reasonably assures unit members access to the NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-34 24 announcements. In order to select the most qualified individual for vacant positions the City will continue its practice of "banding" candidates into one of the following ratings: Outstanding, Highly Recommended, Recommended, and Not Recommended, during the testing process. Department Directors review qualified candidates in band order, beginning with the top band and are permitted to hire any eligible candidate from the list (minimum rating of Recommended). Where no less than 2 unit members achieve top three ranking on a certified eligible list, selection to the position shall be made with preference given to the unit members so qualified. C. 9/80 Schedulina Plan Employees in the unit work either a 5/40 or 9/80 or work schedule. Employees assigned to the 9/80 work schedule will have alternating Fridays off with the City determining which employees will work on each alternating Friday to ensure effective coverage of the work. The City agrees to maintain flex -scheduling where it is currently operating successfully in this unit. D. Labor Manaaement Committee Committees shall meet quarterly on an annual schedule; names of participating unit members shall be announced to management no less than 5 working days before the scheduled meeting; cancellation for cause shall be rendered by the canceling party no less than 48 hours prior to the scheduled meeting; canceled meetings shall be rescheduled to take place within 5 working days of the canceled meeting; committees shall be departmental; they may be combined in the interests of efficiency with other such committees; City participants shall include appropriate department or division heads outside the unit; the purpose of the committees shall be to resolve conflict and exchange information; a unit staff person may attend meetings; meetings shall be scheduled to last no less than one hour; grievances in process shall not be subject to resolution in meetings; matters properly dealt with in negotiations may be discussed but no agreements shall be effected on same in committee. Meetings shall be on work time. The Committees shall include a Library Committee with two unit members participating; and three additional Committees, one of which shall meet in each quarter of the year on a continuing rotational basis. Building/Planning/Engineering: Minimum representation shall include one NBCEA member and one management representative. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-35 25 2. Finance: Minimum representation shall include two NBCEA members and two management representatives. 3. All other City departments: Minimum representation shall include three NBCEA members and three management representatives. The City and NBCEA agree that initial committee establishment will require good faith effort to affect the spirit of this agreement. E. Discipline - Notice of Intent Employees who are to be the subject of discipline equal to an unpaid suspension of three (3) days or greater shall be entitled to prior written notice of intent to discipline at least seven (7) calendar days prior to the imposition of the actual penalty. This written notice shall contain a description of the event or conduct which justifies the imposition of discipline. The notice shall also include the specific form of a discipline intended, and the employee shall be offered the opportunity for to a Skelly meeting before their Department Director prior to the imposition of the penalty. All other discipline resulting in less than a three (3) day suspension will be considered will not be subject to the aforementioned procedure. This understanding is not intended to in any way reduce the rights of employees to due process. Employees who have become the subject to a suspension of one or two day who wish to appeal the suspension shall have the right to appeal the decision to the City Manager or designee. Employees who have received a written reprimand, shall have the right to place comments on the document prior to placement in his/her personnel file. F. Grievance Procedure Step 1: A grievance may be filed by any employee on his/her own behalf, or jointly by a group of employees, or by the Association. Except as otherwise provided by law, the Grievance Procedure is the sole and exclusive method by which an employee or the Association may challenge a provision of this MOU. A grievance shall be brought to the attention of the immediate supervisor for discussion within ten (10) days after an employee or Association Board member knew, or in the exercise of reasonable diligence should have known, the act or events upon which the grievance is. If the Employee or the Association (if filed by the Association is not satisfied with the decision reached through the informal discussion or if extenuating circumstances exist, the Employee or Association shall have the right to file a formal grievance in accordance with Step 2 of this section. Grievances not presented within the time period shall be considered resolved. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-36 26 The supervisor shall meet with the grievant to settle grievance and give a written answer to the grievant within seven (7) calendar days from receipt of the grievance by the supervisor. When the immediate supervisor is also the department head, the grievance shall be presented in Step 2. Step 2: If the employee or the Association (if filed by the Association) is not in agreement with the decision rendered in Step 1, the grievant shall have the right to present a formal grievance to the Department Director within ten (10) Days after the discussion in Step 1. The right to file a grievance petition shall be waived in the event the Employee or Association fails to file a formal grievance within ten (10) Days after the occurrence of the incident that forms the basis of the grievance. All formal grievances shall be submitted on the form prescribed by the Human Resources Director and no formal grievance shall be accepted until the form is complete. The formal grievance shall contain a clear, concise statement of the grievance, the facts upon which the grievance is based, the rule, regulation or policy the interpretation of which is involved in the grievance, and the specific remedy or remedies sought by the grievant. The Department Director should render a written decision within ten (10) Days after receipt of the formal grievance. Step 3: If the formal grievance has not been satisfactorily adjusted in Step 2, it may be appealed to the City Manager within ten (10) Days after the Employee receives the decision. The City Manager may accept or reject the decision of the Department Director and shall render a written decision within ten (10) Days after conducting a grievance hearing. The decision of the City Manager shall be final and conclusive. If mutually agreeable, a meeting may be conducted involving all affected parties at any step in the grievance procedure prior to a decision. The City Manager may delegate uninvolved Department Directors to act on behalf of the City Manager to provide findings and recommendations. The findings and recommendations of the uninvolved Department Directors are advisory only and the City Manager's decision shall be final. Time Limits: Grievances shall be processed from one step to the next within the time limit indicated for each step. Time limits shall be strictly enforced. Any time limits can be waived or extended only by mutual agreement confirmed in writing. Any grievance not carried to the next step by the Employee or Association within the prescribed time limit shall be deemed resolved upon the basis of the previous decision. G. Probation 1. Probationary Period NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-37 27 Newly hired employees shall serve a twelve (12) month probationary period. The probationary period for promoted employees shall be six (6) months. Newly hired employees shall be increase after twelve (12) months. increases shall remain unchanged. 2. Failure of Probation (a) New Probation ;ome eligible for their first step All other City rules regarding step An employee on new probation may be released at the sole discretion of the City at any time without right of appeal or hearing, except as provided in (c), below. (b) Promotional Probation An employee on promotional probation may be failed at any time without right of appeal or hearing, except as provided in (c), below, and except that failing an employee on promotional probation must not be arbitrary, capricious or unreasonable. An employee who fails promotional probation shall receive a performance evaluation stating the reason for failure of promotional probation. When an employee fails his or her promotional probation, the employee shall have the right to return to his or her former class provided the employee was not in the previous class for the purpose of training for a promotion to a higher class. When an employee is returned to his or her former class, the employee shall serve the remainder of any uncompleted probationary period in the former class. If the employee's former class has been deleted or abolished, the employee shall have the right to return to a class in his or her former occupational series closest to, but no higher than, the salary range of the class which the employee occupied immediately prior to promotion and shall serve the remainder of any probationary period not completed in the former class. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-38 28 H. Salary on Reclassification An employee who is reclassified will be provided with a salary increase to the nearest step closest to five (5%) percent (not to exceed the maximum of the new salary range). Uniforms and Safety Equipment For assigned Park Patrol staff, uniforms shall be worn at all times during regular business hours. Park Patrol shall be provided with City designated shirts, shorts, pants, boots, jacket, and hat annually. Additional equipment or supplies may be issued to employees by the Department as deemed appropriate. If the provided winter jacket or work boots are lost, the employee shall replace the item with one from an authorized vendor. Work boots shall provide toe protection and meet Department safety standards. The Department Head or designee may approve exceptions to wearing uniforms. The City will continue its practice of directly paying for dry cleaning for individuals in the Park Patrol classification. J. Service Awards For the purpose of determining service awards, if an employee has been employed by the City on more than one occasion, non-consecutive time will be considered as part of total service. Prior to system implementations, an employee is required to individually notify the awards committee of all of the service time. K. Direct Deposit All employees shall participate in the payroll direct deposit system. L. Deferred Compensation The City agrees to, through a joint City -Employee Committee, explore the possible addition of additional deferred compensation providers during the term of this agreement. M. Separability Should any part of this MOU or any provision herein contained be rendered or declared invalid, by reason of any existing or subsequently enacted Legislation, or by decree of a Court of competent jurisdiction, such invalidation of such part or portion of this MOU shall not invalidate the remaining portion hereto, and same shall remain in full force and effect. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 4-39 29 Signatures are on the next page. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 ..f Executed this day of , 2019: FOR THE NEWPORT BEACH CITY EMPLOYEES ASSOCIATION: Teresa Craig, President FOR THE CITY OF NEWPORT BEACH: 0 Diane B. Dixon, Mayor CITY OF NEWPORT BEACH APPROVED AS TO FORM: By: 4j"'t8 Peter Brown, Special Counsel ATTEST: m Leilani Brown, City Clerk NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2021 K%] 4-41 REPRESENTED POSITIONS Administrative Assistant Building Department Specialist Buyer Buyer, Sr. Department Assistant Fiscal Clerk Fiscal Clerk, Sr. Fiscal Specialist Inventory Analyst Librarian I Librarian II Librarian III Library Assistant Library Clerk I Library Clerk II Library Clerk, Sr. License Supervisor Mail Processing Clerk, Sr. Marketing Specialist Office Assistant Park Patrol Officer Park Patrol Officer, Lead Public Works Specialist Records Specialist Recreation Coordinator Recreation Coordinator, Asst. Recreation Supervisor Exhibit A.1 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU Term: January 1, 2019 - December 31, 2021 2.0% Cost of Living Adjustment March 16, 2019 31 HOURLY PAY RATE 1 MONTHLY PAY RATE Z MIN MAX MIN MAX $29.16 $40.98 $5,066 $7,123 $28.35 $39.93 $5,054 $7,104 $29.23 $41.10 $5,529 $7,781 $34.49 $48.52 $5,978 $8,410 $23.40 $32.90 $3,306 $4,649 $21.09 $29.71 $4,674 $6,576 $24.56 $34.55 $3,840 $5,404 $28.45 $40.05 $3,840 $5,404 $25.03 $35.25 $3,467 $4,880 $28.78 $40.49 $4,989 $7,018 $31.63 $44.55 $4,043 $5,689 $34.82 $48.98 $3,656 $5,150 $24.48 $34.43 $5,483 $7,722 $19.08 $26.82 $3,656 $5,150 $21.09 $29.71 $6,035 $8,491 $24.48 $34.43 $4,056 $5,703 $31.90 $44.89 $4,915 $6,921 $22.15 $31.18 $4,915 $6,921 $29.16 $40.99 $4,257 $5,989 $20.00 $28.16 $4,243 $5,968 $20.79 $29.25 $4,243 $5,968 $23.32 $32.82 $5,054 $7,102 $28.35 $39.93 $5,054 $7,102 $29.16 $40.98 $4,932 $6,942 $26.96 $37.94 $3,603 $5,070 $22.15 $31.18 $4,339 $6,110 $31.52 $44.37 $5,861 $8,245 1 Hourly pay rates are rounded to the nearest hundredth. Z Monthly pay rates are rounded to nearest whole dollar. 4-42 REPRESENTED POSITIONS Administrative Assistant Building Department Specialist Buyer Buyer, Sr. Department Assistant Fiscal Clerk Fiscal Clerk, Sr. Fiscal Specialist Inventory Analyst Librarian I Librarian II Librarian III Library Assistant Library Clerk I Library Clerk II Library Clerk, Sr. License Supervisor Mail Processing Clerk, Sr. Marketing Specialist Office Assistant Park Patrol Officer Park Patrol Officer, Lead Public Works Specialist Records Specialist Recreation Coordinator Recreation Coordinator, Asst. Recreation Supervisor Exhibit A.2 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU Term: January 1, 2019 - December 31, 2021 2.0% Cost of Living Adjustment January 1, 2020 GL, HOURLY PAY RATE 1 MONTHLY PAY RATE Z MIN MAX MIN MAX $29.74 $41.79 $5,155 $7,244 $28.92 $40.73 $5,013 $7,059 $29.81 $41.92 $5,167 $7,266 $35.18 $49.49 $6,097 $8,579 $23.87 $33.56 $4,137 $5,817 $21.52 $30.31 $3,729 $5,253 $25.05 $35.25 $4,342 $6,109 $29.02 $40.85 $5,030 $7,081 $25.53 $35.95 $4,426 $6,232 $29.36 $41.30 $5,089 $7,159 $32.26 $45.44 $5,592 $7,876 $35.52 $49.96 $6,156 $8,660 $24.97 $35.12 $4,328 $6,088 $19.46 $27.36 $3,373 $4,742 $21.52 $30.31 $3,729 $5,253 $24.97 $35.12 $4,328 $6,088 $32.53 $45.79 $5,639 $7,937 $22.60 $31.80 $3,917 $5,512 $29.74 $41.81 $5,155 $7,246 $20.40 $28.72 $3,536 $4,978 $21.20 $29.83 $3,675 $5,171 $23.79 $33.48 $4,123 $5,803 $28.92 $40.73 $5,013 $7,059 $29.74 $41.79 $5,155 $7,244 $27.50 $38.70 $4,767 $6,708 $22.60 $31.80 $3,917 $5,512 $32.15 $45.26 $5,572 $7,844 1 Hourly pay rates are rounded to the nearest hundredth. Z Monthly pay rates are rounded to nearest whole dollar. 4-43 REPRESENTED POSITIONS Administrative Assistant Building Department Specialist Buyer Buyer, Sr. Department Assistant Fiscal Clerk Fiscal Clerk, Sr. Fiscal Specialist Inventory Analyst Librarian I Librarian II Librarian III Library Assistant Library Clerk I Library Clerk II Library Clerk, Sr. License Supervisor Mail Processing Clerk, Sr. Marketing Specialist Office Assistant Park Patrol Officer Park Patrol Officer, Lead Public Works Specialist Records Specialist Recreation Coordinator Recreation Coordinator, Asst. Recreation Supervisor Exhibit A.3 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU Term: January 1, 2019 - December 31, 2021 2.0 % Cost of Living Adjustment January 1, 2021 33 HOURLY PAY RATE 1 MONTHLY PAY RATE Z MIN MAX MIN MAX $30.34 $42.63 $5,258 $7,389 $29.50 $41.54 $5,113 $7,200 $30.41 $42.76 $5,270 $7,411 $35.88 $50.48 $6,219 $8,750 $24.35 $34.23 $4,220 $5,933 $21.95 $30.91 $3,804 $5,358 $25.55 $35.95 $4,429 $6,231 $29.60 $41.67 $5,131 $7,222 $26.04 $36.67 $4,514 $6,357 $29.95 $42.13 $5,191 $7,302 $32.91 $46.35 $5,704 $8,034 $36.23 $50.96 $6,279 $8,834 $25.47 $35.82 $4,415 $6,209 $19.85 $27.90 $3,440 $4,837 $21.95 $30.91 $3,804 $5,358 $25.47 $35.82 $4,415 $6,209 $33.18 $46.71 $5,752 $8,096 $23.05 $32.44 $3,995 $5,623 $30.34 $42.64 $5,258 $7,391 $20.81 $29.29 $3,607 $5,077 $21.63 $30.43 $3,748 $5,274 $24.27 $34.15 $4,206 $5,919 $29.50 $41.54 $5,113 $7,200 $30.34 $42.63 $5,258 $7,389 $28.05 $39.47 $4,863 $6,842 $23.05 $32.44 $3,995 $5,623 $32.79 $46.16 $5,684 $8,001 1 Hourly pay rates are rounded to the nearest hundredth. Z Monthly pay rates are rounded to nearest whole dollar. / / / 34 Exhibit B CITY EMPLOYEES ASSOCIATION LIST OF APPROVED CERTIFICATES MOU TERM 2019-2021 CERTIFICATE MONTHLY AMOUNT Certified Revenue Officer* $85 Forklift Training Certificate * $45 Public Notary** $45 * Only those unit members who were receiving the certificate pay at time of the 2012-15 MOU were eligible for the benefit. ** Language added in 2015-18 MOU and only available to NBCEA members in Administrative support positions and must be used for City business. Page 1 4-45 ATTACHMENT C Newport Beach City Employees Association City Proposal dated 1/28/19: Three-year contract with 2% COLA each Jan; Employee pays for supplemental retirement program; cafeteria opt out $500/month for new hires and no cash in lieu for new hires; $2,700 non-PERSable bonus paid at start of contract. sg, 2/14/19 4,618 93 Authorized Full-time Miscellaneous Employees 233,330 3,590 2.0% 2.0% 2.0% Cost of 14,282 FY 19 Budget COLA Yr 1 COLA Yr 2 COLA Yr 3 Increases Base Pay' 6,666,581 102,563 269,330 408,048 779,941 Supplemental Pay - Certification Pay 2,640 - - - - Bilingual Pay 18,000 (91,064) Subtotal 20,640 Pension Contribution Z Pension Normal Cost (16.212%) Pension Unfunded Actuarial Liability (21.480%) 1,058,333 16,224 42,605 64,549 123,379 1,436,415 22,030 57,852 87,649 167,531 Subtotal 2,494,748 38,255 100,458 152,198 290,911 Other City Paid Benefits MediCare (mandatory payment of 1.45%) Compensated Absences Cafeteria Plan New Hire No Opt Out & Cash In Lieu @ $500/mo (assumed $1,358/mo for 5, 7 & 9 EEs)3 Employee Assistance Program (EAP) Smartphone Allowance (17 employees) Life Insurance (policy based on annual base pay with cap of $50,000) Tuition Reimbursement (based on Fiscal Year 2018 actual) ° Retiree Health Savings (Post Employment Healthcare Contribution) Supplemental Retirement Program One-time non-PERSable lump sum payment of $2,700 per EE Subtotal Offset - Employee Pick Up of PERS Pension Costs (13.0%) Overtime (based on Fiscal Year 2017 actual hours = 255.30) Subtotal Total 134,366 5,132 2,906 4,618 12,656 233,330 3,590 9,427 14,282 27,298 2,073,528 - - - - - (37,292) (69,872) (91,064) (198,228) 1,931 16,320 9,366 - - - - 15,972 500 500 500 1,500 118,471 - - - - 101,625 25,406 25,406 - 251,100 251,100 2,704,909 248,436 (57,040) (71,664) 119,732 (869,675) (13,333) (35,013) (53,046) (101,392) (869,675) (13,333) (35,013) (53,046) (101,392) 14,814 285 932 1,502 2,719 11,032,018 376,205 278,667 437,037 1,091,910 Salary Increase Only 1.54% 4.04% 6.12% Total Comp Increase Only 3.41% 2.53% i Original estimate is based on FY 2019 budget. Z This unit has 64 Tier 1 members; 1 Tier 2 member, and 28 Tier 3 members. 3 Based on prior three years, assumed 5 new hires each year with carryover of 2 in Yr 2 & 4 in Yr 3. ° Usage in FY 17 was only $4,600 with 1 employee using the maximum amount. Note: Year 1 start is tentatively 3/16/19 based on Council authorization at the 3/12/19 Council meeting. 4-46 ATTACHMENT D City of Newport Beach BUDGET AMENDMENT 2018-19 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations AND Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues PX from unappropriated fund balance EXPLANATION: NO. BA- 19BA-031 AMOUNT: 522,562.49 Increase in Budgetary Fund Balance X Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance ONE-TIME? Yes X No This budget amendment is requested to provide for the following: To increase salaries and benefit expenditure appropriations from General Fund, Water, and Information Technology unappropriated fund balance to provide funding levels commensurate with the new Memorandum of Understanding with the City Employees Association and Profesional Technology Association. The budget amendment provides the additional funding needed for the first 7.5 pay periods of the contract. The Fiscal Year 2019-2020 budget will be developed to include the full cost increases associated with the contract. ACCOUNTING ENTRY: Org Object Project BUDGETARYFUND BALANCE Amount 0103031 See attached Fund Object Description Debit Credit 010 300000 General Fund - Unappropriated Fund Balance $482,746.76 $7,666.16 701 300000 Water Fund - Unappropriated Fund Balance $9,437.74 $135.30 764 300000 Information Technology - Unappropriated Fund Balance $38,841.93 $662.47 EXPENDITURE APPROPRIATIONS Org Object Project Description 0103031 See attached Revenue Services in total, detail attached $558.41 $35,167.55 0105041 See attached Inspections in total, detail attached $529.51 $29,426.16 0105042 See attached Plan Checks/Permits in total, detail attached $865.09 $43,407.72 0106021 See attached Com Branch Library in total, detail attached $83.96 $8,974.94 0106022 See attached Mariners Branch Library in total, detail attached $250.63 $21,435.10 0106023 See attached Central Library in total, detail attached $642.91 $41,409.01 0106024 See attached Balboa Branch Library in total, detail attached $52.41 $3,211.98 0107010 See attached Program Support in total, detail attached $380.57 $28,085.64 0107012 See attached Adult Sports in total, detail attached $33.16 $3,038.29 0107014 See attached Youth Programs in total, detail attached $35.83 $3,062.37 0107018 See attached Park Patrol in total, detail attached $73.02 $6,137.08 0107020 See attached Newport Coast Community Center in total, detail attached $40.32 $3,102.86 0107021 See attached Community Youth Center in total, detail attached $36.31 $3,066.72 0107023 See attached Marina Park in total, detail attached $69.57 $6,105.95 0107031 See attached Oasis in total, detail attached $260.11 $18,781.47 0107032 See attached Oasis Fitness Center in total, detail attached $41.73 $3,115.63 0108011 See attached Wq/Conservation/Environmental in total, detail attached $59.51 $3,275.64 0108012 See attached Traffic & Transportation in total, detail attached $550.02 $29,610.78 01010005 See attached City Clerk Admin in total, detail attached $124.13 $9,337.34 01025251 See attached Personnel Mgmt & Recruiting in total, detail attached $32.18 $3,029.46 01030005 See attached Finance Admin in total, detail attached $34.95 $3,054.49 01030301 See attached Financial Planning in total, detail attached $160.36 $9,664.19 01030302 See attached Financial Reporting in total, detail attached $206.99 $12,822.91 01040005 See attached Fire Administration in total, detail attached $31.57 $3,023.95 01040401 See attached Fire Operations in total, detail attached $38.70 $3,088.33 01040404 See attached Emergency Medical Services in total, detail attached $38.70 $3,088.33 01040406 See attached Lifeguard Operations in total, detail attached $38.70 $3,088.33 01050005 See attached CDD Admin in total, detail attached $194.90 $12,714.49 01050501 See attached Planning in total, detail attached $509.46 $31,984.50 01050503 See attached Code Enforcement in total, detail attached $199.70 $12,756.92 01060005 See attached Library Admin in total, detail attached $250.39 $15,954.64 01060601 See attached Technical Processing in total, detail attached $97.05 $9,092.98 01070005 See attached Recreation Admin in total, detail attached $96.42 $6,348.20 01080005 See attached Public Works Admin in total, detail attached $133.65 $9,422.55 01080801 See attached Engineering Services in total, detail attached $788.18 $34,496.98 01090005 See attached PW MOD Admin in total, detail attached $127.04 $9,363.32 7019052 See attached Water System Service in total, detail attached $135.30 $9,437.74 76420203 See attached City Mgr Informtn Technology in total, detail attached $662.47 $38,841.93 oignea: City Council Approval: City Clerk Date 4-47 City of Newport Beach BUDGET AMENDMENT 2018-19 ACCOUNTING ENTRY: NO. BA- 19BA-031 AMOUNT: r 522,562.49 BUDGETARY FUND BALANCE Amount Fund QWpLt Description Debit Credit 010 300000 General Fund - Unappropriated Fund Balance $482,746.76 $7,666.16 701 300000 Water Fund - Unappropriated Fund Balance $9,437.74 $135.30 764 300000 Information Technology - Unappropriated Fund Balance $38,841.93 $662.47 EXPENDITURE APPROPRIATIONS Org Object Description 0103031 711001 Revenue Services - Salaries $33,995.42 0103031 723002 Revenue Services - Pers Normal Cost $356.32 0103031 722001 Revenue Services - Pers Member Contribution $322.86 0103031 724001 Revenue Services - Pers EE Contribution $558.41 0103031 727016 Revenue Services - Medicare $492.93 0105041 711001 Inspections - Salaries $28,373.12 0105041 723002 Inspections - Pers Normal Cost $336.62 0105041 722001 Inspections - Pers Member Contribution $305.01 0105041 724001 Inspections - Pers EE Contribution $529.51 0105041 727016 Inspections - Medicare $411.41 0105042 711001 Plan Checks/Permits - Salaries $41,754.52 0105042 723002 Plan Checks/Permits - Pers Normal Cost $549.69 0105042 722001 Plan Checks/Permits - Pers Member Contribution $498.07 0105042 724001 Plan Checks/Permits - Pers EE Contribution $865.09 0105042 727016 Plan Checks/Permits - Medicare $605.44 0106021 711001 Com Branch Library - Salaries $8,745.88 0106021 723002 Com Branch Library - Pers Normal Cost $53.64 0106021 722001 Com Branch Library - Pers Member Contribution $48.60 0106021 724001 Com Branch Library - Pers EE Contribution $83.96 0106021 727016 Com Branch Library - Medicare $126.82 0106022 711001 Mariners Branch Library - Salaries $20,827.90 0106022 723002 Mariners Branch Library - Pers Normal Cost $160.11 0106022 722001 Mariners Branch Library - Pers Member Contribution $145.08 0106022 724001 Mariners Branch Library - Pers EE Contribution $250.63 0106022 727016 Mariners Branch Library - Medicare $302.00 0106023 711001 Central Library - Salaries $40,045.47 0106023 723002 Central Library - Pers Normal Cost $410.72 0106023 722001 Central Library - Pers Member Contribution $372.15 0106023 724001 Central Library - Pers EE Contribution $642.91 0106023 727016 Central Library - Medicare $580.66 0106024 711001 Balboa Branch Library - Salaries $3,103.16 0106024 723002 Balboa Branch Library - Pers Normal Cost $33.48 0106024 722001 Balboa Branch Library - Pers Member Contribution $30.34 0106024 724001 Balboa Branch Library - Pers EE Contribution $52.41 0106024 727016 Balboa Branch Library - Medicare $45.00 0107010 711001 Program Support - Salaries $27,227.43 0107010 723002 Program Support - Pers Normal Cost $243.12 0107010 722001 Program Support - Pers Member Contribution $220.29 0107010 724001 Program Support - Pers EE Contribution $380.57 0107010 727016 Program Support - Medicare $394.80 0107012 711001 Adult Sports - Salaries $2,955.07 0107012 723002 Adult Sports - Pers Normal Cost $21.18 0107012 722001 Adult Sports - Pers Member Contribution $19.19 0107012 724001 Adult Sports - Pers EE Contribution $33.16 0107012 727016 Adult Sports - Medicare $42.85 0107014 711001 Youth Programs - Salaries $2,975.60 0107014 723002 Youth Programs - Pers Normal Cost $22.89 0107014 722001 Youth Programs - Pers Member Contribution $20.74 0107014 724001 Youth Programs - Pers EE Contribution $35.83 0107014 727016 Youth Programs - Medicare $43.15 0107018 711001 Park Patrol - Salaries $5,961.71 0107018 723002 Park Patrol - Pers Normal Cost $46.65 0107018 722001 Park Patrol - Pers Member Contribution $42.27 0107018 724001 Park Patrol - Pers EE Contribution $73.02 0107018 727016 Park Patrol - Medicare $86.44 0107020 711001 Newport Coast Community Center - Salaries $3,010.12 0107020 723002 Newport Coast Community Center - Pers Normal Cost $25.76 0107020 722001 Newport Coast Community Center - Pers Member Contribution $23.34 0107020 724001 Newport Coast Community Center - Pers EE Contribution $40.32 0107020 727016 Newport Coast Community Center - Medicare $43.65 0107021 711001 Community Youth Center - Salaries $2,979.31 0107021 723002 Community Youth Center - Pers Normal Cost $23.20 0107021 722001 Community Youth Center - Pers Member Contribution $21.02 0107021 724001 Community Youth Center - Pers EE Contribution $36.31 0107021 727016 Community Youth Center - Medicare $43.20 0107023 711001 Marina Park - Salaries $5,935.17 0107023 723002 Marina Park - Pers Normal Cost $44.45 0107023 722001 Marina Park - Pers Member Contribution $40.27 0107023 724001 Marina Park - Pers EE Contribution $69.57 0107023 727016 Marina Park - Medicare $86.06 0107031 711001 Oasis - Salaries $18,200.82 0107031 723002 Oasis - Pers Normal Cost $166.17 0107031 722001 Oasis - Pers Member Contribution $150.56 0107031 724001 Oasis - Pers EE Contribution $260.11 0107031 727016 Oasis - Medicare $263.91 0107032 711001 Oasis Fitness Center - Salaries $3,021.01 0107032 723002 Oasis Fitness Center - Pers Normal Cost $26.66 0107032 722001 Oasis Fitness Center - Pers Member Contribution $24.16 0107032 724001 Oasis Fitness Center - Pers EE Contribution $41.73 0107032 727016 Oasis Fitness Center - Medicare $43.80 0108011 711001 Wq/Conservation/Environmental - Salaries $3,157.78 0108011 723002 Wq/Conservation/Environmental - Pers Normal Cost $37.81 0108011 722001 Wq/Conservation/Environmental - Pers Member Contribution $34.26 0108011 724001 Wq/Conservation/Env iron mental - Pers EE Contribution $59.51 0108011 727016 Wq/Conservation/Environ mental - Medicare $45.79 0108012 711001 Traffic & Transportation - Salaries $28,530.92 0108012 723002 Traffic & Transportation - Pers Normal Cost $349.49 0108012 722001 Traffic & Transportation - Pers Member Contribution $316.67 0108012 724001 Traffic & Transportation - Pers EE Contribution $550.02 0108012 727016 Traffic & Transportation - Medicare $413.70 01010005 711001 City Clerk Admin - Salaries $9,054.88 01010005 723002 City Clerk Admin - Pers Normal Cost $79.30 01010005 722001 City Clerk Admin - Pers Member Contribution $71.86 01010005 724001 City Clerk Admin - Pers EE Contribution $124.13 01010005 727016 City Clerk Admin - Medicare $131.30 01025251 711001 Personnel Mgmt & Recruiting - Salaries $2,947.53 01025251 723002 Personnel Mgmt & Recruiting - Pers Normal Cost $20.56 01025251 722001 Personnel Mgmt & Recruiting - Pers Member Contribution $18.63 01025251 724001 Personnel Mgmt & Recruiting - Pers EE Contribution $32.18 01025251 727016 Personnel Mgmt & Recruiting - Medicare $42.74 ATTACHMENT E RESOLUTION NO. 2019-22 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, ADOPTING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION WHEREAS, the City Council of the City of Newport Beach ("City Council") previously adopted Resolution No. 2001-50, the "Employer -Employee Relations Resolution," pursuant to the authority contained in the Meyers-Milias-Brown Act, Government Code §3500, et seq.; WHEREAS, the City of Newport Beach ("City") supports effective communication and collaborative working relationships with its employee associations to promote improved relations while balancing good management practices; WHEREAS, the City previously entered into a memorandum of understanding with the Newport Beach Professional and Technical Employees Association ("NBPTEA"), a recognized employee organization, for the term of July 1, 2015 through December 31, 2018 ("2015 MOU"); WHEREAS, in accordance with Section 1(B)(1) of the 2015 MOU, its provisions remain in full force and effect after its expiration while the City and the NBPTEA meet and confer on a successor memorandum of understanding; WHEREAS, representatives from the City and the NBPTEA met and conferred in good faith and reached a tentative agreement on wages, benefits, and other terms and conditions of employment ("Tentative Agreement"), which are memorialized in the Memorandum of Understanding between the City and the NBPTEA ("Memorandum of Understanding") attached hereto as Exhibit A and incorporated herein by this reference; WHEREAS, the City was notified on February 8, 2019 that the NBPTEA had ratified said Tentative Agreement; WHEREAS, City of Newport Beach Charter Section 601 requires the City Council to provide the number, titles, qualifications, powers, duties and compensation of all officers and employees of the City; WHEREAS, Newport Beach Municipal Code Section 2.28.010 provides that, upon recommendation of the City Manager, the City Council may establish by resolution the salary range or rate for each position; 4-50 Resolution No. 2019 - Page 2 of 3 WHEREAS, the City Manager has reviewed the changes to the salary schedule for the NBPTEA unit members provided in this resolution and recommends approval; WHEREAS, the City Council received and considered the Tentative Agreement at its regular meeting on February 26, 2019; WHEREAS, the City Council received and considered the Memorandum of Understanding at its regular meeting on March 12, 2019; WHEREAS, by adopting this resolution, the City Council intends to amend the salary schedule for employees represented by the NBPTEA so as to be in conformance with the Memorandum of Understanding; and WHEREAS, by adopting this resolution, the City Council also desires to replace the 2015 MOU by adopting the Memorandum of Understanding attached hereto as Exhibit A to serve as the successor agreement between the City and the NBPTEA for the period of January 1, 2019 through December 31, 2021. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby adopt the Memorandum of Understanding that is attached hereto and incorporated herein as Exhibit A. Wages, hours, fringe benefits and other terms and conditions of employment for employees represented by the NBPTEA shall be provided in accordance with the provisions of the Memorandum of Understanding, which shall serve as the successor agreement between the City and the NBPTEA for the period of January 1, 2019 through December 31, 2021. Section 2: The City's Salary Schedule shall be modified to be consistent with this resolution. Section 3: The Memorandum of Understanding shall supersede in all respects any and all terms and provisions of all prior memoranda of understanding between City and employees represented by the NBPTEA, except to the extent that any term or provision of this Memorandum of Understanding expressly provides otherwise. Section 4: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. 4-51 Resolution No. 2019 - Page 3 of 3 Section 5: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 6: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 12th day of March, 2019. Diane B. Dixon Mayor ATTEST: 1_eilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aaron C. Harp City Attorney Attachment: Exhibit A — Memorandum of Understanding 4-52 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH G►1 NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION January 1, 2019 through December 31, 2021 FULL DOCUMENT ATTACHED TO STAFF REPORT A5 ATTACHMENT B 4-53 ATTACHMENT F Exhibit A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION �I ►U ��� \l -`o January 1, 2019 through December 31, 2021 4-54 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION January 1, 2019 — December 31, 2021 TABLE OF CONTENTS Preamble Section 1. General Provisions Recognition..................................................................................................................... 1 Term............................................................................................................................... 1 ReleaseTime.................................................................................................................. 2 Scope.............................................................................................................................. 2 Conclusiveness.............................................................................................................. 3 Modifications................................................................................................................... 4 Employee Data and Access............................................................................................ 4 AssociationDues............................................................................................................ 4 Section 2. Compensation Salary............................................................................................................................ 5 Overtime.......................................................................................................................... 5 Call -Back Duty................................................................................................................ 6 Accumulation of Compensatory Time Off........................................................................ 6 Night Shift Differential...................................................................................................... 6 Associate Civil Engineer and Junior Civil Engineer......................................................... 7 CertificatePay................................................................................................................. 7 CourtTime...................................................................................................................... 7 ActingPay....................................................................................................................... 7 Bi -lingual Pay.................................................................................................................. 8 AssignmentPay.............................................................................................................. 8 WeekendStandby........................................................................................................... 8 One -Time Payment......................................................................................................... 9 Section 3. Leaves FlexLeave....................................................................................................................... 9 HolidayLeave............................................................................................................... 10 BereavementLeave...................................................................................................... 11 LeaveSellback.............................................................................................................. 11 4-55 Section 4. Fringe Benefits Insurance...................................................................................................................... 12 Additional Insurance Programs..................................................................................... 14 Employee Assistance Program..................................................................................... 15 TheRetirement Benefit................................................................................................. 15 LIUNA Supplemental Pension....................................................................................... 17 RetireeMedical Benefit................................................................................................. 17 Tuition Reimbursement................................................................................................. 21 Section 5. Miscellaneous/Working Conditions Reduction in Force/Layoffs............................................................................................ 22 Recruitment and Selection............................................................................................ 24 9/80 Scheduling Plan.................................................................................................... 24 Labor Management Committee..................................................................................... 25 Grievance Procedure.................................................................................................... 25 Probation....................................................................................................................... 26 Salary on Reclassification............................................................................................. 27 DirectDeposit................................................................................................................ 27 Uniforms........................................................................................................................ 27 Separability................................................................................................................... 28 EXHIBIT A: Represented Job Classification and Pay Rates.........................................30 EXHIBIT B: Approved Certifications.............................................................................. 33 4-56 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE The Newport Beach Professional and Technical Employees Association ("NBPTEA" or 'Association'), a recognized employee organization, affiliated with Laborers' International Union of North America, Local 777 (LIUNA), and the City of Newport Beach ("City"), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment. 2. NBPTEA representatives and City representatives have reached an agreement as to wages, hours and other terms and conditions of employment to apply to all affected employees for the term of January 1, 2019 through December 31, 2021. 3. This MOU, upon approval by NBPTEA and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. SECTION 1. — General Provisions A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers-Milias-Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No. 2001-50, the City acknowledges that NBPTEA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in those classifications specified in Exhibit "A" or as appropriately modified in accordance with the Employer/Employee Resolution. All other classifications and positions not specifically included within Exhibit "A" are excluded from representation by NBPTEA. B. Term Except as specifically provided otherwise, any ordinance, resolution or action of the City Council necessary to implement this MOU shall 4-57 PA be considered effective as of January 1, 2019. This MOU shall remain in full force and effect until December 31, 2021 and the provisions of this MOU shall continue after the date of expiration of this MOU in the event the parties are meeting and conferring on a successor MOU. 2. The provisions of this MOU shall prevail over conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions and policies of the City of Newport Beach, federal and state statutes, rules and regulations which either specifically provide that agreements such as this prevail, confer rights which may be waived by any collective bargaining agreement, or are, pursuant to decisional or statutory law, superseded by the provisions of an agreement similar to this MOU. C. Release Time 1. Three NBPTEA officers designated by the NBPTEA shall collectively be granted an annual maximum of 150 hours paid release time, for the conduct of NBPTEA business. Such time shall be exclusive of actual time spent in collective bargaining and shall be scheduled at the discretion of the NBPTEA officer. Every effort will be made to schedule this time to avoid interference with City operations. 2. Release time designees shall be identified annually and notice shall be provided to the City. Release time incurred shall be reported regularly in the form and manner prescribed by the City. 3. Activities performed on release time shall include representation of members in rights disputes; preparation for collective bargaining activities, and distribution of NBPTEA written communication in the work place. 4. Each January the City will examine the number of Release Time hours the Association used the preceding year. If the Association used in excess of 75% of the hours normally granted (150), the Association will be granted an additional 30 hours for that year. D. Scope 1. All present written rules and current established practices and employees' rights, privileges and benefits that are within the scope of representation shall remain in full force and effect during the term of this MOU unless specifically amended by the provisions of this MOU. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-58 3 2. The practical consequences of a Management Rights decision on wages, hours, and other terms and conditions of employment shall be subject to the grievance procedures. I Pursuant to this MOU, the City reserves and retains all of its inherent exclusive and non—exclusive managerial rights, powers, functions and authorities ("Management Rights") as set forth in Resolution No. 2001-50. Management Rights include, but are not limited to, the following: (a) the determination of the purposes and functions of City Departments; (b) the establishment of standards of service; (c) to assign work to employees as deemed appropriate; (d) the direction and supervision of its employees; (e) the discipline of employees; (f) the power to relieve employees from duty for lack of work or other legitimate reasons; (g) to maintain the efficiency of operations; (h) to determine the methods, means and personnel by which operations are to be conducted; (i) the right to take all necessary actions to fulfill the Department's responsibilities in the event of an emergency; and Q) the exercise of complete control and discretion over the manner of organization, and the appropriate technology, best suited to the performance of departmental functions. The practical consequences of a Management Rights decision on wages, hours, and other terms and conditions of employment shall be subject to the grievance procedures. E. Conclusiveness With the exception of a separate MOU covering retirement issues, this MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the term of this MOU, neither party shall be compelled, and each party expressly waives its rights to request the other to meet and confer concerning any issue within the scope of representation NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-59 4 except as expressly provided herein or by mutual agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, representation or agreement reached prior to the execution of this MOU and not set forth herein. As provided in the Employer -Employee Relations Resolution No. 2001-50, the City shall determine the manner in which City services are to be provided, including whether the City should provide services directly or contract out work, including work that is currently being performed by Association members. In the event the City introduces a plan to outsource services currently being performed by Association members to achieve greater efficiency and/or cost savings, and upon request by the Association, the City shall meet and confer with Association representatives to discuss the impacts of the City's decision to contract out work. The City shall retain sole authority to decide whether or not to contract out work, including work that is currently being performed by Association members. This provision shall not limit the City's authority to enter into such an agreement for any City services. F. Modifications Any agreement, understanding, waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. G. Employee Data and Access In January and July of each year, the NBPTEA will be provided with a listing of all unit members. The listing will include name, department, and job title. Information concerning the NBPTEA prepared by the NBPTEA will be provided to new employees at the time of orientation. H. Association Dues 1. The collection of Association dues be handled through the payroll deduction process. 2. The Association and LIUNA agree to defend, indemnify and hold harmless the City for its collection of Association dues. SECTION 2. —Compensation NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 •/ A A. Salary Base salary increases for all NBPTEA represented classifications shall be as follows, and as specified in Exhibit A: Effective the pay period following City Council approval of this MOU, there shall be a base salary increase of two percent (2.0%) for all represented classifications. Effective the pay period that includes January 1, 2020, base salaries will be increased by two percent (2.0%) for all represented classifications. Effective the pay period that includes January 1, 2021, base salaries will be increased by two percent (2.0%) for all represented classifications. B. Overtime 1. Advanced Approval - Employees must have advanced approval from their supervisor to work overtime. 2. FLSA Overtime - Overtime earned for actual work hours in excess of 40 in the employee's defined FLSA workweek. 3. Contract Overtime — Overtime earned for an employee whose hours paid in their defined FLSA workweek exceeds 40. For purposes of calculating hours paid for contract overtime, holidays occurring during the work week count as time worked. The use of other forms of leave do not count as hours worked for purposes of calculating hours paid for determining eligibility for contract overtime. 4. Rate at Which Overtime is Calculated — Both FLSA and Contract Overtime (paid at time and one half — 1.5) shall be calculated at the regular rate of pay, except that the rate at which Contract Overtime is calculated shall not include the City's Cafeteria Plan Allowance, the opt -out Cafeteria Plan Allowance, or any cash back an employee may receive from the Cafeteria Plan Allowance by choosing benefits which cost less than the Allowance. 5. Workweek for Purposes of Calculatinq Overtime — For employees who work the 9/80 work schedule, their defined FLSA workweek shall begin exactly four hours after the start time of their shift on their alternating regular day off (i.e., their eight-hour day) and end exactly 168 hours later. For employees who work a 5/40 work schedule, their workweek shall begin on Saturday at 12:01 a.m. and will end exactly 168 hours later the following Saturday at 12:00 a.m. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-61 6 6. Work Schedule — Regardless of the type of work schedule an employee is assigned (e.g., 5/40 and 9/80), full time employees are regularly scheduled to work forty (40) hours in their defined FLSA workweek. 7. Reporting Time - The City calculates overtime in tenths of an hour. Employees shall report their time worked to the nearest tenth of an hour. C. Call -Back Duty 1. Defined Call back duty requires the employee to respond to a request to return to his/her work station after the normal work shift has been completed and the employee has left his/her normal work station. Those periods of overtime which had been scheduled by the Department Director prior to the end of the normal work shift are not considered call-back duty. 2. Compensation All employees shall receive a minimum of two (2) hours pay. If an employee works more than two (2) hours, he/she shall receive pay for actual hours worked. D. Accumulation of Compensatory Time Off Unit members who are non-exempt (from overtime) may receive compensatory time off (CTO), in lieu of cash, as compensation for overtime hours worked at the rate of one -and -one-half (1 '/2) hours for each hour of overtime worked. An employee may only accrue CTO if requested and then approved by the employee's supervisor. Call-back time may be converted to CTO with supervisor approval. Employees may accumulate up to eighty (80) hours of CTO. If an employee has eighty (80) hours of accrued CTO, he/she will not be able to accrue additional CTO until he/she uses CTO to reduce his/her balance below eighty (80) hours. E. Niaht Shift Differential The City agrees to pay $1.00 per hour night shift differential for Employees working a regularly scheduled work shift of which four or more hours are worked between the hours of 5 p.m. and 5 a.m. Overtime worked as an extension of an assigned day shift shall not qualify an employee for night shift differential. The differential pay is paid only for hours actually worked. The parties agree that to the extent permitted by law, the shift differential pay in this section is special compensation and shall be reported to NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-62 7 Ca1PERS as such pursuant to Title 2 CCR, Section 571(a)(4) Shift Differential Pay. F. Associate Civil Engineer and Junior Civil Engineer Employees in the class of Associate Civil Engineer and Junior Civil Engineer who are registered by the State of California shall receive an additional compensation of five (5%) percent of base pay per month. G. Certificate Pay The City and Association established a certificate pay program for non - required job related certificates beneficial to City operations. Effective January 1, 2013, the Certificate Pay program was modified to eliminate "inactive" certificates and "sunset" certain active certificates. Employees currently receiving a "sunset" certificate are considered grandfathered under the program, but no further employees will be eligible. The complete list of eligible certificates and the corresponding benefit is listed in Exhibit B. All other procedures associated with Certificate Pay remain in effect, including a limitation of payment for a maximum of five certificates per employee. The parties agree that to the extent permitted by law, certificates which qualify as special compensation shall be reported to CaIPERS as such pursuant to Title 2 CCR, Section 571 or 571.1. H. Court Time Employees who are required to appear in Court during their off-duty hours in connection with City business shall receive overtime compensation (if additional hours qualify as overtime) for the number of hours they spend in court, with a minimum of two (2) hours of such compensation. Acting Pay NBPTEA employees will be eligible to receive "acting pay" only after completing 80 consecutive hours in the higher classification. Acting pay is 107.5% of the employee's base pay rate. Once the minimum hour requirement has been satisfied, acting pay will be granted for all hours worked above 40 hours beginning with the 41St hour worked in the higher classification. The parties agree that to the extent permitted by law, acting pay is special compensation and shall be reported to Ca1PERS as such pursuant to Title 2 CCR, Section 571(a)(3) Temporary Upgrade Pay. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-63 8 J. Bi -lingual Pay Upon determination of the Department Director that an employee's ability to speak, read and/or write in Spanish contributes to the Department providing better service to the public, the employee shall be eligible to receive One Hundred Fifty ($150.00) Dollars per month (paid each pay period) in bilingual pay. The certification process will confirm that the employee is fluent at the street conversational level in speaking, reading and/or writing Spanish. Employees certified shall receive bi-lingual pay the first full pay period following certification. Additional languages may be certified for compensation pursuant to this section by the Department Director with the concurrence of the Human Resources Director. The parties agree that to the extent permitted by law, the Bilingual pay in this section is special compensation and shall be reported to Ca1PERS as such pursuant to Title 2 CCR, Section 571(a)(4) Bilingual Premium. K. Assignment Pay An employee appointed by the Community Development Director to regularly perform the duties of the Zoning Administrator as set forth in the Zoning Code shall be provided temporary assignment pay at five percent (5%) above the employee's base pay, to be paid on an hourly basis for all hours worked in the assignment. This assignment pay is temporary and will cease once the employee is no longer performing the duties of the Zoning Administrator. An Assistant Planner appointed by the Planning Director to regularly perform the lead duties at the Plan Check Counter shall be provided temporary assignment pay at five (5%) percent above the employee's base pay, paid on an hourly basis for all hours worked in the assignment. This assignment pay will cease once the employee is no longer performing the duties of the lead person at the Plan Check Counter. L. Weekend Standby Information Technology staff assigned Standby for the purpose of responding to calls for service during the weekend shall be paid $3 per hour for each hour of assigned duty. Weekend will be defined as the 62 hours beginning on Friday at 5:00 p.m. and concluding Monday at 7:00 a.m. for a total of 62 hours per weekend. Time on standby is not considered hours worked. This provision is not intended to be a guarantee of hours and the City shall retain the right to determine when Standby duty shall be assigned. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 9 M. One -Time Payment Following City Council adoption of this MOU, or as soon thereafter as reasonably practicable, currently employed unit members will receive a one-time payment of $2,700.00. The parties agree that this one-time payment does not meet the criteria under California Code of Regulations 571(b) as reportable compensation for retirement purposes. SECTION 3 - Leaves A. Flex Leave Unit members shall accrue Flex leave at the following rates : Members shall accrue three (3) months (i.e., 39 hours) of Flex leave (as provided in the chart above) upon completion of three (3) months of continuous employment with the City of Newport Beach, provided however, this amount shall be reduced by any Flex leave time advanced during the first three (3) months of employment. At the completion of three months of employment, three (3) months of accrued Flex leave will be placed in the employee's account. 1. Limit on Accumulation Any flex leave earned in excess of this level will be paid on an hour for hour basis in cash (spill over pay) at the employee's hourly rate of pay. Members hired prior to July 1, 1996 shall be paid for earned flex leave in excess of the maximum permitted accrual at the member's hourly rate of pay provided that they have utilized at least eighty (80) hours of flex leave the previous calendar year. Employees accruing at the 16 years of continuous service level or above shall be required to use 120 hours of flex leave the previous calendar year to receive such excess pay. Employees who have not utilized the required amount of leave the prior calendar year shall not be eligible to accrue time above the maximum accrual limit. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-65 Maximum Years of Continuous Hrs Accrued per Annual Allowable Service Pay Period hours Balance (hours Less than 5 6.00 156.00 468.00 5 but less than 9 6.61 171.86 515.58 9 but less than 12 7.23 187.98 563.94 12 but less than 16 8.15 211.90 635.70 16 but less than 20 8.77 228.02 684.06 20 but less than 25 9.38 243.88 731.64 25 and over 10.00 260.00 780.00 Members shall accrue three (3) months (i.e., 39 hours) of Flex leave (as provided in the chart above) upon completion of three (3) months of continuous employment with the City of Newport Beach, provided however, this amount shall be reduced by any Flex leave time advanced during the first three (3) months of employment. At the completion of three months of employment, three (3) months of accrued Flex leave will be placed in the employee's account. 1. Limit on Accumulation Any flex leave earned in excess of this level will be paid on an hour for hour basis in cash (spill over pay) at the employee's hourly rate of pay. Members hired prior to July 1, 1996 shall be paid for earned flex leave in excess of the maximum permitted accrual at the member's hourly rate of pay provided that they have utilized at least eighty (80) hours of flex leave the previous calendar year. Employees accruing at the 16 years of continuous service level or above shall be required to use 120 hours of flex leave the previous calendar year to receive such excess pay. Employees who have not utilized the required amount of leave the prior calendar year shall not be eligible to accrue time above the maximum accrual limit. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-65 10 Employees first hired, or rehired by the City subsequent to July 1, 1996 shall not be eligible for flex leave spill over pay and shall not be entitled to accrue flex leave in excess of the flex leave accrual threshold. 2. Method of Use The Department Director shall approve all requests for flex leave taking into consideration the needs of the Department, and whenever possible the wishes of the employee. Holiday Leave The following days shall be observed as paid holidays (i.e., employees shall have the day off with pay) by all unit members. For each holiday, except the Floating Holiday (where the employee chooses the day off), if an employee is required to work on the holiday, they will receive their pay for the holiday and in addition, either pay or Flex Leave for the number of hours worked on the holiday. Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas Day New Year's Eve New Year's Day Washington's Birthday Memorial Day Martin Luther King Day Floating Holiday July 4 1 st Monday in September November 11 4th Thurs. in November Last 1/2 of working day December 25 Last 1/2 of working day January 1 3rd Monday in February Last Monday in May 3rd Monday in January July 1St - 1 day* *The floating holiday (eight (8) hours of holiday leave) is awarded on July 1. The hours are added to employees' Flex Leave account. Holidays are paid based on the employee's regular work day schedule. For example, if an employee is on a 9/80 schedule and the holiday is observed on a day that the employee is regularly scheduled to work 9 hours, the employee is entitled to receive 9 hours of holiday pay. However, if an employee is on a 9/80 schedule and the holiday is observed on a day that the employee is regularly scheduled to work 8 hours, the employee is entitled to receive 8 hours of holiday pay. Employees will receive 8 hours of holiday pay annually for the Floating Holiday. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 El •• 11 1. Holidays listed above (except the floating holiday) occurring on a Saturday shall be observed the preceding Friday. Holidays occurring on a Sunday shall be observed the following Monday. (Half day holidays shall be observed prior to the observed holiday). 2. Holiday pay will be paid only to employees who work their scheduled day before and scheduled day after a holiday or are on authorized paid leave (e.g. leave that has been reviewed and approved by the Department Director). 3. In addition, for all employees an additional 8 hours of floating holiday will be added to his/her vacation or flex leave accumulated total on the first pay period in July each year. C. Bereavement Leave Bereavement leave shall be defined as "the necessary absence from duty by an employee because of the death or terminal illness in his/her immediate family." Unit members shall be entitled to five (5) working days of bereavement leave per calendar year per incident (terminal illness followed by death is considered one incident). Bereavement leave shall be administered in accordance with the provisions of the Employee Policy Manual. Leave hours need not be used consecutively, but should occur in proximate time to the occurrence. For the purposes of this section, immediate family shall mean an employee's father, mother, stepfather, stepmother, brother, sister, spouse/domestic partner, child, stepchild, grandparents and the employee's spouse's father, mother, brother, sister, child and grandparents. The provisions of this Section shall not diminish or reduce any rights a member may have pursuant to applicable provisions of State or Federal law. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. D. Leave Sellback During calendar year 2019, employees shall have the option (on two occasions) of selling back on an hour for hour basis, accrued flex or vacation leave. In no event shall the flex or vacation leave balance be reduced below one hundred and sixty (160) hours. Hours sold back will be subject to the Retiree Health Savings Plan Part C contributions, per Section 4 (F), Retiree Medical. For the term of this MOU the Association has elected Part C contributions for Flex at 0%. Effective in calendar year 2020 and thereafter, employees shall have the option of converting accrued Flex Leave to cash on an hour for hour basis subject to the following: On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out accrued flex leave which will be earned in the following NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-67 12 calendar year. The employee can elect to receive the cash out in the pay period which includes June 30 and/or the pay period which includes December 15 for those Flex Leave benefits that have been earned during that portion of the year. In no event shall the flex leave balance be reduced below one hundred and sixty (160) hours. On or before December 31, 2019, each employee shall have the one-time option of cashing out all or a portion of Flex Leave benefits credited to his/her account as of that date. However, in no event shall the flex leave balance be reduced below one hundred and sixty (160) hours when the leave is cashed out. In addition to the above, starting in calendar year 2020, an employee who has an "unforeseen emergency" (defined as an unanticipated emergency that is caused by an event beyond the control of the employee and that would result in severe financial hardship to the employee if early withdrawal were not permitted) shall be entitled to make a request to the Director of Human Resources for a payoff of accrued flex leave. The amount of flex leave which may be paid off is limited to the amount necessary to meet the emergency. If there is an unforseen emergency, an employee can cash out Flex Leave earlier in the year than described above provided that the remaining balance is not reduced below one hundred and sixty (160) hours. SECTION 4. — Fringe Benefits A. Insurance 1. Benefits Information Committee City has established a Benefits Information Committee (BIC) composed of one representative from each employee association group and up to three City representatives. The Benefits Information Committee has been established to allow the City to present data regarding carrier and coverage options, the cost of those options, appropriate coverage levels and other health programs. The purpose of the BIC is to provide each employee association with information about health insurance/programs and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. Medical Insurance The City has implemented an IRS qualified Cafeteria Plan. In addition to the contribution amounts listed below, the City shall contribute the minimum CalPERS participating employer's contribution towards medical insurance for employees enrolled in a CalPERS medical plan, per Government Code Section 22892. Employees shall have the option of allocating Cafeteria Plan NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 13 contributions towards the City's existing medical, dental and vision insurance/programs. Unused Cafeteria Plan funds shall be payable to the employee as taxable cash back. Employees shall be allowed to change coverages in accordance with plan rules and during regular open enrollment period. The City's contribution towards the Cafeteria Plan is $1,725 (plus the minimum CaIPERS participating employer's contribution). NBPTEA members who do not enroll in any medical plan offered by the City must provide evidence of group medical insurance coverage, and execute an opt -out agreement releasing the City from any responsibility or liability to provide medical insurance coverage on an annual basis. Employees hired prior to the first day of the pay period following City Council approval of this 2019-2021 MOU who elect to opt out of medical coverage offered by the City because they have provided proof of minimum essential coverage ("MEC') through another source (other than coverage in the individual market, whether or not obtained through Covered California) will receive $1,000.00 per month in taxable cash. For these same employees, if they elect medical coverage and spend less than the City contribution provided above, those unused cafeteria plan funds shall be paid to the employee as taxable cash. Employees hired after the first day of the pay period following City Council approval of this 2019-2021 MOU who elect to opt out of medical coverage offered by the City because they have provided proof of minimum essential coverage ("MEC') through another source (other than coverage in the individual market, whether or not obtained through Covered California) shall receive $500.00 per month in taxable cash. For these same employees, if they elect medical coverage and spend less than the City contribution provided above, there shall be no cash back provided. 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 MOM 14 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee. 5. Healthcare Reform The parties recognize that certain State and Federal laws, programs and regulations, including the Affordable Care Act, may impact future medical plan offerings. Either party may request to reopen Section 4,A,(2) regarding medical insurance for the purpose of discussing alternative approaches and proposals to providing healthcare coverage. In addition, should State or Federal laws concerning taxation of healthcare benefits change, the parties agree to meet and discuss the impact of such change. B. Additional Insurance Programs 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. An Association member may request that medical, child care and other eligible expenses be paid or reimbursed by the Section 125 Plan out of the employee's account. The base salary of the employee will be reduced by the amount designated by the employee for reimbursable expenses. 2. Disabilitv Insurance The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all regular full time employees with the following provisions: Short -Term Disability Long -Term Disability Benefit Amount 66.67% of covered wages 66.67% of covered wages Maximum Benefit $1,846 weekly $15,000 monthly Waiting Period 30 calendar days 180 calendar days Employees shall pay one percent (1 %) of base salary as a post -tax deduction for this benefit. Employees shall not be required to exhaust accrued paid leaves prior to receiving benefits under the disability insurance program. Employees may not supplement the disability benefit with paid leave once the waiting period has been exhausted. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-70 15 3. Life Insurance The City shall provide life insurance for all regular full-time employees in $1,000 increments equal to one times the employee's annual salary up to a maximum of $50,000. At age 70 the City -paid life insurance is reduced by 50% of the pre -70 amount. This amount remains in effect until the employee terminates from City employment. C. Employee Assistance Program City shall provide an Employee Assistance Program (EAP) through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines. D. The Retirement Benefit 1. Retirement Formula The City contracts with California Public Employees Retirement System (PERS) to provide retirement benefits for its employees. Pursuant to prior agreements and state mandated reform, the City has implemented First, Second and Third Tier retirement benefits: Tier 1: For employees hired by the City on or before November 23, 2012, the retirement formula shall be the 2.5% @ 55 calculated on the basis of the single highest year. Tier 2: For employees first hired by the City between November 24 and December 31, 2012, or hired on or after January 1, 2013 and are current classic members of the retirement system, as defined in the Public Employees' Pension Reform Act "PEPRA'), the retirement formula shall be 2% @ 60 calculated on the average 36 highest month's salary. Tier 3: For employees first hired by the City on or after January 1, 2013, and who do not meet the Tier 2 criteria because they are new members as defined by the PEPRA, the retirement formula shall be 2% @ 62 calculated on the average 36 highest month's salary. 2. Employee Contributions The Association has agreed to share in the rising cost of pension obligations. Under the terms of this MOU, unit members will contribute additional amounts toward the PERS retirement benefit, NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-71 16 to the extent permissible by law. Should any provision be deemed invalid, the City and Association agree to meet for the purpose of renegotiating employee retirement contributions. Employees in each Tier contribute 13% of pensionable pay toward the retirement benefit. Employee retirement contributions that are in addition to the normal PERS Member Contribution (of 7% or 8%) shall be calculated on base pay, special pays, and other pays normally reported as "PERSable" compensation, and will be made on a pre-tax basis through payroll deduction, to the extent allowable by law. It is recognized that these payments will not be reported to PERS as contributions toward either the Member or Employer rate, as provided under GC Section 20516(f). Under a separate agreement, and ratified via a contract amendment with CalPERS in 2008, Tier 1 employees shall contribute 2.42% compensation earnable (as cost sharing) per Government Code section 20516(a). Tier 1 Tier 1 employees shall contribute a total employee contribution of 13% as follows: Eight percent (8%) member contribution, 2.42% of compensation earnable as cost sharing per Government Code section 20516(a) and 2.58% of compensation earnable as cost sharing per Government Code section 20516(0. Tier 2 employees shall contribute a total employee contribution of 13% as follows: seven percent (7%) (compensation earnable) member contribution and six percent (6%) of compensation earnable as cost sharing per Government Code section 20516(17. Tier 3 Employees: The minimum statutory employee contribution for employees in Tier 3 is subject to the provisions of the Public Employees Pension Reform Act of 2012 (PEPRA) and equals 50% of the "total normal cost". Tier 3 employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code Section 20516(f), for a total employee contribution of 13% of pensionable compensation. The City contracts with PERS for the 4t" Level 1959 Survivors Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military Service Credit, 2% Cost of Living Adjustment and the pre -retirement option settlement 2 death benefit (Section 21548). NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-72 17 E. LIUNA SUDDlemental Pension The Association agrees to pay any costs and/or contributions associated with its members' participation in the LIUNA Supplemental Pension Fund. The City's sole obligation is to forward the agreed upon amount to the fund. The City is not responsible for, nor does it make any representation regarding the payment of benefits to unit members. The emp/oyees'contributions to the LIUNA Supplemental Pension Fund are deemed "picked -up" and treated as employer contributions. Employees cannot opt out of the "pick-up," or receive the contributed amounts directly instead of having them paid to the plan. Participation at the same level will continue to be mandatory for members of the Association. The Association agrees with the procedural change, and acknowledges that members who leave City employment prior to vesting in the LIUNA pension plan will still have no right to return of amounts contributed, or other recourse against the City concerning LIUNA. Effective the pay period following City Council approval of this MOU, unit members agree to pick up whatever the actual costs and contributions are required by LIUNA for participation in the LIUNA Supplemental Pension Fund for as long as its members participate in the LIUNA Supplemental Pension Fund. The parties are not precluded from discussing the LIUNA Supplemental Pension in future labor negotiations. The Association and LIUNA agree to defend, indemnify and hold harmless the City for its actions pursuant to this section. This includes, but is not limited to, any challenge by any member of the bargaining unit related to making contributions to the Plan or receiving benefits from the Plan. F. Retiree Medical Benefit 1. Background In 2005, the City and all Employee Associations agreed to replace the previous "defined benefit" retiree medical program with a new "defined contribution" program. The process of fully converting to the new program will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2006. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-73 18 b. Category 2 - Active employees hired prior to January 1, 2006, whose age plus years of service as of January 1, 2006 was less than 50 (46 for public safety employees). c. Category 3 - Active employees hired prior to January 1, 2006, whose age plus years of service was 50 or greater (46 for public safety employees) as of January 1, 2006. 2. Program Structure This is an Integral Part Trust (IPT) Retiree Health Savings (RHS) Plan (formerly the Medical Expense Reimbursement Program, i.e.MERP) a. For employees in Category 1, the program is structured as follows: Each employee will have an individual RHS account for bookkeeping purposes, called his or her "Employee Account." This account will accumulate contributions to be used for health care expense after separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. Contributions will be in three parts. Part A contributions (mandatory employee contributions): 1 % of Salary. Part B contributions (employer contributions): $2.50 per month for each year of service plus year of age (updated every January 1 st based on status as of December 31 st of the prior year). Part C contributions (leave settlement as determined by Association): The Association will determine the level of contribution for all employees it represents, subject to the following constraints. All employees within the Association must participate at the same level, except that Safety members and Non -safety members within an Association may have different levels. The participation level should be specified as a percentage of the leave balance on hand in each employee's leave bank at the time of separation from the City. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-74 19 For example, if the Association wishes to specify 50% of the leave balance as the participation level, then each member leaving the City, or cashing out leave at any other time, would have the cash equivalent of 50% of the amount that is cashed out added to the RHS, on a pre- tax basis. The remaining 50% would be paid in cash as taxable income. Individual employees would not have the option to deviate from this breakout. The Association has decided to participate in Part C contributions at the level of zero percent (0%) Flex Leave. This amount may be changed, on a go forward basis, as part of a future meet and confer process. However, the participation level must be the same for all employees within the Association. Additionally, the purpose and focus of these changes should be toward long-term, trend type adjustments. Due to IRS restrictions regarding "constructive receipt," the City will impose restrictions against frequent spikes or drops that appear to be tailored toward satisfying the desires of a group of imminent retirees. Spillover pay and Compensatory Time are not eligible for Part C contributions. Nothing in this section restricts taking leave for time off purposes. Part A contributions may be included in PERS compensation. Part B and Part C contributions will not be included in PERS compensation. Part A contributions begin upon enrollment in the program and are credited to each RHS Employee Account each pay period. Eligibility for Part B contributions is set at five years of vested City employment. At that time, the City will credit the first five years' worth of Part B contributions into the Employee Account (interest does not accrue during that period). Thereafter, contributions are made bi-weekly. Part C deposits, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon separation. If an employee leaves the City prior to five years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the RHS Employee Account. Such an employee will not be entitled to any Part B contributions. The exception to this is a full-time employee, participating in the program, who leaves the City due to industrial disability during the first five years of employment. In such cases, the employee will receive exactly five years' worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's RHS account at the time of separation. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-75 20 Distributions from RHS Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and his or her spouse and legal dependents — again only as permitted by IRS Publication 502. Qualification for dependency status will be determined by guidelines in IRC 152. If used for these purposes, distributions from the RHS accounts will not be taxable. Cash withdrawal for any other purpose is prohibited. Under recent IRS Revenue Ruling 2005-24, any balance remaining in the Employee Account after the death of the employee and his or her spouse and/or other authorized dependents (if any) must be forfeited. That particular RHS Employee Account will be closed, and any remaining funds will become general assets of the plan. The parties agree that the City's Part B contributions during active employment constitute the minimum CalPERS participating employer's contribution (i.e., the Ca1PERS statutory minimum amount) towards medical insurance after retirement. The parties also agree that, for retirees selecting a CalPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's RHS account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one- time City contribution to their individual RHS accounts that equates to $100 per month for every month they contributed to the previous "defined benefit" plan, to a maximum of 15 years (180 months). This contribution will be made only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. Employees in Category 2 who had less than five years' service with the City prior to implementation of the new program will only receive Part B contributions back to January 1, 2006 when they reach five years total service. c. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-76 21 For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute $400 per month into each of their RHS accounts after they retire from the City, to continue as long as the employee or spouse is still living. Each employee will contribute a flat $100 per month to the plan for the duration of their employment to partially offset part of this expense to the City. The maximum benefit provided by the City after retirement is $4,800 per year, accruing at the rate of $400 per month. There is no cash out option for these funds, and they may not be spent in advance of receipt. Employees in this category will also receive an additional one-time City contribution of $75 per month for every month they contributed to the previous plan prior to January 1, 2006, up to a maximum of 15 years (180 months). This contribution will be made to the RHS account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. 3. Administration Vendors have been selected by the City to administer the program. The contract expense for program -wide administration by the vendor will be paid by the City. However, specific vendor charges for individual account transactions that vary according to the investment actions taken by each employee, such as fees or commissions for trades, will be paid by each employee. The City's Deferred Compensation Committee, or its successor committee, will have the authority to determine investment options that will be available through the plan. G. Tuition Reimbursement NBPTEA members attending accredited community colleges, colleges, trade schools or universities, or recognized professional organizations or agencies may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, books, fees or other student expenses for approved job—related coursework, seminars or professional development programs. The maximum annual benefit is$2,000 per fiscal year. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-77 0A tuition reimbursement require the approval of the Human Resources Director or designee. SECTION 5. - Miscellaneous[Working Conditions A. Reductions in Force/Layoffs The provisions of this section shall apply when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Series and this Section should be interpreted accordingly. DEFINITIONS "Layoffs" or "Laid Off" shall mean the non -disciplinary termination or employment. 2. "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted regular status in the current Classification or any Classification within the Series, subject to the following: (a) Credit shall be given only for continuous service subsequent to the most recent appointment to regular status in the Classification or Series; and (b) Seniority shall include time spent on industrial leave, military leave, and leave of absence without pay, but shall not include time spent on any other authorized or unauthorized leave of absence. 3. "Classification" shall mean one or more full time positions identical or similar in duties not including part-time, seasonal or temporary positions. Classification within a Series shall be ranked according to pay (lowest ranking, lowest pay). 4. "Series" shall mean two or more classifications within a Department which require the performance of similar duties with the higher ranking classification (s) characterized by the need for less supervision by superiors, more difficult assignments, more supervisory responsibilities for subordinates. The City Manager shall determine those NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-78 23 classifications following a meet and consult process which constitute a Series. 5. "Bumping Rights", "Bumping" or "Bump" shall mean (1) the right of an employee, based upon seniority within a series to bump into a lower ranking classification within the same series, (2) to be followed by, an employee being permitted to bump into a classification within a different series. The latter bumping shall be based upon unit wide seniority and shall be limited to a classification in which the employee previously held regular status. No employee shall have the right to bump into a classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience. PROCEDURE In the event the City Manager determines to reduce the number of employees within a classification, the following procedures are applicable: 1. Probationary employees within any classification shall, in that order, be laid off before regu/aremployees. 2. Employees within a classification shall be laid off in inverse order of seniority. 3. An employee subject to layoff in one classification shall have the right to bump a less senior employee in a lower ranking classification within a series. An employee who has bumping rights shall notify the Department Director within three (3) working days after notice of layoff of his/her intention to exercise bumping rights. 4. In the event two or more employees in the same classification are subject to layoff and have the same seniority, the employees shall be laid off following the Department Director's consideration of established performance evaluations. NOTICE Employees subject to lay-off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days' pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, and holiday leave (if any). NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-79 24 REEMPLOYMENT Employees who are laid off shall be placed on a Department re-employment list in reverse order of layoff. The re-employment list shall expire in 18 months. In the event a vacant position occurs in the classification which the employee occupied at the time of layoff, or a lower ranking classification within a series, the employee at the top of the Department re-employment list shall have the right within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, first class postage prepaid, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re-employment list or the right to remove his or her name from the re-employment list by sending written confirmation to the Human Resources Director. SEVERANCE If an employee is laid off from their job with the City, for economic reasons, the City will grant severance pay in an amount equal to one week of pay for every full year of continuous employment service to the City of Newport Beach, to a maximum of ten (10) weeks' severance pay. B. Recruitment and Selection Position vacancy announcements for available City positions shall be distributed in a manner that reasonably assures unit members access to the announcements. In order to select the most qualified individual for vacant positions the City will continue its practice of "banding" candidates into one of the following ratings: Outstanding, Highly Recommended, Recommended, and Not Recommended, during the testing process. Department Directors review qualified candidates in band order, beginning with the top band and are permitted to hire any eligible candidate from the list (minimum rating of Recommended). Where no less than 2 unit members achieve top three ranking on a certified eligible list, selection to the position shall be made with preference given to the unit members so qualified. C. 9/80 Scheduling Plan Employees in the unit work a 9/80 or 5/40 work schedule. Employees assigned to the 9/80 work schedule will have alternating Fridays off with the City determining which employees will work on each alternating Friday to ensure effective coverage of the work. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 25 The City agrees to maintain flex -scheduling where it is currently operating successfully in this unit. D. Labor Management Committee The City will work with NBPTEA leadership, through its managers, to establish labor-management committees departmentally whenever it is mutually determined it is appropriate to do so. E. Grievance Procedure Any employee or group of employees may file a grievance regarding the interpretation or application of the "Employer -Employee Relations Resolution" (RESOLUTION 2001-50), this MOU, or of rules and regulations, adversely affecting an employee's wages, hours, or conditions of employment. Except as otherwise provided by law, the Grievance Procedure is the sole and exclusive method by which an employee or the Association may challenge a provision of this MOU. A grievance shall be filed according to the following procedure: Step 1: A grievance may be filed by any employee on his/her own behalf, or jointly by a group of employees, or by the Association. A grievance shall be brought to the attention of the immediate supervisor for discussion within ten (10) days after an employee or Association Board member knew, or in the exercise of reasonable diligence should have known, the act or events upon which the grievance is based. If the Employee or the Association (if filed by the Association is not satisfied with the decision reached through the informal discussion or if extenuating circumstances exist, the Employee or Association shall have the right to file a formal grievance in accordance with Step 2 of this section. Grievances not presented within the time period shall be considered resolved. The supervisor shall meet with the grievant to settle grievance and give a written answer to the grievant within seven (7) calendar days from receipt of the grievance by the supervisor. When the immediate supervisor is also the department head the grievance shall be presented in Step 2. Step 2: If the employee or the Association (if filed by the Association) is not in agreement with the decision rendered in Step 1, the grievant shall have the right to present a formal grievance to the Department Director within ten (10) Days after the discussion in Step 1. The right to file a grievance petition shall be waived in the event the Employee orAssociation fails to file a formal grievance within ten (10) Days after the occurrence of the incident that forms the basis of the grievance. All formal grievances shall be submitted on the form prescribed by the Human Resources Director and no formal NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-81 26 grievance shall be accepted until the form is complete. The formal grievance shall contain a clear, concise statement of the grievance, the facts upon which the grievance is based, the rule, regulation or policy the interpretation of which is involved in the grievance, and the specific remedy or remedies sought by the grievant. The Department Director should render a written decision within ten (10) Days after receipt of the formal grievance. Step 3: If the formal grievance has not been satisfactorily adjusted in Step 2, it may be appealed to the City Manager within ten (10) Days after the Employee receives the decision. The City Manager may accept or reject the decision of the Department Director and shall render a written decision within ten (10) Days after conducting a grievance hearing. The decision of the City Manager shall be final and conclusive. If mutually agreeable, a meeting may be conducted involving all affected parties at any step in the grievance procedure prior to a decision. The City Manager may delegate uninvolved Department Directors to act on behalf of the City Manager to provide findings and recommendations. The findings and recommendations of the uninvolved Department Directors are advisory only and the City Manager's decision shall be final. Time Limits: Grievances shall be processed from one step to the next within the time limit indicated for each step. Time limits shall be strictly enforced. Any time limits can be waived or extended only by mutual agreement confirmed in writing. Any grievance not carried to the next step by the Employee or Association within the prescribed time limit shall be deemed resolved upon the basis of the previous decision. F. Probation 1. Probationary Period Newly hired employees shall serve a twelve (12) month probationary period. The probationary period for promoted employees shall be six (6) months. Newly hired employees shall become eligible for their first step increase after twelve (12) months. All other City rules regarding step increases shall remain unchanged. 2. Failure of Probation (a) New Probation An employee on new probation may be released at the sole discretion of the City at any time without right of appeal or hearing, except as provided in (c), below. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-82 (b) 0A Promotional Probation An employee on promotional probation may be failed at any time without right of appeal or hearing, except as provided in (c), below, and except that failing an employee on promotional probation must not be arbitrary, capricious or unreasonable. An employee who fails promotional probation shall receive a performance evaluation stating the reason for failure of promotional probation. When an employee fails his or her promotional probation, the employee shall have the right to return to his or her former class provided the employee was not in the previous class for the purpose of training for a promotion to a higher class. When an employee is returned to his or her former class, the employee shall serve the remainder of any uncompleted probationary period in the former class. If the employee's former class has been deleted or abolished, the employee shall have the right to return to a class in his or her former occupational series closest to, but no higher than, the salary range of the class which the employee occupied immediately prior to promotion and shall serve the remainder of any probationary period not completed in the former class. G. Salary on Reclassification An employee who is reclassified will be provided with a salary increase to the nearest step closest to five (5%) percent (not to exceed the maximum of the new salary range). H. Direct Deposit All employees shall participate in the payroll direct deposit system. I. Uniforms For assigned Community Development and Public Works Department staff whose regular daily duties involve field work outside of the office, uniforms shall be worn at all times during regular business hours. Field staff shall be provided with City designated collared shirts (polo or button down as determined by Department) annually and one City designated winter jacket; replacement on an as -needed basis. In addition, inspections staff (Building and Public Works) will be provided one pair of work boots annually. If the provided winter jacket or work boots are lost, the employee shall replace them with one meeting Department specifications. Work boots shall provide NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-83 28 toe protection and meet Department safety standards for construction sites. The Department Head or designee may approve exceptions to wearing uniforms. J. Separability Should any part of this MOU or any provision herein contained be rendered or declared invalid, by reason of any existing or subsequently enacted Legislation, or by decree of a Court of competent jurisdiction, such invalidation of such part or portion of this MOU shall not invalidate the remaining portion hereto, and same shall remain in full force and effect. Signatures are on the next page. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 ME 29 Executed this day of , 2019. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION: ATTEST: Leilani Brown, City Clerk Ryan Stadlman, President CITY OF NEWPORT BEACH: m Diane B. Dixon, Mayor CITY OF NEWPORT BEACH APPROVED AS TO FORM: By: Peter Brown, Special Counsel NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-21 4-85 Exhibit A.1 NEWPORT BEACH PROFESSIONAL & TECHNICAL EMPLOYEES ASSOCIATION MOU Term: January 1, 2019 - December 31, 2021 2.0% Cost of Living Adjustment March 16, 2019 HOURLY PAY RATE 1 MONTHLY PAY RATE Z REPRESENTED POSITIONS MIN MAX MIN MAX Accountant $32.50 $45.66 $5,634 $7,915 Accountant, Sr. $37.33 $52.54 $6,471 $9,106 Assistant Planner $31.29 $44.06 $5,423 $7,638 Associate Planner $34.49 $48.52 $5,978 $8,410 Building Inspector 1 $32.06 $45.11 $5,557 $7,819 Building Inspector 11 $34.44 $48.49 $5,970 $8,405 Building Inspector, Principal $40.83 $57.45 $7,077 $9,957 Building Inspector, Sr. $37.04 $52.13 $6,420 $9,036 Civil Engineer $45.11 $63.51 $7,819 $11,009 Civil Engineer, Associate $40.94 $57.65 $7,097 $9,992 Civil Engineer, Associate + 5% $43.02 $60.49 $7,456 $10,485 Civil Engineer, Jr. $37.04 $52.15 $6,420 $9,040 Civil Engineer, Jr. + 5% $38.87 $54.70 $6,737 $9,481 Civil Engineer, Sr. $49.70 $69.91 $8,615 $12,118 Code Enforcement Officer 1 $27.20 $38.27 $4,714 $6,634 Code Enforcement Officer 11 $31.29 $44.06 $5,423 $7,638 Code Enforcement Officer, Sr. $35.22 $49.55 $6,104 $8,588 Code Enforcement Officer, Trainee $22.67 $31.90 $3,930 $5,529 Code Enforcement Supervisor $40.83 $57.45 $7,077 $9,957 Construction Inspection Supervisor $40.83 $57.45 $7,077 $9,957 EMP 3 Plans Examiner $43.02 $60.49 $7,456 $10,485 Engineering Technician $28.36 $39.97 $4,917 $6,928 Engineering Technician, Sr. $31.29 $44.06 $5,423 $7,638 Harbor Supervisor $41.48 $58.32 $7,190 $10,108 Harbor Technician 1 $24.56 $34.55 $4,257 $5,989 IT Analyst $36.74 $51.68 $6,368 $8,957 IT Analyst, Sr. $40.80 $57.38 $7,072 $9,946 IT Specialist III $34.08 $47.95 $5,907 $8,311 IT Technician $24.36 $34.27 $4,222 $5,940 IT Technician, Sr. $29.24 $41.13 $5,068 $7,129 Management Assistant $32.10 $45.19 $5,565 $7,833 Permit Counter Supervisor $34.41 $48.43 $5,964 $8,395 Permit Technician 1 $27.05 $38.01 $4,689 $6,588 Permit Technician II $31.29 $44.06 $5,423 $7,638 Planning Technician $28.45 $40.05 $4,932 $6,942 Public Works Inspector 1 $32.06 $45.11 $5,557 $7,819 Public Works Inspector II $34.44 $48.49 $5,970 $8,405 Public Works Inspector, Sr. $37.04 $52.13 $6,420 $9,036 Real Property Administrator $40.83 $57.45 $7,077 $9,957 Revenue Auditor $34.88 $49.10 $6,047 $8,510 Senior Planner $41.48 $58.32 $7,190 $10,108 Traffic Engineering Technician $32.10 $45.19 $5,565 $7,833 Traffic Engineering Technician, Sr. $33.70 $47.45 $5,842 $8,225 Water Conservation Coordinator $35.93 $50.58 $6,228 $8,768 1 Hourly pay rates are rounded to the nearest hundredth. 2 Monthly pay rates are rounded to nearest whole dollar. 3 EMP = Electrical Mechanical Plumbing 30 :. Exhibit A.2 NEWPORT BEACH PROFESSIONAL & TECHNICAL EMPLOYEES ASSOCIATION MOU Term: January 1, 2019 - December 31, 2021 2.0% Cost of Living Adjustment January 1, 2020 HOURLY PAY RATE 1 MONTHLY PAY RATE Z REPRESENTED POSITIONS MIN MAX MIN MAX Accountant $33.15 $46.58 $5,746 $8,073 Accountant, Sr. $38.08 $53.59 $6,601 $9,289 Assistant Planner $31.91 $44.95 $5,532 $7,791 Associate Planner $35.18 $49.49 $6,097 $8,579 Building Inspector 1 $32.70 $46.01 $5,668 $7,976 Building Inspector 11 $35.13 $49.46 $6,090 $8,573 Building Inspector, Principal $41.65 $58.60 $7,219 $10,157 Building Inspector, Sr. $37.78 $53.17 $6,548 $9,216 Civil Engineer $46.01 $64.78 $7,976 $11,229 Civil Engineer, Associate $41.76 $58.80 $7,239 $10,192 Civil Engineer, Associate + 5% $43.88 $61.70 $7,605 $10,695 Civil Engineer, Jr. $37.78 $53.19 $6,548 $9,220 Civil Engineer, Jr. + 5% $39.65 $55.79 $6,872 $9,671 Civil Engineer, Sr. $50.70 $71.31 $8,787 $12,361 Code Enforcement Officer 1 $27.74 $39.04 $4,808 $6,766 Code Enforcement Officer 11 $31.91 $44.95 $5,532 $7,791 Code Enforcement Officer, Sr. $35.92 $50.54 $6,226 $8,760 Code Enforcement Officer, Trainee $23.13 $32.53 $4,008 $5,639 Code Enforcement Supervisor $41.65 $58.60 $7,219 $10,157 Construction Inspection Supervisor $41.65 $58.60 $7,219 $10,157 EMP 3 Plans Examiner $43.88 $61.70 $7,605 $10,695 Engineering Technician $28.93 $40.77 $5,015 $7,067 Engineering Technician, Sr. $31.91 $44.95 $5,532 $7,791 Harbor Supervisor $42.31 $59.48 $7,334 $10,311 Harbor Technician 1 $25.05 $35.25 $4,342 $6,109 IT Analyst $37.47 $52.71 $6,495 $9,136 IT Analyst, Sr. $41.61 $58.53 $7,213 $10,145 IT Specialist III $34.76 $48.91 $6,025 $8,477 IT Technician $24.85 $34.95 $4,307 $6,059 IT Technician, Sr. $29.82 $41.95 $5,169 $7,272 Management Assistant $32.75 $46.09 $5,676 $7,989 Permit Counter Supervisor $35.10 $49.40 $6,084 $8,563 Permit Technician 1 $27.59 $38.77 $4,783 $6,720 Permit Technician II $31.91 $44.95 $5,532 $7,791 Planning Technician $29.02 $40.85 $5,030 $7,081 Public Works Inspector 1 $32.70 $46.01 $5,668 $7,976 Public Works Inspector II $35.13 $49.46 $6,090 $8,573 Public Works Inspector, Sr. $37.78 $53.17 $6,548 $9,216 Real Property Administrator $41.65 $58.60 $7,219 $10,157 Revenue Auditor $35.58 $50.08 $6,168 $8,680 Senior Planner $42.31 $59.48 $7,334 $10,311 Traffic Engineering Technician $32.75 $46.09 $5,676 $7,989 Traffic Engineering Technician, Sr. $34.38 $48.40 $5,959 $8,389 Water Conservation Coordinator $36.65 $51.60 $6,353 $8,943 1 Hourly pay rates are rounded to the nearest hundredth. 2 Monthly pay rates are rounded to nearest whole dollar. 3 EMP = Electrical Mechanical Plumbing 31 4-87 Exhibit A.3 NEWPORT BEACH PROFESSIONAL & TECHNICAL EMPLOYEES ASSOCIATION MOU Term: January 1, 2019 - December 31, 2021 2.0% Cost of Living Adjustment January 1, 2021 HOURLY PAY RATE 1 MONTHLY PAY RATE Z REPRESENTED POSITIONS MIN MAX MIN MAX Accountant $33.82 $47.51 $5,861 $8,235 Accountant, Sr. $38.84 $54.66 $6,733 $9,474 Assistant Planner $32.55 $45.84 $5,642 $7,946 Associate Planner $35.88 $50.48 $6,219 $8,750 Building Inspector 1 $33.36 $46.93 $5,782 $8,135 Building Inspector 11 $35.84 $50.45 $6,211 $8,744 Building Inspector, Principal $42.48 $59.77 $7,363 $10,360 Building Inspector, Sr. $38.53 $54.23 $6,679 $9,401 Civil Engineer $46.93 $66.08 $8,135 $11,454 Civil Engineer, Associate $42.60 $59.97 $7,383 $10,396 Civil Engineer, Associate + 5% $44.75 $62.94 $7,757 $10,909 Civil Engineer, Jr. $38.53 $54.26 $6,679 $9,405 Civil Engineer, Jr. + 5% $40.44 $56.91 $7,009 $9,864 Civil Engineer, Sr. $51.71 $72.74 $8,963 $12,608 Code Enforcement Officer 1 $28.29 $39.82 $4,904 $6,902 Code Enforcement Officer 11 $32.55 $45.84 $5,642 $7,946 Code Enforcement Officer, Sr. $36.64 $51.55 $6,351 $8,935 Code Enforcement Officer, Trainee $23.59 $33.18 $4,089 $5,752 Code Enforcement Supervisor $42.48 $59.77 $7,363 $10,360 Construction Inspection Supervisor $42.48 $59.77 $7,363 $10,360 EMP 3 Plans Examiner $44.75 $62.94 $7,757 $10,909 Engineering Technician $29.51 $41.59 $5,115 $7,208 Engineering Technician, Sr. $32.55 $45.84 $5,642 $7,946 Harbor Supervisor $43.16 $60.67 $7,481 $10,517 Harbor Technician 1 $25.55 $35.95 $4,429 $6,231 IT Analyst $38.22 $53.76 $6,625 $9,319 IT Analyst, Sr. $42.45 $59.70 $7,357 $10,348 IT Specialist III $35.46 $49.88 $6,146 $8,647 IT Technician $25.34 $35.65 $4,393 $6,180 IT Technician, Sr. $30.42 $42.79 $5,272 $7,417 Management Assistant $33.40 $47.02 $5,790 $8,149 Permit Counter Supervisor $35.80 $50.39 $6,205 $8,734 Permit Technician 1 $28.14 $39.54 $4,878 $6,854 Permit Technician II $32.55 $45.84 $5,642 $7,946 Planning Technician $29.60 $41.67 $5,131 $7,222 Public Works Inspector 1 $33.36 $46.93 $5,782 $8,135 Public Works Inspector II $35.84 $50.45 $6,211 $8,744 Public Works Inspector, Sr. $38.53 $54.23 $6,679 $9,401 Real Property Administrator $42.48 $59.77 $7,363 $10,360 Revenue Auditor $36.29 $51.08 $6,291 $8,854 Senior Planner $43.16 $60.67 $7,481 $10,517 Traffic Engineering Technician $33.40 $47.02 $5,790 $8,149 Traffic Engineering Technician, Sr. $35.07 $49.37 $6,078 $8,557 Water Conservation Coordinator $37.38 $52.63 $6,480 $9,122 1 Hourly pay rates are rounded to the nearest hundredth. 2 Monthly pay rates are rounded to nearest whole dollar. 3 EMP = Electrical Mechanical Plumbing 32 Eff-11-1 33 Exhibit BA Approved Certifications - Professional and Technical Employees Association CERTIFICATE ELIGIBLE POSITIONS MONTHLY AMOUNT All Represented Professional and Technical Positions ICC Permit Technician * $70 ICC or CA Residential Building Inspector $75 ICC or CA Residential Electrical Inspector $75 ICC or CA Residential Plumbing Inspector $75 ICC or CA Residential Mechanical Inspector $75 ICC or CA Commercial Building Inspector $75 ICC or CA Commercial Electrical Inspector $75 ICC or CA Commercial Plumbing Inspector All represented Prof Tech Positions from the Building $75 ICC or CA Commercial Mechanical Inspector Division, Code Enforcement, and Public Works $75 California Access Specialist (CASP) Department, not specifically covered in MOU. $100 ICC California Building Plans Examiner $85 ICC Building Plans Examiner $85 ICC Electrical Plans Examiner * $85 ICC Mechanical Plans Examiner * $85 ICC Plumbing Plans Examiner * $85 Residential Fire Sprinkler Inspector/Plans $75 Examiner City Manager's Office -- Information Technology (IT) IT Analyst Geographic Info. System Professional (GISP) $75 IT Technician Cisco Cert. Entry Networking Tech. (CCENT) IT Specialist I/II/III $85 Cisco Certified Network Associate (CCNA) IT Specialist 1/11/III $85 MS Certified Technology Specialist (MCTS) IT Specialist 1/II/III $75 MS Certified Systems Administrators (MCSA) IT Specialist 1/11/III $85 MS Certified Systems Engineers (MCSE) IT Specialist 1/II/III $75 MS Certified Professional (MCP)** IT Specialist 1/11/111 $75 CompTIA A+ IT Specialist 1/II/III $75 CompTIA Network+ IT Specialist 1/11/111 $75 Virtual Infrastructure Professional (VIP) or IT Specialist 1/II/III $75 VMWare Certified Professional VCP Land Surveyor in Training (LSIT)** or IT Analyst $75 Fundamental of Surveying (FS)** ;. 34 I 4N PH PTV :11K Approved Certifications - Professional and Technical Employees Association CERTIFICATE ELIGIBLE POSITIONS MONTHLY AMOUNT Public Works & Building Division Building Inspector 1/11 Building Inspector, Sr. $750 1x Payment for CalGreen Plans Examiner Building Inspector, Principal attainment and upon CalGreenlnspector Civil Engineer, Plan Check Series (Asst, Assoc & Sr) renewal EMP Plans Examiner $1,000 1x Payment PW Inspector 1/II Certified Public Infrastructure Inspector for attainment and PW Inspector, Sr. upon renewal Building Inspector Building Inspector, Principal Building Inspector, Senior Prestressed Concrete Special Inspector** $75 Construction Inspector Supervisor PW Inspector, 1/II PW Inspector, Senior Building Inspector Building Inspector, Principal Building Inspector, Senior Reinforced Concrete Special Inspector** $75 Construction Inspector Supervisor PW Inspector, 1/II PW Inspector, Senior Building Inspector Building Inspector, Principal Building Inspector, Senior Structural Masonry Special Inspector** $75 Construction Inspector Supervisor PW Inspector, 1/II PW Inspector, Senior Civil Engineer, Associate Traffic Engineer Civil Engineer, Junior $85 Civil Engineer, Senior (rev 2/29/08) ..8 35 MPHPTIM Approved Certifications - Professional and Technical Employees Association CERTIFICATE ELIGIBLE POSITIONS MONTHLY AMOUNT Code Enforcement and Water Conservation Code Enforcement Officer Certified Code Enforcement Officer (CACEO) Code Enforcement Officer, Sr. $65 Water Conservation Coordinator Planning Division Planner, Assistant Exam fee payment Planner, Associate (1x) up to $495; AICP Exam Fee Planner, Senior refundable if APA application is Planning Technician refected Certificates Sunsetted MOU TERM 2019-2021 Certified Arborist Certified Commercial Pesticide Applicator Certificate in Investigative Interview and Interrog Techniques (BATT) American Institute of Certified Planners (AICP) * Additional certificates to sunset (as above) per the 2015-18 MOU **Only those unit members receiving the certificate pay at the time of the 2012 - 2015 MOU are eligible for the benefit. Certificates will "sunset" upon certificate lapse or employee separation. 4-91 ATTACHMENT G Newport Beach Professional & Technical Employees Association Proposal from City dated 1/28/19: Three-year contract with 2% COLA each Jan; Employee pays for supplemental retirement program; cafeteria opt out $500/month for new hires and no cash in lieu for new hires; $2,700 non-PERSable bonus paid at start of contract sg,2/14/19 79 Authorized Full-time Miscellaneous Employees 4-92 2.0% 2.0% 2.0% Cost of FY 19 Budget COLA Yr 1 COLA Yr 2 COLA Yr 3 Increases Base Pay' 8,004,227 123,142 323,371 489,923 936,435 Supplemental Pay Certification Pay 60,703 - - - - Bilingual Pay 5,400 Subtotal 66,103 - - - Pension Contribution Z Pension Normal Cost (16.212%) 1,286,048 19,375 50,880 77,085 147,340 Pension Unfunded Actuarial Liability (21.480%) 1,733,507 26,451 69,460 105,235 201,146 Subtotal 3,019,555 45,826 120,340 182,321 348,487 Other City Paid Benefits MediCare (mandatory payment of 1.45%) 151,646 4,218 4,828 7,314 16,360 Compensated Absences 283,531 4,310 11,318 17,147 32,775 Cafeteria Plan 1,739,088 - - - - New Hires - No Opt Out & Cash In Lieu @ $500/month 3 - (49,366) (82,368) (100,560) (232,294) Employee Assistance Program (EAP) 1,640 Smartphone Allowance (35 employees) 27,300 Life Insurance (policy based on annual base pay with cap of $50,000) 7,235 - - - - Tuition Reimbursement (based on Fiscal Year 2018 actual) ° 2,000 500 500 500 1,500 Retiree Health Savings (Post Employment Healthcare Contribution) 88,168 - - - - Supplemental Retirement Program 113,789 28,447 28,447 One-time non-PERSable lump sum payment of $2,700 per EE - 213,300 213,300 Subtotal 2,414,397 201,409 (65,722) (75,598) 60,088 Offset - Employee Pick Up of PERS Pension Costs (13.0%) (1,061,703) (16,008) (42,038) (63,690) (121,737) Subtotal (1,061,703) (16,008) (42,038) (63,690) (121,737) Overtime pays Overtime (based on 2017 actual hours = 2,669.5) 237,155 3,649 9,581 14,516 27,745 Standby (based on 2017 actual hours = 3,297) 9,891 Subtotal 247,046 3,649 9,581 14,516 27,745 Total 12,689,625 358,017 345,531 547,471 1,251,019 Salary Increase Only 1.54% 4.04% 6.12% Total Comp Increase Only 1 2.82% 1 2.72% 1 4.31% ' Original estimate is based on FY 2019 budget. Z This unit has 46 Tier 1 members; 8 Tier 2 member, and 25 Tier 3 members. 3 Over the last 3 years, there have been 6 new hires each year. Only 10 of the 18 new hires have opted out. Savings based on 5 new hires & 1 opt out in Year 1; 7 new hires & 1 opt out in Year 2; and 9 new hires & 1 opt out in Year 3. ° This unit has had 1 member use the current maximum tuition reimbursement. Usage in FY 17 was also limited to 1 member. Note: Year 1 start is tentatively 3/16/19 based on Council authorization at the 3/12/19 Council meeting. 4-92