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HomeMy WebLinkAbout10 - Tentative Agreements with NBCEA and NBPTAQ �EwPpRT CITY OF O � z NEWPORT BEACH <,FORN'P City Council Staff Report October 26, 2021 Agenda Item No. 10 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Grace K. Leung, City Manager - 949-644-3001, gleung@newportbeachca.gov PREPARED BY: Barbara J. Salvini, Human Resources Director, bsalvini@newportbeachca.gov PHONE: 949-644-3259 TITLE: Tentative Agreements with Newport Beach City Employees Association and Newport Beach Professional and Technical Employees Association ABSTRACT: The Memoranda of Understanding (MOU) between the City of Newport Beach (City) and the Newport Beach City Employees Association (CEA) and between the City of Newport Beach and the Newport Beach Professional and Technical Employees Association (ProfTech) expires December 31, 2021. CEA and ProfTech are represented by the Laborers' International Union of North America (LIUNA) and negotiate together for successor agreements. Representatives from the City, CEA and ProfTech began negotiating the terms and conditions of successor agreements in July 2021. After three meetings, Tentative Agreements (Agreements) were reached on September 9, 2021. The Agreements address the negotiated wages, benefits, and other terms and conditions of employment for employees represented by the CEA and ProfTech, as required under the Meyers-Milias-Brown Act, California Government Code §3500. To promote greater transparency in the negotiations process, including the costs associated with the labor contracts, the Agreements with CEA and ProfTech are being presented at this time for public review and comment in Attachments A and C. The Agreements, which span the time period from January 1, 2022 through December 31, 2025 will be presented again for City Council adoption (or rejection) at the November 16 regular meeting. 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; and b) Receive and consider the Tentative Agreements between the City of Newport Beach and the Newport Beach City Employees Association and the City of Newport Beach and the Newport Beach Professional and Technical Employees Association. 10-1 Tentative Agreements with Newport Beach City Employees Association and Newport Beach Professional and Technical Employees Association October 26, 2021 Page 2 DISCUSSION: The Newport Beach City Employees Association (CEA) and Professional and Technical Employees Association (ProfTech) are exclusively recognized bargaining units. The CEA represents 94 budgeted, miscellaneous positions in administrative support, finance, library services and recreational services occupations. The ProfTech represents 78 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). During negotiations, City staff and Association representatives discussed topics such as wage adjustments, disability benefits, deferred compensation, retirement plans, cafeteria allowance, additional pays, overtime, clarifying language, and other non -economic matters. Salient provisions of the Tentative Agreements between the City and CEA and ProfTech include: • Four-year term, from January 1, 2022 through December 31, 2025 • Wage adjustments o January 1, 2022 — 1.0% o January 1, 2023 — 1.5% o January 1, 2024 — 2.0% o January 1, 2025 — 2.0% • City contributions to unit members actively participating in the City's deferred compensation accounts as follows: o January 1, 2023 — One-time deposit of $500 o January 1, 2023 and ongoing: ■ Matching City contribution up to $30 per month ■ Additional matching City contributions based on years of service • City -paid short-term and long-term disability benefits • Reopener in July 2023 to discuss possible changes to the medical benefit program • Agreement to pilot a telecommuting program which will provide eligible employees with an annual telecommuting bank of 80 hours Draft versions of the Tentative Agreements between the City and Associations are included in Attachments A and C, with changes from the current agreements in redline. Costing information for CEA and ProfTech is included in Attachments B and D, respectively. The total cost of the CEA MOU is estimated to be $1,811,717 and the total cost of the ProfTech MOU is estimated to be $2,117,994. On October 5, 2021, the City was notified that in accordance with their ratification procedures, the majority of CEA and ProfTech members voted to approve the Agreements. Following City Council review of the Tentative Agreements and proposed MOUs with CEA and ProfTech, final versions of the successor MOUs will be presented at the November 16, 2021 regular meeting. Prior to the November 16, 2021 meeting, the costing information and proposed revisions to the MOUs will be posted for public review on the City's website. 10-2 Tentative Agreements with Newport Beach City Employees Association and Newport Beach Professional and Technical Employees Association October 26, 2021 Page 3 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 Tentative Agreements with CEA and ProfTech at the November 16, 2021 meeting, City staff will work to implement the provisions in accordance with the new contract effective date of January 1, 2022. FISCAL IMPACT: Detailed costing information for CEA and ProfTech is included in Attachments B and D, respectively. As the MOUs are effective on January 1, 2022, the year one impact shown in the detailed costing information is roughly two times the actual impact (e.g. only six months of the fiscal year). The cost to implement the terms of the agreements for FY 2021-22 is therefore approximately $159,897 rather than the $319,794 shown in Attachments B and D. Additionally, the disability insurance premiums can be funded from disability insurance reserve funds on hand for the balance of the current fiscal year, and certain pension and compensated absences costs are long term in nature and will not impact the current fiscal year's budget. Should the Council approve the MOUs, the budgetary impact is therefore reduced to $86,102 in FY 2021-22. Sufficient projected unassigned General Fund balance is available to fund the required appropriations. Subsequent to the Council's consideration of the Tentative Agreements, staff will return with a budget amendment to appropriate the required $86,102 when the MOUs are formally approved. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action 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. 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). ATTACHMENTS: Attachment A — Tentative Agreement and Proposed MOU (redlined) with CEA Attachment B — Estimated Cost of Contract with CEA Attachment C — Tentative Agreement and Proposed MOU (redlined) with ProfTech Attachment D — Estimate Cost of Contract with ProfTech 10-3 ATTACHMENT A 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 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. This shall- apply to all affected employees for the term of January 1, 2019 2022 through December 31, 2021 2025 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 Except as specifically provided otherwise, any ordinance, resolution or action of the City Council necessary to implement this MOU shall be considered effective as of January 1, 2-0192022. This MOU shall remain in full force and effect until December 31, 20212025, 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 10-4 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 Cityof er 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 Geworkplace. 4. Each January, the City will examine the number of Release Time hours the Association used the preceding year. If the Association used in eXG8SS ofmore than 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. 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 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-5 It 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 (j) 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 Aily of eaGh year, the City shall previde NBCEA a lost of all LIRit Mem 0 nGluding name, depar+m eRt and eb title -.The City shall provide NBCEA with access and information regarding new employees and existing unit members as required by law. 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 2019-20212022-2025 10-6 El 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 ^#imG#WWa r 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 2019-20212022-2025 10-7 G� Effective the pay period that includes January 1, 2022, fnilnuuing City GGURGOI approval E) his MOU, there shall be a -base sal-ar �-salaries will be increased by of two perGent (2.0%) one percent (1.0%) for all represented classifications. Effective the pay period that includes January 1, 20202023, base salaries will be increased by two perGent (2 0 )one and one-halfpercent (1.5%) for all represented classifications. Effective the pay period that includes January 1, 2-0212024, base salaries will be increased by two perGent (2 OV )two percent(2.0%) for all represented classifications. Effective the pay period that includes January 1, 2025, base salaries will be increased by two aercent (2.0%) for all rearesented classifications. B. Overtime 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 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU'^'O=0,9=0212022-2025 10-8 n work forty (40-)40hours 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. Standby Duty 1. 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 huh the employee's workstation; work s+ ; and d. To refrain from activities which might impair the employee's ability to perform their assigned duties. 2. Compensation Standby duty shall be compensated at the rate of one {hour of overtime compensation for each eight O�) hours of such duty. Standby duty on holidays shall be compensated at the rate of two {2-} hours of overtime compensation for each eight {4 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 actoLperiod of time the employee is actually working. s_4n a ,N,^�� D. Ca'�okCalIback Du 1. Defined Call-back duty requires the employee to respond to a request to return to his/her work statiGRtheir workstation after the normal work shift has been completed and the employee has left #is#ertheir normal werk stat+enworkstation. Those periods of overtime which had eeaare 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 92 -hours pay. If an employee works more than two {2 --hours, he/shesaid employee shall receive pay for actual hours worked. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-9 7 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 0-;4) for each hour of overtime worked. An employee may only awe earn 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 hours of CTO. Any hours earned in excess of 80 will be paid out to the employee the following pay period. Once a unit member reduces the balance below 80 hours, additional hours may be earned again up to the 80 hour cap. if,f an emplPyee-has -eighty (90) hours of aGGFue J GTO,heisho will t be able to aGGrue additiGRal GTO URtil he/She uses GTO to redUGe his/her balanGe b eighty (90) heirs. F. nl�Shift Differential Unit members who are regularly assigned a work schedule that ends beyond 6:00 p.m. 's regularly assigned work sashed ale ends ase earlier than 6:00 p.m. shall receive a nkjht shift differential pp�of $1.00 per actual hour worked; 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,,—shift differential. Th�ffer Rtial nay is nail Gobi for hei irs ar�+i�y worked The parties agree that to the extent permitted by law, the City shall report to the California Public Employees' Retirement System (CaIPERS) shift differential pay as Special Assignment Pay in this sention is menial nemnensatinn and shall he reporter! to GaIPER as su pursuant to Title 2 CCR, Section 571(a)(4) and/or Section 571.1 (b)(3) Shift Differential -Ray. G. Incentive Shift for Library Members For NBCEA members +n -assigned to 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 on a Sunday will report their actual hours worked on their time sheet but will be pa4dplus three hours of incentive pay at the regular hourly base rate. This artinle is net to he nnnstR ied as to import on other Gity rules H. Court Time Employees who are required to appear in Court court during their off-duty hours in connection with City business shall receive a minimum of two hours pay. If an employee is actually in�court for more than two hours, the member shall receive pay for actual hours worked. ovei:tn Fisatins /if additienal heyyrs q'salifyisV�i�Te\the number of hours they spend in nei in with a minimi rn of twe (2) heirs of si inh nemnensation e NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-10 I. Certificate Pay Effective January 1, 2013, the Scertificate Ppat program was modified to eliminate "inactive" certificates and "sunset" certain active certificates. Employees currently receiving pay for a "sunset" certificate are considered grandfathered under the program, but no further employees wiffshall be eligible.: eEffective 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 Pav remain in effect. The parties agree that to the extent permitted by law, the City shall report to the California Public Employees' Retirement System (CaIPERS) eligible certificates pats as `^ aual*f-v as GE)eGeal nE)MF)eR t'E)R shall be Feigerted t 1 a!PF= S as `UGhEducational Pay pursuant to Title 2 CCR. Section 571(a)(2)_and/or 571.1(b)(2). W. Acting Pay NBCEA employees will beare eligible to receive "acting pay" only after completing 80 consecutive hours in the higher classification. Once the 80 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. Acting pay is 407.5an additional 7.5% of the employee's base pay rate. The parties agree that to the extent permitted by law, and in accordance with Government Code §20480 Out -of -Class Appointment Limitations, the City shall report to the California Public Employees' Retirement System (CaIPERS) acting pay as Premium Pay pursuant to Title 2 CCR Section 571(a)(3) Temporary Upgrade Pay. For new members" as defined by the Public Employees' Pension Reform Act of 2013, acting pay will not be reported as pensionable compensation to Cal PERS. The employee must be performing 100% of the duties in the higher classification for temporarygrade pay to be reportable.iS SyeElal Gempensation and shall be reported to GaIPERS as suGh pursuant to Title 2 GGR, Se 571 (a)(3) Temporary Upgrade Days - =- - --- --------------�----'-= --------------- -=---------=---.-----.-----ee-...--------.--------------"----- = '-- - - ------------ 0— i NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-11 9 MERLmn: =V5 "1 -0 - ----------------- -'Mm 0— 9= J-. K. Bi-linaual P 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 -employees in positions that require additional languages as part of their normal duties shall be eligible to receive eReOne hURdred-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 City shall report to the California Public Employees' Retirement System (CalPERS) 129ilingual pay as Special Assignment Pte. 0 nn And c:hall be reported to GaIPERS as s pursuant to Title 2 CCR, Section 571(a)(4) Bilingual Dromic Omand/or 571.1(b)(3) Bilingual Premium. IJ911.1LT.-Li���T.Rf:rll�7a.f:E�R:�4:ft���ir�l■ T�TE4 :1 ..irsAf # 1111 SECTION 3. — Leaves A. Flex Leave Members accrue flex leave in lieu of vacation and sick leave. An employee accrues a designated number of flex leave hours while in paid status and based upon years of service. Years of service is determined by the number of continuous, full-time years a member is employed by the City. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-12 10 All unit members shall accrue Flex flex leave at the following hourly rates: Years of Continuous Service Hrs. Accrued Per Pay Period Annual Hours Max Allowable 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 in the manner and as provided ,R the—chiabove) upon completion of three (3) months of continuous employment with the City of Newport Beash, provided however, this amount shall be reduced by any flex leave time advanced during the first three (3) months of employment. 1. Limit on Accumulation ARY flex leave earRed i ------ of this level will be paid eR aR heur for heur basi's in Ga ,(sn�v r pay) at the nleyee's heurly rate of pay. Members hired prior to July 1, 1996 shall be paid for earned flex leave in excess of the maximum permitted aGGruaallowable balance � as spillover pay 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 spillover 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 anal lin*allowable balance. Employees first hired, or rehired by the City subsequent to July 1, 1996 shall are not be -eligible for flex leave spill-over pay and shall are not be -entitled to accrue flex leave in excess of the flex leave aGGrual threshelrtmaximum allowable balance. 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 OR an heurly basis any frantien ever an hour shall he Gharoed to the next full hog in 1/4 hour increments. B. Holiday Leave NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-13 11 The following days shall be observed as paid holidays (i.e., employees shall have the day off with pay) by all unit members. With the exception of the "floating holiday"Fo�R holinayeXGept the ClootffiRg Holiday (where the employee chooses the day off), 4-a+P ernpteyee msemployees who are required to work on the holidaytwill receive their pay for the holiday and in addition, either pay or -flex Leave for the number of hours worked on the holiday. New Year's Day January 1 Martin Luther King Day January — 3rd Monday Washington's Birthday February — 3rd Monday Memorial Day May — Last Monday Floating Holiday* July 1 Independence Day July 4 Labor Day September— 1St Monday Veterans Day November 11 Thanksgiving Day November — 4th Thursday Friday After Thanksgiving November — 4th Friday Christmas Eve December 24(last'/z of workday) Christmas Day December 25 New Year's Eve December 31 (last 1/2 of workday) ImapneRdero Day Labor fled 1 St Veteran's flay T--rhrQRksgiv ingz ay Christmas Eve i I. i n Ju" M yORCQept-. Novom�T 4th Thurs. Last . OniNovimbed Friday ThrdttksgivRg of werkiRg day Christmas Day New Year's Eve DeG Last 1 GTL ef werking day fled Las Monday auk Helirday juhy in May '-'�°'uy�v�-ar-crrr�ucrT 1st 1 day* Martin Luther King flaw 3rd MOR day in anuary CloatiRg rrvuna-ar�'�vunrrg * The floating holiday added to ompleyees' (eight Cloy Leave (8) hours of holiday leave) is awarded on july 1. The hours are onno,,Rt 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 -nine hours, the employee is entitled to receive 9 -nine 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 -eight hours, the employee is eRtitled eligible to receive 8 -eight hours of holiday pay. Cmpleyees will ronoi„o 8 hours of holiday pay aRRually fe.rir the ClootiRg Holiday. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-2^'1"2022-2025 10-14 12 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. paid leave that has been reviewed and approved by the Department Director). 3. in addition, for a" ernpleyees an additional 8 hours of fleating heliday will be added tG his/her Flex leave -aEG6:rnulac d total, nn the first pay � � rind in Il i each year. The floatinq holiday is awarded on July 1. Eight hours of holiday leave is added to the member's vacation or flex leave bank 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 herof an immediate family member." Unit members shall be entitled to feFty (40-)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, buthowever they should eGGUr-be used 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 -member'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 Statestateor Federal federal law. An empleyeeA member requesting bereavement leave shall notify hi�.heir supervisor as soon as possible of the need to take leave. D. Leave Sellback f1�g-calencrtdar year-2019,-eEmployees 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%. Eiteetive on Galen X2020 and thereafter, er„nleyees Employees shall have the option of converting accrued flex It=eave 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 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-15 13 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 ^no hi R dreg and sixty (160) hours. On or before fhnernhbor 31, 2019ooGh employee shall have the one Limo of that date. Ho...—, ne event shall the flex leave balanGe be redUGed below one hi Rdre d (160) heurs WheR the leave is Gashed e t In addition to the above, staFtiRg ORr-EaIeRaryear 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 effcashed out is limited to the amount necessary to meet the emergency. If there is an unforeseen emergency, an employee can cash out flex Leave earlier in the year than described above provided that the remaining balance is not reduced below ^no hi RGIFerd anal 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 employees 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. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-16 14 The City's contribution towards the Cafeteria Plan is One Thousand, Seven Hundred Twenty -Five dollars x$1,7251 {plus the minimum CaIPERS participating employer's contribution). 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 of this 2019_2021 nasULMarch 16, 2019 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 One Thousand Dollars -$1,0009) 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 on or after the first day of the pay peried fGIlGWiRg Gity GOURGil approval of this 2019-20-91. nnni 1March 16, 2019 who elect to opt out of medical coverage offered by the City because they have provided proof of minim„m 0000ntial GOverage ("MEC") -through another source (other than coverage in the individual market, whether or not obtained through Covered California) shall receive Five Hundred Dollars (-$50001 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. On or before July 1, 2023, at the request of either party, the parties shall meet and confer in good faith to discuss possible changes to the medical benefit program, contribution levels, or other elements of healthcare services, provided, however, that any changes to the MOU may only occur by mutual agreement of the parties. 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 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-17 15 The parties recognize that certain sState 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. ',n— add it+enAdditionally, should Statestateor lei' federal laws concerning taxation of healthcare benefits change, the parties agree to meet and discuss the impact of such change. B. Additional Insurance Proarams 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 wa es66.67% of covered wages Maximum Benefit $1,846 weekly $15,000 monthly Waiting Period 30 calendar days 180 calendar days 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. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-18 16 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. Retirement Benefit The City contracts with the California Public Employees' Retirement System (CaIPERS) to provide retirement benefits for its employees. Pursuant to prior aareements and state mandated reform. the Citv has imalemented three different tiers of retirement benefits, categorized as Tier I, Tier II and Tier III. 1. Retirement Formula . . MINIM IN IN I" N-1wanm. Tier 41: 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 211: For employees first hired by the City between November 24 and December 31, 2012, or hired on or after January 1, 20131 and who 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 -3111: For employees first hired by the City on or after January 1, 2013, and who do not meet the Tier 2 -II 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 CaIPERS 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 CaIPERS Member NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-19 17 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 CalPERS 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 4-1 employees shall contribute 2.42% compensation earnable (as cost sharing) per Government Code section 20516(a). Tier 4-1 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(f). Tier 2 -II 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 3-111 Employees - The minimum statutory employee contribution for employees in Tier 3 is subject to the provisions of the P�G€mployees PeRGiGR Referm AGt 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 CalPERS for the 4th 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 (Government Code Section 21548). E. LIUNA Supplemental Pension The AsSOGiation unit members 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 - NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-20 Ell 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 March 16, 2019, 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 This is an Integral Part Trust OPT) RHS Retiree Health Savings (RHS) plan (formerly the Medical Expense Reimbursement Program - "MERP"). Each member has an individual RHS account ("Account"), which accumulates based on the category they fall under (see Program Structure below). Funds from the Account may be used for eligible health care expenses after separation, retirement or a change in personnel status to a position that does not receive the RHS benefit. These changes in personnel status will activate the Account and allow funds to be withdrawn until the Account balance is depleted. Since the plan restricts all distributions to be spent for health insurance premiums and health care expenses, as defined by the Internal Revenue Code Publication 502, $ 213(d) and the Plan document the contributions, fund investment earnings and benefit payments (when withdrawn from the Account) are not taxable when posted. Additionally, certain contributions may only be deposited upon retirement from the City. The categories are provided below. 1. Background In 2005, the City and all Employee AsSGGia NBCEA 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 beis -ongoing for an extended period. During the transition, employees and (then) existing retirees have beenwere administratively classified into one of fou different categories. The benefit is structured differently for each of the categories. The categories are as follows: NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU'^'O=0,9=0212022-2025 10-21 19 a. Category 1 - Employees newly hoped-a#er IaRwary 1, 2006. -who become eligible for the benefit after January 1, 2006. This may include new hires, rehires and part-time employees appointing to full-time status. empl„„ious defined benefit as of December 31, 2005, eligible for the new defined contribution program as of January 1, 2006 and whose age plus nears of service as of January 1, 2006 was less than 50. c. Category 3 - A Otive employees prier to lona lord 1 2006. whose oro plus years of service "Pass. Fes. 0 ergreater (46 for pi ihIin soTey�y�G� daR Mayr, 2-986 Employees who were active and enrolled in the previous defined benefit as of December 31, 2005, eligible for the new defined contribution program as of January 1, 2006 and whose age plus years of service as of January 1, 2006 was 50 or greater. 2. Eligibility All CEA members are eliaible for the RHS benefit. However. if a member separates or changes positions to a bargaining unit which does not offer this benefit, the member is no longer eligible for any contributions to the plan and their Account will be activated for use and withdrawal of funds by the employee (or former employee). This means if a unit member subsequently reappoints to a position which offers the RHS benefit, they will be enrolled in "Category 1" and must revest in the program. Any remaining balance deposited during prior eligibility will remain in the Account. Employees who become ineligible (no longer covered by City employee association offering the RHS benefit) before vesting forfeit the City's Part B contribution. Said employee will only receive Part A and Part C contributions. The only exception is an active employee who separates before vesting due to an approved industrial disability. In such case, 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. 3. Account Contributions Program Str,,nt, ire Account contributions are categorized as Part A, Part B and Part C. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 20�1O�vr. 202 r'n'�12022-2025 10-22 20 .. IMM UP, Part A contributions are a mandatory, automatic 1 % employee contribution deducted each pay period and deposited into the Account through payroll. Deductions begin the pay period in which the employee becomes eligible and are reported to CalPERS as pensionable. Part B contributions require a five year vesting period which begins when the employee becomes eligibile for the RHS benefit. At the conclusion of the vesting period, the City will credit the first five years' worth of Part B contributions into the Account (interest does not accrue during that period and the contributions are calculated at $2.50 per month for each year of the employee's full-time service plus age) and begin to contribute $2.50 per month for each year of the employee's full-time service plus age (e.g. 30 years old and five years of service would be a factor of 35. $2.50 x 35 = $87.50 per month). This factor is updated annually in the pay period includina January 1. Part B contributions are not reported to CalPERS as pensionable. The parties agree that the City's Part B contributions during active employment constitute the minimum CalPERS participating employer's contribution (i.e., the CalPERS 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 employer contribution will be deducted from the employer's contribution to the retiree's account. Part C contributions are determined by Association election and deposited into the Account when flex leave hours are converted to taxable cash through leave cash -out or at the time of separation or status change. Spillover pay does not qualify for Part C contributions. Part C contributions are not reported to CalPERS as pensionable. The Association determines the level of contribution for all unit members, subject to the following constraints. All employees within the Association must participate at the same level. The participation level shall be specified as a percentage of the flex leave balance available in each employee's leave bank at the time of separation from the City, or status change, or as a percentage of the flex leave balance being cashed out. For example, if the Association wishes to elect 30% Part C contributions, then each member leaving the City, or cashing out eligible leave at any other time, would have the cash equivalent of 30% of the amount that is cashed out deposited to their RHS Account on a pre-tax basis. The remaining 70% would be paid in cash as taxable income. Individual employees do not have the option to deviate from this breakout. The Association may change the Part C contribution amount as part of a meet and confer process. The purpose and focus of these changes should be toward long-term, trend type adjustments. Due to IRS restrictions regarding "constructive receipt," the NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-23 21 City will impose restrictions against frequent spikes or drops that appear to be tailored toward satisfying the desires of a group of imminent retirees. The Association has decided to participate in Part C contributions at the level of zero percent (0%) flex leave. Nothing in this section restricts taking leave for time off purposes. 4. Benefit a. Category 1: Employees in this category make Part A and receive Part B contributions (subject to vesting) automatically each pay period through payroll deductions. Part C contributions are received through cash outs. No contributions are made to Category 1 participants after separation. b. Category 2: Employees in this category make Part A and receive Part B contributions (subject to vesting) automatically each pay period through payroll deductions. Part C contributions are received through cashouts. No contributions are made to Category 2 participants after separation. If a Category 2 participant retires from the City of Newpert BeaGh with a minimum of 5 consecutive years of full-time service, the City will contribute to the participant's Account a one-time contribution equal to $100 per month for every month the participant contributed to the previous "defined benefit" plan up to a maximum of 15 years (180 months). This contribution is deposited into the Account at the time of retirement, and only if the employee retires from the City and becomes a CalPERS annuitant of the City of Newport Beach. No interest will be earned in the interim. Category 2 participants with less than five years of continuous contributions into the prior defined benefit plan as of January 1, 2006: only the years of service after January 1, 2006 count towards Part B contributions upon vesting. Contributions in years before 2006 will be paid out as stated in the above paragraph. c. Category l Employees in this category make Part A contributions automatically each pay period through payroll deductions. Category 3 participants do not receive any Part B contributions. Part C contributions are received through cash outs. If an eligible Category 3 participant retires from the City of Newport Beach, the City will deposit $400 per month into the Account upon retirement, up to a maximum of $4,800 per year, less the CaIPERS minimum required employer contribution as determined by CaIPERS annually, which shall continue as long NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 20�1O�vr. 202 r'n'�12022-2025 10-24 22 as the employee or surviving spouse/qualified dependent is still living. To offset this expense to the City, active Category 3 participants will contribute an additional $100 per month to the plan until retirement. There is no cash out option for these funds and they cannot be spent in advance of receipt. Category 3 participants 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 is deposited into the Account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. Contributions are contingent upon remaining a CaIPERS annuitant of the City. - r na.u������i��.a�a..�i �ic.�riia�ai�Q a.����.���ii• ld RENOIR �4T�'Li�l�:L161:}'lT.T�r _ Vilwwq - -11 11114 -_ pla ZAArAll I .. i -c - r na.u������i��.a�a..�i �ic.�riia�ai�Q a.����.���ii• NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-25 �4T�'Li�l�:L161:}'lT.T�r _ Vilwwq r 11451,111,111,1161 17o NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-25 23 .0 � . ��.T.�� '�1:��.. 1 .1.177�TT�:'fE7T.E7T�.T•7• r r � ica,r -nil ittiViri-s, Vain 1 1 . � r 1 ■ • 1�1.Tr"�/f.T�. T.}i:�'�.:T.7. � . ��.T.�� '�1:��.. 1 .1.177�TT�:'fE7T.E7T�.T•7• r � 1 � r 1 • � r � . r 1 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-26 24 r -•- rW11,1110- I - r 1 . . 11 111010-11111111 11111 11111161 wiffif", WMW IM - - •.r. .• . FAAW- r 111 . r - . r • - r �.I NTI . .- • . 2-.5. Administration NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-27 25 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—,wig have has 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. H. Deferred Compensation All members: Each unit member shall have the right to enroll in the deferred compensation program set up by the City and subject to the rules of IRS Code section 457. Unit members who enroll in the City deferred compensation program are eligible for City contributions to their City deferred compensation account as follows: One -Time Deposit: Effective the first day of the pay period which includes January 1, 2023, unit members who are enrolled in the City's deferred compensation program will receive a one-time deposit of five hundred dollars ($500). The City is only obligated to make the contribution if the unit member has enrolled in the deferred compensation program as of the first day of the pay period which includes January 1, 2023. This deposit is for this pay period only, and does not carry over to subsequent pay periods. There is no retroactivity. Matching City Contributions: Effective the first day of the pay period which includes January 1, 2023, the City shall match a unit member's deferred compensation contribution up to a maximum of thirty dollars ($30) per month. The City is only obligated to make the contribution if the unit member has enrolled in the deferred compensation program. There is no retroactivitv. Additional matching City contributions to Deferred Compensation Based on Years of NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU'^'O=0,9=0212022-2025 10-28 C Service: In addition to the City contribution provided above, the City shall match contributions to eligible unit members' deferred compensation accounts as follows: Years of Service January 1, 2023 January 1, 2024 January 1, 2025 15-19 $20 $25 $30 20-25 $25 $30 $35 25+ 30 35 40 Under federal law. there is an annual maximum contribution which may be made to an employee's IRS Code section 457 account. Although the City will be making contributions to the members' accounts each pay period as described above, it is the members' responsibility to track their total contribution amount. If a member's account contributions reach the annual IRS Code section 457 maximum, the City will stop making contributions for the remainder of the calendar vear and shall not owe the member anv additional compensation under this section. 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. "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. 2. "Classification" shall mean one or more full time positions identical or similar in duties not including part-time, seasonal or temporary positions. Classification NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-29 27 within a Series shall be ranked according to pay (lowest ranking, lowest pay). 3. "Layoffs" or "Laid Off' shall mean the non -disciplinary termination of employment. 4. "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,strial leave, military and leave all City, state and/or federally protected and authorized leaves but shall not include time spent on any other of itherized or unauthorized leave of absence. 5. "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. 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 Celassification shall, in that enter be laid off before regular employees. 2. Employees within a CElassification shall be laid off in inverse order of Sseniority. 3. An employee subject to Ltayoff in one CElassification shall have the right to Bbump a less senior employee in a lower ranking Celassification within a Sseries. An employee who has Bbumping rights shall notify the Department Director within three (3) working days after notice of Ltayoff of Ns h their intention to exercise Bbumping R -rights. 4. In the event two or more employees in the same CElassification are subject to Ltayoff and have the same Sseniority, the employees shall be laid off following the Department Director's consideration of esttabloshed finalized performance evaluations. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-30 NOTICE Employees subject to Llay-off shall be given at least thirty (30) days advance notice of the Llayoff 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 Llayoff. The re-employment list shall expire in eighteen (18) months. In the event a vacant position occurs in the Cel ass ification which the employee occupied at the time of Llayoff, or a lower ranking Celassification within a Sseries, 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",,,s er hertheir 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 er he their name from the re-employment list by sending written confirmation to the Human Resources Director. SEVERANCE If an employee is Llaid Oeff 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 Re"^" up to ten (10) weeks of pay. B. in-gRecruitment 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 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-31 29 EMPIE)yeeE; OR the „r;+Unit members -work either a 5/40 or 9/80 e�-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. Supervisors may approve a different alternating day off based on extenuating business circumstances. The City agrees to maintain flex -scheduling where it is currently operating successfully in this unit. D. Labor Manaaement Committee The City will work with NBCEA leadership, through its managers, to establish labor- management committees departmentally whenever it is mutually determined it is appropriate to do so. r r r r I • cIanil r . i-afr 11 11-1• r . r . r • -rannfi-Exc 1 I cIanll IsAn 14 r�T� :E1�f1:7�IR:��fIL�'LT.i�,l r r . r r I I n r NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-32 30 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 Gee ideFe J will Rot beis not 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 -of a suspension of one or two days who wish to appeal the suspension shall have the right to appeal the decision to the City Manager or designee. Empleyees whe have FeGeiyed a ,e,ritteR reprimand shall have the right te plaGe GeFFIrneRtS OR the dOGUrneRt prier te plaGerneRt OR. his/her personnel fil F. Grievance Procedure Step 1: A grievance may be filed by any employee eR h�;ertheir 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 +sarises. 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 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-33 31 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 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 CITY EMPLOYEES ASSOCIATION MOU 201�vr920217 712022-2025 10-34 32 (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 heTtheir -promotional probation, the employee shall have the right to return to "i�eTtheir 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 ^e he their 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 he 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. 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). I. 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. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 201�vr920217 712022-2025 10-35 33 K. Direct Deposit All employees shall participate in the payroll direct deposit system. L. Telecommuting Program The City agrees to a telecommuting program that will provide for 80 hours of telecommuting hours to be used in accordance with City policy. While unit members are invited to participate in policy formation, the terms and conditions are subject to management approval before the program will be implemented. Additionally, the provisions of the policy shall not trigger any right of grievance or appeal. This will be a pilot program which shall terminate upon the expiration of this MOU. Once approved, a coav of the DOlicv aovernina this Droaram will be attached as an addendum to this MOU. 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. Signatures are on the next page. NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU 20�1O�vr. 202 r'n'�12022-2025 10-36 34 Executed this day of , 2-0192021: FOR THE NEWPORT BEACH CITY EMPLOYEES ASSOCIATION: FOR THE CITY OF NEWPORT BEACH By: Brad Avery, Mayor CITY OF NEWPORT BEACH APPROVED AS TO FORM Aaron C. Harp, City Attorney ATTEST: Leilani Brown, City Clerk NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU'^'=o- 9 20212022-2025 10-37 DRAFT OF PROPOSED SALARY SCHEDULE ADJUSTMENTS Exhibit A 35 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU Term: January 1, 2022 - December 31, 2025 1.0 % Cost of Living Adjustment Effective the pay period including January 1, 2022 1 Hourly pay rates are rounded to the nearest hundredth. Z Monthly pay rates are rounded to nearest whole dollar. 10-38 HOURLY PAY RATE 1 MONTHLY PAY RATE Z REPRESENTED POSITIONS MIN MAX MIN MAX Assistant, Administrative $30.64 $43.06 $5,311 $7,463 Assistant, Department $24.59 $34.57 $4,262 $5,992 Assistant, Office $21.02 $29.59 $3,643 $5,128 Buyer $30.71 $43.18 $5,323 $7,485 Buyer, Senior $36.24 $50.99 $6,282 $8,838 Fiscal Clerk $22.17 $31.22 $3,842 $5,412 Fiscal Clerk, Senior $25.81 $36.31 $4,473 $6,294 Fiscal Specialist $29.90 $42.08 $5,182 $7,294 Inventory Analyst $26.30 $37.04 $4,559 $6,420 Librarian 1 $30.25 $42.55 $5,243 $7,375 Librarian II $33.24 $46.81 $5,761 $8,114 Librarian 111 $36.59 $51.47 $6,342 $8,922 Library Assistant $25.72 $36.18 $4,459 $6,272 Library Clerk 1 $20.04 $28.18 $3,474 $4,885 Library Clerk II $22.17 $31.22 $3,842 $5,412 Library Clerk, Senior $25.72 $36.18 $4,459 $6,272 Mail Processing Clerk, Senior $23.28 $32.76 $4,035 $5,679 Marketing Specialist $30.64 $43.07 $5,311 $7,465 Park Patrol Officer $21.84 $30.73 $3,786 $5,327 Park Patrol Officer, Lead $24.51 $34.49 $4,248 $5,978 Public Works Specialist $29.79 $41.96 $5,164 $7,272 Records Specialist $30.64 $43.06 $5,311 $7,463 Recreation Coordinator $28.33 $39.87 $4,911 $6,911 Recreation Supervisor $33.12 $46.62 $5,740 $8,081 1 Hourly pay rates are rounded to the nearest hundredth. Z Monthly pay rates are rounded to nearest whole dollar. 10-38 DRAFT OF PROPOSED SALARY SCHEDULE ADJUSTMENTS W. Exhibit A NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU Term: January 1, 2022 - December 31, 2025 1.5 % Cost of Living Adjustment Effective the pay period including January 1, 2023 1 Hourly pay rates are rounded to the nearest hundredth. Z Monthly pay rates are rounded to nearest whole dollar. 10-39 HOURLY PAY RATE 1 MONTHLY PAY RATE Z REPRESENTED POSITIONS MIN MAX MIN MAX Assistant, Administrative $31.10 $43.70 $5,391 $7,575 Assistant, Department $24.96 $35.09 $4,326 $6,082 Assistant, Office $21.33 $30.03 $3,698 $5,205 Buyer $31.17 $43.83 $5,403 $7,598 Buyer, Senior $36.78 $51.75 $6,376 $8,970 Fiscal Clerk $22.50 $31.69 $3,900 $5,493 Fiscal Clerk, Senior $26.19 $36.85 $4,540 $6,388 Fiscal Specialist $30.35 $42.71 $5,260 $7,404 Inventory Analyst $26.70 $37.60 $4,628 $6,517 Librarian 1 $30.70 $43.18 $5,321 $7,485 Librarian II $33.74 $47.52 $5,848 $8,236 Librarian 111 $37.14 $52.25 $6,437 $9,056 Library Assistant $26.11 $36.72 $4,526 $6,366 Library Clerk 1 $20.35 $28.61 $3,526 $4,958 Library Clerk II $22.50 $31.69 $3,900 $5,493 Library Clerk, Senior $26.11 $36.72 $4,526 $6,366 Mail Processing Clerk, Senior $23.63 $33.25 $4,096 $5,764 Marketing Specialist $31.10 $43.71 $5,391 $7,577 Park Patrol Officer $22.17 $31.19 $3,843 $5,407 Park Patrol Officer, Lead $24.88 $35.01 $4,312 $6,068 Public Works Specialist $30.24 $42.58 $5,242 $7,381 Records Specialist $31.10 $43.70 $5,391 $7,575 Recreation Coordinator $28.76 $40.47 $4,985 $7,014 Recreation Supervisor $33.61 $47.32 $5,827 $8,203 1 Hourly pay rates are rounded to the nearest hundredth. Z Monthly pay rates are rounded to nearest whole dollar. 10-39 DRAFT OF PROPOSED SALARY SCHEDULE ADJUSTMENTS Exhibit A 37 NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU Term: January 1, 2022 - December 31, 2025 2.0 % Cost of Living Adjustment Effective the pay period including January 1, 2024 1 Hourly pay rates are rounded to the nearest hundredth. Z Monthly pay rates are rounded to nearest whole dollar. 10-40 HOURLY PAY RATE 1 MONTHLY PAY RATE Z REPRESENTED POSITIONS MIN MAX MIN MAX Assistant, Administrative $31.72 $44.58 $5,499 $7,727 Assistant, Department $25.46 $35.79 $4,413 $6,204 Assistant, Office $21.76 $30.63 $3,772 $5,309 Buyer $31.79 $44.71 $5,511 $7,749 Buyer, Senior $37.52 $52.79 $6,503 $9,150 Fiscal Clerk $22.95 $32.32 $3,978 $5,603 Fiscal Clerk, Senior $26.72 $37.59 $4,631 $6,516 Fiscal Specialist $30.95 $43.57 $5,365 $7,552 Inventory Analyst $27.23 $38.35 $4,720 $6,647 Librarian 1 $31.31 $44.05 $5,428 $7,635 Librarian II $34.41 $48.47 $5,965 $8,401 Librarian 111 $37.88 $53.29 $6,566 $9,237 Library Assistant $26.63 $37.46 $4,616 $6,493 Library Clerk 1 $20.75 $29.18 $3,597 $5,057 Library Clerk II $22.95 $32.32 $3,978 $5,603 Library Clerk, Senior $26.63 $37.46 $4,616 $6,493 Mail Processing Clerk, Senior $24.10 $33.92 $4,177 $5,879 Marketing Specialist $31.72 $44.59 $5,499 $7,729 Park Patrol Officer $22.61 $31.82 $3,920 $5,515 Park Patrol Officer, Lead $25.37 $35.71 $4,398 $6,189 Public Works Specialist $30.85 $43.44 $5,347 $7,529 Records Specialist $31.72 $44.58 $5,499 $7,727 Recreation Coordinator $29.33 $41.28 $5,085 $7,154 Recreation Supervisor $34.29 $48.27 $5,943 $8,367 1 Hourly pay rates are rounded to the nearest hundredth. Z Monthly pay rates are rounded to nearest whole dollar. 10-40 DRAFT OF PROPOSED SALARY SCHEDULE ADJUSTMENTS 38 Exhibit A NEWPORT BEACH CITY EMPLOYEES ASSOCIATION MOU Term: January 1, 2022 - December 31, 2025 2.0 % Cost of Living Adjustment Effective the pay period including January 1, 2025 1 Hourly pay rates are rounded to the nearest hundredth. Z Monthly pay rates are rounded to nearest whole dollar. 10-41 HOURLY PAY RATE 1 MONTHLY PAY RATE Z REPRESENTED POSITIONS MIN MAX MIN MAX Assistant, Administrative $32.36 $45.47 $5,608 $7,881 Assistant, Department $25.97 $36.51 $4,501 $6,328 Assistant, Office $22.20 $31.24 $3,847 $5,415 Buyer $32.43 $45.60 $5,621 $7,904 Buyer, Senior $38.27 $53.84 $6,633 $9,333 Fiscal Clerk $23.41 $32.97 $4,057 $5,715 Fiscal Clerk, Senior $27.25 $38.34 $4,724 $6,646 Fiscal Specialist $31.57 $44.44 $5,473 $7,703 Inventory Analyst $27.78 $39.11 $4,815 $6,780 Librarian 1 $31.94 $44.93 $5,536 $7,788 Librarian II $35.10 $49.43 $6,084 $8,569 Librarian 111 $38.64 $54.36 $6,697 $9,422 Library Assistant $27.17 $38.21 $4,709 $6,623 Library Clerk 1 $21.17 $29.76 $3,669 $5,159 Library Clerk II $23.41 $32.97 $4,057 $5,715 Library Clerk, Senior $27.17 $38.21 $4,709 $6,623 Mail Processing Clerk, Senior $24.58 $34.60 $4,261 $5,997 Marketing Specialist $32.36 $45.48 $5,608 $7,883 Park Patrol Officer $23.06 $32.45 $3,998 $5,625 Park Patrol Officer, Lead $25.88 $36.42 $4,486 $6,313 Public Works Specialist $31.46 $44.30 $5,454 $7,680 Records Specialist $32.36 $45.47 $5,608 $7,881 Recreation Coordinator $29.92 $42.10 $5,186 $7,298 Recreation Supervisor $34.97 $49.23 $6,062 $8,534 1 Hourly pay rates are rounded to the nearest hundredth. Z Monthly pay rates are rounded to nearest whole dollar. 10-41 Draft Exhibit B CITY EMPLOYEES ASSOCIATION List of Proposed Certifications for Pay MOU Term: January 1, 2022 - December 31, 2025 CERTIFICATE MONTHLY AMOUNT Geitfieri Revenue Offiner* (Removed upon the MOU 2022-25 adoption) Forklift Training Certificate * $45 Public Notary** $45 * Only those unit members who were receiving the certificate pay at time of the 2012-15 MOU are eligible for the benefit. ** Language added in 2015-18 MOU: only available to CEA members in administrative support positions and must be used for City business. UPDATE: Remove the Certified Revenue Officer Certificate upon adoption of the 2022-25 MOU. 39 10-42 Key Contract Terms Cost of Living Adjustment Other Proposals City Paid Disability Premiums Z Summary of Proposal Cost 3 Baseline Compensation Base Pay Supplemental Pays Overtime Pension Contribution Cafeteria Plan Other City Paid Benefits 4 SubTotal Other Proposals Deferred Compensation $30 per member Deferred Compensation Plan (groups tiered) Disability Premiums Deferred Compensation Bonus - $500 in year 2 only SubTotal Total City of Newport Beach CEA - Analysis of Tentative Agreement October 26, 2021 1.00% 1.50% 1% Deduction Eliminated ATTACHMENT B 2.00% 2.00% $7,294,055 $72,941 $183,445 $332,996 $485,537 $1,074,918 21,932 32 80 145 212 469 20,366 204 512 930 1,356 3,001 2,063,840 20,586 51,773 93,979 137,030 303,367 1,945,800 - - - - - 655,711 3,614 9,089 16,499 24,057 53,259 $12,001,704 $97,375 $244,899 $444,548 $648,190 $1,435,013 - 33,840 33,840 33,840 101,520 - 8,640 10,920 13,080 32,640 47,620 48,335 49,301 50,287 195,543 - 47,000 - - 47,000 - 47,620 137,815 94,061 97,207 376,703 $ 12,001,704 $ 144,996 $ 382,714 $ 538,610 $ 745,398 $ 1,811,717 Cumulative Impact on Employee Compensation Base Salary Increases 1.00% 2.52% 4.57% 6.66% Pre -Tax Take -Home Pay Increase Z 2.30% 3.82% 5.87% 7.96% Total Compensation Increase 6 1.21% 3.19% 4.49% 6.21% Notes 1 One percent of current total compensation is equal to $120,017. Z The impact of the elimination of the 1% post -tax payroll deduction currently imposed on employees on take-home pay is roughly equivalent to a 1.3% increase in salary. 3 Costs shown in year two reflect the cumulative budget impact in each year as compared to the current budgeted amounts. 4 Includes Medicare, compensated absences, employee assistance program, phone allowances, life insurance, and retiree health savings. s Percentage shown in each year is as compared to current base salary, not the prior year. 6 Measured based on the total of all pay and benefits. Percentage shown in each year is as compared to current total compensation, not the prior year. 10-43 ATTACHMENT C MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: aNA-11LT, W14 1. The Newport Beach Professional and Technical Employees Association ("NBPTEA" 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. NBPTEA representatives and City representatives have reached an agreement as to wages, hours and other terms and conditions of employment. This shall- apply to all affected employees for the term of January 1, 201-92022 through December 31, 2021 2025 and this agreement has been embodied in this MOU. 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. 1. Except as specifically provided otherwise, any ordinance, resolution or action of the City Council necessary to implement this MOU shall be considered effective as of January 1, 2-0192022. This MOU shall remain in full force and effect until December 31, 20212025, and the provisions of this MOU shall continue after the 10-44 2 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 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 WGFk 4. Each January, the City will examine the number of Release Time hours the Association used the preceding year. If the Association used Iin eXGess ofmore than 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. 3. Pursuant to this MOU, the City reserves and retains all of -its inherent exclusive and non—exclusive managerial rights, powers, functions and authorities NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019 20912022-2025 10-45 3 ("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 (j) 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 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. The City shall provide NBPTEA with access and information regarding new employ and existing unit members as required by law. NBPTEA 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 NBPTEA 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 ci irh rnntart NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 20192^912022-2025 10-46 El 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 mom^^ter ^#" G#VVa r 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 NBPTEA represented classifications shall be as follows and as specified in Exhibit A: NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-47 G� Effective the pay period that includes January 1, 2022, this MQU, there shall s salaries will be increased bar of two norGeRt (2.01%) one percent (1.0%) for all represented classifications. Effective the pay period that includes January 1, 2-0202023, base salaries will be increased by two nor,.or+ (2 n°i gone and one-half percent 1.51/o for all represented classifications. Effective the pay period that includes January 1, 20242024, base salaries will be increased by two percent (2.0%) for all represented classifications. Effective the pay period that includes January 1, 2025, base salaries will be increased by two percent (2.0%) for all represented classifications. B. Overtime 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 — Beth 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 few (40-)40 hours in their defined FLSA workweek. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 20192^9'2022-2025 10-48 n 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. Weekend Standby Information Technology staff assigned Standby standby duty for the purpose of responding to calls for service during the weekend shall be paid $3 per hour for each hour of assigned standby 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 standby duty shall be assigned. D. Call BaGI Callback Du 1. Defined Call-back duty requires the employee to respond to a request to return to #the their w erk statoGnworkstation after the normal work shift has been completed and the employee has left F„,-,rs/-IcIc+their normal ` erk stati"r,workstation. 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, hr /shefty 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 0 44) for each hour of overtime worked. An employee may only awe earn 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 0)80 hours of CTO. Any hours earned in excess of 80 will be paid out to the employee the following pay period. Once a unit member reduces the balance below 80 hours, additional hours may be earned again up to the 80 hour cap. if,f aR employee has eighty (80` he arc of aGGrue 'd CTO, he/she will be able to aGGrue additional GTO unto! he/she uses GTO te redLIGe his/her balanGe below eighty (80) hours. F. Night -Shift Differential NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 20192^9'2022-2025 10-49 N Unit members who are regularly assigned a work schedule of which four or more hours are worked between the hours of 5 p.m. and 5 a.m. shall receive a shift differential pay of $1.00 per actual hour worked; payable for each hour worked after 5 p.m. The (mit„ agrees work shift of which four or mere hours are worked between the hours of 5 p.m. anal 5 a m Overtime worked as an extension of the -an assigned day shift shall not qualify an employee for night -shift differential. The diff eree.n+iol pay is noir) eely for hours aGt a4y weed - The parties agree that to the extent permitted by law, the City shall report to the California Public Employees' Retirement System (CaIPERS) shift differential pay as Special Assignment Pay as su pursuant to Title 2 CCR, Section 571(a)(4) and/or Section 571.1 (b)(3) Shift Differential. G. Associate Civil Enaineer and Junior Civil Enaineer 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. H. Court Time Employees who are required to appear in Court court during their off-duty hours in connection with City business shall receive a minimum of two hours pay. If an employee is actually in court for more than two hours, the member shall receive pay for actual hours worked. evertome GOMpeRsatien (irr dditionol hei irs of iolify as every imrr 1�te Rumbeerr ef heuFs they spend on GGUFt, with a minimum ef twe (2) heurs ef GUGh GE)Mpensatie-n-. I. Certificate Pay related nertifoGates henefiniol to City enerotiens. Effective January 1, 2013, the Gert e certificate payday program was modified to eliminate "inactive" certificates and "sunset" certain active certificates. Employees currently receiving pay for a "sunset" certificate are considered grandfathered under the program, but no further employees W*shall be eligible. The complete list of eligible certificates and the corresponding benefit is listed in Exhibit B. All other procedures associated with Certi#+Eate-Paycertificate pay remain in effect, including a limitation of payment for a maximum of five certificates per employee. The parties agree that to the exteRt permitted by law, GertifiGates whiGh qualify as speGiat GOMpensation shal�ppd� reported D S sanh�`J pursuant to Title GGR SenrtcrvPr 571 er 571 1 "'NN The parties agree that to the extent permitted by law, the City shall report to the California Public Employees' Retirement System (CaIPERS) eligible certificate pays as Educational Pay pursuant to Title 2 CCR, Section 571 (a)(2) and/or 571.1 (b)(2). NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 20192^9'2022-2025 10-50 n J. Acting Pay NBPTEA employees will-beare eligible to receive "acting pay" only after completing 80 consecutive hours in the higher classification. Once the 80 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. Acting pay is 407.5an additional 7.5% of the employee's base pay rate. The parties agree that to the extent permitted by law, and in accordance with Government Code §20480 Out -of -Class Appointment Limitations, the City shall report to the California Public Employees' Retirement System (CaIPERS) acting pay as Premium Pay pursuant to Title 2 CCR Section 571(a)(3) Temporary Upgrade Pay. For "new members" as defined by the Public Employees' Pension Reform Act of 2013, acting pay will not be reported as pensionable compensation to Cal PERS. The employee must be performing 100% of the duties in the higher classification for temporary upgrade pay to be reportable.is Fal 571 (a)(3) Temporary Upgrade Dori 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, #4e -employees in positions that require additional languages as part of their normal duties shall be eligible to receive eneOne hundred 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 City shall report to the California Public Employees' Retirement System (CaIPERS) Bilingual pay as Special Assignment Pte.An And �h 11 be repeFted to GaIPERS as s pursuant to Title 2 CCR, Section 571(a)(4) Bilingual Dromic Omand/or 571.1(b)(3) Bilingual Premium. L. Assignment Pay NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-51 9 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. AR --Assistant Planners 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. 1,. le _ _ r SECTION 3. — Leaves A. Flex Leave Members accrue flex leave in lieu of vacation and sick leave. An emDlovee accrues a designated number of flex leave hours while in paid status and based upon years of service. Years of service is determined by the number of continuous, full-time nears a member is employed by the City. Unit members shall accrue Flex -flex leave at the following hourly rates: Years of Continuous Hrs. Accrued Per Annual Hours Max Allowable Service Pav Period Balance (hours) 20 but less than 25 9.38 243.88 731.64 25 anti mover 1(l_no 26n no 760.00 NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-52 10 Members shall accrue three (3) months (i.e., 39 hours) of flex leave in the manner and as provided ,R the—e"a4--above) upon completion of three (3) months of continuous employment with the City of Newport BeaGh 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 threes months of employment, three (3) months of accrued Flex leave will be placed in the employee's account. 1. Limit on Accumulation ARY fleX leave eaFRed 'R 8XGeGG of this level will be paid OR aR heyF f9F hewF baSis MR Gashi/cYl�Yor�at the pleyee's hourly rate of pay. Members hired prior to July 1, 19961 shall be paid for earned flex leave in excess of the maximum "meted aGGruQallowable balance has spillover pay 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 spillover 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 aGGrUal 4R44allowable balance. Employees first hired, or rehired by the City subsequent to July 1, 1996 shall are not t�—,eligible for flex leave spill-over pay and shall are not be -entitled to accrue flex leave in excess of the flex leave aGGri sol thresheldmaximum allowable balance. 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. B. Holiday Leave The following days shall be observed as paid holidays (i.e., employees shall have the day off with pay) by all „nit members. With the exception of the "floating holiday"FT er each holiday, the Fleating Heliday (where the employee chooses the day off), 9 -aa eyeeisemployees who are required to work on the holiday ,, they receive their pay for the holiday and On addition either pay or -fflex Leave for the number of hours worked on the holiday. New Year's Day January 1 Martin Luther King Day January — 3rd Monday Washington's Birthday February — 3rd Monday NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU'019-2^"2022-2025 10-53 11 Memorial Dav May — Last Monday Floating Holiday* July 1 Independence Day July 4 Labor Day September— 1St Monday Veterans Day November 11 Thanksgiving Dav November — 4th Thursday Friday After Thanksgiving November — 4th Friday Christmas Eve December 24 (last'/2 of workday) Christmas Day December 25 New Year's Eve December 31 (last '/z of workday) ■ ATAI ■ WWI ■ ■ MELVA. SIG . ffif■ 1 1 ■ . 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 nine hours, the employee is entitled to receive 9 -nine 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 &-eight hours, the employee is erled-eli ible to receive 8 -eight hours of holiday pay. Emcees Will revel 8 hours of heliday noxi annually for the Floating I- ekla 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. paid leave that has been reviewed and approved by the Department Director). in addition, for all employees an additional 8 hours of fleatil holiday will be added te- his/her Flex leave anni ami elated total, nn the first nasi period in L ly eanh year. The floating holiday is awarded on July 1. Eight hours of holiday leave is added to the member's vacation or flex leave bank on the first Dav Deriod in Julv each vear. lea NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-54 12 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 hisihefof an immediate family member." Unit members shall be entitled to forty (40-)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, buthowever they should ^urbe used 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 -member'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 -state or federal Fe�'�4—law. AR ernpleyee& member requesting bereavement leave shall notify his/heftheir supervisor as soon as possible of the need to take leave. D. Leave Sellback nig-EaT Rdar year2019,-eEmployees 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%. Effeotive OR GaleRdar year2020 and thereafter, emleyees Employees shall have the option of converting accrued flex IL-eave 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 IL-eave benefits that have been earned during that portion of the year. In no event shall the flex leave balance be reduced below ^no hundred and sixty (1604 hours.R or befbFe member 31 into ooGh employee have the Gno_+ime ccc�racrvr—cv-,Tccr " � � � Y " J urr-rrcrv� ��rrc-nn�c In addition to the above, staFting ORrEalendar 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 )ffcashed out is limited to the amount necessary to meet the emergency. If there is an unforeseen emergency, an employee can cash out flex ILeave earlier in the year than described above provided that the remaining balance NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-55 13 is not reduced below ^no hundred and sixty (1603 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 employees 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 One Thousand; Seven Hundred Twenty -Five Dollars x$1,7251 {plus the minimum CalPERS 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 dog, of the pay period following City CO Unnil apprrirol of this 20'19_2021 MO l March 16, 2019 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 One Thousand Dollars -$1,000 -.GG) per month in taxable cash. For these same employees, if they elect medical coverage and spend less than the City contribution provided above, NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-56 14 those unused cafeteria plan funds shall be paid to the employee as taxable cash. Employees hired on or after the first day of the pay peried following city GeUnGil approval of this 2019-2-0-21. 1. nnnl (March 16, 2019 who elect to opt out of medical coverage offered by the City because they have provided proof of minimum essential Goyerage ("MEC") -through another source (other than coverage in the individual market, whether or not obtained through Covered California) shall receive Five Hundred Dollars (-$5008) 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. On or before July 1, 2023, at the request of either party, the parties shall meet and confer in good faith to discuss possible changes to the medical benefit program, contribution levels, or other elements of healthcare services, provided, however, that any changes to the MOU may only occur by mutual agreement of the parties. 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 sState 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 add it+eRAdditionally, should State—state or F-efederal 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. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU'019-2^"2022-2025 10-57 15 2. Disability 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 wa es66.67% of covered wages Maximum Benefit $1,846 weekly $15,000 month) Waiting Period 30 calendar days 180 calendar days 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 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 The City contracts with California Public Employees Retirement System (CaIPERS) to provide retirement benefits for its employees. Pursuant to prior agreements and state mandated reform, the City has implemented F'Fst, Se^^nd and ThiFd Tioer8tirer en beAcnefmcsthree different tiers of retirement benefits. cateaorized as Tier I. Tier II and Tier 1. Retirement Formula The City GE)RtraGtS with PERS to provide retiremeRt benefits for its employees. PursuaRt t - ements and state mandated reform, the City has implemented fire senenr� onrt thli d tie. fi er retirement benets• , Tier 4-I: 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 NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-58 16 year. Tier 211: For employees first hired by the City between November 24 and December 31, 2012, or hired on or after January 1, 20131 and who 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 3111: For employees first hired by the City on or after January 1, 2013, and who do not meet the Tier 2-11 criteria because they are new members as defined by t#e 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 CalPERS 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 CalPERS 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 CalPERS 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 4-1 employees shall contribute 2.42% compensation earnable (as cost sharing) per Government Code section 20516(a). Tier 4-1 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(f). Tier 2-11 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 3-111 Employees - The minimum statutory employee contribution for employees in Tier 3 is subject to the provisions of the o, blip Employees PeRsien Reform On+ of (PEPRA4 and equals 50% of the "total normal cost". Tier 3 employees shall make an additional contribution of pensionable compensation toward retirement pursuant to NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU'019-2^9'2022-2025 10-59 17 Government Code Section 20516(f), such that the total employee contribution equals 13% of pensionable compensation. The City contracts with CaIPERS for the 4th 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 (Government Code Section 21548). E. LIUNA Supplemental Pension The sSOGiation unit members 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 plan will still have no right to return of amounts contributed, or other recourse against the City concerning LIUNA. Effective the pay period following Gity GeunGil approval of this M March 16, 2019, 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 This is an Integral Part Trust (IPT) RHS Retiree Health Savings (RHS) plan (formerly the Medical Expense Reimbursement Program - "MERP"). Each member has an individual RHS account ("Account"), which accumulates based on the category they fall under see Program Structure below). Funds from the Account may be used for eligible health care expenses after separation, retirement or a change in personnel status to a position that does not receive the RHS benefit. These changes in personnel status will activate the Account and allow funds to be withdrawn until the Account balance is depleted. Since the NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 20192^ "2022-2025 10-60 W plan restricts all distributions to be spent for health insurance premiums and health care expenses, as defined by the Internal Revenue Code Publication 502, § 213(d) and the Plan document the contributions, fund investment earnings and benefit payments (when withdrawn from the Account) are not taxed. Additionally, certain contributions may only be deposited upon retirement from the City-. The categories are detailed below. 1. Background In 2005, the City and all Employee oss^Gia+i^^cNBPTEA 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 is ongoing for an extended period. During the transition, employees and (then) existing retirees were administratively classified into one of feudifferent categories. The benefit is structured differently for each of the categories. The categories are as follows: Category 1 - Employees Rewly hired-aft^r jaRuary 1, 2006 who become eligible for the benefit after January 1, 2006. This may include new hires, rehires and part-time employees appointing to full-time status. . - .. . tif�7.TST -- om^'^^^c`.Employees who were active and enrolled in the previous defined benefit as of December 31, 2005, eligible for the new defined contribution Droaram as of January 1. 2006 and whose aae Dlus vears of service as of January 1, 2006 was less than 50. c. Category 3 - Active employees hired prior t^ lona lord 1 2006 whose age plus yearsof seIPV+n^�s5ergreater (46 f^r p blip safety es) a daRuafy 1, 2996 -Employees who were active and enrolled in the previous defined benefit as of December 31, 2005, eligible for the new defined contribution program as of January 1, 2006 and whose age plus years of service as of January 1. 2006 was 50 or areater. 2. Eligibility All NBPTEA members are eliaible for the RHS benefit. However. if a member separates or chanaes positions to a baraainina unit which does not offer this benefit. the member is no longer eligible for any contributions to the plan and their Account will be activated for use and withdrawal of funds by the employee (or former employee). This means if a unit member subsequently reappoints to a position which offers the RHS benefit, they will be enrolled in "Category 1" and must revest in the program. Any remaining balance deposited during prior eligibility will remain in the Account. Employees who become ineligible (no longer covered by a City employee association offering the RHS benefit) before vesting forfeit the City's Part B contribution. Said employee will only receive Part A and Part C contributions. The only exception is an active employee who separates before vesting due to an approved industrial disability. In such NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-61 19 case, 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. RHS accounts are deemed forfeited if the Participant dies with no IRS eligible Survivors to assume the account balance. An eligible Survivor is defined as (a) the Participant's lawful spouse, (b) the Participant's child under the age of 27 as defined by IRC Section 152(f)(1), or (c) any other individual who is a person described in IRC Section 152(x) Upon the death of the Participant's survivors, remaining RHS assets are returned to the employer's RHS trust after 12 months from the notification of death. Survivors may not designate a beneficiary under the RHS plan.) lnrder repent IRC Revenue R ilinrr 2005_2 after the death of the employee and his or her coni ice and/or other authorized dependents /if an i\ must ho forfeiter) That nartini alar Annoi int will he nlesed anal an i remainin fi inns wmi! heneme eneral assets of the plan 3. Account Contributions Program StruGture Account contributions are categorized as Part A, Part B and Part C. Part A contributions are a mandatory, automatic 1 % employee contribution deducted each pay period and deposited into the Account through payroll. Deductions begin the Pay period in which the employee becomes eligible and are reported to CalPERS as pensionable. Part B contributions require a five year vesting period which begins when the employee becomes eligibile for the RHS benefit. At the conclusion of the vesting period, the City will credit the first five years' worth of Part B contributions into the Account (interest does not accrue during that period and the contributions are calculatedat$2.50 per month four each year of the employee's full-timer service plus age -a Rd the GGR � �tOORs-are-GalGUlatet at��0-; eer me -R h�rea Gh Ga of - -1 eMjDl0Vee'S Ukime serine plus ane) and begin to contribute $2.50 per month for each year of the employee's full-time service plus age (e.g. 30 years old and five years of service would be a factor of 35. $2.50 x 35 = $87.50 per month). This factor is updated annually in the pay period including January 1. Part B contributions are not reported to CalPERS as pensionable. The parties agree that the City's Part B contributions during active employment constitute the minimum CalPERS participating employer's contribution (i.e., the CalPERS 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 employer contribution will be deducted from the employer's contribution to the retiree's account. Part C contributions are determined by Association election and deposited into the NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019 20212022-2025 10-62 20 Account when flex leave hours are converted to taxable cash through leave cash -out or at the time of separation or status change. Spillover pay does not qualify for Part C contributions. Part C contributions are not reDorted to CalPERS as Densionable. The Association determines the level of contribution for all unit members, subject to the following constraints. All employees within the Association must participate at the same level. The participation level shall be specified as a percentage of the flex leave balance available in each employee's leave bank at the time of separation from the Com, or status change, or as a percentage of the flex leave balance being cashed out. For example, if the Association wishes to elect 30% Part C contributions, then each member leaving the City, or cashing out eligible leave at any other time, would have the cash equivalent of 30% of the amount that is cashed out deposited to their RHS Account on a pre-tax basis. The remaining 70% would be paid in cash as taxable income. Individual employees do not have the option to deviate from this breakout. The Association may change the Part C contribution amount as part of a meet and confer process. 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. The Association has decided to participate in Part C contributions at the level of zero percent (0%) flex leave. Nothing in this section restricts taking leave for time off purposes. 4. Benefit a. Category 1: Employees in this category rye make Part A and receive Part B contributions (subject to vesting) automatically each pay period through payroll deductions. Part C contributions are received through cash outs. No contributions are made to Category 1 participants after separation. b. Category 2: Employees in this category makeFeGeive Part A and receive Part B contributions (subject to vesting) automatically each pay period through payroll deductions. Part C contributions are received through cashouts. No contributions are made to Category 2 participants after separation. If a Category 2 participant retires from the City of Newport BeaGh with a minimum of 5 consecutive years of full-time service, the City will contribute to the participant's Account a one-time contribution equal to $100 per month for every month the participant contributed to the previous "defined benefit" plan up to a maximum of 15 years (180 months). This contribution is deposited into the Account at the time of retirement, and only if the employee retires from the City and becomes a CalPERS annuitant of the City of Newport Beach. No interest will be earned in the interim. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019 20912022-2025 10-63 21 For Category 2 participants with less than five years of continuous contributions into the prior defined benefit plan as of January 1, 2006, oOnly the years of service after January 1, 2006 count towards Part B contributions upon vesting_ Contributions in years before 2006 will be paid out as stated in the above paragraph. c. Category 3: Employees in this category remake Part A contributions automatically each pay period through payroll deductions. Category 3 participants do not receive any Part B contributions. Part C contributions are received through cash outs. If an eligible Category 3 participant retires from the City -of Newport Beach, the City will deposit $400 per month into the Account upon retirement, up to a maximum of $4,800 per year, less the CalPERS minimum required employer contribution as determined by CalPERS annually, which shall continue as long as the employee or surviving spouse/qualified dependent is still living. To offset this expense to the City, active Category 3 participants will contribute an additional $100 per month to the Dlan until retirement. There is no cash out ODtion for these funds and thev cannot be spent in advance of receipt. Category 3 participants 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 is deposited into the Account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. Contributions are contingent upon remaining a CalPERS annuitant of the City. I�S��:ESI:�E�9:TSS::L7:*:EST.T�11::�:1P.AlTT�1:E�1:�E�9:TlQi V.�4��L'1G1'i�l NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019 20212022-2025 10-64 22 I � lip. NMI .. M1,1111 1 1 r 1 W-1 Mimi Immom-11-0.111! r r I 1 .. � � 11001141-1 M-11,1110,01. MUM= Z N I IN 1111 11wel MAN u . r . No r11. W. _poll I 1 1 . ■ R. u Ow. 111 I . . 1ilm.!I!ollijp. r lilmliffivill 111111.111 All 11610. lip. NMI .. M1,1111 1 • . r il!ll!Lqip-wi. mi, . .ROOM. r .. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-65 23 SPIN 11, 111' 1 1111 UN; -W 111111 6 011 W INVII& walm- I m. IN I Ell, ee- 01, 10, 1 Olm.Malm —.-.T". 11 Iffid! I � 111111 N Is V w1m, - . . I we.. - - �.... e�.��.:.� :.�•� tee. . NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019 20212022-2025 10-66 24 2L.5. 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, ^"'e has 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 tuition reimbursement require the approval of the Human Resources Director or designee. H. Deferred Compensation All members: Each unit member shall have the right to enroll in the deferred compensation program set up by the City and subject to the rules of IRS Code section 457. Unit members who enroll in the City deferred compensation program are eligible for City contributions to their City deferred compensation account as follows: One -Time Deposit: Effective the first day of the pay period which includes January 1, 2023, unit members who are enrolled in the City's deferred compensation program will receive a one-time deposit of five hundred dollars ($500). The City is only obligated to make the contribution if the unit member has enrolled in the deferred compensation program as of the first day of the pay period which includes January NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-67 25 1, 2023. This deposit is for this pay period only, and does not carry over to subsequent pay periods. There is no retroactivity. Matching City Contributions: Effective the first day of the pay period which includes January 1, 2023, the City shall match a unit member's deferred compensation contribution up to a maximum of thirty dollars ($30) per month. The City is only obligated to make the contribution if the unit member has enrolled in the deferred compensation Droaram. There is no retroactivitv. Additional matching City contributions to Deferred Compensation Based on Years of Service: In addition to the City contribution provided above, the City shall ^^^+e matchte contributions to eligible unit members' deferred compensation accounts as follows: Years of Service January 1, 2023 January 1, 2024 January 1, 2025 15-19 20 25 30 20-25 25 30 35 25+ 30 35 40 Under federal law. there is an annual maximum contribution which may be made to an employee's IRS Code section 457 account. Although the City will be making contributions to the members' accounts each pay period as described above, it is the members' responsibility to track their total contribution amount. If a member's account contributions reach the annual IRS Code section 457 maximum, the City will stop making contributions for the remainder of the calendar year and Wi 4shall not owe the member any additional compensation fe4afe4-underto this section. 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. "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 NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 20192^ "2022-2025 10-68 26 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. 2. "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). 3. "Layoffs" or "Laid Off" shall mean the non -disciplinary termination of employment. 4. "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 iRd ial leave, ;;ftar ave, aPA leave of abSeRGe withe it paVall City state and/or federally protected and authorized leaves, but shall not include time spent on any ether auth„rized e�unauthorized leave of absence. 5. "Series" shall mean two or more classifications within a Department which require the performance of similar duties with the higher rank[R9 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. 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 Celassification shall, in that order be laid off before regular employees. 2. Employees within a CElassification shall be laid off in inverse order of Sseniority. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU'019-2^"2022-2025 10-69 27 3. An employee subject to Ltayoff in one Celassification shall have the right to Bbump a less senior employee in a lower ranking Celassification within a Sseries. An employee who has Bbumping rights shall notify the Department Director within three (3) working days after notice of Ltayoff of h',,r&lhcFtheir intention to exercise Bbumping Rrights. 4. In the event two or more employees in the same Celassification are subject to Ltayoff and have the same Sseniority, the employees shall be laid off following the Department Director's consideration of established -finalized performance evaluations. NOTICE Employees subject to Ltay-off shall be given at least thirty (30) days advance notice of the Ltayoff 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 Ltayoff. The re-employment list shall expire in eighteen (18) months. In the event a vacant position occurs in the Celass ification which the employee occupied at the time of Ltayoff, or a lower ranking Celassification within a Sseries, 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 ath,„s er he their 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 er he their name from the re-employment list by sending written confirmation to the Human Resources Director. �9: kyj4:7_1►[a]4 If an employee is Ltaid Oeff 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 "'ewpert B-eaGh up to ten (10) weeks of pay. B. SagRecruitment 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 NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-70 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 EMPI )y8eS ;R the „n;+Unit members -work either a 5/40 or 9/80 e�-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. Supervisors may approve a different alternating day off based on extenuating business circumstances. 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 the MOU. A grievance shall be filed according to the following procedure: Step 1: A grievance may be filed by any employee on rtheir own behalf, orjointly 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 NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019-20212022-2025 10-71 29 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 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. 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. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019 20212022-2025 10-72 30 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. (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 promotional probation, the employee shall have the right to return to",,,s er h,&Ptheir 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 he their 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 he their 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. IMM am.V"111, 0 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 NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2019 20212022-2025 10-73 31 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 toe protection and meet Department safety standards for construction sites. The Department Head or designee may approve exceptions to wearing uniforms. J. Telecommuting Program The City agrees to a telecommuting program that will provide for 80 hours per calendar year of telecommuting hours to be used in accordance with City policy. While unit members are invited to participate in policy formation, the terms and conditions are subject to management approval before the program will be implemented. Additionally, the provisions of the policy shall not trigger any right of grievance or appeal. This will be a pilot program which shall terminate upon the expiration of this MOU. Once approved, a copy of the policy governing this program will be attached as an addendum to this MOU. SeparabilityK. 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 20192^9'2022-2025 10-74 32 Executed this day of , 2-0192021: FOR THE NEWPORT BEACH CITY EMPLOYEES ASSOCIATION: By- tmd-4"'__ Ryan Stadlman, President ATTEST: Leilani Brown, City Clerk By: FOR THE CITY OF NEWPORT BEACH Brad Avery, Mayor AN CITY OF NEWPORT BEACH By: Aaron C. Harp, City AttorneVPeter Brown, SpeGial Counsel 10-75 NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 201�o-r9 20212022-2025 DRAFT OF PROPOSED SALARY SCHEDULE ADJUSTMENTS 33 Exhibit A NEWPORT BEACH PROFESSIONAL & TECHNICAL EMPLOYEES ASSOCIATION MOU Term: January 1, 2022 - December 31, 2025 1.0 % Cost of Living Adjustment Effective the pay period including January 1, 2022 1 Hourly pay rates are rounded to the nearest hundredth. z Monthly pay rates are rounded to nearest whole dollar. 3 EMP = Electrical Mechanical Plumbing 10-76 HOURLY PAY RATE 1 MONTHLY PAY RATE Z REPRESENTED POSITIONS MIN MAX MIN MAX Accountant $34.15 $47.98 $5,920 $8,317 Accountant, Senior $39.23 $55.21 $6,800 $9,569 Building Inspector 1 $33.69 $47.40 $5,839 $8,217 Building Inspector II $36.19 $50.95 $6,274 $8,832 Building Inspector, Principal $42.91 $60.37 $7,437 $10,463 Building Inspector, Senior $38.92 $54.78 $6,746 $9,495 Civil Engineer, Associate $45.20 $63.56 $7,835 $11,018 Civil Engineer, Senior $52.23 $73.47 $9,053 $12,734 Civil Engineer -Plan Check $47.40 $66.74 $8,217 $11,568 Civil Engineer -Plan Check, Senior $52.23 $73.47 $9,053 $12,734 Code Enforcement Officer 1 $28.58 $40.22 $4,953 $6,971 Code Enforcement Officer II $32.88 $46.30 $5,699 $8,026 Code Enforcement Officer, Senior $37.01 $52.06 $6,414 $9,025 Code Enforcement Officer, Trainee $23.82 $33.52 $4,129 $5,809 Code Enforcement Supervisor $42.91 $60.37 $7,437 $10,463 Construction Inspection Supervisor $42.91 $60.37 $7,437 $10,463 EMP 3 Plans Examiner $45.20 $63.56 $7,835 $11,018 Engineer, Associate $43.02 $60.57 $7,457 $10,499 Engineer, Junior $38.92 $54.80 $6,746 $9,499 Engineering Technician $29.81 $42.00 $5,166 $7,280 Engineering Technician, Senior $32.88 $46.30 $5,699 $8,026 Engineering Technician -Traffic $33.74 $47.49 $5,848 $8,231 Engineering Technician -Traffic, Senior $35.42 $49.86 $6,139 $8,643 Harbor Technician 1 $25.81 $36.31 $4,473 $6,294 IT Analyst $38.61 $54.30 $6,692 $9,412 IT Analyst, Senior $42.87 $60.30 $7,431 $10,451 IT Specialist 111 $35.81 $50.38 $6,207 $8,733 IT Technician $25.60 $36.01 $4,437 $6,242 IT Technician, Senior $30.72 $43.22 $5,325 $7,491 Management Assistant $33.74 $47.49 $5,848 $8,231 Permit Counter Supervisor $36.16 $50.89 $6,268 $8,822 Permit Technician 1 $28.43 $39.94 $4,927 $6,923 Permit Technician 11 $32.88 $46.30 $5,699 $8,026 Planner, Assistant $32.88 $46.30 $5,699 $8,026 Planner, Associate $36.24 $50.99 $6,282 $8,838 Planner, Senior $43.59 $61.28 $7,556 $10,622 Planning Technician $29.90 $42.08 $5,182 $7,294 Public Works Inspector 1 $33.69 $47.40 $5,839 $8,217 Public Works Inspector 11 $36.19 $50.95 $6,274 $8,832 Public Works Inspector, Senior $38.92 $54.78 $6,746 $9,495 Revenue Auditor $36.66 $51.59 $6,354 $8,942 Water Conservation Coordinator $37.76 $53.15 $6,545 $9,213 1 Hourly pay rates are rounded to the nearest hundredth. z Monthly pay rates are rounded to nearest whole dollar. 3 EMP = Electrical Mechanical Plumbing 10-76 DRAFT OF PROPOSED SALARY SCHEDULE ADJUSTMENTS 34 Exhibit A NEWPORT BEACH PROFESSIONAL & TECHNICAL EMPLOYEES ASSOCIATION MOU Term: January 1, 2022 - December 31, 2025 1.5 % Cost of Living Adjustment Effective the pay period including January 1, 2023 HOURLY PAY RATE 1 MONTHLY PAY RATE Z REPRESENTED POSITIONS MIN MAX MIN MAX Accountant $34.67 $48.70 $6,009 $8,442 Accountant, Senior $39.82 $56.03 $6,902 $9,713 Building Inspector 1 $34.19 $48.12 $5,927 $8,340 Building Inspector II $36.74 $51.72 $6,368 $8,964 Building Inspector, Principal $43.55 $61.27 $7,549 $10,620 Building Inspector, Senior $39.50 $55.60 $6,847 $9,637 Civil Engineer, Associate $45.88 $64.52 $7,952 $11,183 Civil Engineer, Senior $53.01 $74.57 $9,188 $12,925 Civil Engineer -Plan Check $48.12 $67.74 $8,340 $11,742 Civil Engineer -Plan Check, Senior $53.01 $74.57 $9,188 $12,925 Code Enforcement Officer 1 $29.01 $40.82 $5,028 $7,075 Code Enforcement Officer II $33.37 $47.00 $5,784 $8,146 Code Enforcement Officer, Senior $37.56 $52.85 $6,510 $9,160 Code Enforcement Officer, Trainee $24.18 $34.02 $4,191 $5,896 Code Enforcement Supervisor $43.55 $61.27 $7,549 $10,620 Construction Inspection Supervisor $43.55 $61.27 $7,549 $10,620 EMP 3 Plans Examiner $45.88 $64.52 $7,952 $11,183 Engineer, Associate $43.67 $61.48 $7,569 $10,657 Engineer, Junior $39.50 $55.62 $6,847 $9,641 Engineering Technician $30.25 $42.63 $5,244 $7,390 Engineering Technician, Senior $33.37 $47.00 $5,784 $8,146 Engineering Technician -Traffic $34.24 $48.20 $5,935 $8,354 Engineering Technician -Traffic, Senior $35.95 $50.61 $6,231 $8,772 Harbor Technician 1 $26.19 $36.85 $4,540 $6,388 IT Analyst $39.18 $55.12 $6,792 $9,554 IT Analyst, Senior $43.51 $61.20 $7,542 $10,608 IT Specialist III $36.35 $51.14 $6,300 $8,864 IT Technician $25.98 $36.55 $4,503 $6,335 IT Technician, Senior $31.18 $43.87 $5,405 $7,604 Management Assistant $34.24 $48.20 $5,935 $8,354 Permit Counter Supervisor $36.70 $51.66 $6,362 $8,954 Permit Technician 1 $28.85 $40.54 $5,001 $7,026 Permit Technician 11 $33.37 $47.00 $5,784 $8,146 Planner, Assistant $33.37 $47.00 $5,784 $8,146 Planner, Associate $36.78 $51.75 $6,376 $8,970 Planner, Senior $44.24 $62.20 $7,669 $10,781 Planning Technician $30.35 $42.71 $5,260 $7,404 Public Works Inspector 1 $34.19 $48.12 $5,927 $8,340 Public Works Inspector 11 $36.74 $51.72 $6,368 $8,964 Public Works Inspector, Senior $39.50 $55.60 $6,847 $9,637 Revenue Auditor $37.21 $52.36 $6,449 $9,076 Water Conservation Coordinator $38.33 $53.95 $6,643 $9,352 ' Hourly pay rates are rounded to the nearest hundredth. z Monthly pay rates are rounded to nearest whole dollar. 3 EMP = Electrical Mechanical Plumbing 10-77 DRAFT OF PROPOSED SALARY SCHEDULE ADJUSTMENTS 35 Exhibit A NEWPORT BEACH PROFESSIONAL & TECHNICAL EMPLOYEES ASSOCIATION MOU Term: January 1, 2022 - December 31, 2025 2.0 % Cost of Living Adjustment Effective the pay period including January 1, 2024 HOURLY PAY RATE 1 MONTHLY PAY RATE Z REPRESENTED POSITIONS MIN MAX MIN MAX Accountant $35.36 $49.68 $6,129 $8,611 Accountant, Senior $40.62 $57.16 $7,040 $9,907 Building Inspector 1 $34.88 $49.08 $6,046 $8,507 Building Inspector II $37.47 $52.75 $6,495 $9,143 Building Inspector, Principal $44.42 $62.50 $7,700 $10,833 Building Inspector, Senior $40.29 $56.71 $6,984 $9,830 Civil Engineer, Associate $46.80 $65.81 $8,111 $11,407 Civil Engineer, Senior $54.07 $76.06 $9,372 $13,184 Civil Engineer -Plan Check $49.08 $69.10 $8,507 $11,977 Civil Engineer -Plan Check, Senior $54.07 $76.06 $9,372 $13,184 Code Enforcement Officer 1 $29.59 $41.64 $5,128 $7,217 Code Enforcement Officer II $34.04 $47.94 $5,900 $8,309 Code Enforcement Officer, Senior $38.31 $53.90 $6,641 $9,343 Code Enforcement Officer, Trainee $24.66 $34.70 $4,275 $6,014 Code Enforcement Supervisor $44.42 $62.50 $7,700 $10,833 Construction Inspection Supervisor $44.42 $62.50 $7,700 $10,833 EMP 3 Plans Examiner $46.80 $65.81 $8,111 $11,407 Engineer, Associate $44.54 $62.71 $7,720 $10,870 Engineer, Junior $40.29 $56.74 $6,984 $9,834 Engineering Technician $30.86 $43.48 $5,349 $7,537 Engineering Technician, Senior $34.04 $47.94 $5,900 $8,309 Engineering Technician -Traffic $34.93 $49.16 $6,054 $8,521 Engineering Technician -Traffic, Senior $36.67 $51.62 $6,356 $8,948 Harbor Technician 1 $26.72 $37.59 $4,631 $6,516 IT Analyst $39.97 $56.22 $6,928 $9,745 IT Analyst, Senior $44.38 $62.42 $7,693 $10,820 IT Specialist III $37.08 $52.16 $6,426 $9,041 IT Technician $26.50 $37.28 $4,593 $6,462 IT Technician, Senior $31.81 $44.74 $5,513 $7,756 Management Assistant $34.93 $49.16 $6,054 $8,521 Permit Counter Supervisor $37.44 $52.69 $6,489 $9,133 Permit Technician 1 $29.43 $41.35 $5,101 $7,167 Permit Technician 11 $34.04 $47.94 $5,900 $8,309 Planner, Assistant $34.04 $47.94 $5,900 $8,309 Planner, Associate $37.52 $52.79 $6,503 $9,150 Planner, Senior $45.13 $63.44 $7,822 $10,997 Planning Technician $30.95 $43.57 $5,365 $7,552 Public Works Inspector 1 $34.88 $49.08 $6,046 $8,507 Public Works Inspector 11 $37.47 $52.75 $6,495 $9,143 Public Works Inspector, Senior $40.29 $56.71 $6,984 $9,830 Revenue Auditor $37.95 $53.41 $6,578 $9,258 Water Conservation Coordinator $39.09 $55.03 $6,776 $9,539 ' Hourly pay rates are rounded to the nearest hundredth. z Monthly pay rates are rounded to nearest whole dollar. 3 EMP = Electrical Mechanical Plumbing 10-78 DRAFT OF PROPOSED SALARY SCHEDULE ADJUSTMENTS 36 Exhibit A NEWPORT BEACH PROFESSIONAL & TECHNICAL EMPLOYEES ASSOCIATION MOU Term: January 1, 2022 - December 31, 2025 2.0 % Cost of Living Adjustment Effective the pay period including January 1, 2025 HOURLY PAY RATE 1 MONTHLY PAY RATE Z REPRESENTED POSITIONS MIN MAX MIN MAX Accountant $36.07 $50.67 $6,251 $8,783 Accountant, Senior $41.43 $58.30 $7,181 $10,105 Building Inspector 1 $35.58 $50.06 $6,167 $8,677 Building Inspector II $38.22 $53.81 $6,625 $9,326 Building Inspector, Principal $45.31 $63.75 $7,854 $11,049 Building Inspector, Senior $41.10 $57.85 $7,124 $10,026 Civil Engineer, Associate $47.73 $67.12 $8,274 $11,635 Civil Engineer, Senior $55.15 $77.58 $9,560 $13,447 Civil Engineer -Plan Check $50.06 $70.48 $8,677 $12,216 Civil Engineer -Plan Check, Senior $55.15 $77.58 $9,560 $13,447 Code Enforcement Officer 1 $30.18 $42.47 $5,231 $7,361 Code Enforcement Officer II $34.72 $48.90 $6,018 $8,475 Code Enforcement Officer, Senior $39.08 $54.98 $6,773 $9,530 Code Enforcement Officer, Trainee $25.16 $35.39 $4,361 $6,135 Code Enforcement Supervisor $45.31 $63.75 $7,854 $11,049 Construction Inspection Supervisor $45.31 $63.75 $7,854 $11,049 EMP 3 Plans Examiner $47.73 $67.12 $8,274 $11,635 Engineer, Associate $45.43 $63.97 $7,875 $11,087 Engineer, Junior $41.10 $57.87 $7,124 $10,031 Engineering Technician $31.48 $44.35 $5,456 $7,688 Engineering Technician, Senior $34.72 $48.90 $6,018 $8,475 Engineering Technician -Traffic $35.63 $50.14 $6,175 $8,692 Engineering Technician -Traffic, Senior $37.40 $52.65 $6,483 $9,127 Harbor Technician 1 $27.25 $38.34 $4,724 $6,646 IT Analyst $40.77 $57.34 $7,066 $9,939 IT Analyst, Senior $45.27 $63.67 $7,847 $11,037 IT Specialist III $37.82 $53.21 $6,555 $9,222 IT Technician $27.03 $38.03 $4,685 $6,591 IT Technician, Senior $32.44 $45.64 $5,623 $7,911 Management Assistant $35.63 $50.14 $6,175 $8,692 Permit Counter Supervisor $38.18 $53.74 $6,619 $9,316 Permit Technician 1 $30.02 $42.17 $5,203 $7,310 Permit Technician 11 $34.72 $48.90 $6,018 $8,475 Planner, Assistant $34.72 $48.90 $6,018 $8,475 Planner, Associate $38.27 $53.84 $6,633 $9,333 Planner, Senior $46.03 $64.71 $7,979 $11,217 Planning Technician $31.57 $44.44 $5,473 $7,703 Public Works Inspector 1 $35.58 $50.06 $6,167 $8,677 Public Works Inspector 11 $38.22 $53.81 $6,625 $9,326 Public Works Inspector, Senior $41.10 $57.85 $7,124 $10,026 Revenue Auditor $38.71 $54.48 $6,710 $9,443 Water Conservation Coordinator $39.87 $56.13 $6,911 $9,729 ' Hourly pay rates are rounded to the nearest hundredth. z Monthly pay rates are rounded to nearest whole dollar. 3 EMP = Electrical Mechanical Plumbing 10-79 37 Exhibit B 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 (GASP) 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/11/III $85 Cisco Certified Network Associate (CCNA) IT Specialist 1/II/III $85 MS Certified Technology Specialist (MCTS) IT Specialist 1/11/111 $75 MS Certified Systems Administrators (MCSA) IT Specialist 1/11/111 $85 MS Certified Systems Engineers (MCSE) IT Specialist 1/11/111 $75 MS Certified Professional (MCP)* IT Specialist 1/II/III $75 CompTIA A+ IT Specialist 1/II/III $75 CompTIA Network+ IT Specialist 1/II/III $75 Virtual Infrastructure Professional (VIP) or VMWare Certified Professional (VCP) IT Specialist I/II/III $75 Land Surveyor in Training (LSIT)* or Fundamental of Surveying (FS)* IT Analyst $75 10-80 Exhibit B Approved Certifications - Professional and Technical Employees Association CERTIFICATE ELIGIBLE POSITIONS MONTHLY AMOUNT Public Works & Building Division Building Inspector 1/II 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) 10-81 39 Exhibit B 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 refundable if APA Planner, Senior application is Planning Technician rejected Certificates sunsetted with MOU term: * MOU 2012 - 2015 ** MOU 2015 - 2018 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) 10-82 Key Contract Terms Cost of Living Adjustment Other Proposals City Paid Disability Premiums Z Summary of Proposal Cost 3 Baseline Compensation Base Pay Supplemental Pays Overtime Pension Contribution Cafeteria Plan Other City Paid Benefits SubTotal Other Proposals Deferred Compensation $30 per member Deferred Compensation Plan (Groups Tiered) Disability Premiums One-time: Deferred Compensation Bonus - $500 in year 2 only SubTotal Total City of Newport Beach ProfTech - Analysis Tentative Agreement October 26, 2021 1.00% 1.50% 1% Deduction Eliminated ATTACHMENT D 2.00% 2.00% $8,618,661 $86,187 $216,759 $393,468 $573,710 $1,270,124 73,275 661 1,662 3,017 4,398 9,737 287,063 2,871 7,220 13,105 19,109 42,304 2,451,995 24,500 61,617 111,848 163,084 361,049 1,614,600 - - - - - 694,754 4,317 10,858 19,710 28,740 63,626 $13,740,348 $118,535 $298,116 $541,148 $789,041 $1,746,840 - 28,080 28,080 28,080 84,240 - 4,440 5,640 6,780 16,860 56,268 57,112 58,254 59,419 231,054 - 39,000 - - 39,000 - 56,268 128,632 91,974 94,279 371,154 $ 13,740,348 $ 174,803 $ 426,748 $ 633,123 $ 883,321 $ 2,117,994 Cumulative Impact on Employee Compensation Base Salary Increase 5 1.00% 2.52% 4.57% 6.66% Pre -Tax Take -Home Pay Increase Z 2.30% 3.82% 5.87% 7.96% Total Compensation Increase 6 1.27% 3.11% 4.61% 6.43% Notes 1 One percent of current total compensation is equal to $137,403. Z The impact of the elimination of the 1% post -tax payroll deduction currently imposed on employees on take-home pay is roughly equivalent to a 1.3% increase in salary. 3 Costs shown in year two reflect the cumulative budget impact in each year as compared to the current budgeted amounts. 4 Includes Medicare, compensated absences, employee assistance program, phone allowances, life insurance, and retiree health savings. 5 Percentage shown in each year is as compared to current base salary, not the prior year. 6 Measured based on the total of all pay and benefits. Percentage shown in each year is as compared to current total compensation, not the prior year. 10-83