HomeMy WebLinkAbout06 - Approving Side Letter Agreements with Labor Groups Representing City EmployeesTO:
FROM:
CITY OF
NEWPORT BEACH
City Council Staff Report
September 24, 2024
Agenda Item No. 6
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
Barbara J. Salvini, Human Resources Director - 949-644-3300,
bsalvini@newportbeachca.gov
PREPARED BY: Barbara J. Salvini, Human Resources Director
TITLE: Resolution No. 2024-70: Approving Side Letter Agreements with
Labor Groups Representing City Employees
ABSTRACT:
The City Council wishes to address the continued inflationary pressures City of Newport
Beach employees are experiencing by extending prior side letters of agreement which
provided a reduced employee retirement benefit contribution. If approved, this extension
will impact employees who are members of the Newport Beach City Employees
Association, Newport Beach Professional and Technical Association and Newport Beach
Employees League.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly-,
b) Adopt Resolution No. 2024-70, A Resolution of the City of Newport Beach, California,
Approving Side Letter Agreements with Labor Groups Representing City Employees;
and
c) Approve Budget Amendment No. 25-018 appropriating $220,750 to various salary and
benefit accounts.
DISCUSSION:
The City is currently in multi -year labor agreements with the Newport Beach City
Employees Association, Newport Beach Professional and Technical Association and
Newport Beach Employees League. The three agreements have an effective date of
January 1, 2022, and expire in December 2025. The current Memoranda of
Understanding (MOUs) cover wages, benefits and other terms and conditions of
employment for these represented employees.
Since entering the MOUs, the City Council has approved side letters of agreement to
provide economic relief to these association members, however, inflationary pressures
continue and affect recruitment and retention efforts. As a result, the City Council wishes
to extend its offer of temporary relief to City employees who are members of the Newport
Beach City Employees Association, Newport Beach Professional and Technical
Association and Newport Beach Employees League.
6-1
Resolution No. 2024-70: Approving Side Letter Agreements
with Labor Groups Representing City Employees
September 24, 2024
Page 2
Side Letter Agreements have been executed which temporarily reduce the employee
retirement contribution through the last full pay period in December 2025, thereby adding
a one-year extension to the prior side letters of agreement for these groups which
provided for the reduction through December 2024.
If the City Council adopts Resolution No. 2024-70, City staff will work to implement the
provisions as soon as practicable.
FISCAL IMPACT:
As a result of approving the side letters of agreement for the above -referenced labor
groups, the attached budget amendment will add approximately $220,000 for the
remainder of the fiscal year. Funding will come from the Fiscal Year 2023-24 General
Fund year-end surplus.
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.
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 — Resolution No. 2024-70
Attachment B — Costing Summary
Attachment C — Budget Amendment No. 25-018
6-2
ATTACHMENT A
RESOLUTION NO. 2024-70
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, APPROVING
SIDE LETTER AGREEMENTS WITH LABOR GROUPS
REPRESENTING CITY EMPLOYEES
WHEREAS, the City Council of the City of Newport Beach ("City Council")
previously adopted Resolution No. 2001-50, the "Employer -Employee Relations
Resolution," pursuant to authority contained in the Meyers-Milias-Brown Act, Government
Code 3500, et seq.;
WHEREAS, the City of Newport Beach ("City") promotes effective communication
and collaborative working relationships with its employees to foster improved relations
while balancing good management practices;
WHEREAS, the City previously entered into a Memorandum of Understanding
with Newport Beach City Employees Association ("NBCEA"), a recognized organization,
for the term of January 1, 2022, through December 31, 2025;
WHEREAS, the City previously entered into a Memorandum of Understanding
with the Newport Beach Professional and Technical Employees Association ("NBPTEA"),
a recognized organization, for the term of January 1, 2022, through December 31, 2025;
WHEREAS, the City previously entered into a Memorandum of Understanding
with the Newport Beach Employees League ("League"), a recognized organization, for
the term of January 1, 2022, through December 31, 2025;
WHEREAS, the country has continued to experience inflation and healthcare cost
increases since the approval of the Memoranda of Understanding and amendments
thereto;
WHEREAS, the City Council desires to amend the Memoranda of Understanding
between the City and certain recognized organizations by approving Side Letters of
Agreement, which provide for an extension of a temporary reduction in the employee
retirement percentage contributions, as set forth in Exhibits A through C; and
WHEREAS, by adopting this resolution, the City Council also desires to replace
certain language contained in the existing Associations' Memoranda of Understanding by
adopting the Side Letters of Agreement attached hereto as Exhibits A through C to serve
as the controlling language for the remaining term of the respective Memoranda of
Understanding.
6-3
Resolution No. 2024-
Page 2 of 3
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 2: The City Council hereby approves, and authorizes the Mayor to
execute, all the Side Letters of Agreement attached hereto as set forth in Exhibits A
through C, which are incorporated herein by this reference. The employee retirement
percentage contributions referenced in the attached Side Letters of Agreement shall
prevail over any previously adopted employee retirement percentage contributions that
conflict herewith.
Section 3: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this resolution. The City
Council hereby declares that it would have passed this resolution, and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 4: The City Council finds the adoption of this resolution is not subject to
the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the
activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly or
indirectly.
Resolution No. 2024-
Page 3 of 3
Section 5: This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 24th day of September, 2024.
Will O'Neill
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CIT ATTORNEY' FFICE
Aa on C. Harp
City Attorney
Attachments: Exhibit A:
Side Letter of Agreement between the City and NBCEA
Exhibit B:
Side Letter of Agreement between the City and NBPTEA
Exhibit C:
Side Letter of Agreement between the City and League
6-5
EXHIBIT A
SIDE LETTER OF AGREEMENT
BETWEEN
CITY OF NEWPORT BEACH
AND
THE NEWPORT BEACH CITY EMPLOYEES ASSOCIATION
This Side Letter of Agreement ("Agreement') is made and entered into this 24th day of
September 2024, by and between the City of Newport Beach ("City") and the Newport
Beach City Employees Association ("Association") (collectively "Parties") with respect to
the following:
WHEREAS, on November 16, 2021, the City Council adopted Resolution No.
2021-109 approving a Memorandum of Understanding ("MOU") between the Parties with
a term of January 1, 2022, through December 31, 2025;
WHEREAS, given existing inflationary pressures and to aid in the recruitment and
retention of valuable employees, the Parties wish to modify the MOU; and
WHEREAS, this Agreement will not have the effect of an agreement, and will not
be binding on either party, until it is ratified by the affected bargaining unit and approved
by the City Council.
NOW, THEREFORE, it is mutually agreed between the Parties as follows:
1. The following language in Section 4, Fringe Benefits, Subsection D,
Retirement Benefit, Subsection 2, Employee Contributions, of the MOU, which was
previously amended pursuant to the Side Letter Agreement dated November 29, 2022, is
hereby amended and shall read as follows:
"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 Ca1PERS 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.
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 Ca1PERS as contributions
toward either the Member or Employer rate, as provided under Government Code
Section 20516(f).
NBCEA Side Letter Agreement
Page 1 of 4
Under a separate agreement and ratified via a contract amendment with
CalPERS in 2008, Tier I employees shall contribute 2.42% compensation earnable (as
cost sharing) per Government Code section 20516(a).
Tier I Employees - shall contribute a total employee contribution of
13% as follows: Tier I — 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).
Temporary Reduction. Effective the pay period that includes January
1, 2023, Tier I Employees shall contribute a total employee contribution of 11.5% as
follows: Tier I — Eight percent (8%) member contributions, 2.42% of compensation
earnable as cost sharing per Government Code section 20516(a) and 1.08% of
compensation earnable as cost sharing per Government Code section 20516(f). This
reduction in the employee contribution rate sunsets at the end of the last full pay period
in December 2025. Accordingly, effective the pay period that includes January 1,
2026, Tier I Employees shall contribute a total employee contribution of 13% as
follows: Tier I — 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 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).
Temporary Reduction. Effective the pay period that includes January
1, 2023, Tier II Employees shall contribute a total employee contribution of 11.5% as
follows: seven percent (7%) (compensation earnable) member contribution and four
and one-half percent (4.5%) of compensation earnable as cost sharing per Government
Code section 20516(f). This reduction in the employee contribution rate sunsets at the
end of the last full pay period in December 2025. Accordingly, effective the pay
period that includes January 1, 2026, Tier 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 III Employees - The minimum statutory employee contribution for
employees in Tier III is subject to the provisions of PEPRA and equals 50% of the
"total normal cost". Tier III 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.
Temporary Reduction. Effective the pay period that includes January
1, 2023, the minimum statutory employee contribution for employees in Tier III is
NBCEA Side Letter Agreement
Page 2 of 4
6-7
subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier
III 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 no less than 11.5% of pensionable compensation (i.e.,
the greater of 11.5% or 50% of the "total normal cost"). This reduction in the employee
contribution rate sunsets at the end of the last full pay period in December 2025.
Accordingly, effective the pay period that includes January 1, 2026, the minimum
statutory employee contribution for employees in Tier III is subject to the provisions
of PEPRA and equals 50% of the "total normal cost". Tier III 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
no less than 13% of pensionable compensation (i.e., the greater of 13% or 50% of the
"total normal cost").
The City contracts with Ca1PERS for the 41h 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)."
2. Except as expressly modified herein, all other provisions, terms, and
covenants set forth in the MOU shall remain unchanged and shall be in full force and effect.
Signatures on the next page
NBCEA Side Letter Agreement
Page 3 of 4
.:
Executed this 14�day of S c �fe, 1p,4f , 2024
ATTEST:
Ra
FOR THE NEWPORT BEACH CITY EMPLOYEES ASSOCIATION:
By:/�& o—,
Mariah Stinson, President
FOR THE CITY OF NEWPORT BEACH:
Will O'Neill, Mayor
CITY OF NEWPORT BEACH
APPROVED AS TO FORM:
Aaron C. Harp, City Attorney
Leilani Brown, City Clerk
NBCEA Side Letter Agreement
Page 4 of 4
• •
*:/:II Ski 3
SIDE LETTER OF AGREEMENT
BETWEEN
CITY OF NEWPORT BEACH
AND
THE NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES
ASSOCIATION
This Side Letter of Agreement ("Agreement") is made and entered into this 24th day of
September 2024, by and between the City of Newport Beach ("City") and the Newport
Beach Professional and Technical Employees Association ("Association") (collectively
"Parties") with respect to the following:
WHEREAS, on November 16, 2021, the City Council adopted Resolution No.
2021-109 approving a Memorandum of Understanding ("MOU") between the Parties with
a term of January 1, 2022, through December 31, 2025;
WHEREAS, given existing inflationary pressures and to aid in the recruitment and
retention of valuable employees, the Parties wish to modify the MOU; and
WHEREAS, this Agreement will not have the effect of an agreement, and will not
be binding on either party, until it is ratified by the affected bargaining unit and approved
by the City Council.
NOW, THEREFORE, it is mutually agreed between the Parties as follows:
1. The following language in Section 4, Fringe Benefits, Subsection D,
Retirement Benefit, Subsection 2, Employee Contributions, of the MOU, which was
previously amended pursuant to the Side Letter Agreement dated November 29, 2022, is
hereby amended and shall read as follows:
"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.
Employee retirement contributions that are in addition to the nonnal
CalPERS Member Contribution (of 7% or 8%) shall be calculated on base pay, special
pays, and other pays normally reported as "PERSable" compensation (known either
as compensation earnable or pensionable 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 Government Code Section 20516(f).
NBPTEA Side Letter Agreement
Page 1 of 4
6-10
Under a separate agreement and ratified via a contract amendment with
CalPERS in 2008, Tier I employees shall contribute 2.42% compensation earnable (as
cost sharing) per Government Code section 20516(a).
Tier I Employees - shall contribute a total employee contribution of
13% as follows: Tier I — 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).
Temporary Reduction. Effective the pay period that includes January
1, 2023, Tier I Employees shall contribute a total employee contribution of 11.5% as
follows: Tier I — Eight percent (8%) member contributions, 2.42% of compensation
earnable as cost sharing per Government Code section 20516(a) and 1.08% of
compensation earnable as cost sharing per Government Code section 20516(f). This
reduction in the employee contribution rate sunsets at the end of the last full pay period
in December 2025. Accordingly, effective the pay period that includes January 1,
2026, Tier I Employees shall contribute a total employee contribution of 13% as
follows: Tier I — 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 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).
Temporary Reduction. Effective the pay period that includes January
1, 2023, Tier II Employees shall contribute a total employee contribution of 11.5% as
follows: seven percent (7%) (compensation earnable) member contribution and four
and one-half percent (4.5%) of compensation earnable as cost sharing per Government
Code section 20516(f). This reduction in the employee contribution rate sunsets at the
end of the last full pay period in December 2025. Accordingly, effective the pay
period that includes January 1, 2026, Tier 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 III Employees - The minimum statutory employee contribution for
employees in Tier III is subject to the provisions of PEPRA and equals 50% of the
"total normal cost". Tier III 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.
Temporary Reduction. Effective the pay period that includes January
1, 2023, the minimum statutory employee contribution for employees in Tier III is
NBPTEA Side Letter Agreement
Page 2 of 4
6-11
subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier
III 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 no less than 11.5% of pensionable compensation (i.e.,
the greater of 11.5% or 50% of the "total normal cost"). This reduction in the employee
contribution rate sunsets at the end of the last full pay period in December 2025.
Accordingly, effective the pay period that includes January 1, 2026, the minimum
statutory employee contribution for employees in Tier III is subject to the provisions
of PEPRA and equals 50% of the "total normal cost". Tier III 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
no less than 13% of pensionable compensation (i.e., the greater of 13% or 50% of the
"total normal cost").
The City contracts with CalPERS for the 4ch 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)."
2. Except as expressly modified herein, all other provisions, terms, and
covenants set forth in the MOU shall remain unchanged and shall be in full force and effect.
Signatures on the next page
NBPTEA Side Letter Agreement
Page 3 of 4
6-12
Executed this d day of AM4' , 2024
ATTEST:
IM
FOR THE NEWPORT BEACH PROFESSIONAL AND TECHNICAL
EMPLOYEES ASSOCIATION:
By: bulqu LVUL.&—
Moni4ue Navarrete, President
FOR THE CITY OF NEWPORT BEACH:
Ln
Will O'Neill, Mayor
CITY OF NEWPORT BEACH
APPROVED AS TO FORM:
By:
Xard�n C. Harp, City Attorney
Leilani Brown, City Clerk
NBPTEA Side Letter Agreement
Page 4 of 4
6-13
EXHIBIT C
SIDE LETTER OF AGREEMENT
BETWEEN
CITY OF NEWPORT BEACH
AND
THE NEWPORT BEACH EMPLOYEES LEAGUE
This Side Letter of Agreement ("Agreement") is made and entered into this 24th day of
September 2024, by and between the City of Newport Beach ("City") and the Newport
Beach Employees League ("Association") (collectively "Parties") with respect to the
following:
WHEREAS, on January 25, 2022, the City Council adopted Resolution No. 2022-
08 approving a Memorandum of Understanding ("MOU") between the Parties with a term
of January 1, 2022, through December 31, 2025;
WHEREAS, given existing inflationary pressures and to aid in the recruitment and
retention of valuable employees, the Parties wish to modify the MOU; and
WHEREAS, this Agreement will not have the effect of an agreement, and will not
be binding on either party, until it is ratified by the affected bargaining unit and approved
by the City Council.
NOW, THEREFORE, it is mutually agreed between the Parties as follows:
1. The following language in Section 4, Fringe Benefits, Subsection D,
Retirement Benefit, Subsection 2, Employee Contributions, of the MOU, which was
previously amended pursuant to the Side Letter Agreement dated November 29, 2022, is
hereby amended and shall read as follows:
"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 Ca1PERS 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.
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 Ca1PERS as contributions
toward either the Member or Employer rate, as provided under Government Code
Section 20516(f).
Under a separate agreement and ratified via a contract amendment with
Ca1PERS in 2008, Tier I employees shall contribute 2.42% compensation earnable (as
cost sharing) per Government Code section 20516(a).
NBEL Side Letter Agreement
Page 1 of 4
6-14
Tier I Employees - shall contribute a total employee contribution of
13% as follows: Tier I — 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).
Temporary Reduction. Effective the pay period that includes January
1, 2023, Tier I Employees shall contribute a total employee contribution of 11.5% as
follows: Tier I — Eight percent (8%) member contributions, 2.42% of compensation
earnable as cost sharing per Government Code section 20516(a) and 1.08% of
compensation earnable as cost sharing per Government Code section 20516(f). This
reduction in the employee contribution rate sunsets at the end of the last full pay period
in December 2025. Accordingly, effective the pay period that includes January 1,
2026, Tier I Employees shall contribute a total employee contribution of 13% as
follows: Tier I — 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 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).
Temporary Reduction. Effective the pay period that includes January
1, 2023, Tier II Employees shall contribute a total employee contribution of 11.5% as
follows: seven percent (7%) (compensation earnable) member contribution and four
and one-half percent (4.5%) of compensation earnable as cost sharing per Government
Code section 20516(f). This reduction in the employee contribution rate sunsets at the
end of the last full pay period in December 2025. Accordingly, effective the pay
period that includes January 1, 2026, Tier 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 III Employees - The minimum statutory employee contribution for
employees in Tier III is subject to the provisions of PEPRA and equals 50% of the
"total normal cost". Tier III 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.
Temporary Reduction. Effective the pay period that includes January
1, 2023, the minimum statutory employee contribution for employees in Tier III is
subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier
III 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 no less than 11.5% of pensionable compensation (i.e.,
NBEL Side Letter Agreement
Page 2 of 4
6-15
the greater of 11.5% or 50% of the "total normal cost"). This reduction in the employee
contribution rate sunsets at the end of the last full pay period in December 2025.
Accordingly, effective the pay period that includes January 1, 2026, the minimum
statutory employee contribution for employees in Tier III is subject to the provisions
of PEPRA and equals 50% of the "total normal cost". Tier III 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
no less than 13% of pensionable compensation (i.e., the greater of 13% or 50% of the
"total normal cost").
The City contracts with CalPERS for the 0 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)."
2. Except as expressly modified herein, all other provisions, terms, and
covenants set forth in the MOU shall remain unchanged and shall be in full force and effect.
Signatures on the next page
NBEL Side Letter Agreement
Page 3 of 4
6-16
Executed this day of vSi— , 2024
FOR THE NEWPORT BEACH EMPLOYEES LEAGUE:
By: � , �D
Patrick Piersall, President
FOR THE CITY OF NEWPORT BEACH:
011A
Will O'Neill, Mayor
CITY OF NEWPORT BEACH
APPROVED AS TO FORM:
By: �� �--
Aaron C. Harp, City Attorney
ATTEST:
Leilani Brown, City Clerk
NBEL Side Letter Agreement
Page 4 of 4
6-17
Attachment B
Costing Summary
City of Newport Beach
Costing for Side Letters
September 24, 2024
Additional City Pickup of CalPERS through December`2025 1.5% Deduction Reduction
City Employees Association (CEA) 64,453 67,676
Employees League (League) 71,026 74,577
NB Professional & Technical Employees Association (Prof & Tech) 85,271 89,535
Subtotal CalPERS Pickup 220,750 231,787
Total Additional Cost 220,751'„ 21,787
6-19
Attachment C
Budget Amendment
6-20
r�V/PC)kT
City of Newport Beach
�5t 42BUDGET AMENDMENT
"`'Fr," 2024-25 BA#: 25-018
Department: Human Resources
ONETIME: 0 Yes ❑ No
Requestor: Barbara Salvini
Approvals
❑ CITY MANAGER'S APPROVAL ONLY
Finance Director: q/jrw 0j *wam Date 111117,1
COUNCIL APPROVAL REQUIRED lCity Clerk: Date
EXPLANATION FOR REQUEST:
To reflect the additional city pickup of CalPERS contribution rates through June 2025 for applicable bargaining units. Funds are ❑ from existing budget appropriations
appropriated from the fiscal year end FY 24 surplus ending balance. ❑ from additional estimated revenues
El from unappropriated fund balance
REVENUES
Fund #
Org
Object
Project Description
Increase or (Decrease) $
100
10099
691010
INTERFUNDTRANSFERS - TRANSFER IN GENERAL FUND
3,678.00
752
75299
691010
INTERFUNDTRANSFERS - TRANSFER IN GENERAL FUND
5,518.00
764
76499
691010
INTERFUNDTRANSFERS - TRANSFER IN GENERAL FUND
11,472.00
Subtotal; 20,668.00
Fund #
Org
Object
Project Description
Increase or (Decrease) $
010
01010005
724001
CITY CLERK ADMIN - PENSION EE CONTRIB MISC
1,937.00
D10
01025005
724001
HUMAN RESOURCES - PENSION EE CONTRIB MISC
610.00
010
01030005
724001
FINANCE ADMIN - PENSION EE CONTRIB MISC
498.00
010
01030302
724001
FINANCIAL REPORTING - PENSION EE CONTRIB MISC
4,504.00
010
01030304
724001
PURCHASING - PENSION EE CONTRIB MISC
3,051.00
010
0103031
724001
REVENUE SERVICES - PENSION EE CONTRIB MISC
7,735.00
D10
01040005
724001
FIRE ADMINISTRATION - PENSION EE CONTRIB MISC
1,601.00
010
01040404
724001
EMERGENCY MEDICAL SERVICES - PENSION EE CONTRIB MISC
305.00
010
01040405
724001
JUNIOR LIFEGUARDS - PENSION EE CONTRIB MISC
485.00
010
01040406
724001
LIFEGUARD OPERATIONS - PENSION EE CONTRIB MISC
731.00
010
01050005
724001
CDD ADMIN - PENSION EE CONTRIB MISC
2,076.00
010
0105041
724001
INSPECTIONS - PENSION EE CONTRIB MISC
9,284.00
010
0105042
724001
PLAN CHECKS/PERMITS - PENSION EE CONTRIB MISC
15,788.00
010
01050501
724001
PLANNING - PENSION EE CONTRIB MISC
9,270.00
010
01050503
724001
CODE ENFORCEMENT- PENSION EE CONTRIB MISC
5,188.00
010
01050505
724001
REAL PROPERTY GEN FUND - PENSION EE CONTRIB MISC
620.00
D10
01060005
724001
LIBRARY ADMIN - PENSION EE CONTRIB MISC
5,206.00
010
0106021
724001
CDM BRANCH LIBRARY - PENSION EE CONTRIB MISC
1,319.00
D10
0106022
724001
MARINERS BRANCH LIBRARY- PENSION EE CONTRIB MISC
4,023.00
010
0106023
724001
CENTRAL LIBRARY- PENSION EE CONTRIB MISC
9,425.00
010
0106024
724001
BALBOA BRANCH LIBRARY- PENSION EE CONTRIB MISC
826.00
010
01060601
724001
TECHNICAL PROCESSING - PENSION EE CONTRIB MISC
1,631.00
D10
01070005
724001
RECREATION ADMIN - PENSION EE CONTRIB MISC
1,768.00
010
0107010
724001
PROGRAM SUPPORT- PENSION EE CONTRIB MISC
5,624.00
010
0107012
724001
ADULT SPORTS - PENSION EE CONTRIB MISC
599.00
D10
0107014
724001
YOUTH PROGRAMS - PENSION EE CONTRIB MISC
535.00
010
0107018
724001
PARK PATROL - PENSION EE CONTRIB MISC
1,082.00
010
0107020
724001
NEWPORT COAST COMMUNITY CENTER - PENSION EE CONTRIB MISC
1,146.00
D10
0107021
724001
COMMUNITY YOUTH CENTER - PENSION EE CONTRIB MISC
541.00
6-21
D10
0107022
724001
CIVIC CENTER RENTALS - PENSION EE CONTRIB MISC
505.00
D10
0107023
724001
MARINA PARK - PENSION EE CONTRIB MISC
1,562.00
D10
0107024
724001
FACILITY MAINT & OPERATIONS - PENSION EE CONTRIB MISC
1,235.00
D10
0107031
724001
OASIS - PENSION EE CONTRIB MISC
4,088.00
D10
0107032
724001
OASIS FITNESS CENTER - PENSION EE CONTRIB MISC
651.00
D10
0107033
724001
OASIS TRANSPORTATION - PENSION EE CONTRIB MISC
3,193.00
D10
01080005
724001
PUBLIC WORKS ADMIN - PENSION EE CONTRIB MISC
4,702.00
D10
0108011
724001
WQ/CONSERVATION/ENVIRONMENTAL- PENSION EE CONTRIB MISC
935.00
010
0108012
724001
TRAFFIC & TRANSPORTATION - PENSION EE CONTRIB MISC
10,592.00
D10
0108031
724001
PARKS - PENSION EE CONTRIB MISC
4,810.00
D10
0108032
724001
TREES - PENSION EE CONTRIB MISC
1,574.00
D10
0108041
724001
FACILITY MAINTENANCE - PENSION EE CONTRIB MISC
4,689.00
D10
0108061
724001
STREETS/ASPHALT- PENSION EE CONTRIB MISC
16,107.00
010
01080801
724001
ENGINEERING SERVICES - PENSION EE CONTRIB MISC
12,613.00
D10
0109062
724001
STORM DRAINS/STREET SWEEPING - PENSION EE CONTRIB MISC
4,728.00
D10
0109063
724001
STREET LIGHT/ELECTRICAL - PENSION EE CONTRIB MISC
1,433.00
100
10045451
724001
HARBOR DEPARTMENT- PENSION EE CONTRIB MISC
3,678.00
160
16003
724001
ENVIRONMENTAL LIAB NON OP - PENSION EE CONTRIB MISC
543.00
701
7019052
724001
WATER SYSTEM SERVICE - PENSION EE CONTRIB MISC
21,882.00
711
7119061
724001
WASTEWATER OPERATIONS - PENSION EE CONTRIB MISC
6,832.00
752
7529031
724001
EQUIPMENT MAINTENANCE - PENSION EE CONTRIB MISC
5,518.00
764
76420203
724001
CITY MGR INFORMTN TECHNOLOGY- PENSION EE CONTRIB MISC
11,472.00
010
01099
991100
GENERAL FUND INTERFUND TRANSFR -TRANSFER OUTTIDELAND FUND
3,678.00
010
01099
991752
GENERAL FUND INTERFUND TRANSFR -TRANSFER OUT EQUIPMENT FUND
5,518.00
010
01099
991764
GENERAL FUND INTERFUND TRANSFR - TRANSFER OUT IT ISF
11,472.00
iubtotaiF 241,418.00
Fund #
Object
Description
Increase or (Decrease) $
010
300000
GENERAL FUND - FUND BALANCE CONTROL
(191,493.00)
100
300000
TIDE & SUBMERGED LANDS FUND - FUND BALANCE CONTROL
701
300000
WATER ENTERPRISE FUND - FUND BALANCE CONTROL
(21,882.00)
711
300000
WASTEWATER ENTERPRISE FUND - FUND BALANCE CONTROL
(6,832.00)
752
300000
EQUIPMENT FUND - FUND BALANCE CONTROL
764
300000
IT ISF - FUND BALANCE CONTROL
-
Subtotal-(220,750.00)
Fund Balance Change Required
6-22