HomeMy WebLinkAbout12 - Tentative Agreement with Newport Beach Employees LeagueQ �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
June 10, 2025
Agenda Item No. 12
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 - 949-644-3259,
bsalvini@newportbeachca.gov
TITLE: Tentative Agreement with Newport Beach Employees League
ABSTRACT:
The Memorandum of Understanding (MOU) between the City of Newport Beach and the
Newport Beach Employees League (LEAGUE or Union) expires December 31, 2025.
At the City Council's direction, the parties began negotiating the terms and conditions of
a new agreement well in advance of the expiration date, with the goal of implementing a
successor agreement with enhanced benefits as soon as possible. A Tentative
Agreement (Agreement) has been reached. The Agreement addresses wages, benefits
and other terms and conditions of employment for employees represented by LEAGUE
and was negotiated 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 contract, the Agreement with LEAGUE is being presented at
this time for public review and comment. The complete Agreement, which spans the
period June 14, 2025 through June 30, 2028, will be presented for City Council
consideration at the June 24, 2025 regular meeting.
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;
and
b) Receive and consider the Tentative Agreement between the City of Newport Beach
and the Newport Beach Employees League.
DISCUSSION:
LEAGUE represents approximately 100 non -safety employees in municipal operations
and utilities occupations, including park, beach and street maintenance; water and
wastewater services; and equipment/mechanical maintenance. LEAGUE is affiliated with
the Orange County Employees Association (OCEA). During negotiations, City staff
members, LEAGUE members, and respective professional labor representatives
discussed wage adjustments, employee retirement contributions, the medical cafeteria
allowance and structure, standby pay, certificate pays, and other non -economic matters.
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Tentative Agreement with Newport Beach Employees League
June 10, 2025
Page 2
Key provisions of the Tentative Agreement between the City and LEAGUE include:
• Term: June 14, 2025 through June 30, 2028
• Salary Adjustments:
o June 14, 2025 — 5% increase
o July 1, 2026 — 4% increase
o July 1, 2027 — 3% increase
• Medical Insurance: The City will contribute $2,025 per month (plus the minimum
CalPERS participating employee contribution) to each member's cafeteria plan.
• Employee Retirement Contributions: Effective June 14, 2025 employee retirement
contributions will adjust as follows:
o Tiers I & II — 8% of compensation earnable
o Tier III — 8% of pensionable compensation or half of the normal cost,
whichever is higher
• Standby Duty: Increased from $8.00 per hour to $12.00 per hour
• Certification Pay: Existing certificate pays will increase by 30%. New certifications
will be added for CWEA Electrical & Instrumentation Technologist Grade 2 or
above and CNG Fuel System Inspector.
A draft version of the Tentative Agreement between the City and LEAGUE is provided as
Attachment A. Changes to the current agreement are noted in redline. Costing information
is included in Attachment B. The total cost of the contract is approximately $4.96 million.
LEAGUE's members have voted in favor of the Agreement. Following City Council review
of the Tentative Agreement with LEAGUE, a final version of the successor MOU will be
presented to the City Council on June 24, 2025. In the interim, the costing information
and proposed MOU revisions will be posted for public review on the City's website.
The Agreement will not become effective until the City Council formally adopts it. If
approved at the June 24, 2025 City Council meeting, City staff will implement the
provisions accordingly.
FISCAL IMPACT:
Detailed cost information is provided in Attachment B. Since the MOU covers the period
from June 14, 2025, through June 30, 2028, it will result in the following annual fiscal
impacts to implement the terms of the agreement, totaling $4,958,941:
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Tentative Agreement with Newport Beach Employees League
June 10, 2025
Page 3
Fiscal Year
2024/25
Amount
$ 40,879
2025/26
1,168,257
2026/27
1,676,635
2027/28
2,073,170
$4,958,941
Sufficient projected unassigned General Fund balance reserves are available to support
the required appropriations. Following the City Council's consideration of the Tentative
Agreement, staff will return with a budget amendment in the amount of $40,879 to
appropriate the funds needed to cover the cost of the contract for the current fiscal year.
Adequate funding will be included in the annual budgets for subsequent years.
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 between the City and the
LEAGUE (Redline)
Attachment B — Estimated Cost of Contract with LEAGUE
12-3
ATTACHMENT A
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF NEWPORT BEACH
;►o
THE NEWPORT BEACH EMPLOYEES LEAGUE
Term: June 14, 2025 through1 1 :.
.. ■ - - ...
12-4
PREAMBLE........................................................................................................................... 1
Recognition............................................................................................................................1
Term.......................................................................................................................................2
ReleaseTime..........................................................................................................................2
Scope...................................................................................................................................... 2
Conclusiveness...................................................................................................................... 3
Modifications..........................................................................................................................4
NBELDues.............................................................................................................................4
Salary.........................................................................................
Overtime.....................................................................................
StandbyDuty..............................................................................
Call -Back Duty............................................................................
Accumulation of Compensatory Time Off .................................
Night Shift Differential................................................................
ActingPay...................................................................................
CertificationPay.........................................................................
CourtTime..................................................................................
One Time Payment
SECTION I -- LEAVES
Flex Leave ...........................................
Vacation Leave ....................................
Sick Leave ...........................................
Holiday Leave ......................................
Bereavement Leave .............................
Leave Sellback....................................
SECTION 4 - FRINGE BENEFITS
..........................................4
.......................................... 5
.......................................... 6
..........................................6
..........................................6
.......................................... 7
.......................................... 7
..........................................7
.......................................... 9
..........................................9
............................................9
......................................... 10
......................................... 11
......................................... 12
......................................... 13
......................................... 13
HealthInsurance.................................................................................................................. 14
Additional Health Insurance/Programs............................................................................... 16
Employee Assistance Program.......................................................................................... 17
PERS Retirement Benefit................................................................................................... 17
RetireeMedical Benefit....................................................................................................... 19
TuitionReimbursement........................................................................................................ 23
DeferredCompensation...................................................................................................... 23
SECTION 5 - MISCELLANEOUSIWORKING CONDITIONS
12-5
Reduction in Force/Layoffs................................................................................................. 24
Non-Discrimination............................................................................................................... 26
Promotional Preference.......................................................................................................26
WorkSchedules................................................................................................................... 27
Labor Management Committee........................................................................................... 27
Discipline - Notice of Intent................................................................................................ 28
Grievance Procedure........................................................................................................... 28
ProbationaryPeriod.............................................................................................................29
Failureof Probation............................................................................................................. 30
AccidentReporting...............................................................................................................30
SafetyShoes....................................................................................................................... 31
Uniforms............................................................................................................................... 31
Voluntary Training Program................................................................................................ 32
In -Service Supervisory and Safety Training....................................................................... 32
Clean -Up Time.................................................................................................................... 32
RestPeriods........................................................................................................................ 32
ServiceAwards.................................................................................................................... 32
DirectDeposit....................................................................................................................... 32
Salary on Reclassification................................................................................................... 33
Classification and Compensation Studies.......................................................................... 33
Separability........................................................................................................................... 33
EXHIBIT A - Represented Classifications and Pay Rates .................................................. 35
12-6
MEMORANDUM OF UNDERSTANDING BETWEEN
THE CITY OF NEWPORT BEACH AND
NEWPORT BEACH EMPLOYEES LEAGUE
This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is
entered into with reference to the following:
PREAMBLE
The NEWPORT BEACH EMPLOYEES LEAGUE ("NBEL"), a recognized
employee organization, affiliated with the Orange County Employees Association
("OCEA"), 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. NBEL representatives and City representatives have reached agreement as to
wages, hours and other terms and conditions of employment for the period from
June 14, 2025 through June 30, 2028 dan��, 2022 through 31;2025
and this agreement has been embodied in this MOU.
3. This MOU, upon approval by NBEL 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, City hereby confirms its prior certification of
NBEL as the recognized employee organization 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 the NBEL.
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 June 14, 2025 january 1, 2022. This MOU shall remain in full
force and effect until June 30, 2028 IDGGernber 31, 2025, and the provisions of
this MOU shall continue after the date of expiration of this MOU in the event
the parties are meeting and conferring on a successor MOU.
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Page 12
2. The provisions of this MOU shall prevail over conflicting provisions of the
Newport Beach City Charter, the ordinances, resolutions and policies of the City
of Newport Beach, federal and state statutes, rules and regulations which either
specifically provide that agreements such as this prevail, confer rights which may
be waived by any collective bargaining agreement, or are, pursuant to
decisional or statutory law, superseded by the provisions of an agreement
similar to this MOU.
C. RELEASE TIME
1. Four NBEL officers designated by the NBEL shall collectively be granted an
annual maximum of 150 hours paid release time, for the conduct of NBEL
business. Such time shall be exclusive of actual time spent in collective
bargaining and shall be scheduled at the discretion of the NBEL 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 NBEL written communication in the workplace.
4. Each January, the City will examine the number of Release Time hours the
NBEL used the preceding year. If the NBEL used in excess of 75% of the hours
normally granted (150), the NBEL 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 the Employer -Employee Relations 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;
NBEL MOU 20252-20285
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(b) the establishment of standards of service;
(c) to assign work to employees as deemed appropriate;
(d) the direction and supervision of its employees;
(e) the discipline of employees;
(f) the power to relieve employees from duty for lack of work or other legitimate
reasons;
(g) to maintain the efficiency of operations;
(h) to determine the methods, means and personnel by which operations are to be
conducted;
(i) the right to take all necessary actions to fulfill the Department's responsibilities
in the event of an emergency; and
Q) the exercise of complete control and discretion over the manner of
organization, and the appropriate technology, best suited to the
performance of departmental functions.
The practical consequences of a Management Rights decision on wages, hours,
and other terms and conditions of employment shall be subject to the grievance
procedures.
E. CONCLUSIVENESS
With the exception of a separate MOU covering retirement issues, this MOU contains all
of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for
the term of this MOU, neither party shall be compelled, and each party expressly waives
its rights to request the other to meet and confer concerning any issue within the scope
of representation except as expressly provided herein or by mutual agreement of the
parties. No representative of either party has the authority to make, and none of the
parties shall be bound by, any statement, representation or agreement reached prior to
the execution of this MOU and not set forth herein.
As provided in the Employer -Employee Relations Resolution No. 2001-50, the City shall
determine the manner in which City services are to be provided, including whether the
City should provide services directly or contract out work, including work that is currently
being performed by NBEL members. In the event the City introduces a plan to outsource
services currently being performed by NBEL members to achieve greater efficiency
and/or cost savings, and upon request by the NBEL, the City shall meet and confer with
NBEL 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
NBEL MOU 20252-20286
12-9
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work that is currently being performed by NBEL members. This provision shall not limit
the City's authority to enter into such an agreement for any City services.
F. MODIFICATIONS
Any agreement, understanding, waiver or modification of any of the terms or provisions
of this MOU shall not be binding upon the parties unless contained in a written document
executed by authorized representatives of the parties.
G. NBEL DUES
1. The collection of NBEL dues shall be handled through the payroll deduction
process.
2. NBEL agrees to defend, indemnify and hold harmless the City for its
collection of NBEL dues.
SECTION 2. COMPENSATION
A. SALARY
Base salary increases for all NBEL represented classifications shall be as follows and as
specified in Exhibit A:
Effective June 14, 2025, there shall be a base salary increase of five percent (5.0%) for
all classifications in the bargaining unit.
Effective the first full pay period after July 1, 2026, there shall be a base salary increase
of four percent (4.0%) for all classifications in the bargaining unit.
Effective the first full pay period after July 1, 2027, there shall be a base salary increase
of three percent (3.0%) for all classifications in the bargaining unit.
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•41 011a d I
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NBEL MOU 20252-20285
12-10
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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 and pre -scheduled vacation or Flex leave occurring
during the work week count as time worked. The use of sick leave, floating holiday
hours or flex leave that is not pre -scheduled and approved in writing in advance 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
NBEL MOU 20252-20285
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(e.g., 5/40 and 9/80), full time employees are regularly scheduled to work forty (40)
hours in their defined FLSA workweek.
7. Reporting Time - The City calculates overtime in tenths of an hour. An employee
who works in excess of three minutes of the next tenth should round up to the next
tenth and if the employee works three minutes or less of the next tenth should
round down. For example, if an employee whose normal work schedule ends at
5:00 p.m. works until 5:03 p.m. he/she should round down and not report the
additional three minutes. However, if the employee works until 5:04 p.m., he/she
should report an additional tenth of an hour of time worked.
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 his/her work station; and
(d) To refrain from activities which might impair the employee's ability to perform
his/her assigned duties.
2. Compensation
Effective June 14, 2025, standby duty compensation for all unit employees
shall be twelve dollars ($12.00) per hour. Standby pay will not
be piggybacked with any other paid time, such as call-back, scheduled or
unscheduled overtime, or if working a scheduled shift.
D. CALL-BACK nip
1. Defined
Call-back duty requires the employee to respond to a request to return to his/her
work station after the normal work shift has been completed and the employee has
left his/her normal work station. Those periods of overtime which had been
scheduled by the Department Director prior to the end of the normal work shift are
not considered call-back duty.
2. Compensation
All employees on call-back duty shall receive a minimum of two (2) hours pay. If
an employee works more than two (2) hours, he/she shall receive pay for actual
NBEL MOU 20252-20285
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hours worked.
E. ACCUMULATION OF COMPENSATORY TIME OFF
Unit members 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 for each hour of overtime
worked. An employee may only accrue CTO if requested and then approved by the
employee's supervisor. Call-back time may be converted to CTO with supervisor
approval.
Employees may accumulate up to eighty (80) hours of CTO. If an employee has eighty
(80) hours of accrued CTO, he/she will not be able to accrue additional CTO until he/she
uses CTO to reduce his/her balance below eighty (80) hours.
F. MGH4 SHIFT DIFFERENTIAL
The City agrees to pay $1.00 per hour eight shift differential for Employees working a
regularly scheduled work shift of which four or more hours are worked between the hours
of 5 p.m. and 5 a.m. Overtime worked as an extension of an assigned day shift shall not
qualify an employee for4ig#t shift differential. The differential pay is paid only for hours
actually worked.
In accordance with this provision, City agrees to pay $.50 per hour P4g4# shift differential
to automotive shop mechanics for hours worked after 5:00 p.m.
The parties agree that to the extent permitted by law, the shift differential pay in this
section is special compensation and shall be reported to CalPERS as such pursuant to
Title 2 CCR, Section 571(a)(4) or Section 571. 1(b)(3) Shift Differential Pay. However, for
"new members" as defined by the Public Employees' Pension Reform Act (PEPRA)
of 2013, shift differential pay will not be reported as pensionable compensation to
Ca/PERS.
G. ACTING PAY
NBEL employees will be eligible to receive "acting pay" only after completing 80
consecutive hours in the higher classification. Acting pay is 107.5% of the employee's
base pay rate.
Once the minimum hours' requirement has been satisfied, acting pay will be granted
for all hours worked above 40 hours beginning with the 41 st hour worked in the higher
classification.
The parties agree that to the extent permitted by law, acting pay is special
compensation and shall be reported to CaIPERS as such pursuant to Title 2 CCR,
Section 571(a)(3) Temporary Upgrade Pay. The employee must be performing 100%
of the duties in the higher classification for Temporary Upgrade Pay to be reportable.
However, for "new members" as defined by the Public Employees' Pension Reform
NBEL MOU 20252-202&5
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Act PEPRA of 2013, Acting Pay will not be reported as pensionable compensation
to Ca1PERS.
H. CERTIFICATION PAY
Payment for oor+ifina+ions will be made on a hi_weekly basis for uUnit members holding a
valid and current certification in areas indicated below are eligible for certification pay,
provided that the certification is directly relevant to their iob duties., nroyided that+ho
ror+ifino+ion is rdiron+l„ relevant to their ioh duties. Employees may submit proof of valid
certificates, including renewals, upon completion. It is the responsibility of the NBEL
member to apply for the Certificate Pay. Approval of the member's application shall
not be unreasonably withheld or delayed, and the member shall not be entitled to
receive the Certificate Pay prior to the date the application is approved, even though
the member may have been eligible prior to approval. Payment for certifications will
be made on a bi-weekly basis. The bi-weekly payment for such eligible certificates will
begin the first full pay period following department approval. If an approved certificate
expires, bi-weekly payments will cease until the pay period following submission of
proof of the certificate's renewal. All amounts listed below reflect the annual benefit
for the specified certificate:
1. Water or Wastewater Operator
Grade 1
$14344-0
Grade II
$455358
Grade III
$585450
Grade IV
$845650
Grade V
$1,04080
0
These pays do not stack. Employees receive the one pay from the list above
for the Grade they have achieved.
2. Backflow Certification - $286220
3. Qualified Applicator Certificate - $143440 for each category, up to a maximum of
$4293-K
4. Emergency Vehicle Technician
a. Fore Mec;han„ State Level 1 - $143440
b. Fire McE;haniG State Level 11- $286220
c Ciro McGhanin Level III - $488520
These pays do not stack. Employees receive the one pay from the list above for
the Level they have achieved.
45. Certified Arborist - $143440
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�6.ASE Certification - $725-5 each and $28622-0 for possessing a current ASE Master
Truck Technician and $286220 for possessing a current ASE Master Automobile
Technician certification.
6 7.Commercial Driver's License, Class A - $286220
7--.8. Commercial Driver's License, Class B - $2154-65
8-.9. Public Works Certificate (18-20 Jr. College units) or Maintenance Superintendents
Association (MSA) Certificate - $390300
10. Water Utility Science Certificate - $390300
40.11. Cross Connection Specialist - $143440
4-1-12. Crane Certification - $14344--0
13. Forklift Trainer - $390300 (2 employees, max)
42--.14. CWEA Electrical & Instrumentation Technologist Certification:
Grade
143
Grade II
455
Grade III
585
Grade IV
845
Grade V
$1,040
These pays do not stack. Employees receive the one pay from the list above for
the Grade they have achieved.
43 15. CNG Fuel System Inspector Certification- $143
The maximum certificate pay benefit for unit members shall be $5,000 annually.
The parties agree that to the extent permitted by law, the City shall report to the
CaIPERS eligible certificate pays as Educational Incentive pursuant to Title 2 CCR,
Section 571(a)(2) or 571.1(b)(2).
The City will reimburse employees for: 1) application, testing, and certification fees
for successfully completing certification examinations for the above listed
certificates, and 2) required physicals when employees obtain/renew required
Class A or B Drivers Licenses.
J. COURT TIME
Employees who are required to appear in Court during their off -duty hours in
connection with City business shall receive overtime compensation for the number of
hours they spend in court, with a minimum of two (2) hours of such compensation.
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SECTION 3. LEAVES
A. FLEX LEAVE
1. Unit members shall accrue Flex leave at the following rates:
Years of
Continuous
Service
Less than 5
5 but less than 9
9 but less than 12
12 but less than 16
16 but less than 20
20 but less than 25
25 and over
Hrs Accrued per
Annual
Max Balance
Pay Period
hours
hours
6.00
156.00
468.00
6.61
171.86
515.58
7.23
187.98
563.94
8.15
211.90
635.70
8.77
228.02
684.06
9.38
243.88
731.64
10.00
260.00
780.00
Members shall accrue three (3) months (i.e., 39 hours) of Flex leave (as
provided in the chart above) upon completion of three (3) months of
continuous employment with the City of Newport Beach, provided however, this
amount shall be reduced by any Flex leave time advanced during the first
three (3) months of employment.
2. Limit on Accumulation
Members hired prior to Julv 1. 1996:
Members
hired prior to July 1, 1996 shall be paid for earned Flex leave in excess of the
maximum permitted accrual at the member's hourly rate of pay provided that
they have utilized at least eighty (80) hours of Flex leave the previous calendar
year. Any paid leave earned in excess of this level will be paid on an hour for
hour basis in cash (spill over pay) at the employee's hourly rate of pay.
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Employees who have not utilized the required amount of leave the prior
calendar year shall not be eligible to accrue time above the maximum accrual
limit.
Employees hired after July 1, 1996:
Employees first hired, or rehired by the City subsequent to July 1, 1996 shall
not be eligible for Flex leave spillover pay and shall not be entitled to accrue
Flex leave in excess of the Flex leave accrual threshold.
3. 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
seniority and wishes of the employee. Flex leave may be granted on an hourly
basis.
B. VACATION LEAVE
This section applies only to those Regular Full-time Employees hired on or before
January 1, 1990 and who have elected not to enroll in the Flex Leave program.
1. Basis for Accrual/Full-Time Employees
Employees entitled to Vacation leave -with -pay shall accrue such leave based
on years of continuous service and the number of hours in a normal work week
for the position to which they are assigned in accordance with the following
schedule:
Years of Continuous
Service
Less than 5
5 but less than 9
9 but less than 12
12 but less than 16
16 but less than 20
20 but less than 25
25 and over
2. Limit on Accumulation
Accrual per pav period
Hours
3.38
3.99
4.61
5.22
5.84
6.46
7.07
Accrual of vacation days in excess of those earned for two years of continuous
service is not permitted past December 31 st of each year with the following
exception: with approval of the Department Director, an employee may accrue
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vacation days in excess of the two-year limit provided all such excess
accumulation is taken by March 31 st of the following year.
3. Method of Use
The Department Director shall schedule and approve all vacation leaves for
employees taking into consideration the needs of the Department, and
whenever possible, the seniority and wishes of the employee. Vacation leave
may be granted on an hourly basis. Any fraction over an hour shall be charged
to the next full hour.
C. SICK LEAVE
This section applies only to those Regular Full-time Employees hired on or before
January 1, 1990 and who have elected not to enroll in the Flex Leave program.
1. Basis for accrual
Full-time, regular employees shall accrue sick leave based on the number of
hours in a normal work week for the position to which they are assigned in
accordance with the following schedules:
Normal Work Week - 40 hours
Service Time
0-1 year
1-2 years
2-3 years
3-4 years
4+
2. Method of Use
(a) General
Monthly Accrual
4 hours
5 hours
6 hours
7 hours
8 hours
An employee may use sick leave for an entire day or partial day if needed. If
used for a partial day, employees should report its use to the nearest tenth of
an hour.
(b) Approval
Sick leave may be granted only at the discretion of or with the approval of
the Department Director and as defined in the Employee Policy Manual.
3. Sick Leave Conversion
Employees who at the end of the calendar year have an accrued level of
Sick Leave equal to or greater than the full value of 50 months of accrued Sick
NBEL MOU 20252-202845
12-18
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Leave, and who have used six or less days of Sick Leave during that calendar
year will be permitted (only once per year) to convert up to six (6) days of Sick
Leave to paid vacation at the value of 50% (maximum value of 3 days per
year).
D. HOLIDAY LEAVE
The following days shall be observed as paid holidays (i.e., employees shall have
the day off with pay) by all unit members. For each holiday, except the Floating
Holiday (where the employee chooses the day off), if an employee is required to
work on the holiday, they will receive their pay for the holiday and in addition either
pay or Flex Leave for the number of hours worked on the holiday.
Independence Day
Labor Day
Veteran's Day
Thanksgiving Day
Friday following Thanksgiving
Christmas Eve
Christmas Day
New Year's Eve
New Year's Day
Washington's Birthday
Memorial Day
Martin Luther King Day
Floating Holiday
July 4
1st Monday in September
November 11
4t' Thursday in November
Last'/2 of working day
December 25
Last'/2 of working day
January 1
3rd Monday in February
Last Monday in May
3rd Monday in January
July 1 st — 1 day*
*The floating holiday (eight (8) hours of holiday leave) is awarded on July 1. The hours
are added to employees' Flex Leave account.
Holidays will be paid based on the employee's regular work day schedule. For example,
if an employee is on a 9/80 schedule and the holiday is observed on a day that the
employee is regularly scheduled to work 9 hours, the employee is entitled to receive 9
hours of Holiday pay. However, if an employee is on a 9/80 schedule and the holiday is
observed on a day that the employee is regularly scheduled to work 8 hours, the employee
is entitled to receive 8 hours of holiday pay. Employees will receive 8 hours of Holiday
Pay annually for the Floating Holiday.
Holidays listed above (except the Floating
observed the preceding Friday. Holidays
the following Monday. (Half day holidays
holiday).
2. Holiday Pay Eligibility
Holiday) occurring on a Saturday shall be
occurring on a Sunday shall be observed
shall be observed prior to the observed
Following are the limitations on eligibility for Holiday pay:
NBEL MOU 20252-20285
12-19
Page 114
(a) 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.
approved vacation or sick leave that has been approved by the Department
Director).
(b) Newly hired employees will be eligible to receive full pay for scheduled holidays,
without a waiting period.
E. BEREAVEMENT LEAVE
Bereavement leave shall be defined as "the necessary absence from duty by an employee
because of the death or terminal illness in his/her immediate family." Unit members shall
be entitled to forty (40) hours of aid bereavement leave per calendar year per incident
(terminal illness followed by death is considered one incident). Bereavement leave shall
be administered in accordance with the provisions of the Employee Policy Manual. Leave
hours need not be used consecutively but should occur in proximate time to the
occurrence. For the purposes of this section, immediate family shall mean an employee's
father, mother, stepfather, stepmother, brother, sister, spouse/domestic partner, child,
stepchild, grandchildren, grandparents and the employee's spouse's/domestic partner's
father, mother, brother, sister, child, grandchildren and grandparents. The provisions of
this Section shall not diminish or reduce any rights a member may have pursuant to
applicable provisions of State or Federal law. An employee requesting bereavement leave
shall notify his/her supervisor as soon as possible of the need to take leave.
F. REPRODUCTIVE LOSS LEAVE
Eligible employees are entitled to five unpaid days for each reproductive loss event.
Multiple reproductive loss events are covered, up to a maximum of 20 days of
reproductive loss leave within a twelve-month period.
F—.G. LEAVE SELLBACK
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Effective on GaleR ar year 2020 and thereafter, empleyeesEmployees shall have the
option of converting accrued Flex Leave to cash on an hour for hour basis subject to the
following: On or before the pay period which includes December 15 of each calendar year,
an employee may make an irrevocable election to cash out accrued flex leave which will
be earned in the following calendar year. The employee can elect to receive the cash
out in the pay period which includes June 30 and/or the pay period which includes
December 15 for those Flex Leave benefits that have been earned during that portion
NBEL MOU 20252-20285
12-20
Page 115
of the year. In no event shall the flex leave balance be reduced below one hundred and
sixty (160) hours. On or before December 31, 2019, each employee shall have the
one-time option of cashing out all or a portion of Flex Leave benefits credited to his/her
account as of that date. However, in no event shall the flex leave balance be reduced
below one hundred and sixty (160) hours when the leave is cashed out.
SECTION 4. FRINGE BENEFITS
A. HEALTH INSURANCE
1. Benefits Information Committee
City has established a Benefits Information Committee (BIC) composed of one
representative from each employee association 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 CaIPERS
participating employer's contribution towards medical insurance for employees
enrolled in a CaIPERS 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, provided that
any cash -out option complies with IRS Section 125 requirements. The City and
the Newport Beach Employees League will cooperate in pursuing additional
optional benefits to be available through the Cafeteria Plan.
Subject to the terms and conditions stated below, 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.
Effective June 14, 2025, -Tthe City's contribution towards the Cafeteria Plan isle
Thousand, Cei -1 1-1-14,_d Twenty Live Deflars ($4 r7 5) Two Thousand and Twenty-
Five Dollars (12,025), plus the minimum CaIPERS participating employer's
contribution.
NBEL 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.
NBEL MOU 20252-20285
12-21
Page 116
Unit members whose actual start date occurs on or prior to January 28, 2022#he-first
day of the pay per4od following City GounG# approval of this MQU and 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) per month in taxable cash paid bi-weekly. For
these same employees, if they elect medical coverage and spend less than $1,725
(plus the minimum CaIPERS participating employer's contribution) of the City
contribution provided above, the difference these unused nafeteria plan funds shall be
paid to the employee as taxable cash biweekly.
Newly appointed unit members whose actual start date occurs on or after the first
day of the pay period following City Council approval of this MOU and who elect
to opt out of medical coverage offered by the City because they have provided
proof of MEC through another source (other than coverage in the individual market,
whether or not obtained through Covered California) shall receive Five Hundred
Dollars ($500) per month in taxable cash paid biweekly. 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.
The preceding language as applied to the following scenarios:
1. Part-time employee hired by the City prior to MOU adoption but not appointed
as a full-time employee into the League until on or after MOU adoption - this
employee is subject to the $500 opt -out amount and does not receive cash back
if the medical coverage elected is less than the City contribution.
2. Full-time employee hired by the City prior to MOU adoption who later drops
down to part-time and then is reappointed to the unit as a full-time employee -
this employee is subject to the $500 opt -out amount and does not receive cash
back if the medical coverage elected is less than the City contribution.
3. Full-time employee hired by the City prior to MOU adoption who later transfers
into the unit from another unit - if the employee was not subject to the $500 opt -
out amount and/or no cash back in the unit from which they are transferring,
they will receive the benefit of $1,000 opt -out and/or cash back if the medical
coverage elected is less than the City contribution.
3. Dental Insurance
NBEL MOU 20252-20285
12-22
Page 117
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 comparable vision plan shall be maintained as part of the City's
health plan offerings as agreed upon by the Benefits Information Committee.
5. Healthcare Reform
The parties recognize that certain State and Federal laws, programs and
regulations, including the Affordable Care Act, may impact future medical plan
offerings. Either party may request to reopen Section 4,A,(2) regarding medical
insurance for the purpose of discussing alternative approaches and proposals to
providing healthcare coverage. In addition, should State or Federal laws
concerning taxation of healthcare benefits change, the parties agree to meet and
discuss the impact of such change.
B. ADDITIONAL HEALTH 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 NBEL 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 taxable salary of the employee will be reduced by the
amount designated by the employee for reimbursable expenses.
2. Disability Insurance
The City shall provide disability insurance to all regular full-time employees with
the following provisions:
Short -Term Disability
Long -Term Disability
Benefit Amount
66.67% of covered wages
66.67% of covered wages
Maximum Benefit
$1,846 weekly
$15,000 monthly
Waiting Period
30 calendar days
180 calendar days
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NBEL MOU 20252-2028-5
12-23
Page 118
Effective the first premium payment after the later of (a) City Council adoption
of the MOU or (b) January 1, 2022, the City will pay for this benefit.
Employees shall not be required to exhaust accrued paid leaves prior to
receiving benefits under the disability insurance program. Employees may not
supplement the disability benefit with paid leave once the waiting period has
been exhausted.
3. Life Insurance
The City shall provide life insurance for all regular full-time employees in $1,000
increments equal to one times the employee's annual salary up to a maximum
of $50,000. At age 70 the City -paid life insurance is reduced by 50% of the pre-
70 amount. This amount remains in effect until the employee terminates from
City employment.
C. EMPLOYEE ASSISTANCE PROGRAM
City shall provide an Employee Assistance Program (EAP) through a properly
licensed provider. NBEL members and their family members may access the EAP
subject to provider guidelines.
D. THE RETIREMENT BENEFIT
1. Retirement Formula
The City contracts with PERS to provide retirement benefits for its employees.
Pursuant to prior agreements and state mandated reform, the City has
implemented first, second and third tier retirement benefits:
Tier 1: For employees hired by the City on or before November 23, 2012, the
retirement formula shall be the 2.5%@55 calculated on the basis of the single
highest year.
Tier 2: For employees first hired by the City between November 24 and
December 31, 2012, or hired on or after January 1, 2013 and are current
Classic members of the retirement system, as defined in the Public Employees'
Pension Reform Act ("PEPRA"), the retirement formula shall be 2%@60
calculated on the average 36 highest month's salary.
Tier 3: For employees first hired by the City on or after January 1, 2013, and who
do not meet the Tier 2 criteria because they are new members as defined by
the PEPRA, the retirement formula shall be 2.0%@62 calculated on the average
36 highest month's salary.
2. Employee Contributions
NBEL MOU 20252-20285
12-24
Page 119
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 depending on their Tier, 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 CaIPERS
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 CaIPERS as contributions
toward either the Member or Employer rate, as provided under Government Code
Section 20516(f).
Under separate agreement and ratified via a contract amendment with CaIPERS
in 2008, Tier I employees agreed to shall -contribute up to 2.42% of compensation
earnable (as cost sharing) per Government Code Section 20516(a).
Tier I Employees — Effective June 14, 2025, Tier I employees shall contribute a
total employee contribution of13% a: f^II�: Tier 1 I= eight percent (8%)
imember contribution).The Tier I employee contribution of compensation
earnable as cost sharing per Government Code section 20516(a) shall be reduced
0 and 2 F 0% Of nnrvmn inn earnable sharing per Geyernmen�
to 0.0 0.-�,a-��8�� o,-�,-�e�sat,�,-r��a-s ���„T-.T�
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Tier II Employees — Effective June 14, 2025, Tier II employees shall contribute a
total employee contribution of 8% 4-3-1k as follows: seven percent (7%)
(compensation earnable) member contribution and one percent (1 %)& —percent
{6%- of compensation earnable as cost sharing per Government Code section
20516(f).
-.
NBEL MOU 20252-20285
12-25
NBEL MOU 20252-20285
12-25
Page 120
ene half percent 0
Cede seE)taen 2051 6(f). This redUGt!9n on the employee Gentributien rate sunsets -at
peried that irnrGludes jani rani 2026,Tier 11-einpivyees shall -nGon ute a t$tt�i
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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 no less than 88%4-3°k of
pensionable compensation (i.e., the greater of 8% of pensionable compensation
or 50% of the "total normal cost").
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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. RETIREE MEDICAL BENEFIT
This is an Integral Part Trust (/PT) 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. 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
NBEL MOU 20252-20285
12-26
Page 121
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 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 is ongoing for an extended period. During the
transition, employees and (then) existing retirees were administratively classified
into different categories. The benefit is structured differently for each of the
categories. The categories are as follows:
a. Cateciory 1 - Employees 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.
b. Category 2 - 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 less than 50.
c. Category 3 - 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 League members are eligible 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 a City employee
association, union or plan 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
NBEL MOU 20252-202845
12-27
Page 122
and compensation at the time of separation for calculation purposes. This amount
will be deposited into the employee's Account at the time of separation.
3. Account Contributions
Account contributions are categorized as Part A, Part 8 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 8 contributions require a five year vesting period which begins when the
employee becomes eligible for the RHS benefit. At the conclusion of the vesting
period, the City will credit the first five years' worth of Part 8 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 including January 1. Part 8 contributions are not reported to CalPERS as
pensionable.
The parties agree that the City's Part 8 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 League 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
NBEL MOU 20252-20285
12-28
Page 123
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 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 cash outs. No
contributions are made to Category 2 participants after separation.
If a Category 2 participant retires from the City 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 3: 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.
NBEL MOU 20252-20285
12-29
Page 124
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 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.
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, will have
the authority to determine investment options that will be available through the plan.
F. TUITION REIMBURSEMENT
Subject to the limitations below, NBEL 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 courses,
seminars, or professional development programs. Travel expenses are not eligible for
reimbursement. Maximum tuition reimbursement for employees shall be $1,500 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.
G. DEFERRED COMPENSATION
Each employee 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. For each employee who
enrolls in the deferred compensation program, the City shall contribute to each
NBEL MOU 20252-20285
12-30
Page 125
employee's deferred compensation account as follows: Effective the first day of the pay
period which includes January 1, 2020, the City shall contribute twenty five dollars ($25)
per month to each enrolled employee's deferred compensation account if the employee
contributes at least twenty five dollars ($25) per month towards his/her deferred
compensation account. The City is only obligated to make the contribution to an
employee's deferred compensation account if the employee has enrolled in the deferred
compensation program.
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 employees' accounts each pay period, it is the employees' responsibility to track their
total contribution amount. If an employee's account contributions reach the annual 457
maximum, the City will stop making contributions for the remainder of the calendar year
and will not owe the employee any additional compensation related to this section.
SECTION 5. MISCELLANEOUS/WORKING CONDITIONS
A. REDUCTIONS IN FORCE/LAYOFFS
The provisions of this section shall apply when the City Manager determines that a
reduction in the work force is warranted because of actual or anticipated reductions
in revenue, reorganization of the work force, a reduction in municipal services, a
reduction in the demand for service or other reasons unrelated to the performance of
duties by any specific employee. Reductions in force are to be accomplished, to the
extent feasible, on the basis of seniority within a particular Classification or Series
and this Section should be interpreted accordingly.
DEFINITIONS
1. "Layoffs" or "Laid Off shall mean the non -disciplinary termination or employment.
2. "Seniority" shall mean the time an employee has worked in a Classification or
Series calculated from the date on which the employee was first granted regular
status in the current Classification or any Classification within the Series, subject
to the following:
(a) Credit shall be given only for continuous service subsequent to the most recent
appointment to regular status in the Classification or Series; and
(b) Seniority shall include time spent on industrial leave, military leave, and leave
of absence without pay, but shall not include time spent on any other authorized
or unauthorized leave of absence.
3. "Classification" shall mean one or more full time positions identical or similar in
duties not including part-time, seasonal or temporary positions. Classifications
within a Series shall be ranked according to pay (lowest ranking, lowest pay).
NBEL MOU 20252-20285
12-31
Page 126
4. "Series" shall mean two or more classifications within a Department which require
the performance of similar duties with the higher -ranking classifications)
characterized by the need for less supervision by superiors, more difficult
assignments and more supervisory responsibilities for subordinates. The City
Manager shall determine those classifications following a meet and consult
process which constitute a Series.
"Bumping Rights", "Bumping" or "Bump" shall mean (1) the right of an employee,
based upon seniority within a series to bump into a lower ranking classification
within the same series, (2) to be followed by an employee being permitted to bump
into a classification within a different series. The latter bumping shall be based
upon unit wide seniority and shall be limited to a classification in which the
employee previously held regular status.
No employee shall have the right to bump into a classification for which the employee
does not possess the minimum qualifications such as specialized education, training
or experience.
PROCEDURE
The General Services Division within the Municipal Operations Department will select
employees for layoff by straight seniority department wide. This means department
management has total control of position elimination and personnel reassignment within
ranks, but the layoffs shall be on a straight forward "last hired- first fired" basis.
The layoff system for the Utilities Division shall operate the same department -wide
seniority as does the General Services Division, with the exception of the Electrical and
Telecommunications sections. Because of the highly specialized skills and training of the
personnel in these sections, these sections shall be treated as unique and individual unto
themselves.
In the event the City Manager determines to reduce the number of employees within a
classification, the following procedures are applicable:
Temporary and probationary employees within any classification shall, in that
order, be laid off before permanent employees.
2. Employees within a classification shall be laid off in inverse order of seniority.
3. An employee subject to layoff in one classification shall have the right to bump a
less senior employee in a lower ranking classification within a series. An employee
who has bumping rights shall notify the Department Director within three (3)
working days after notice of layoff of his/her intention to exercise bumping rights.
4. In the event two or more employees in the same classification are subject to layoff
and have the same seniority, the employees shall be laid off following the
Department Director's consideration of established performance evaluations.
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REEMPLOYMENT
Employees who are laid off shall be placed on a Department re-employment list in
reverse order of layoff. The re-employment list shall expire in 18 months. In the event
a vacant position occurs in the classification which the employee occupied at the time
of layoff, or a lower ranking classification within a series, the employee at the top of
the Department re-employment list shall have the right within seven (7) days of
written notice of appointment. Notice shall be deemed given when personally
delivered to the employee or deposited in the U.S. Mail, first class postage prepaid,
and addressed to the employee at his or her last known address. Any employee
shall have the right to refuse to be placed on the re-employment list or the right to
remove his or her name from the re-employment list by sending written confirmation to
the Human Resources Director.
SEVERANCE
If an employee is laid off from their job with the City, for economic reasons, the City will
grant severance pay in an amount equal to one week of pay for every full year of
continuous employment service to the City of Newport Beach up to ten (10) weeks of
pay.
NOTICE
Employees subject to lay-off shall be given at least thirty (30) days advance notice of
the layoff or thirty (30) days' pay in lieu of notice. In addition, employees laid off will be
paid for all accumulated paid leave, holiday leave, (if any), and accumulated sick leave
to the extent permitted by the Personnel Resolution.
B. NON-DISCRIMINATION
City and NBEL agree that there will be no discrimination by either party or by any of
their agents against any employee because of his/her membership or non-
membership in NBEL, or because of any protected classification identified in the law.
C. PROMOTIONAL PREFERENCE
Where no less than two (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. The Human Resources Department shall be responsible for
insuring that a position vacancy announcement for all available City positions be
distributed in a manner that reasonably assures unit members access to the
announcements. The Human Resources Department shall oversee all testing
procedures.
Any employee who has achieved "regular status" may request assignment to any
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lateral or lower classification, and that employee may be transferred into that
classification without competitive testing if both of the following conditions have been
satisfied:
1. The employee meets the minimum qualifications of the classification; and
2. The Department Director approves of the transfer.
D. WORK SCHEDULES
Employees in the unit work either a 9/80 or 5/40 work schedule.
Employees assigned to the 9/80 work schedule will have alternating Fridays off with the
City determining which employees will work on each alternating Friday to ensure effective
coverage of the work.
The City agrees to maintain flex -scheduling where it is currently in place in this unit in the
Municipal Operations Department. The Building Maintenance, Parks Maintenance, and
Beach Maintenance crews will be placed on the 5/40 schedule including the Memorial
Day and Labor Day weekends, or any portion of time between these Holidays at the
discretion of the General Services Director. The City reserves the right to amend the
program as needed to mitigate any operational problems which may arise due to
budgetary cutbacks, personnel cuts or shortages, service level complaints, or any other
operational reason. Should an operational problem involving service reductions or
increases in cost materialize, the Department Director will notify the NBEL and the
employees affected work group of the problem in writing, supported with cause. The NBEL
and/or the employees of the affected work group, will in turn have up to ten (10) working
days to respond and schedule a meeting with the Department Director. The purpose of
the meeting is to propose a solution to the problem. The Department Director will consider
the proposed solution and respond, in writing, within five (5) working days. If the
Department Director and the work group disagree on the solution, the NBEL and/or
employees of the affected work group will have up to five (5) working days to appeal the
Department Director's decision to the City Manager, who will consider both sides of the
issue and resolve the dispute, in a written decision within ten (10) days after the
aforementioned meeting.
E. LABOR MANAGEMENT COMMITTEE
Committees shall meet on an as needed basis; names of participating unit members
shall be announced to management no less than 5 work days before the scheduled
meeting; cancellation for cause shall be rendered by the canceling party no less than
48 hours prior to the scheduled meeting; canceled meetings shall be rescheduled to
take place within 5 working days of the canceled meeting; committees shall be
departmental; they may be combined in the interests of efficiency with other such
committees; City participants shall include appropriate department or division heads
outside the unit; the purpose of the committees shall be to resolve conflict and
exchange information; a unit staff person may attend meetings; meetings shall be
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scheduled to last no less than one hour; grievances in process shall not be subject to
resolution in meetings; matters properly dealt with in negotiations may be discussed
but no agreements shall be effected on same in committee. Meetings shall be on
work time.
F. 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 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 not be
subject to the aforementioned procedure.
This understanding is not intended to in any way reduce the rights of
employees to due process. Employees who have become the subject to a
suspension of one or two days who wish to appeal the suspension shall have
the right to appeal the decision to the City Manager or designee. Employees
who have received a written reprimand, shall have the right to place comments
on the document prior to placement in his/her personnel file as well as file a
grievance as addressed in the grievance procedure.
G. GRIEVANCE PROCEDURE
Step 1: A grievance may be filed by any employee on his/her own behalf, or jointly by a
group of employees, or by the NBEL. The Grievance Procedure is the sole and exclusive
method by which an employee or the NBEL may challenge the interpretation and/or
application of a provision of this MOU.
A grievance shall be brought to the attention of the immediate supervisor for discussion
within ten (10) business days after an employee or NBEL 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 NBEL (if filed by the NBEL) is not satisfied with
the decision reached through the informal discussion or if extenuating circumstances
exist, the Employee or NBEL 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) business 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.
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Step 2: If the employee or the NBEL (if filed by the NBEL) 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) business days after the discussion in Step
1. The right to file a grievance petition shall be waived in the event the Employee or
NBEL fails to file a formal grievance within ten (10) business 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) business 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 or designee within ten (10) business days after the
Employee receives the decision. The City Manager or designee may accept or reject the
decision of the Department Director and shall render a written decision within ten (10)
business days after conducting a grievance hearing. The decision of the City Manager or
designee 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 or designee 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 or designee'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 established
can be waived or extended only by mutual agreement confirmed in writing. Any grievance
not carried to the next step by the Employee or NBEL within the prescribed time limit shall
be deemed resolved upon the basis of the previous decision.
A grievance may also be filed and appealed to the 3rd step of the grievance procedure
for performance evaluations and written reprimands.
H. 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.
I. FAILURE OF PROBATION
1. New Probation
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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 Subsection 3,
below.
2. Promotional Probation
(a) An employee on promotional probation may be failed at any time without
right of appeal or hearing, except as provided in Subsection 3, below, and
except that failing an employee on promotional probation must not be
arbitrary, capricious or unreasonable.
(b) An employee who fails promotional probation shall receive a performance
evaluation stating the reason for failure of promotional probation.
(c) When an employee fails his or her promotional probation, the employee
shall have the right to return to his or her former class provided the employee
was not in the previous class for the purpose of training for a promotion to a
higher class. When an employee is returned to his or her former class, the
employee shall serve the remainder of any uncompleted probationary
period in the former class.
(d) 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 herformer 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.
3. Probationary Release
An employee who alleges that his or her probationary release was based on
discrimination or retaliation -by the City, may submit a grievance within ten (10) days
after receipt of the Notice of Failure of Probation.
J. ACCIDENT REPORTING
The City will require that all traffic collisions involving City vehicles shall be reviewed by
the traffic division supervisor of the Newport Beach Police Department to prevent any
unnecessary reports from being forwarded to the OMV. Also, the vehicle accident review
board will evaluate the supervisor's field report prior to making its preventable/non-
preventable determination.
K. SAFETY SHOES
If the City determines that an employee in the bargaining unit is required to wear safety
shoes, the employee shall be provided with a voucher (annually) which enables the
employee to purchase safety shoes from the City's vendor for safety shoes. The City has
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identified certain safety shoe styles for which it will pay (as of 1/1/19 the maximum the
City will pay is $172.80). If the cost of the particular safety shoe styles (for which the City
will pay) increases, the amount the City will pay will increase (by the increased cost of
those styles of shoes).
If the soles of the safety shoes wear out within a year, the employee should present the
shoes to his/her supervisor. If the supervisor agrees that the soles are worn out, he/she
will authorize the employee to purchase a new pair of shoes at City expense. If the
supervisor judges that the uppers are in good condition, he will authorize the employee to
have the shoes resoled at City expense.
L. UNIFORMS
It shall be understood by the NBEL and its members that employees who report for work
either "out of uniform" or in "dirty" or "otherwise substandard" uniforms will be sent home
without additional prior notice and without pay. Such incidents shall further be
documented and regularly repeated violations of the uniform standards will subject the
employee to progressive discipline up to and including dismissal for negligence and/or
misconduct.
Employees represented by the NBEL will be permitted to wear specified and approved
shorts as part of the City approved optional uniform. The shorts must be dark blue in color,
the inseam must be no less than 4 and 1/2 inches after shrinkage. They must be worn in
combination with the standard City uniform shirt of the optional (golf style) City uniform
shirt, and they must be worn with either white or blue socks. The optional uniform shall
be considered proper and acceptable year --round. Department Directors may make
individual exceptions to this optional uniform agreement through the establishment of
Departmental Policy in the interest of reasonable safety considerations.
PERS Reporting of Uniform Allowance - To the extent permitted by law, the City shall
report to the California Public Employees' Retirement System (CaIPERS) the uniform
allowance of $95 per year for classifications who receive a uniform as special
compensation in accordance with Title 2, California Code of Regulation, Section
571(a)(5). Notwithstanding the previous sentence, for "new members" as defined by the
Public Employees' Pension Reform Act ("PEPRA") of 2013, the uniform allowance will not
be reported as pensionable compensation to CaIPERS.
M. VOLUNTARY TRAINING PROGRAM
The Department shall, when the need for additional or replacement individuals
possessing a commercial driver's license is anticipated, establish a voluntary training
program that will allow employees to qualify for the license.
N. IN-SERVICE SUPERVISORY AND SAFETY TRAINING
The City will continue its program of providing supervisory and motivational training for
Supervisors and Crew Chiefs and any additional training required by law.
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O. CLEAN-UP TIME .
When necessary, each employee shall be permitted up to fifteen (15) minutes of paid
City time at the end of each work shift to perform work related job site and personal
clean-up and to put away tools and equipment. The amount of clean-up time shall be
limited to the actual needs of the employee.
P. REST PERIODS
Employees shall be allowed a rest period of fifteen (15) minutes during the first half of
their shift and another rest period of fifteen (15) minutes during the second half of their
shift. Rest periods should be taken as close to mid shift as is possible.
Such rest periods shall be scheduled in accordance with the requirements of the
Department, but in no case shall rest periods be scheduled within one (1) hour of the
beginning or the ending of a work shift or lunch period. The City may designate the
location or locations at which rest periods may be taken.
Rest periods shall be considered hours worked and employees may be required to
perform duties, if necessary.
Q. SERVICE AWARDS
For the purposes 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. An employee is required to individually notify the awards
committee of all of the service time.
R. DIRECT DEPOSIT
All employees shall participate in the payroll direct deposit system.
S. SALARY ON RECLASSIFICATION
An employee who is reclassified will be provided with a minimum salary increase of
five (5%) percent upon reclassification (not to exceed the maximum of the new salary
range).
T. CLASSIFICATION AND COMPENSATION STUDIES
In accordance with the City of Newport Beach Employee Policy Manual (EPM), the City
Manager shall reclassify positions upon a determination that there has been a
material change in the normal duties regularly performed by, or expected of, the
employee(s) occupying the position. The NBEL may submit up to one request for a
job audit per fiscal year to the Human Resources Director. The Human Resources
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Director may terminate at any time the job audit upon a determination that there is no
substantial evidence of a material change in duties. At the time of the request for a
job audit, NBEL will provide the bases for the job audit request, including but not
limited to, all substantial evidence of a material change in duties. The job audit should
include a detailed analysis of the work performed by, or expected of, the employee(s)
and a comparison of that work with the job specifications for the classification. The
Human Resources Director shall submit a completed job audit, together with
recommendations relative to reclassification to the Department Director, City
Manager and NBEL.
In the event a position is reclassified, the salary range and effective date shall comply
with section 9.2B of the City's EPM. This provision shall terminate on December 31,
2025. upon the expiration of this MOU
l
U. 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.
V. OVERPAYMENT
Employees will be notified by Payroll or Human Resources prior to the recovery of
overpayments on paychecks. Recovery of more than 15% of net pay will be subject to a
repayment schedule established by the appointing authority under guidelines issued by
the Finance Department or Human Resources. Such recovery shall not exceed 15% per
month of _disposable earnings, as defined by State law, except a mutually agreed upon
accelerated payment plan for faster recovery.
Recoupments under this section shall be limited to forty-eight (48) months. However,
nothing in this section is intended to preclude the City from seeking recoupment of
overpayments due to fraud or other knowing concealment through any available legal
forum.
Prior to the commencement of a recoupment for an overpayment, the parties will reach
an agreement capturing the terms of repayment consistent with the provisions of this
section.
Signatures are on the next page.
NBEL MOU 20252-20285
12-40
For NBEL:
MMcdG kIi i'a
Michelle Rubio (Jun 5, 2025 12:58 PDT)
Michelle Rubio
Chief Negotiator
Date: 05/06/2025
For the City:
.LZ4,6/w- 54e-,:Ze�
Luke Jensen
Chief Negotiator
Date: 05/06/2025
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ATTACHMENT B
Estimated Cost of Contract with the LEAGUE
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City of Newport Beach
League MOU
June 10, 2025
Key Contract Terms
COLA
5% 4% 3%
Medical Insurance
Increase by $300/Month
Standby Pay $8/Hour
$12/Hour
Increase all existing certification pays by 30%
Add
CWEA Electrical & Instrumentation Technologist Cert - $143
Certification Pay Various
Add CNG Fuel System Inspector Certification - $143
Add ISA Tree Risk Assessment Qualification - $143
Add FAA Remote Pilot Certificate - $143
CalPERS Employee Pickup
Reduce EE Contribution to 8%
Summary of Proposal Cost'
Baseline Compensation
Base Pay $9,470,107
$473,505 $871,250 $1,181,491
Supplemental Pays 116,985
14,348 14,348 14,348
Overtime 1,403,728
154,030 205,162 245,044
Pension Contribution 647,129
395,083 434,156 464,632
Cafeteria Plan 2,208,828
105,411 105,411 105,411
Other City Paid BenefitS2 848,314
25,880 46,310 62,245
Total $14,695,091
$1,168,257 $1,676,635 $2,073,170
Cumulative Impact on Employee Compensation
Base Salary Increase'
5.00% 9.20% 12.48%
Total Compensation Increase
7.95% 11.41% 14.11%
Key Contract Terms
COLA
607,312 1,101,769 1,487,445
Medical Insurance
105,411 105,411 105,411
Standby Pay
93,160 93,160 93,160
Existing Certification Pay Increase
12,632 12,632 12,632
New Certification Pays
1,716 1,716 1,716
CalPERS Employee Pickup
348,026 361,947 372,806
Total
$1,168,257 $1,676,635 $2,073,170
Notes
1 Costs shown in years two and three reflect the cumulative budget impact in each year as
compared to the current budgeted amounts.
Z Includes Medicare, Compensated Absences, Retiree Health Savings, Life Insurance, EAP.
' Percentage shown in each year is as compared to current base salary, not the prior year.
4 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.
5 The costs shown reflect additional annual expenses in their corresponding fiscal years. Since
the contract will take effect on June 14, 2025, the
additional expense for FY 2024/25 is $40,879.
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