HomeMy WebLinkAbout17 - Tentative Agreement with Newport Beach Professional and Technical Employees AssociationQ SEW Pp�T
CITY OF
z NEWPORT BEACH
c�<,FORN'P City Council Staff Report
June 24, 2025
Agenda Item No. 17
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 Professional and
Technical Employees Association
ABSTRACT:
The Memorandum of Understanding (MOU) between the City of Newport Beach and the
Newport Beach Professional and Technical Employees Association (ProfTech or
Association) 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 ProfTech 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 ProfTech is being presented at
this time for public review and comment. The complete Agreement, which spans the
period June 28, 2025, through June 30, 2028, will be presented for City Council
consideration at the July 8, 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 Professional and Technical Employees Association.
DISCUSSION:
ProfTech represents just under 100 miscellaneous employees in engineering, planning,
and information technology occupations. ProfTech is affiliated with the Laborers'
International Union of North America, Local 777 (LIUNA).
17-1
Tentative Agreement with Newport Beach
Professional and Technical Employees Association
June 24, 2025
Page 2
During negotiations, City staff members and ProfTech board members discussed wage
adjustments, the medical cafeteria allowance and structure, leave time, certificate pays,
and other non -economic matters.
Key provisions of the Tentative Agreement between the City and ProfTech include:
• Term: June 28, 2025 through June 30, 2028
• Salary Adjustments:
o June 28, 2025 — 5% increase
o July 2026 — 4% increase
o July 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 28, 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.
• Introduction of Longevity Pay starting at 15 years of full-time service with the City.
• Adjustments to Standby Pay, Callback Duty, Certificate Pays and Holiday Leave.
A draft version of the Tentative Agreement between the City and ProfTech is provided as
Attachment A. Changes to the current agreement are noted in redline. Costing information
is included in Attachment C. The total cost of the contract is approximately $5.5 million.
ProfTech's members have voted in favor of the Agreement. Following City Council review
of the Tentative Agreement with ProfTech, a final version of the successor MOU will be
presented to the City Council on July 8, 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 July 8, 2025 City Council meeting, City staff will implement the provisions
accordingly.
17-2
Tentative Agreement with Newport Beach
Professional and Technical Employees Association
June 24, 2025
Page 3
FISCAL IMPACT:
Detailed cost information is provided in Attachment C. Since the MOU covers the period
from June 28, 2025, through June 30, 2028, it will result in the following annual fiscal
impacts to implement the terms of the agreement, totaling $5,507,942:
2025/26
$ 1,299,392
2026/27
1,878,802
2027/28
2.329.748
The costs shown reflect additional annual expenses for the corresponding fiscal years.
Because the contract is expected to take effect on June 28, 2025, the additional expense
for FY 2024-25 is considered negligible. 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 to appropriate the funds needed to cover the cost of the contract for Fiscal
Year 2025-26. 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
Newport Beach Professional and Technical Employees Association (Redline)
Attachment B — Tentative Agreement and Proposed MOU Between the City and the
Newport Beach Professional and Technical Employees Association (Clean)
Attachment C — Estimated Cost of Contract with ProfTech
17-3
ATTACHMENT A
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING AND SIDE LETTERS
f ic0f Q10
January 1, 2022June 28, 2025 through Deeernber 31, 202-5June 30, 2028
17-4
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF NEWPORT BEACH
v
THE NEWPORT BEACH
PROFESSIONAL AND TECHNICAL
EMPLOYEES ASSOCIATION
SEW Pp)v
9�fFOP,
June 28, 2025 through June 30, 2028
17-5
Page 11
MEMORANDUM OF UNDERSTANDING BETWEEN
THE CITY OF NEWPORT BEACH PROFESSIONAL AND TECHNICAL
EMPLOYEES ASSOCIATION
This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is
entered into with reference to the following:
PREAMBLE
1. The Newport Beach Professional and Technical Employees Association
("NBPTEA" or "Association"), a recognized employee organization, affiliated
with the Laborers' International Union of North America, Local 777 (LIUNA),
and the City of Newport Beach ("City"), a municipal corporation and charter
city, have been meeting and conferring, in good faith, with respect to wages,
hours, fringe benefits and other terms and conditions of employment.
2. NBPTEA representatives and City representatives have reached an agreement
as to wages, hours and other terms and conditions of employment. This shall
apply to all affected employees for the term of anuar-y 1, 2022June 28, 2025
through D eGenabeF 34,z0z'��June 30, 2028 and this agreement has been
embodied in this MOU.
3. This MOU, upon approval by NBPTEA and the Newport Beach City Council,
represents the total and complete understanding and agreement between the
parties regarding all matters within the scope of representation.
SECTION 1. General Provisions
A. RECOGNITION
In accordance with the provisions of the Charter of the City of Newport Beach, the
Meyers Milias Brown Act of the State of California and the provisions of the
Employer's/Employee Labor Relations Resolution No. 2001-50, the City
acknowledges that NBPTEA is the majority representative for the purpose of meeting
and conferring regarding wages, hours and other terms and conditions of employment
for all employees in those classifications specified in Exhibit "A" or as appropriately
modified in accordance with the Employer/Employee Resolution. All other
classifications and positions not specifically included within Exhibit "A" are excluded
from representation by NBPTEA.
B. TERM
1. Except as specifically provided otherwise, any ordinance, resolution or action
of the City Council necessary to implement this MOU shall be considered
effective as of Januar-}42022June 28, 2025. This MOU shall remain in full
force and effect until DeEengbeF 34,Z02 June 30, 2028, and the provisions of
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202a2025-2028
17-6
Page 12
this MOU shall continue after the date of expiration of this MOU in the event the
parties are meeting and conferring on a successor MOU.
2. The provisions of this MOU shall prevail over conflicting provisions of the Newport
Beach City Charter, the ordinances, resolutions and policies of the City, and federal
and state statutes, rules and regulations which either specifically provide that
agreements such as this prevail, confer rights which may be waived by any
collective bargaining agreement, or are, pursuant to decisional or statutory law,
superseded by the provisions of an agreement similar to this MOU.
C. RELEASE TIME
1. Three NBPTEA officers designated by the NBPTEA shall collectively be granted
an annual maximum of 150 hours paid release time for the conduct of NBPTEA
business. Such time shall be exclusive of actual time spent in collective bargaining
and shall be scheduled at the discretion of the NBPTEA officer. Every effort will be
made to schedule this time to avoid interference with City operations.
2. Release time designees shall be identified annually and notice shall be provided
to the City. Release time incurred shall be reported regularly in the form and
manner prescribed by the City.
3. Activities performed on release time shall include representation of members in
rights disputes, preparation for collective bargaining activities, and distribution of
NBPTEA written communication in the workplace.
4. Each January, the City will examine the number of Release Time hours the
Association used the preceding year. If the Association used more than 75% of the
hours normally granted (150), the Association will be granted an additional 30
hours for that year.
D. SCOPE
1. All present written rules and current established practices and employees' rights,
privileges and benefits that are within the scope of representation shall remain in
full force and effect during the term of this MOU unless specifically amended by
the provisions of this MOU.
2. The practical consequences of a Management Rights decision on wages, hours,
and other terms and conditions of employment shall be subject to the grievance
procedures.
3. Pursuant to this MOU, the City reserves and retains all its inherent exclusive and
non-exclusive managerial rights, powers, functions and authorities ("Management
Rights") as set forth in Resolution No. 2001-50. Management Rights include, but
are not limited to, the following:
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
2022025-2028
17-7
Page 13
(a) the determination of the purposes and functions of City Departments;
(b) the establishment of standards of service;
(c) to assign work to employees as deemed appropriate;
(d) the direction and supervision of its employees;
(e) the discipline of employees;
(f) the power to relieve employees from duty for lack of work or other legitimate
reasons;
(g) to maintain the efficiency of operations;
(h) to determine the methods, means and personnel by which operations are to
be conducted;
(i) the right to take all necessary actions to fulfill the Department's
responsibilities in the event of an emergency; and
Q) the exercise of complete control and discretion over the manner of
organization, and the appropriate technology, best suited to the
performance of departmental functions.
The practical consequences of a Management Rights decision on wages, hours, and
other terms and conditions of employment shall be subject to the grievance
procedures.
E. EMPLOYEE DATA AND ACCESS
In January and July of each year, the NBPTEA will be provided with a listing of all unit
members. The listing will include name, department, and job title. Information concerning
the NBPTEA prepared by the NBPTEA will be provided to new employees at the time of
orientation.
The City shall provide NBPTEA with access and information regarding new
employees and existing unit members as required by law. NBPTEA designated
officers shall be entitled to solicit membership from new employees at their work site.
This solicitation shall be made from the total release time for NBPTEA Officers and
shall be scheduled in a manner that is not disruptive to departmental operations.
Department heads may determine appropriate times for new employee contact, but
they cannot reasonably deny such contact.
F. CONCLUSIVENESS
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202a2025-2028
17-8
Page 14
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 way City services are to be provided, including whether the City should
provide services directly or contract out work, including work that is currently being
performed by Association members. In the event the City introduces a plan to outsource
services currently being performed by Association members to achieve greater efficiency
and/or cost savings, and upon request by the Association, the City shall meet and confer
with Association representatives to discuss the impacts of the City's decision to contract
out work. The City shall retain sole authority to decide whether or not to contract out work,
including work that is currently being performed by Association members. This provision
shall not limit the City's authority to enter into such an agreement for any City services.
G. MODIFICATIONS
Any agreement, understanding, or waiver or modification of any of the terms or
provisions of this MOU shall not be binding upon the parties unless contained in a
written document executed by authorized representatives of the parties.
H. ASSOCIATION DUES
1. The collection of Association dues shall be handled through the payroll
deduction process.
2. The Association and LIUNA agree to defend, indemnify and hold harmless the
City for its collection of Association dues.
SECTION 2. COMPENSATION
A. SALARY
Base salary increases for all NBPTEA represented classifications shall be as follows
and as specified in Exhibit A:
Effective the pay period that OnGludes january 1, 202-2June 28, 2025, base salaries
will be increased by aRe-five percent (45-0%) for all represented classifications.
Effective the first full pay period nat ORGl dos following jan„ar„ 1, 202 July 1, 2026,
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202a2025-2028
17-9
Page 15
base salaries will be increased by three—four percent (,._ .0%) for all represented
classifications.
Effective the first full pay peried that ..Gk e-speriod following anuary 1, 2024Ju1y 1,
2027, base salaries will be increased by three percent (3-.G%) for all represented
classifications.
r
1 • r
B. OVERTIME
1. Advance Approval - Employees must have advance approval from their
supervisor to work overtime.
2. FLSA Overtime - Overtime earned for actual work hours in excess of 40 in the
employee's defined FLSA workweek.
3. Contract Overtime - Overtime earned for an employee whose hours paid in their
defined FLSA workweek exceeds 40. For purposes of calculating hours paid for
contract overtime, holidays occurring during the work week count as time worked.
The use of other forms of leave do not count as hours worked for purposes of
calculating hours paid for determining eligibility for contract overtime.
4. Rate at Which Overtime is Calculated -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
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202a2025-2028
17-10
Page 16
9/80 work schedule, their defined FLSA workweek shall begin exactly four hours
after the start time of their shift on their alternating regular day off (i.e., their eight -
hour day) and end exactly 168 hours later. For employees who work a 5/40 work
schedule, their workweek shall begin on Saturday at 12:01 a.m. and will end
exactly 168 hours later the following Saturday at 12:00 a.m.
6. Work Schedule - Regardless of the type of work schedule an employee is assigned
(e.g., 5/40 and 9/80), full-time employees are regularly scheduled to work 40 hours
in their defined FLSA workweek.
7. Reporting Time - The City calculates overtime in tenths of an hour. Employees
shall report their time worked to the nearest tenth of an hour.
C.
D. STANDBY DUTY
Information Technology staff assigned standby duty for the purpose of responding to calls
for service during me weenepAoff hours shall be paid $3 per hour for each hour of
assigned standby duty. �nioo1, 1 will — defiled as the 62 hours begs Rr ORg GR Friday at
5:00 p M. aR d GGRGIi diRg MORday of 7:00 a.m for a total of 67 heirs per weekeRd. Time on
standby is not considered hours worked. 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. Thisprovision is
not intended to be a guarantee of hours and the City shall retain the right to determine
when standby duty shall be assigned.
E. CALLBACK DUTY
1. Defined
Callback duty requires the employee to respond to a request to return to their
workstation after the normal work shift has been completed and the employee has left
their normal workstation. eriods of overtime which been
scheduled by the Department Director prior to the end of the normal work shift are
not considered callback duty.
2. Compensation
All employees shall receive a minimum of Wfn three (21- hours pay. If an employee
works more than two three 3 hours, they shall receive pay for actual hours
worked.
F. ACCUMULATION OF COMPENSATORY TIME OFF
Unit members who are non-exempt from overtime may receive compensatory time
off (CTO), in lieu of cash, as compensation for overtime hours worked at the rate of
one -and- one-half hours for each hour of overtime worked. An employee may only
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202 2025-2028
17-11
Page 17
earn CTO if requested and then approved by the employee's supervisor. Callback
time may be converted to CTO with supervisor approval.
Employees may accumulate up to 80 hours of CTO. Any hours earned in excess of
80 will be paid out to the employee the following pay period. Once a unit member
reduces the balance below 80 hours, additional hours may be earned again up to the
80 hour cap.
G. SHIFT DIFFERENTIAL
Unit members who are regularly assigned a work schedule of which four or more
hours are worked between the hours of 5 p.m. and 5 a.m. shall receive a shift differential
pay of $1.00 per actual hour worked; payable for each hour worked after 5 p.m.
Overtime worked as an extension of an assigned day shift shall not qualify an employee
for shift differential.
The parties agree that to the extent permitted by law, the City shall report to the
California Public Employees' Retirement System (Ca/PERS) shift differential pay as
Special Assignment Pay pursuant to Title 2 CCR, Section 571(a)(4) and/or Section
571.1 (b)(3) Shift Differential. 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 CalPERS.
H. ASSOCIATE CIVIL ENGINEER AND JUNIOR CIVIL ENGINEER
Employees in the class of Associate Civil Engineer and Junior Civil Engineer who are
registered by the State of California shall receive an additional compensation of five (5%)
percent of base pay per month.
COURT TIME
Employees who are required to appear in court during their off -duty hours in connection
with City business shall receive a minimum of two hours pay. If an employee is actually
in court for more than two hours, the member shall receive pay for actual hours worked.
J. CERTIFICATE PAY
Effective January 1, 2013, the certificate pay program was modified to eliminate
"inactive" certificates and "sunset" certain active certificates. Employees currently
receiving pay for a "sunset" certificate are considered grandfathered under the
program, but no further employees shall be eligible. The complete list of eligible
certificates and the corresponding benefit is listed in Exhibit B. All other procedures
associated with certificate pay remain in effect, including a limitation of payment for a
maximum of five certificates per employee.
The parties agree that to the extent permitted by law, the City shall report to the
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202a2025-2028
17-12
PagE 18
California Public Employees' Retirement System (Cal/PERS) eligible certificate pays
as Educational Pay pursuant to Title 2 CCR, Section 571(a)(2) and/or 571.1(b)(2).
K. ACTING PAY
NBPTEA employees are eligible to receive "acting pay" only after completing 80
consecutive hours in the higher classification. Once the 80 hour requirement has
been satisfied, acting pay will be granted for all hours worked above 40 hours
beginning with the 41 st hour worked in the higher classification. Acting pay is an
additional 7.5% of the
employee's base pay rate.
The parties agree that to the extent permitted by law, and in accordance with
Government Code §20480 Out -of -Class Appointment Limitations, the City shall report
to the California Public Employees' Retirement System (Ca/PERS) acting pay as
Premium Pay pursuant to Title 2 CCR Section 571(a)(3) Temporary Upgrade Pay.
However , for "new members" as defined by the Public Employees' Pension
Reform Act (PEPRA) of 2013, acting pay will not be reported as pensionable
compensation to Cal/PERS. The employee must be performing 100% of the duties in
the higher classification for temporary upgrade pay to be reportable.
L. BILINGUAL PAY
Upon determination of the Department Director that an employee's ability to speak,
read and/or write in Spanish contributes to the Department providing better service
to the public, employees in positions that require additional languages as part of their
normal duties shall be eligible to receive One Hundred Fifty ($150) dollars per month
(paid each pay period) in bilingual pay. The certification process will confirm the
employee is fluent at the street conversational level in speaking, reading and/or writing
Spanish. Employees certified shall receive bilingual pay the first full pay period
following certification.
Additional languages may be certified for compensation pursuant to this section by
the Department Director with the concurrence of the Human Resources Director.
The parties agree that to the extent permitted by law, the City shall report to the California
Public Employees' Retirement System (Ca/PERS) bilingual pay as Special Assignment
Pay pursuant to Title 2 CCR, Section 571(a)(4) and/or 571.1(b)(3) Bilingual Premium.
It• W-11M10001►VA 121018M_\'1
An employee appointed by the Community Development Director to regularly perform the
duties of the Zoning Administrator as set forth in the Zoning Code shall be provided
temporary assignment pay at five percent (5%) above the employee's base pay, to be
paid on an hourly basis for all hours worked in the assignment. This assignment pay is
temporary and will cease once the employee is no longer performing the duties of the
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202a2025-2028
17-13
Page 19
Zoning Administrator.
Assistant Planners appointed by the Planning Director to regularly perform the lead duties
at the Plan Check Counter shall be provided temporary assignment pay at five (5%)
percent above the employee's base pay, paid on an hourly basis for all hours worked in
the assignment. This assignment pay will cease once the employee is no longer
performing the duties of the lead person at the Plan Check Counter.
N. LONGEVITY PAY
Unit members shall receive longevity pay based on their continuous years of full-
time service with the City of Newport Beach as follows:
Completed —Years of Continuous
Service
Longevity Pay
15 — 19
1 %
20-24
1.5%
Over 25 years
2%
These pays are not cumulative (e.g., at 20 years of service, total longevity pay will
be 1.5%. The parties agree that to the extent permitted by law, Longevity Pay is
special compensation and shall be reported to CaIPERS as such pursuant to Title
2 CCR, Section 571La) (1) and 571.1 Lb) (1).
...
SECTION 3. LEAVES
A. FLEX LEAVE
Members accrue flex leave in lieu of vacation and sick leave. An employee accrues a
designated number of flex leave hours while in paid status and based upon years of
service. Years of service is determined by the number of continuous, full-time years a
member is employed by the City.
Unit members shall accrue flex leave at the following hourly rates:
Years of Continuous Hrs. Accrued Per Annual Hours Max Allowable
Service Pav Period Balance (hours
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202a2025-2028
17-14
Page 110
Less than 5
6.00
156.00
468.00
5 but less than 9
6.61
171.86
515.58
9 but less than 12
7.23
187.98
563.94
12 but less than 16
8.15
211.90
635.70
16 but less than 20
8.77
228.02
684.06
20 but less than 25
9.38
243.88
731.64
25 and over
10.00
260.00
780.00
Members shall accrue three (3) months (i.e., 39 hours) of flex leave in the manner and as
provided above upon completion of three (3) months of continuous employment with the
City, provided however, this amount shall be reduced by any flex leave time advanced
during the first three (3) months of employment. At the completion of three (3) months of
employment, three (3) months of accrued Flex leave will be placed in the employee's
account.
1. Limit on Accumulation
Members hired 94ef4eon or before July 1, 1996:
Members hired pr+sr--on or beforete July 1, 1996, shall be paid for earned flex leave in
excess of the maximum allowable balance as spillover pay at the member's hourly rate of
pay provided that they have utilized at least eighty (80) hours of flex leave the previous
calendar year. Employees accruing at the 16 years of continuous service level or above
shall be required to use 120 hours of flex leave the previous calendar year to receive
spillover pay. Employees who have not utilized the required amount of leave the prior
calendar year shall not be eligible to accrue time above the maximum allowable balance.
Employees hired after July 1, 1996:
Employees first hired or rehired by the City July 1, 1996 are not eligible
for flex leave spillover pay and are not entitled to accrue flex leave in excess of the flex
leave maximum allowable balance.
2. Method of Use
The Department Director shall approve all requests for flex leave taking into consideration
the needs of the Department, and whenever possible the wishes of the employee.
B. HOLIDAY LEAVE
The following days shall be observed as paid holidays (i.e., employees shall have the day
off with pay). With the eXGeptien of the "floating holiday" (where ernpineyee r��
the da off\ employees Employees who are required to work on the holiday will receive
their pay for the holiday asnd either pay or flex /leave for the number of hours worked on
the holiday.
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202 2025-2028
17-15
Page 111
New Year's Day
January 1
Martin Luther King Day
January- 3rd Monday
Washington's Birthdav
February - 3rd Monday
Memorial Dav
Mav - Last Mondav
Floating Holidav-`
Jultv 1
Independence Day
July 4
Labor Dav
September- 1st Mondav
Veterans Dav
November 11
Thanksgiving Day
November - 4th Thursday
Friday After Thanksgiving
November- 4th Friday
Christmas Eve
December 24 Iastl,42
Christmas Dav
December 25
New Year's Eve
December 31 ' of
.Holiday Closure — Up to 3 Da s
TBD based on closure dates*
Holidays are paid based on the employee's regular workday schedule. For example, if an
employee is on a 9/80 schedule and the holiday is observed on a day that the employee
is regularly scheduled to work nine hours, the employee is entitled to receive nine hours
of holiday pay. However, if an employee is on a 9/80 schedule and the holiday is observed
on a day that the employee is regularly scheduled to work eight hours, the employee is
eligible to receive eight hours of holiday pay. If an employee must work on one of the
holidays listed above. (except the floatina holidav). the emDlovee will be credited with a
maximum of eight hours per holiday.
Holidays listed above (except the floating holiday) occurring on a Saturday shall
be observed the preceding Friday. Holidays occurring on a Sunday shall be
observed the following Monday
observed holiday)
Holiday pay will be paid only to employees who work their scheduled day before
and scheduled day after a holiday or are on authorized paid leave (e.g. paid leave
that has been reviewed and approved by the Department Director).
3. Holiday Closure — If the City Council approves a holiday closure for City Hall, the
following applies:
a. Holidav Closure Pav Unit members will receive holidav closure Dav for the
days they would have normally been scheduled to work during the closure
period, up to a maximum of three Q) days. The holiday closure pay is
specifically for use during the approved holiday closure. Example: If your
regular work schedule would have you working two days during a three-day
holiday closure, you will receive two days of holiday closure pay, not three.
You will not automatically aet three days if your schedule does not call for
it.
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202 2025-2028
17-16
Page 112
b. Working During a Holidav Closure If a unit member is required by their
supervisor to work during a holiday closure, they may bank their holiday
hours to flex, up to a maximum of eight hours for each day the employee is
required to work during the holiday closure.
The Holiday Closure Pay aims to fairly compensate members while ensuring
operational needs are met during approved holiday closures.
The floating holiday is awarded on July 1. Eight hours of holiday leave +S-are added to the
member's vacation or flex leave bank on the first pay period in July each year.
C. BEREAVEMENT LEAVE
Bereavement leave shall be defined as "the necessary absence from duty by an employee
because of the death or terminal illness in of an immediate family member." Unit members
shall be entitled to 40 hours of bereavement leave per calendar year per incident (terminal
illness followed by death is considered one incident). Bereavement leave shall be
administered in accordance with the provisions of the Employee Policy Manual. Leave
hours need not be used consecutively, however they should be used in proximate time to
the occurrence. For the purposes of this section, immediate family shall mean an
employee's father, mother, stepfather, stepmother, brother, sister, spouse/domestic
partner, child, stepchild, .grandchild, grandparents and the member's spouse's/domestic
partner's father, mother, brother, sister, child grandchild 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. A member requesting
bereavement leave shall notify their supervisor as soon as possible of the need to take
leave.
D. 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.
nF LEAVE SELLBACK
Employees shall have the option (on two occasions) of selling back on an hour for hour
basis, accrued flex or vacation leave. In no event shall the flex or vacation leave balance
be reduced below one hundred and sixty (160) hours. Hours sold back will be subject to
the Retiree Health Savings Plan Part C contributions, per Section 4 (F), Retiree Medical.
For the term of this MOU the Association has elected Part C contributions for Flex at 0%.
Employees shall have the option of converting accrued flex /eave to cash on an hour for
hour basis subject to the following: On or before the pay period which includes December
15 of each calendar year, an employee may make an irrevocable election to cash out
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202 2025-2028
17-17
P a g E 113
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 /eave benefits that have been earned
during that portion of the year. In no event shall the flex leave balance be reduced below
160 hours.
In addition to the above, an employee who has an "unforeseen emergency" (defined as
an unanticipated emergency that is caused by an event beyond the control of the
employee and that would result in severe financial hardship to the employee if early
withdrawal were not permitted) shall be entitled to make a request to the Director of
Human Resources for a payoff of accrued flex leave. The amount of flex leave which may
be cashed out is limited to the amount necessary to meet the emergency. If there is an
unforeseen emergency, an employee can cash out flex /eave earlier in the year than
described above provided that the remaining balance is not reduced below 160 hours.
SECTION 4. FRINGE BENEFITS
A. INSURANCE
1. Benefits Information Committee
The City has established a Benefits Information Committee (BIC) composed of one
representative from each employee association group and up to three City
representatives. The Benefits Information Committee has been established to allow the
City to present data regarding carrier and coverage options, the cost of those options,
appropriate coverage levels and other health programs. The purpose of the BIC is to
provide each employee association with information about health insurance/programs and
to receive timely input from associations regarding preferred coverage options and levels
of coverage.
2. Medical Insurance
The City has implemented an IRS qualified Cafeteria Plan. In addition to the contribution
amounts listed below, the City shall contribute the minimum CalPERS participating
employer's contribution towards medical insurance for employees enrolled in a CalPERS
medical plan, per Government Code Section 22892. Employees shall have the option of
allocating Cafeteria Plan contributions towards the City's existing medical, dental and
vision insurance/programs, provided that any cash -out option complies with IRS
Section 125 reauirements.
Unused Cafeteria Plan funds shall be payable to the employee as taxable cash back.
Employees shall be allowed to change coverages in accordance with plan rules and
during regular open enrollment periods.
The City's contribution towards the Cafeteria Plan is Thousand ;onion Hun,�ro,�
anc, Twenty -Five Dollars ($ 72 025), plus the minimum CalPERS participating
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202a2025-2028
17-18
Page 114
employer's contribution.
NBPTEA members who do not enroll in any medical plan offered by the City must provide
evidence of group medical insurance coverage and execute an opt -out agreement
releasing the City from any responsibility or liability to provide medical insurance coverage
on an annual basis.
Employees hired prior to March 16, 2019 who elect to opt out of medical coverage offered
by the City because they have provided proof of minimum essential coverage ("MEC")
through another source (other than coverage in the individual market, whether or not
obtained through Covered California) will receive One Thousand Dollars ($1,000) per
month in taxable cash. For these same employees, if they elect medical coverage and
spend less than $1,725 (plus the minimum CalPERS participating employer's
contribution) of the City contribution provided above, the difference shall be paid to the
employee as taxable cash biweekly
if they nlnnf r e iGal nn„nrage and spend lnoo than
the Cit), Gontribution proWdecl abov_e, th-pse unused Gafeter4a plan funds shag be pai
fhn mm�lninn oo taXabin GaS
Employees hired on or after March 16, 2019 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. 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.
.��:Terrr_�m►��.lvse��.
. s�:ryatir:��:�:�:•on
�a:�u�re�:r.�a:�:e _
3. Dental Insurance
The existing or comparable dental plans shall be maintained as part of the City's health
plan offerings as agreed upon by the Benefits Information Committee.
4. Vision Insurance
The existing or a comparable vision plan shall be maintained as part of the City's plan
offerings as agreed upon by the Benefits Information Committee.
5. Healthcare Reform
The parties recognize that certain state and federal laws, programs and regulations,
including the Affordable Care Act, may impact future medical plan offerings., Either party
may request to reopen Section 4A(2) regarding medical insurance for the purpose of
discussing alternative approaches and proposals to providing healthcare coverage.
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202a2025-2028
17-19
P a g E 115
Additionally, should state or federal laws concerning taxation of healthcare benefits
change, the parties agree to meet and discuss the impact of such change.
B. Additional Insurance Proarams
1. IRS Section 125 Flexible SDendina Account
Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable
income for payment of allowable expenses such as child care and medical expenses. An
Association member may request that medical, child care and other eligible expenses be
paid or reimbursed by the Section 125 Plan out of the employee's account. The base
salary of the employee will be reduced by the amount designated by the employee for
reimbursable expenses.
2. Disability Insurance
The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all
regular full-time employees with the following provisions:
Short -Term Disability
Long -Term Disability
Benefit Amount
66.67% of covered wages
66.67% of covered wages
Maximum Benefit
$1,846 weekly
$15,000 month)
Waiting Period
30 calendar days
180 calendar days
Employees shall not be required to exhaust accrued paid leaves prior to receiving benefits
under the disability insurance program. Employees may not supplement the disability
benefit with paid leave once the waiting period has been exhausted.
3. Life Insurance
The City shall provide life insurance for all regular full-time employees in $1,000
increments equal to one times the employee's annual salary up to a maximum of $50,000.
At age 70 the City -paid life insurance is reduced by 50% of the pre-70 amount. This
amount remains in effect until the employee terminates from City employment.
C. Employee Assistance Program
City shall provide an Employee Assistance Program (EAP) through a properly
licensed provider. Association members and their family members may access the
EAP subject to provider guidelines.
D. Retirement Benefit
The City contracts with California Public Employees Retirement System (Ca/PERS)
to provide retirement benefits for its employees. Pursuant to prior agreements and
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202a2025-2028
17-20
Page 116
state mandated reform, the City has implemented three different tiers of retirement
benefits, categorized as Tier 1, Tier 11 and Tier lll.
1. Retirement Formula
Tier 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 III: For employees first hired by the City between November 24 and December 31,
2012 or hired on or after January 1, 2013 and who are current classic members of the
retirement system, as defined in the Public Employees' Pension Reform Act ("PEPRA"),
the retirement formula shall be 2% @ 60 calculated on the average 36 highest months'
salary.
Tier II : For employees first hired by the City on or after January 1, 2013, and who do not
meet the Tier II criteria because they are new members as defined by PEPRA, the
retirement formula shall be 2% @ 62 calculated on the average 36 highest months' salary.
2. Employee Contributions
��.JIM 00- -
.�
• -
„_
..
10,
..
---
ISM..
0111 M.
NOW
.
• 9 A-
-
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202a2025-2028
17-21
Page 118
Tier 1 employees shall contribute eight percent (8%) of compensation earnable for the
CaIPERS member contribution.
Tier 11:
Tier 11 employees shall contribute the statutory Ca1PERS Member Contribution equal to
seven percent (7%) of compensation earnable, plus an additional one percent (1 %) of
compensation earnable toward retirement costs under Government Code Section
20516(o, for a total contribution of 8% of compensation earnable.
Tier 111:
The minimum statutory employee contribution for employees in Tier 111, subiect to the
provisions of the Public Employees' Pension Reform Act (PEPRA) equals 50% of the
"total normal cost", and is calculated annually for possible adiustments as provided in the
Ca1PERS valuations.
In addition to the statutorily reauired 50% contribution of total normal costs. Tier 111
employees shall contribute an additional amount of pensionable compensation toward
retirement pursuant to Government Code section 20516(0 so that their contribution
equals a total of 8% of pensionable compensation. Provided, however, that the employee
contribution shall never fall below the statutory required contribution.
E. LIUNA Supplemental Pension
The unit members agree to pay any costs and/or contributions associated with its
members' participation in the LIUNA Supplemental Pension Fund. The City's sole
obligation is to forward the agreed upon amount to the fund. The City is not responsible
for, nor does it make any representation regarding the payment of benefits to unit
members.
The employees' contributions to the LIUNA Supplemental Pension Fund are deemed
"picked -up" and treated as employer contributions. Employees cannot opt out of the "pick-
up," or receive the contributed amounts directly instead of having them paid to the plan.
Participation at the same level will continue to be mandatory for members of the
Association.
The Association agrees with the procedural chaRgeand change and acknowledges that
members who leave City employment prior to vesting in the LIUNA pension plan will still
have no right to return of amounts contributed, or other recourse against the City
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202a2025-2028
17-23
Page 119
concerning LIUNA.
Effective March 16, 2019, unit members agree to pick up the actual costs and
contributions required by LIUNA for participation in the LIUNA Supplemental Pension
Fund for as long as its members participate in the LIUNA Supplemental Pension Fund.
The parties are not precluded from discussing the LIUNA Supplemental Pension in future
labor negotiations.
The Association and LIUNA agree to defend, indemnify and hold harmless the City for its
actions pursuant to this section. This includes, but is not limited to, any challenge by any
member of the bargaining unit related to making contributions to the LIUNA Supplemental
Pension Fund or receiving benefits from the LIUNA Supplemental Pension Fund.
During the course of this MOU, either party ma request a meeting to discuss the LIUNA
Supplemental Pension Fund, however any alterations to the Plan administration must be
agreed upon by both parties.
F. 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 (see
Program Structure below). Funds from the Account may be used for eligible health care
expenses after separation, retirement or a change in personnel status to a position that
does not receive the RHS benefit. These changes in personnel status will activate the
Account and allow funds to be withdrawn until the Account balance is depleted. Since the
plan restricts all distributions to be spent for health insurance premiums and health care
expenses, as defined by the Internal Revenue Code Publication 502, § 213(d) and the
Plan document the contributions, fund investment earnings and benefit payments (when
withdrawn from the Account) are not taxed. Additionally, certain contributions may only
be deposited upon retirement from the City. The categories are detailed below.
1. Background
In 2005, the City and NBPTEA 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:
(b) Category 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.
(c) Category 2 - Employees who were active and enrolled in the previous
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202 2025-2028
17-24
PagE 120
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.
(d) 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 Association 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
offering the RHS benefit) before vesting forfeit the City's Part B contribution. Said
employee will only receive Part A and Part C contributions. The only exception is an
active employee who separates before vesting due to an approved industrial disability.
In such case, the employee will receive exactly five years' worth of Part B
contributions, using the employee's age and compensation at the time of separation
for calculation purposes. This amount will be deposited into the employee's Account
at the time of separation.
RHS accounts are deemed forfeited if the Participant dies with no IRS eligible
Survivors to assume the account balance. An eligible Survivor is defined as (a) the
Participant's lawful spouse, (b) the Participant's child under the age of 27 as defined
by /RC Section 152(f)(1), or (c) any other individual who is a person described in /RC
Section 152(a). Upon the death of the Participant's survivors, remaining RHS assets
are returned to the employer's RHS trust after 12 months from the notification of death.
Survivors may not designate a beneficiary under the RHS plan.
3. Account Contributions
Account contributions are categorized as Part A, Part B and Part C.
Part A contributions are a mandatory, automatic 1 % employee contribution deducted
each pay period and deposited into the Account through payroll. Deductions begin the
pay period in which the employee becomes eligible and are reported to Ca/PERS as
pensionable.
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202 2025-2028
17-25
PagE 121
Part B 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 B contributions into the
Account (interest does not accrue during that period and the contributions are
calculated at $2.50 per month for each year of the employee's full-time service plus
age) and begin to contribute $2.50 per month for each year of the employee's full-time
service plus age (e.g. 30 years old and five years of service would be a factor of 35.
$2.50 x 35 = $87.50 per month). This factor is updated annually in the pay period including
January 1. Part B contributions are not reported to CalPERS as pensionable.
The parties agree that the City's Part B contributions during active employment
constitute the minimum CalPERS participating employer's contribution (i.e., the
Ca/PERS statutory minimum amount) towards medical insurance after retirement. The
parties also agree that, for retirees selecting a Ca/PERS medical plan, or any other
plan with a similar employer contribution requirement, the required employer
contribution will be deducted from the employer's contribution to the retiree's account.
Part C contributions are determined by Association election and deposited into the
Account when flex leave hours are converted to taxable cash through leave cash -out
or at the time of separation or status change. Spillover pay does not qualify for Part C
contributions. Part C contributions are not reported to CalPERS as pensionable.
The Association determines the level of contribution for all unit members, subject to
the following constraints. All employees within the Association must participate at the
same level. The participation level shall be specified as a percentage of the flex leave
balance available in each employee's leave bank at the time of separation from the
City, or status change, or as a percentage of the flex leave balance being cashed out.
For example, if the Association wishes to elect 30% Part C contributions, then each
member leaving the City, or cashing out eligible leave at any other time, would have
the cash equivalent of 30% of the amount that is cashed out deposited to their RHS
Account on a pre-tax basis. The remaining 70% would be paid in cash as taxable
income. Individual employees do not have the option to deviate from this breakout.
The Association may change the Part C contribution amount as part of a meet and
confer process. The purpose and focus of these changes should be toward long-term,
trend type adjustments. Due to IRS restrictions regarding "constructive receipt," the
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
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202 2025-2028
17-26
Page 122
(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 Ca/PERS annuitant of the City of
Newport Beach. No interest will be earned in the interim.
For 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.
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
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202 2025-2028
17-27
Page 123
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 has the
authority to determine investment options that will be available through the plan.
G. Tuition Reimbursement
Subject to the limitations below, NBPTEA members attending accredited community
colleges, colleges, trade schools or universities, or recognized professional organizations
or agencies may apply for reimbursement of one hundred percent (100%) of the actual
cost of tuition, books, fees or other student expenses for approved job -related
coursework, seminars or professional development programs. Travel expenses are not
eligible for reimbursement. The maximum annual benefit is $2,000 per fiscal year.
Reimbursement is contingent upon the successful completion of the course. Successful
completion means a grade of "C" or better for undergraduate courses and a grade of "B"
or better for graduate courses. All claims for tuition reimbursement require the approval
of the Human Resources Director or designee.
H. Deferred Compensation
All members: Each unit member shall have the right to enroll in the deferred
compensation program set up by the City and subject to the rules of IRS Code section
457. Unit members who enroll in the City deferred compensation program are eligible
for City contributions to their City deferred compensation account as follows:
Matching City Contributions: Effective the first day of the pay period which includes
January 1, 2023, the City shall match a unit member's deferred compensation
contribution up to a maximum of thirty dollars ($30) per month. The City is only
obligated to make the contribution if the unit member has enrolled in the deferred
compensation program. There is no retroactivity.
Additional matchina City contributions to Deferred Compensation Based on Years of
Service: In addition to the City contribution provided above, the City shall match
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202a2025-2028
17-28
Page 124
contributions to eligible unit members' deferred compensation accounts as follows:
Years of
Service
January 1, 2023
January 1, 2024
January 1, 2025
15-19
$20
$25
$30
20-25
$25
$30
$35
25+
$30
$35
$40
Under federal law, there is an annual maximum contribution which may be made to
an employee's IRS Code section 457 account. Although the City will be making
contributions to the members' accounts each pay period as described above, it is the
members' responsibility to track their total contribution amount. If a member's account
contributions reach the annual IRS Code section 457 maximum, the City will stop
making contributions for the remainder of the calendar year and shall not owe the
member any additional compensation under this section.
SECTION 5. - Miscellaneous
A. Reductions in Force/Layoffs
The provisions of this section shall apply when the City Manager determines that a
reduction in the work force is warranted because of actual or anticipated reductions in
revenue, reorganization of the work force, a reduction in municipal services, a reduction
in the demand for service or other reasons unrelated to the performance of duties by any
specific employee. Reductions in force are to be accomplished, to the extent feasible, on
the basis of seniority within a particular Classification or Series and this Section should
be interpreted accordingly.
DEFINITIONS
1. "Bumping Rights", "Bumping" or "Bump" shall mean (1) the right of an
employee, based upon seniority within a series to bump into a lower ranking
classification within the same series, (2) to be followed by an employee being
permitted to bump into a classification within a different series. The latter
bumping shall be based upon unit wide seniority and shall be limited to a
classification in which the employee previously held regular status.
No employee shall have the right to bump into a classification for which the employee
does not possess the minimum qualifications such as specialized education, training
or experience.
2. "Classification" shall mean one or more full time positions identical or similar in
duties not including part-time, seasonal or temporary positions. Classification
within a Series shall be ranked according to pay (lowest ranking, lowest pay).
3. "Layoffs" or "Laid Off shall mean the non -disciplinary termination of
employment.
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
2022025-2028
17-29
Page 125
4. "Seniority" shall mean the time an employee has worked in a Classification or
Series calculated from the date on which the employee was first granted
regular status in the current Classification or any Classification within the
Series, subject to the following:
a. Credit shall be given only for continuous service subsequent to the most recent
appointment to regular status in the Classification or Series; and
b. Seniority shall include time spent on a// City state and/or federally protected and
authorized leaves but shall not include time spent on any unauthorized leave of
absence.
5. "Series" shall mean two or more classifications within a Department which
require the performance of similar duties with the higher -ranking
classification(s) characterized by the need for less supervision by superiors,
more difficult assignments, more supervisory responsibilities for subordinates.
The City Manager shall determine those classifications following a meet and
consult process which constitute a Series.
PROCEDURE
In the event the City Manager determines to reduce the number of employees within
a classification, the following procedures are applicable:
1. Probationary employees within any Classification shall be laid off before regular
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 their 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 finalized performance evaluations.
NOTICE
Employees subject to Lay-off shall be given at least thirty (30) days advance notice of the
Layoff or thirty (30) days' pay in lieu of notice. In addition, employees laid off will be paid
for all accumulated paid leave and holiday leave (if any).
REEMPLOYMENT
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202a2025-2028
17-30
Page 126
Employees who are laid off shall be placed on a Department re-employment list in reverse
order of Layoff. The re-employment list shall expire in eighteen (18) months. In the event
a vacant position occurs in the Classification which the employee occupied at the time of
Layoff, or a lower ranking Classification within a Series, the employee at the top of the
Department re-employment list shall have the right within seven (7) days of written notice
of appointment. Notice shall be deemed given when personally delivered to the employee
or deposited in the U.S. Mail, first class postage prepaid, and addressed to the employee
at their last known address. Any employee shall have the right to refuse to be placed on
the re-employment list or the right to remove their 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 up to ten (10) weeks of pay.
B. Recruitment and Selection
Position vacancy announcements for available City positions shall be distributed in a
manner that reasonably assures unit members access to the announcements. In order to
select the most qualified individual for vacant positions the City will continue its practice
of "banding" candidates into one of the following ratings: Outstanding, Highly
Recommended, Recommended, and Not Recommended, during the testing process.
Department Directors review qualified candidates in band order, beginning with the top
band and are permitted to hire any eligible candidate from the list (minimum rating of
Recommended).
Where no less than 2 unit members achieve top three ranking on a certified eligible list,
selection to the position shall be made with preference given to the unit members so
qualified.
C. 9180 SGhodu fi q 4anAlternate Work Schedule
Unit members may work either a 5140 oF 9180 work sGheduie.
an alternative work schedule (e.q., 9180, 4110 subject to supervisor approval.
Employees assigned to the 9/80 work schedule will have alternating Fridays off with
the City determining which employees will work on each alternating Friday to ensure
effective coverage of the work. Supervisors may approve a different alternating day
off based on extenuating business circumstances.
The City agrees to maintain flex -scheduling where it is currently operating successfully in
this unit.
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202a2025-2028
17-31
PagE 127
D. Labor Manaaement Committee
The City will work with NBPTEA leadership, through its managers, to establish labor-
management committees departmentally whenever it is mutually determined it is
appropriate to do so.
E. Grievance Procedure
Any employee or group of employees may file a grievance regarding the interpretation or
application of the "Employer -Employee Relations Resolution" (RESOLUTION 2001-50),
this MOU, or of rules and regulations, adversely affecting an employee's wages, hours,
or conditions of employment. Except as otherwise provided by law, the Grievance
Procedure is the sole and exclusive method by which an employee or the Association
may challenge the interpretation and/or application of a provision of the MOU.
A grievance shall be filed according to the following procedure:
Step 1: A grievance may be filed by any employee on their own behalf, or jointly by a
group of employees, or by the Association.
A grievance shall be brought to the attention of the immediate supervisor for discussion
within ten (10) days after an employee or Association Board member knew, or in the
exercise of reasonable diligence should have known, the act or events upon which the
grievance is based. If the Employee or the Association (if filed by the Association is not
satisfied with the decision reached through the informal discussion or if extenuating
circumstances exist, the Employee or Association shall have the right to file a formal
grievance in accordance with Step 2 of this section. Grievances not presented within the
time period shall be considered resolved.
The supervisor shall meet with the grievant to settle grievance and give a written answer
to the grievant within seven (7) calendar days from receipt of the grievance by the
supervisor. When the immediate supervisor is also the department head the grievance
shall be presented in Step 2.
Step 2: If the employee or the Association (if filed by the Association) is not in agreement
with the decision rendered in Step 1, the grievant shall have the right to present a formal
grievance to the Department Director within ten (10) Days after the discussion in Step 1.
The right to file a grievance petition shall be waived in the event the Employee or
Association fails to file a formal grievance within ten (10) Days after the occurrence of the
incident that forms the basis of the grievance. All formal grievances shall be submitted on
the form prescribed by the Human Resources Director and no formal grievance shall be
accepted until the form is complete. The formal grievance shall contain a clear, concise
statement of the grievance, the facts upon which the grievance is based, the rule,
regulation or policy the interpretation of which is involved in the grievance, and the specific
remedy or remedies sought by the grievant. The Department Director should render a
written decision within ten (10) Days after receipt of the formal grievance.
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202a2025-2028
17-32
Page 128
Step 3: If the formal grievance has not been satisfactorily adjusted in Step 2, it may be
appealed to the City Manager within ten (10) Days after the Employee receives the
decision. The City Manager may accept or reject the decision of the Department Director
and shall render a written decision within ten (10) Days after conducting a grievance
hearing. The decision of the City Manager shall be final and conclusive. If mutually
agreeable, a meeting may be conducted involving all affected parties at any step in the
grievance procedure prior to a decision. The City Manager may delegate uninvolved
Department Directors to act on behalf of the City Manager to provide findings and
recommendations. The findings and recommendations of the uninvolved Department
Directors are advisory only and the City Manager's decision shall be final.
Time Limits: Grievances shall be processed from one step to the next within the time limit
indicated for each step. Time limits shall be strictly enforced. Any time limits can be waived
or extended only by mutual agreement confirmed in writing. Any grievance not carried to
the next step by the Employee or Association within the prescribed time limit shall be
deemed resolved upon the basis of the previous decision.
F. Probation
1. Probationary Period
Newly hired employees shall serve a twelve (12) month probationary period. The
probationary period for promoted employees shall be six (6) months.
Newly hired employees shall become eligible for their first step increase after twelve
(12) months. All other City rules regarding step increases shall remain unchanged.
2. Failure of Probation
(a) New Probation
An employee on new probation may be released at the sole discretion of the City at any
time without right of appeal or hearing.
(b) Promotional Probation
An employee on promotional probation may be failed at any time without right of appeal
or hearing and except that failing an employee on promotional probation must not be
arbitrary, capricious or unreasonable.
An employee who fails promotional probation shall receive a performance evaluation
stating the reason for failure of promotional probation.
When an employee fails their promotional probation, the employee shall have the right to
return to their former class provided the employee was not in the previous class for the
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202a2025-2028
17-33
Page 129
purpose of training for a promotion to a higher class. When an employee is returned to
their former class, the employee shall serve the remainder of any uncompleted
probationary period in the former class.
If the employee's former class has been deleted or abolished, the employee shall have
the right to return to a class in their former occupational series closest to, but no higher
than, the salary range of the class which the employee occupied immediately prior to
promotion and shall serve the remainder of any probationary period not completed in the
former class.
G. Salary on Reclassification
An employee who is reclassified will be provided with a salary increase to the nearest
step closest to five (5%) percent (not to exceed the maximum of the new salary range).
H. Direct Deposit
All employees shall participate in the payroll direct deposit system.
I. Uniforms
For assigned Community Development —and —Public Works Department and Harbor
Department staff whose regular daily duties involve field work outside of the office,
uniforms shall be worn at all times during regular business hours. Field staff shall be
provided with City designated apparel as determined by the Department which may
include but is not limited tOEelar--^' 846 (n^►" OF 9 40" ^ et4-- as detaFMiRed—
► epa4mont hat(s), shirtLs), annually and one Cih, designated 114n1or jackets and
appropriate footwear.; TeplaEem8Rt „n anas needed-basieIn a I "'inn' ino n�ntiGRGstaff
(Rai �ildino and P blip Works) will be provided ono pair of work hoots onn �_If the
provided wiPteFjaGket eF wo kbee jacket or footwear are lost, the employee shall replace
them with one items meeting Department specifications. Work boots shall provide toe
protection and meet Department safety standards for construction sites. The Department
Head or designee may approve exceptions to wearing uniforms.
J. Telecommuting Program
The City agrees to a telecommuting program that will provide for 80 hours per calendar
year of telecommuting hours to be used in accordance with City policy. While uni
- -- - - - -- - -- - -- - -- - - - - - - - - - -- - - - - -
.Tthe provisions of the policy shall not trigger any right of grievance or appeal. This will be
NMI 1 r.
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202a2025-2028
17-34
Page 130
K. Classification and Compensation Studies
In accordance with the City of Newport Beach Employee Policy Manual (EPM , the City
Manager shall reclassify and/or adjust salary schedules for Association positions upon a
determination that said adjustmentLs) are warranted as a result of a job audit or
classification and compensation study. The Association may submit up to three iob study
requests per fiscal year to the Human Resources Director. If the position requested
requires analysis of other positions in the series, each position studied counts towards
the total of three job audits per fiscal year.
The Human Resources Director may terminate a study upon a determination that there is
no substantial evidence of a material chan-ge in duties, or of the need to adiust the
compensation. At the time of the request for a job audit, the Association will provide the
bases for the iob audit request, including but not limited to, all substantial evidence of a
material change in duties, and/or the bases for asserting said position's compensation
requires adjusting. The iob audit should include a detailed analysis of the work performed
by, or expected of, the employeeLs) and a comparison of that work with the job
specifications for the classification. The Human Resources Director shall submit a
completed iob audit, together with recommendations to the Department Director, the City
Manager and the Association.
In the event a position warrants adjustment in iob duties and/or compensation, the
salary range and effective date shall comply with section 9.21B of the City's EPM. This
provision shall terminate upon the expiration of this MOU.
K-.L. 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.
M. 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 recougment of
overpayments due to fraud or other knowinq concealment through any available legal
forum.
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202a2025-2028
17-35
Page 131
Signatures are on the next page.
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION MOU 2022-
202a2025-2028
17-36
ATTACHMENT B
NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING
11� 4t �t �_ 6 � �•y''�,f
r 9 �
e :
r�
ca
17-37
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF NEWPORT BEACH
AND
THE NEWPORT BEACH
PROFESSIONAL AND TECHNICAL
EMPLOYEES ASSOCIATION
Po/,,
\lftK
CqL/ Fo P,N4
June 28, 2025 through June 30, 2028
17-38
MEMORANDUM OF UNDERSTANDING BETWEEN
THE CITY OF NEWPORT BEACH PROFESSIONAL AND TECHNICAL
EMPLOYEES ASSOCIATION
This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU")
is entered into with reference to the following:
PREAMBLE
1. The Newport Beach Professional and Technical Employees Association
("NBPTEA" or "Association"), a recognized employee organization,
affiliated with the Laborers' International Union of North America, Local
777 (LIUNA), and the City of Newport Beach ("City"), a municipal
corporation and charter city, have been meeting and conferring, in good
faith, with respect to wages, hours, fringe benefits and other terms and
conditions of employment.
2. NBPTEA representatives and City representatives have reached an
agreement as to wages, hours and other terms and conditions of
employment. This shall apply to all affected employees for the term of
June 28, 2025 through June 30, 2028 and this agreement has been
embodied in this MOU.
3. This MOU, upon approval by NBPTEA and the Newport Beach City
Council, represents the total and complete understanding and agreement
between the parties regarding all matters within the scope of
representation.
SECTION 1. General Provisions
A. RECOGNITION
In accordance with the provisions of the Charter of the City of Newport Beach, the
Meyers Milias Brown Act of the State of California and the provisions of the
Employer's/Employee Labor Relations Resolution No. 2001-50, the City
acknowledges that NBPTEA is the majority representative for the purpose of
meeting and conferring regarding wages, hours and other terms and conditions
of employment for all employees in those classifications specified in Exhibit "A"
or as appropriately modified in accordance with the Employer/Employee
Resolution. All other classifications and positions not specifically included within
Exhibit "A" are excluded from representation by NBPTEA.
17-39
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 28, 2025. This MOU shall remain in full
force and effect until June 30, 2028, and the provisions of this MOU shall
continue after the date of expiration of this MOU in the event the parties
are meeting and conferring on a successor MOU.
2. The provisions of this MOU shall prevail over conflicting provisions of the
Newport Beach City Charter, the ordinances, resolutions and policies of the
City, and federal and state statutes, rules and regulations which either
specifically provide that agreements such as this prevail, confer rights which
may be waived by any collective bargaining agreement, or are, pursuant to
decisional or statutory law, superseded by the provisions of an agreement
similar to this MOU.
C. RELEASE TIME
Three NBPTEA officers designated by the NBPTEA shall collectively be
granted an annual maximum of 150 hours paid release time for the conduct
of NBPTEA business. Such time shall be exclusive of actual time spent in
collective bargaining and shall be scheduled at the discretion of the NBPTEA
officer. Every effort will be made to schedule this time to avoid interference
with City operations.
2. Release time designees shall be identified annually and notice shall be
provided to the City. Release time incurred shall be reported regularly in the
form and manner prescribed by the City.
3. Activities performed on release time shall include representation of members
in rights disputes, preparation for collective bargaining activities, and
distribution of NBPTEA written communication in the workplace.
4. Each January, the City will examine the number of Release Time hours the
Association used the preceding year. If the Association used more than 75%
of the hours normally granted (150), the Association will be granted an
additional 30 hours for that year.
D. SCOPE
1. All present written rules and current established practices and employees'
rights, privileges and benefits that are within the scope of representation shall
17-40
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 its inherent exclusive
and non-exclusive managerial rights, powers, functions and authorities
("Management Rights") as set forth in Resolution No. 2001-50. Management
Rights include, but are not limited to, the following:
(a) the determination of the purposes and functions of City
Departments;
(b) the establishment of standards of service;
(c) to assign work to employees as deemed appropriate;
(d) the direction and supervision of its employees;
(e) the discipline of employees;
(f) the power to relieve employees from duty for lack of work or other
legitimate reasons;
(g) to maintain the efficiency of operations;
(h) to determine the methods, means and personnel by which operations
are to be conducted;
(i) the right to take all necessary actions to fulfill the Department's
responsibilities in the event of an emergency; and
(j) the exercise of complete control and discretion over the manner of
organization, and the appropriate technology, best suited to the
performance of departmental functions.
The practical consequences of a Management Rights decision on wages, hours,
and other terms and conditions of employment shall be subject to the grievance
procedures.
E. EMPLOYEE DATA AND ACCESS
17-41
In January and July of each year, the NBPTEA will be provided with a listing of all
unit members. The listing will include name, department, and job title. Information
concerning the NBPTEA prepared by the NBPTEA will be provided to new
employees at the time of orientation.
The City shall provide NBPTEA with access and information regarding new
employees and existing unit members as required by law. NBPTEA designated
officers shall be entitled to solicit membership from new employees at their work
site. This solicitation shall be made from the total release time for NBPTEA
Officers and shall be scheduled in a manner that is not disruptive to
departmental operations. Department heads may determine appropriate times
for new employee contact, but they cannot reasonably deny such contact.
F. CONCLUSIVENESS
With the exception of a separate MOU covering retirement issues, this MOU
contains all of the covenants, stipulations, and provisions agreed upon by the
parties. Therefore, for the term of this MOU, neither party shall be compelled, and
each party expressly waives its rights to request the other to meet and confer
concerning any issue within the scope of representation except as expressly
provided herein or by mutual agreement of the parties. No representative of either
party has the authority to make, and none of the parties shall be bound by, any
statement, representation or agreement reached prior to the execution of this MOU
and not set forth herein.
As provided in the Employer -Employee Relations Resolution No. 2001-50, the City
shall determine the way City services are to be provided, including whether the City
should provide services directly or contract out work, including work that is currently
being performed by Association members. In the event the City introduces a plan to
outsource services currently being performed by Association members to achieve
greater efficiency and/or cost savings, and upon request by the Association, the City
shall meet and confer with Association representatives to discuss the impacts of the
City's decision to contract out work. The City shall retain sole authority to decide
whether or not to contract out work, including work that is currently being performed
by Association members. This provision shall not limit the City's authority to enter
into such an agreement for any City services.
G. MODIFICATIONS
Any agreement, understanding, or waiver or modification of any of the terms or
provisions of this MOU shall not be binding upon the parties unless contained in
a written document executed by authorized representatives of the parties.
17-42
H. ASSOCIATION DUES
1. The collection of Association dues shall be handled through the payroll
deduction process.
2. The Association and LIUNA agree to defend, indemnify and hold harmless
the City for its collection of Association dues.
SECTION 2. COMPENSATION
A. SALARY
Base salary increases for all NBPTEA represented classifications shall be as
follows and as specified in Exhibit A:
Effective June 28, 2025, base salaries will be increased by five percent (5%) for
all represented classifications.
Effective the first full pay period following July 1, 2026, base salaries will be
increased by four percent (4.0%) for all represented classifications.
Effective the first full pay period following July 1, 2027, base salaries will be
increased by three percent (3%) for all represented classifications.
B. OVERTIME
1. Advance Approval - Employees must have advance approval from their
supervisor to work overtime.
2. FLSA Overtime - Overtime earned for actual work hours in excess of 40 in
the employee's defined FLSA workweek.
3. Contract Overtime - Overtime earned for an employee whose hours paid in
their defined FLSA workweek exceeds 40. For purposes of calculating hours
paid for contract overtime, holidays occurring during the work week count as
time worked. The use of other forms of leave do not count as hours worked
for purposes of calculating hours paid for determining eligibility for contract
overtime.
4. Rate at Which Overtime is Calculated -FLSA and Contract Overtime (paid at
17-43
time and one half - 1.5) shall be calculated at the regular rate of pay, except
that the rate at which Contract Overtime is calculated shall not include the
City's Cafeteria Plan Allowance, the opt -out Cafeteria Plan Allowance, or any
cash back an employee may receive from the Cafeteria Plan Allowance by
choosing benefits which cost less than the Allowance.
5. Workweek for Purposes of Calculating Overtime - For employees who work
the 9/80 work schedule, their defined FLSA workweek shall begin exactly four
hours after the start time of their shift on their alternating regular day off (i.e.,
their eight- hour day) and end exactly 168 hours later. For employees who
work a 5/40 work schedule, their workweek shall begin on Saturday at 12:01
a.m. and will end exactly 168 hours later the following Saturday at 12:00 a.m.
6. Work Schedule - Regardless of the type of work schedule an employee is
assigned (e.g., 5/40 and 9/80), full-time employees are regularly scheduled to
work 40 hours in their defined FLSA workweek.
7. Reporting Time - The City calculates overtime in tenths of an hour.
Employees shall report their time worked to the nearest tenth of an hour.
C.
D. STANDBY DUTY
Information Technology staff assigned standby duty for the purpose of responding to
calls for service during off hours shall be paid $3 per hour for each hour of assigned
standby duty. Time on standby is not considered hours worked. S t a n d b y p a y w i I I
not be piggybacked with any other paid time, such as call-back,
scheduled or unscheduled overtime, or if working a scheduled
shift. This provision is not intended to be a guarantee of hours and the City shall
retain the right to determine when standby duty shall be assigned.
E. CALLBACK DUTY
1. Defined
Callback duty requires the employee to respond to a request to return to their
workstation after the normal work shift has been completed and the employee
has left their normal workstation. Periods of overtime which have been
scheduled by the Department Director prior to the end of the normal work shift
are not considered callback duty.
2. Compensation
All employees shall receive a minimum of three (3) hours pay. If an employee
17-44
works more than three (3) hours, they shall receive pay for actual hours worked.
F. ACCUMULATION OF COMPENSATORY TIME OFF
Unit members who are non-exempt from overtime may receive compensatory
time off (CTO), in lieu of cash, as compensation for overtime hours worked at the
rate of one -and- one-half hours for each hour of overtime worked. An employee
may only earn CTO if requested and then approved by the employee's
supervisor. Callback time may be converted to CTO with supervisor approval.
Employees may accumulate up to 80 hours of CTO. Any hours earned in excess
of 80 will be paid out to the employee the following pay period. Once a unit
member reduces the balance below 80 hours, additional hours may be earned
again up to the 80 hour cap.
G. SHIFT DIFFERENTIAL
Unit members who are regularly assigned a work schedule of which four or more
hours are worked between the hours of 5 p.m. and 5 a.m. shall receive a shift
differential pay of $1.00 per actual hour worked; payable for each hour worked
after 5 p.m. Overtime worked as an extension of an assigned day shift shall not
qualify an employee for shift differential.
The parties agree that to the extent permitted by law, the City shall report to the
California Public Employees' Retirement System (Ca/PERS) shift differential
pay as Special Assignment Pay pursuant to Title 2 CCR, Section 571(a)(4)
and/or Section 571.1 (b)(3) Shift Differential. 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 CalPERS.
H. ASSOCIATE CIVIL ENGINEER AND JUNIOR CIVIL ENGINEER
Employees in the class of Associate Civil Engineer and Junior Civil Engineer who
are registered by the State of California shall receive an additional compensation of
five (5%) percent of base pay per month.
I. COURT TIME
Employees who are required to appear in court during their off -duty hours in
connection with City business shall receive a minimum of two hours pay. If an
employee is actually in court for more than two hours, the member shall receive
pay for actual hours worked.
17-45
J. CERTIFICATE PAY
Effective January 1, 2013, the certificate pay program was modified to eliminate
"inactive" certificates and "sunset" certain active certificates. Employees
currently receiving pay for a "sunset" certificate are considered grandfathered
under the program, but no further employees shall be eligible. The complete list
of eligible certificates and the corresponding benefit is listed in Exhibit B. All other
procedures associated with certificate pay remain in effect, including a limitation
of payment for a maximum of five certificates per employee.
The parties agree that to the extent permitted by law, the City shall report to the
California Public Employees' Retirement System (CaIPERS) eligible certificate
pays as Educational Pay pursuant to Title 2 CCR, Section 571(a)(2) and/or
571.1(b)(2).
K. ACTING PAY
NBPTEA employees are eligible to receive "acting pay" only after completing 80
consecutive hours in the higher classification. Once the 80 hour requirement has
been satisfied, acting pay will be granted for all hours worked above 40 hours
beginning with the 41st hour worked in the higher classification. Acting pay is an
additional 7.5% of the employee's base pay rate.
The parties agree that to the extent permitted by law, and in accordance with
Government Code §20480 Out -of -Class Appointment Limitations, the City shall
report to the California Public Employees' Retirement System (Ca/PERS) acting
pay as Premium Pay pursuant to Title 2 CCR Section 571(a)(3) Temporary
Upgrade Pay. However, for "new members" as defined by the Public
Employees' Pension Reform Act (PEPRA) of 2013, acting pay will not be
reported as pensionable compensation to CalPERS. The employee must be
performing 100% of the duties in the higher classification for temporary upgrade
pay to be reportable.
L. BILINGUAL PAY
Upon determination of the Department Director that an employee's ability to
speak, read and/or write in Spanish contributes to the Department providing
better service to the public, employees in positions that require additional
languages as part of their normal duties shall be eligible to receive One Hundred
Fifty ($150) dollars per month (paid each pay period) in bilingual pay. The
certification process will confirm the employee is fluent at the street
conversational level in speaking, reading and/or writing Spanish. Employees
certified shall receive bilingual pay the first full pay period following certification.
17-46
Additional languages may be certified for compensation pursuant to this section
by the Department Director with the concurrence of the Human Resources Director.
The parties agree that to the extent permitted by law, the City shall report to the
California Public Employees' Retirement System (Ca/PERS) bilingual pay as
Special Assignment Pay pursuant to Title 2 CCR, Section 571(a)(4) and/or
571.1(b)(3) Bilingual Premium.
M. ASSIGNMENT PAY
An employee appointed by the Community Development Director to regularly perform
the duties of the Zoning Administrator as set forth in the Zoning Code shall be
provided temporary assignment pay at five percent (5%) above the employee's base
pay, to be paid on an hourly basis for all hours worked in the assignment. This
assignment pay is temporary and will cease once the employee is no longer
performing the duties of the Zoning Administrator.
Assistant Planners appointed by the Planning Director to regularly perform the lead
duties at the Plan Check Counter shall be provided temporary assignment pay at
five (5%) percent above the employee's base pay, paid on an hourly basis for all
hours worked in the assignment. This assignment pay will cease once the employee
is no longer performing the duties of the lead person at the Plan Check Counter.
N. LONGEVITY PAY
Unit members shall receive longevity pay based on their continuous years of
full-time service with the City of Newport Beach as follows:
Years of Continuous Service
Lon evit Pa
15— 19
1%
20-24
1.5%
Over 25 years
2%
These pays are not cumulative (e.g., at 20 years of service, total longevity pay
will be 1.5%). The parties agree that to the extent permitted by law, Longevity
Pay is special compensation and shall be reported to CaIPERS as such
pursuant to Title 2 CCR, Section 571(a)(1) and 571.1(b)(1).
SECTION 3. LEAVES
A. FLEX LEAVE
17-47
Members accrue flex leave in lieu of vacation and sick leave. An employee accrues
a designated number of flex leave hours while in paid status and based upon years
of service. Years of service is determined by the number of continuous, full-time
years a member is employed by the City.
Unit members shall accrue flex leave at the following hourly rates:
Years of Continuous
Service
Hrs. Accrued Per
Pay Period
Annual Hours
Max Allowable
Balance hours
Less than 5
6.00
156.00
468.00
5 but less than 9
6.61
171.86
515.58
9 but less than 12
7.23
187.98
563.94
12 but less than 16
8.15
211.90
635.70
16 but less than 20
8.77
228.02
684.06
20 but less than 25
9.38
243.88
731.64
25 and over
10.00
260.00
780.00
Members shall accrue three (3) months (i.e., 39 hours) of flex leave in the manner
and as provided above upon completion of three (3) months of continuous
employment with the City, provided however, this amount shall be reduced by any
flex leave time advanced during the first three (3) months of employment. At the
completion of three (3) months of employment, three (3) months of accrued Flex
leave will be placed in the employee's account.
1. Limit on Accumulation
Members hired on or before July 1, 1996:
Members hired on or before July 1, 1996, shall be paid for earned flex leave in
excess of the maximum allowable balance as spillover pay at the member's hourly
rate of pay provided that they have utilized at least eighty (80) hours of flex leave
the previous calendar year. Employees accruing at the 16 years of continuous
service level or above shall be required to use 120 hours of flex leave the previous
calendar year to receive spilloverpay. Employees who have not utilized the required
amount of leave the prior calendar year shall not be eligible to accrue time above
the maximum allowable balance.
Employees hired after July 1, 1996:
Employees first hired or rehired by the City after July 1, 1996 are not eligible for flex
leave spillover pay and are not entitled to accrue flex leave in excess of the flex
leave maximum allowable balance.
17-48
2. Method of Use
The Department Director shall approve all requests for flex leave taking into
consideration the needs of the Department, and whenever possible the wishes of the
employee.
B. HOLIDAY LEAVE
The following days shall be observed as paid holidays (i.e., employees shall have the
day off with pay). Employees who are required to work on the holiday will receive
their pay for the holiday as either pay or flex leave for the number of hours worked
on the holiday.
New Year's Day
January 1
Martin Luther King Day
January- 3rd Monday
Washington's Birthdav
February - 3rd Monday
Memorial Dav
Mav - Last Mondav
Floating Holidav
Julv 1
Independence Day
July 4
Labor Dav
September- 1 st Mondav
Veterans Dav
November 11
Thanksgiving Day
November - 4th Thursday
Friday After Thanksgiving
November- 4th Friday
Christmas Eve
December 24
Christmas Dav
December 25
New Year's Eve
December 31
Holiday Closure — Up to 3 Days
TBD based on closure dates
Holidays are paid based on the employee's regular workday schedule. For example,
if an employee is on a 9/80 schedule and the holiday is observed on a day that the
employee is regularly scheduled to work nine hours, the employee is entitled to
receive nine hours of holiday pay. However, if an employee is on a 9/80 schedule and
the holiday is observed on a day that the employee is regularly scheduled to work
eight hours, the employee is eligible to receive eight hours of holiday pay. If an
employee must work on one of the holidays listed above, (except the floating
holiday), the employee will be credited with a maximum of eight hours per holiday.
1. Holidays listed above (except the floating holiday) occurring on a Saturday
shall be observed the preceding Friday. Holidays occurring on a Sunday shall
be observed the following Monday.
17-49
2. Holiday pay will be paid only to employees who work their scheduled day
before and scheduled day after a holiday or are on authorized paid leave (e.g.
paid leave that has been reviewed and approved by the Department
Director).
3. Holiday Closure — If the City Council approves a holiday closure for City Hall,
the following applies.
a. Holiday Closure Pay Unit members will receive holiday closure pay for
the days they would have normally been scheduled to work during the
closure period, up to a maximum of three (3) days. The holiday
closure pay is specifically for use during the approved holiday closure.
Example: If your regular work schedule would have you working two
days during a three-day holiday closure, you will receive two days of
holiday closure pay, not three. You will not automatically get three
days if your schedule does not call for it.
b. Workinq Durinq a Holiday Closure If a unit member is required by their
supervisor to work during a holiday closure, they may bank their
holiday hours to flex, up to a maximum of eight hours for each day the
employee is required to work during the holiday closure.
The Holiday Closure Pay aims to fairly compensate members while ensuring
operational needs are met during approved holiday closures.
The floating holiday is awarded on July 1. Eight hours of holiday leave are added to
the member's vacation or flex leave bank on the first pay period in July each year.
C. BEREAVEMENT LEAVE
Bereavement leave shall be defined as "the necessary absence from duty by an
employee because of the death or terminal illness in of an immediate family
member." Unit members shall be entitled to 40 hours of bereavement leave per
calendar year per incident (terminal illness followed by death is considered one
incident). Bereavement leave shall be administered in accordance with the
provisions of the Employee Policy Manual. Leave hours need not be used
consecutively, however they should be used in proximate time to the occurrence. For
the purposes of this section, immediate family shall mean an employee's father,
mother, stepfather, stepmother, brother, sister, spouse/domestic partner, child,
stepchild, grandchild, grandparents and the member's spouse's/domestic partner's
father, mother, brother, sister, child, grandchild 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. A member requesting bereavement
leave shall notify their supervisor as soon as possible of the need to take leave.
17-50
D. 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.
E. LEAVE SELLBACK
Employees shall have the option (on two occasions) of selling back on an hour for
hour basis, accrued flex or vacation leave. In no event shall the flex or vacation leave
balance be reduced below one hundred and sixty (160) hours. Hours sold back will
be subject to the Retiree Health Savings Plan Part C contributions, per Section 4 (F),
Retiree Medical. For the term of this MOU the Association has elected Part C
contributions for Flex at 0%.
Employees shall have the option of converting accrued flex /eave to cash on an hour
for hour basis subject to the following: On or before the pay period which includes
December 15 of each calendar year, an employee may make an irrevocable election
to cash out accrued flex leave which will be earned in the following calendar year.
The employee can elect to receive the cash out in the pay period which includes
June 30 and/or the pay period which includes December 15 for those flex /eave
benefits that have been earned during that portion of the year. In no event shall the
flex leave balance be reduced below 160 hours.
In addition to the above, an employee who has an "unforeseen emergency" (defined
as an unanticipated emergency that is caused by an event beyond the control of the
employee and that would result in severe financial hardship to the employee if early
withdrawal were not permitted) shall be entitled to make a request to the Director of
Human Resources for a payoff of accrued flex leave. The amount of flex leave which
may be cashed out is limited to the amount necessary to meet the emergency. If
there is an unforeseen emergency, an employee can cash out flex /eave earlier in
the year than described above provided that the remaining balance is not reduced
below 160 hours.
SECTION 4. FRINGE BENEFITS
A. INSURANCE
1. Benefits Information Committee
The City has established a Benefits Information Committee (BIC) composed of one
17-51
representative from each employee association group and up to three City
representatives. The Benefits Information Committee has been established to allow
the City to present data regarding carrier and coverage options, the cost of those
options, appropriate coverage levels and other health programs. The purpose of the
BIC is to provide each employee association with information about health
insurance/programs and to receive timely input from associations regarding
preferred coverage options and levels of coverage.
2. Medical Insurance
The City has implemented an IRS qualified Cafeteria Plan. In addition to the
contribution amounts listed below, the City shall contribute the minimum CalPERS
participating employer's contribution towards medical insurance for employees
enrolled in a CalPERS medical plan, per Government Code Section 22892.
Employees shall have the option of allocating Cafeteria Plan contributions towards
the City's existing medical, dental and vision insurance/programs, provided that any
cash -out option complies with IRS Section 125 requirements.
Unused Cafeteria Plan funds shall be payable to the employee as taxable cash back.
Employees shall be allowed to change coverages in accordance with plan rules and
during regular open enrollment periods.
The City's contribution towards the Cafeteria Plan is Two Thousand and Twenty -
Five Dollars ($2,025), plus the minimum CalPERS participating employer's
contribution.
NBPTEA members who do not enroll in any medical plan offered by the City must
provide evidence of group medical insurance coverage and execute an opt -out
agreement releasing the City from any responsibility or liability to provide medical
insurance coverage on an annual basis.
Employees hired prior to March 16, 2019 who elect to opt out of medical coverage
offered by the City because they have provided proof of minimum essential coverage
("MEC") through another source (other than coverage in the individual market,
whether or not obtained through Covered California) will receive One Thousand
Dollars ($1,000) per month in taxable cash. For these same employees, if they elect
medical coverage and spend less than $1, 725 (plus the minimum Ca1PERS
participating employer's contribution) of the City contribution provided above, the
difference shall be paid to the employee as taxable cash biweekly.
Employees hired on or after March 16, 2019 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
17-52
Covered California) shall receive Five Hundred Dollars ($500) per month in taxable
cash. For these same employees, if they elect medical coverage and spend less than
the City contribution provided above, there shall be no cash back provided.
3. Dental Insurance
The existing or comparable dental plans shall be maintained as part of the City's
health plan offerings as agreed upon by the Benefits Information Committee.
4. Vision Insurance
The existing or a comparable vision plan shall be maintained as part of the City's plan
offerings as agreed upon by the Benefits Information Committee.
5. Healthcare Reform
The parties recognize that certain state and federal laws, programs and regulations,
including the Affordable Care Act, may impact future medical plan offerings., Either
party may request to reopen Section 4A(2) regarding medical insurance for the
purpose of discussing alternative approaches and proposals to providing healthcare
coverage. Additionally, should state or federal laws concerning taxation of
healthcare benefits change, the parties agree to meet and discuss the impact of
such change.
B. Additional Insurance Programs
1. IRS Section 125 Flexible Spending Account
Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable
income for payment of allowable expenses such as child care and medical
expenses. An Association member may request that medical, child care and other
eligible expenses be paid or reimbursed by the Section 125 Plan out of the
employee's account. The base salary of the employee will be reduced by the amount
designated by the employee for reimbursable expenses.
2. Disability Insurance
The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to
all regular full-time employees with the following provisions:
Short -Term Disability
Long -Term Disability
Benefit Amount
66.67% of covered
wages
66.67% of covered wacies
17-53
Maximum Benefit
$1,846 weekly
$15,000 month)
Waiting Period
130 calendar days
180 calendar days
Employees shall not be required to exhaust accrued paid leaves prior to receiving
benefits under the disability insurance program. Employees may not supplement the
disability benefit with paid leave once the waiting period has been exhausted.
3. Life Insurance
The City shall provide life insurance for all regular full-time employees in $1,000
increments equal to one times the employee's annual salary up to a maximum of
$50,000. At age 70 the City -paid life insurance is reduced by 50% of the pre-70
amount. This amount remains in effect until the employee terminates from City
employment.
C. Employee Assistance Program
City shall provide an Employee Assistance Program (EAP) through a properly
licensed provider. Association members and their family members may access
the EAP subject to provider guidelines.
D. Retirement Benefit
The City contracts with California Public Employees Retirement System
(Ca/PERS) to provide retirement benefits for its employees. Pursuant to prior
agreements and state mandated reform, the City has implemented three
different tiers of retirement benefits, categorized as Tier 1, Tier ll and Tier lll.
1. Retirement Formula
Tier I: For employees hired by the City on or before November 23, 2012, the
retirement formula shall be the 2.5%@ 55 calculated on the basis of the single
highest year.
Tier II: For employees first hired by the City between November 24 and December
31, 2012 or hired on or after January 1, 2013 and who are current classic members
of the retirement system, as defined in the Public Employees' Pension Reform Act
("PEPRA"), the retirement formula shall be 2% @ 60 calculated on the average 36
highest months' salary.
Tier III: For employees first hired by the City on or after January 1, 2013, and who
do not meet the Tier II criteria because they are new members as defined by
17-54
PEPRA, the retirement formula shall be 2% @ 62 calculated on the average 36
highest months' salary.
2. Employee Contributions
Tier I. -
Tier I employees shall contribute eight percent (8%) of compensation earnable for
the Ca1PERS member contribution.
Tier H.
Tier 11 employees shall contribute the statutory Ca1PERS Member Contribution equal
to seven percent (7%) of compensation earnable, plus an additional one percent
(1 %) of compensation earnable toward retirement costs under Government Code
Section 20516(f), for a total contribution of 8% of compensation earnable.
Tier 111:
The minimum statutory employee contribution for employees in Tier 111, subject to
the provisions of the Public Employees' Pension Reform Act (PEPRA) equals 50%
of the "total normal cost", and is calculated annually for possible adjustments as
provided in the Ca1PERS valuations.
In addition to the statutorily required 50% contribution of total normal costs, Tier 111
employees shall contribute an additional amount of pensionable compensation
toward retirement pursuant to Government Code section 20516(f) so that their
contribution equals a total of 8% of pensionable compensation. Provided, however,
that the employee contribution shall never fall below the statutory required
contribution.
E. LIUNA Supplemental Pension
The unit members agree to pay any costs and/or contributions associated with its
members' participation in the LIUNA Supplemental Pension Fund. The City's sole
obligation is to forward the agreed upon amount to the fund. The City is not
responsible for, nor does it make any representation regarding the payment of
benefits to unit members.
The employees' contributions to the LIUNA Supplemental Pension Fund are
deemed "picked -up" and treated as employer contributions. Employees cannot opt
out of the "pick- up," or receive the contributed amounts directly instead of having
17-55
them paid to the plan. Participation at the same level will continue to be mandatory
for members of the Association.
The Association agrees with the procedural change and acknowledges that
members who leave City employment prior to vesting in the LIUNA pension plan will
still have no right to return of amounts contributed, or other recourse against the City
concerning LIUNA.
Effective March 16, 2019, unit members agree to pick up the actual costs and
contributions required by LIUNA for participation in the LIUNA Supplemental
Pension Fund for as long as its members participate in the LIUNA Supplemental
Pension Fund. The parties are not precluded from discussing the LIUNA
Supplemental Pension in future labor negotiations.
The Association and LIUNA agree to defend, indemnify and hold harmless the City
for its actions pursuant to this section. This includes, but is not limited to, any
challenge by any member of the bargaining unit related to making contributions to the
LIUNA Supplemental Pension Fund or receiving benefits from the LIUNA
Supplemental Pension Fund.
During the course of this MOU, either party may request a meeting to discuss the
LIUNA Supplemental Pension Fund, however any alterations to the Plan
administration must be agreed upon by both parties.
F. Retiree Medical Benefit
This is an Integral Part Trust (/PT) RHS Retiree Health Savings (RHS) plan (formerly
the Medical Expense Reimbursement Program - WERP"). Each member has an
individual RHS account ("Account"), which accumulates based on the category they
fall under (see Program Structure below). Funds from the Account may be used for
eligible health care expenses after separation, retirement or a change in personnel
status to a position that does not receive the RHS benefit. These changes in
personnel status will activate the Account and allow funds to be withdrawn until the
Account balance is depleted. Since the plan restricts all distributions to be spent for
health insurance premiums and health care expenses, as defined by the Internal
Revenue Code Publication 502, § 213(d) and the Plan document the contributions,
fund investment earnings and benefit payments (when withdrawn from the Account)
are not taxed. Additionally, certain contributions may only be deposited upon
retirement from the City. The categories are detailed below.
1. Background
In 2005, the City and NBPTEA agreed to replace the previous "defined benefit" retiree
17-56
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:
(b) Category 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.
(c) 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.
(d) 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 Association 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 offering the RHS benefit) before vesting forfeit the City's Part B
contribution. Said employee will only receive Part A and Part C contributions.
The only exception is an active employee who separates before vesting due to an
approved industrial disability. In such case, the employee will receive exactly five
years' worth of Part B contributions, using the employee's age and
compensation at the time of separation for calculation purposes. This amount
will be deposited into the employee's Account at the time of separation.
RHS accounts are deemed forfeited if the Participant dies with no IRS eligible
Survivors to assume the account balance. An eligible Survivor is defined as (a)
the Participant's lawful spouse, (b) the Participant's child under the age of 27 as
17-57
defined by /RC Section 152(f)(1), or (c) any other individual who is a person
described in /RC Section 152(a). Upon the death of the Participant's survivors,
remaining RHS assets are returned to the employer's RHS trust after 12 months
from the notification of death. Survivors may not designate a beneficiary under
the RHS plan.
3. Account Contributions
Account contributions are categorized as Part A, Part B and Part C.
Part A contributions are a mandatory, automatic 1% employee contribution
deducted each pay period and deposited into the Account through payroll.
Deductions begin the pay period in which the employee becomes eligible and
are reported to Ca/PERS as pensionable.
Part B 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 B contributions into
the Account (interest does not accrue during that period and the contributions
are calculated at $2.50 per month for each year of the employee's full-time
service plus age) and begin to contribute $2.50 per month for each year of the
employee's full-time service plus age (e.g. 30 years old and five years of service
would be a factor of 35. $2.50 x 35 = $87.50 per month). This factor is updated
annually in the pay period including January 1. Part B contributions are not reported
to CalPERS as pensionable.
The parties agree that the City's Part B contributions during active employment
constitute the minimum CalPERS participating employer's contribution (i.e., the
Ca/PERS statutory minimum amount) towards medical insurance after retirement.
The parties also agree that, for retirees selecting a Ca/PERS medical plan, or
any other plan with a similar employer contribution requirement, the required
employer contribution will be deducted from the employer's contribution to the
retiree's account.
Part C contributions are determined by Association election and deposited into
the Account when flex leave hours are converted to taxable cash through leave
cash -out or at the time of separation or status change. Spillover pay does not
qualify for Part C contributions. Part C contributions are not reported to CalPERS
as pensionable.
The Association determines the level of contribution for all unit members, subject
to the following constraints. All employees within the Association must participate at
the same level. The participation level shall be specified as a percentage of the flex
17-58
leave balance available in each employee's leave bank at the time of separation
from the City, or status change, or as a percentage of the flex leave balance being
cashed out.
For example, if the Association wishes to elect 30% Part C contributions, then
each member leaving the City, or cashing out eligible leave at any other time,
would have the cash equivalent of 30% of the amount that is cashed out
deposited to their RHS Account on a pre-tax basis. The remaining 70% would
be paid in cash as taxable income. Individual employees do not have the option
to deviate from this breakout.
The Association may change the Part C contribution amount as part of a meet
and confer process. The purpose and focus of these changes should be toward
long-term, trend type adjustments. Due to IRS restrictions regarding
"constructive receipt," the 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
Ca/PERS annuitant of the City of Newport Beach. No interest will be earned in
the interim.
17-59
For 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.
If an eligible Category 3 participant retires from the City of Newport Beach, the
City will deposit $400 per month into the Account upon retirement, up to a
maximum of $4,800 per year, less the CalPERS minimum required employer
contribution as determined by CalPERS annually, which shall continue as long
as the employee or surviving spouse/qualified dependent is still living. To offset
this expense to the City, active Category 3 participants will contribute an
additional $100 per month to the 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 has the
authority to determine investment options that will be available through the plan.
G. Tuition Reimbursement
Subject to the limitations below, NBPTEA members attending accredited community
colleges, colleges, trade schools or universities, or recognized professional
17-60
organizations or agencies may apply for reimbursement of one hundred percent
(100%) of the actual cost of tuition, books, fees or other student expenses for
approved job -related coursework, seminars or professional development programs.
Travel expenses are not eligible for reimbursement. The maximum annual benefit is
$2,000 per fiscal year. Reimbursement is contingent upon the successful completion
of the course. Successful completion means a grade of "C" or better for
undergraduate courses and a grade of "B" or better for graduate courses. All claims
for tuition reimbursement require the approval of the Human Resources Director or
designee.
H. Deferred Compensation
All members: Each unit member shall have the right to enroll in the deferred
compensation program set up by the City and subject to the rules of IRS Code
section 457. Unit members who enroll in the City deferred compensation program
are eligible for City contributions to their City deferred compensation account as
follows:
Matchina City Contributions: Effective the first day of the pay period which
includes January 1, 2023, the City shall match a unit member's deferred
compensation contribution up to a maximum of thirty dollars ($30) per month.
The City is only obligated to make the contribution if the unit member has
enrolled in the deferred compensation program. There is no retroactivity.
Additional matching City contributions to Deferred Compensation Based on Years
of Service: In addition to the City contribution provided above, the City shall match
contributions to eligible unit members' deferred compensation accounts as
follows:
Years of
Service
January 1, 2023
January 1, 2024
January 1, 2025
15-19
$20
$25
$30
20-25
$25
$30
$35
25+
$30
$35
$40
Under federal law, there is an annual maximum contribution which may be made
to an employee's IRS Code section 457 account. Although the City will be
making contributions to the members' accounts each pay period as described
above, it is the members' responsibility to track their total contribution amount. If
a member's account contributions reach the annual IRS Code section 457
maximum, the City will stop making contributions for the remainder of the
calendar year and shall not owe the member any additional compensation under
17-61
this section.
SECTION 5. - Miscellaneous
A. Reductions in Force/Layoffs
The provisions of this section shall apply when the City Manager determines that a
reduction in the work force is warranted because of actual or anticipated reductions
in revenue, reorganization of the work force, a reduction in municipal services, a
reduction in the demand for service or other reasons unrelated to the performance
of duties by any specific employee. Reductions in force are to be accomplished, to
the extent feasible, on the basis of seniority within a particular Classification or
Series and this Section should be interpreted accordingly.
DEFINITIONS
1. "Bumping Rights", "Bumping" or "Bump" shall mean (1) the right of an
employee, based upon seniority within a series to bump into a lower
ranking classification within the same series, (2) to be followed by an
employee being permitted to bump into a classification within a different
series. The latter bumping shall be based upon unit wide seniority and
shall be limited to a classification in which the employee previously held
regular status.
No employee shall have the right to bump into a classification for which the
employee does not possess the minimum qualifications such as specialized
education, training or experience.
2. "Classification" shall mean one or more full time positions identical or
similar in duties not including part-time, seasonal or temporary positions.
Classification within a Series shall be ranked according to pay (lowest
ranking, lowest pay).
3. "Layoffs" or "Laid Off shall mean the non -disciplinary termination of
employment.
4. "Seniority" shall mean the time an employee has worked in a Classification
or Series calculated from the date on which the employee was first
granted regular status in the current Classification or any Classification
within the Series, subject to the following:
a. Credit shall be given only for continuous service subsequent to the most
recent appointment to regular status in the Classification or Series; and
17-62
b. Seniority shall include time spent on a// City state and/or federally protected
and authorized leaves but shall not include time spent on any unauthorized
leave of absence.
5. "Series" shall mean two or more classifications within a Department which
require the performance of similar duties with the higher -ranking
classification(s) characterized by the need for less supervision by
superiors, more difficult assignments, more supervisory responsibilities for
subordinates. The City Manager shall determine those classifications
following a meet and consult process which constitute a Series.
PROCEDURE
In the event the City Manager determines to reduce the number of employees
within a classification, the following procedures are applicable:
Probationary employees within any Classification shall be laid off before
regular 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 their 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 finalized performance evaluations.
NOTICE
Employees subject to Lay-off shall be given at least thirty (30) days advance notice
of the Layoff or thirty (30) days' pay in lieu of notice. In addition, employees laid off
will be paid for all accumulated paid leave and holiday leave (if any).
REEMPLOYMENT
Employees who are laid off shall be placed on a Department re-employment list in
reverse order of Layoff. The re-employment list shall expire in eighteen (18) months.
In the event a vacant position occurs in the Classification which the employee
occupied at the time of Layoff, or a lower ranking Classification within a Series, the
17-63
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 their last known address. Any
employee shall have the right to refuse to be placed on the re-employment list or the
right to remove their 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 up to ten (10) weeks of pay.
B. Recruitment and Selection
Position vacancy announcements for available City positions shall be distributed in
a manner that reasonably assures unit members access to the announcements. In
order to select the most qualified individual for vacant positions the City will continue
its practice of "banding" candidates into one of the following ratings: Outstanding,
Highly Recommended, Recommended, and Not Recommended, during the testing
process. Department Directors review qualified candidates in band order, beginning
with the top band and are permitted to hire any eligible candidate from the list
(minimum rating of Recommended).
Where no less than 2 unit members achieve top three ranking on a certified eligible
list, selection to the position shall be made with preference given to the unit members
so qualified.
C. Alternate Work Schedule
Unit members may work an alternative work schedule (e.g., 9180, 4110) subject
to supervisor approval.
Employees assigned to the 9/80 work schedule will have alternating Fridays off
with the City determining which employees will work on each alternating Friday to
ensure effective coverage of the work. Supervisors may approve a different
alternating day off based on extenuating business circumstances.
The City agrees to maintain flex -scheduling where it is currently operating
successfully in this unit.
D. Labor Management Committee
17-64
The City will work with NBPTEA leadership, through its managers, to establish labor-
management committees departmentally whenever it is mutually determined it is
appropriate to do so.
E. Grievance Procedure
Any employee or group of employees may file a grievance regarding the
interpretation or application of the "Employer -Employee Relations Resolution"
(RESOLUTION 2001-50), this MOU, or of rules and regulations, adversely affecting
an employee's wages, hours, or conditions of employment. Except as otherwise
provided by law, the Grievance Procedure is the sole and exclusive method by which
an employee or the Association may challenge the interpretation and/or application
of a provision of the MOU.
A grievance shall be filed according to the following procedure:
Step 1: A grievance may be filed by any employee on their own behalf, or jointly by
a group of employees, or by the Association.
A grievance shall be brought to the attention of the immediate supervisor for
discussion within ten (10) days after an employee or Association Board member
knew, or in the exercise of reasonable diligence should have known, the act or
events upon which the grievance is based. If the Employee or the Association (if
filed by the Association is not satisfied with the decision reached through the
informal discussion or if extenuating circumstances exist, the Employee or
Association shall have the right to file a formal grievance in accordance with Step 2
of this section. Grievances not presented within the time period shall be considered
resolved.
The supervisor shall meet with the grievant to settle grievance and give a written
answer to the grievant within seven (7) calendar days from receipt of the grievance
by the supervisor. When the immediate supervisor is also the department head the
grievance shall be presented in Step 2.
Step 2: If the employee or the Association (if filed by the Association) is not in
agreement with the decision rendered in Step 1, the grievant shall have the right to
present a formal grievance to the Department Director within ten (10) Days after the
discussion in Step 1. The right to file a grievance petition shall be waived in the event
the Employee or Association fails to file a formal grievance within ten (10) Days after
the occurrence of the incident that forms the basis of the grievance. All formal
grievances shall be submitted on the form prescribed by the Human Resources
Director and no formal grievance shall be accepted until the form is complete. The
17-65
formal grievance shall contain a clear, concise statement of the grievance, the facts
upon which the grievance is based, the rule, regulation or policy the interpretation of
which is involved in the grievance, and the specific remedy or remedies sought by
the grievant. The Department Director should render a written decision within ten
(10) Days after receipt of the formal grievance.
Step 3: If the formal grievance has not been satisfactorily adjusted in Step 2, it may
be appealed to the City Manager within ten (10) Days after the Employee receives
the decision. The City Manager may accept or reject the decision of the Department
Director and shall render a written decision within ten (10) Days after conducting a
grievance hearing. The decision of the City Manager shall be final and conclusive.
If mutually agreeable, a meeting may be conducted involving all affected parties at
any step in the grievance procedure prior to a decision. The City Manager may
delegate uninvolved Department Directors to act on behalf of the City Manager to
provide findings and recommendations. The findings and recommendations of the
uninvolved Department Directors are advisory only and the City Manager's decision
shall be final.
Time Limits: Grievances shall be processed from one step to the next within the time
limit indicated for each step. Time limits shall be strictly enforced. Any time limits can
be waived or extended only by mutual agreement confirmed in writing. Any grievance
not carried to the next step by the Employee or Association within the prescribed time
limit shall be deemed resolved upon the basis of the previous decision.
F. Probation
1. Probationary Period
Newly hired employees shall serve a twelve (12) month probationary period. The
probationary period for promoted employees shall be six (6) months.
Newly hired employees shall become eligible for their first step increase after twelve
(12) months. All other City rules regarding step increases shall remain unchanged.
2. Failure of Probation
(a) New Probation
An employee on new probation may be released at the sole discretion of the City at
any time without right of appeal or hearing.
(b) Promotional Probation
17-66
An employee on promotional probation may be failed at any time without right of
appeal or hearing and except that failing an employee on promotional probation
must not be arbitrary, capricious or unreasonable.
An employee who fails promotional probation shall receive a performance evaluation
stating the reason for failure of promotional probation.
When an employee fails their promotional probation, the employee shall have the
right to return to their 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 their former class, the employee shall serve the remainder of any
uncompleted probationary period in the former class.
If the employee's former class has been deleted or abolished, the employee shall
have the right to return to a class in their former occupational series closest to, but
no higher than, the salary range of the class which the employee occupied
immediately prior to promotion and shall serve the remainder of any probationary
period not completed in the former class.
G. Salary on Reclassification
An employee who is reclassified will be provided with a salary increase to the
nearest step closest to five (5%) percent (not to exceed the maximum of the new
salary range).
H. Direct Deposit
All employees shall participate in the payroll direct deposit system.
I. Uniforms
For assigned Community Development, Public Works Department and Harbor
Department staff whose regular daily duties involve field work outside of the office,
uniforms shall be worn at all times during regular business hours. Field staff shall be
provided with City designated apparel as determined by the Department which may
include but is not limited to hat(s), shirt(s), jacket(s), and appropriate footwear. If
the provided jacket or footwear are lost, the employee shall replace them with items
meeting Department specifications. Work boots shall provide toe protection and
meet Department safety standards for construction sites. The Department Head or
designee may approve exceptions to wearing uniforms.
J. Telecommuting Program
17-67
The City agrees to a telecommuting program that will provide for 80 hours per
calendar year of telecommuting hours to be used in accordance with City policy.
The provisions of the policy shall not trigger any right of grievance or appeal.
K. Classification and Compensation Studies
In accordance with the City of Newport Beach Employee Policy Manual (EPM), the
City Manager shall reclassify and/or adjust salary schedules for Association
positions upon a determination that said adjustment(s) are warranted as a result of
a job audit or classification and compensation study. The Association may submit
up to three job study requests per fiscal year to the Human Resources Director. If
the position requested requires analysis of other positions in the series, each
position studied counts towards the total of three job audits per fiscal year.
The Human Resources Director may terminate a study upon a determination that
there is no substantial evidence of a material change in duties, or of the need to
adjust the compensation. At the time of the request for a job audit, the Association
will provide the bases for the job audit request, including but not limited to, all
substantial evidence of a material change in duties, and/or the bases for asserting
said position's compensation requires adjusting. 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 to the Department Director, the City Manager and the
Association.
In the event a position warrants adjustment in job duties and/or compensation,
the salary range and effective date shall comply with section 9.213 of the City's
EPM. This provision shall terminate upon the expiration of this MOU.
L. 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.
M. 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
17-68
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.
For ProfTech
President
X
Michael Tranq
Vice President
For the City:
Barbara J. Salvini
Human Resources Director
17-69
ATTACHMENT C
Estimated Cost of Contract with ProfTech
17-70
City of Newport Beach
Newport Beach Professional & Technical Employees Association MOU
June 24, 2025
Key Contract Terms
COLA
5% 4% 3%
Cafeteria Increase
Increase by $300/Month
PERS Reduction
11.50% 8% for all tiers
15-19 yrs 1.0%
Longevity Pay
20-24 yrs 1.5%
25+ yrs 2.0%
Holiday Pays
Christmas Eve & New Years Eve full pay
Holiday Closure Leave
3 days
Call Back Duty
2 hour min Increase to 3hrs travel time
Standby Duty
$3 per hr. Remove "weekend"
Bereavement Leaves
Add grandchild
Summary of Proposal Cost 1
Baseline Compensation
Base Pay
$11,369,489
$568,474
$1,045,993
$1,418,457
Supplemental Pays
136,300
87,324
95,051
100,243
Overtime
456,217
69,155
90,170
106,561
Pension Contribution
776,011
457,009
506,116
544,272
Cafeteria Plan
2,021,286
87,193
87,193
87,193
Other City Paid BenefitS2
870,811
30,237
54,280
73,021
Total
$15,630,114
$1,299,392
$1,878,802
$2,329,748
Cumulative Impact on Employee Compensation
Base Salary Increase
5.00%
9.20%
12.48%
Total Compensation Increase
8.31%
12.02%
14.91%
Key Contract Terms
COLA
679,706
1,235,088
1,668,127
Cafeteria Increase
87,193
87,193
87,193
PERS Reduction
397,932
413,849
426,265
Longevity Pay
35,669
39,110
40,959
Holiday Pays
10,331
10,744
11,066
Holiday Closure Leave
41,324
42,977
44,266
Call Back Duty
11,815
12,602
13,217
Standby Duty
35,422
37,238
38,654
Total
1,299,392
1,878,802
2,329,748
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.
3 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 Considered to be a no -cost proposal term.
6The costs shown reflect additional annual expenses for the corresponding fiscal years. Because the contract takes effect on June 28,
2025, the additional expense for FY 2024/25 is considered negligible.
17-71