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HomeMy WebLinkAbout12 - Tentative Agreement with the Part Time Employees Association of Newport Beach (PTEANB)Q �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report July 22, 2025 Agenda Item No. 12 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Grace K. Leung, City Manager - 949-644-3001, gleung@newportbeachca.gov PREPARED BY: Barbara J. Salvini, Human Resources Director - 949-644-3259, bsalvini@newportbeachca.gov TITLE: Tentative Agreement with the Part Time Employees Association of Newport Beach (PTEANB) ABSTRACT: The Memorandum of Understanding (MOU) between the City of Newport Beach and the Part Time Employees Association of Newport Beach (PTEANB 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 PTEANB 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 PTEANB is being presented at this time for public review and comment. The complete Agreement, which spans the period August 23, 2025, through June 30, 2028, will be presented for City Council consideration at the August 26, 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 Part Time Employees Association. DISCUSSION: Although the City employs a couple hundred or so part-time employees, only a third of them are eligible members of the PTEANB. PTEANB recognizes membership for part-time employees who have worked at least 1,000 hours in any fiscal year, or, when the City determines membership is required under state or federal law for medical 12-1 Tentative Agreement with the Part Time Employees Association of Newport Beach (PTEANB) July 22, 2025 Page 2 coverage. These members work throughout the City organization, providing support to various departments, including, but not limited to, the library, recreation and police departments. Association and City representatives have met and conferred in good faith and arrived at a Tentative Agreement. The Agreement addresses wages, benefits and other terms and conditions of employment for employees represented by the PTEANB, as required under the Meyers-Milias-Brown Act, California Government Code §3500. Key provisions of the Tentative Agreement between the City and PTEANB include: • Term: August 23, 2025, through June 30, 2028 • Salary Adjustments: o Part-time salary adjustments will be tied to the salary adjustments received by the full-time equivalent positions. o Part-time employee salary schedules will adjust to match the base salary hourly rates of the equivalent full-time classifications. Members will move to the full-time step with the salary that is closest to their current salary, whether higher or lower than their current step. o Part-time classifications aligned with the full-time classifications which are represented by the Newport Beach City Employees Association shall receive a 4% equity adjustment. • Medical Insurance: Effective January 1, 2026, the City will offer part-time members minimal essential coverage, as adjusted from year to year by the federal government. The current amount is $706.40 per month; the amount for 2026 is not yet available. Some unit members' medical or opt -out benefit may be grandfathered, depending on hire date. • Employee Retirement Contributions: 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. • Adjustments to the flex leave accrual cap. A draft version of the Tentative Agreement between the City and PTEANB is provided as Attachment A. Changes to the current agreement are noted in redline. Costing information is included in Attachment B. The total cost of the contract is approximately $2.6 million. PTEANB's members have voted in favor of the Agreement. 12-2 Tentative Agreement with the Part Time Employees Association of Newport Beach (PTEANB) July 22, 2025 Page 3 Following City Council review of the Tentative Agreement, a final version of the successor MOU will be presented to the City Council on August 26, 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 August 26, 2025, City Council meeting, City staff will implement the provisions accordingly. FISCAL IMPACT: Detailed cost information is provided in Attachment B. Since the MOU covers the period from August 23, 2025, through June 30, 2028, it will result in the following annual fiscal impacts to implement the terms of the agreement, totaling $2,576,844: Fiscal Year 2025/26 Amount $552,000 2026/27 $890,576 2027/28 $1,134,268 The costs shown reflect additional annual expenses for the corresponding fiscal years. 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 budget 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 with the Part Time Employees Association of Newport Beach (PTEANB) Attachment B — Estimated Cost of Contract with the PTEANB 12-3 ATTACHMENT A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH THE PART TIME EMPLOYEES ASSOCIATION OF NEWPORT BEACH �i� janttafy 1, 2022through Deeember-z' 025-August 23, 2025 through June 20, 2028 • ._ • ._ .. 12-4 Page 11 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE PART TIME EMPLOYEES ASSOCIATION OF NEWPORT BEACH This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: 1a:7�_1Ji1 411= 1. The Part Time Employees Association of Newport Beach ("PTEANB" or "Association"), a recognized employee organization, 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. PTEANB representatives and City representatives have reached an agreement as to wages, hours and other terms and conditions of employment as provided in this Memorandum of Understanding (MOU) for the period from i t 2022 threug,,h DeGember 31,2025.-.August 23, 2025 through June 30, 2028. 3. This MOU, upon approval by PTEANB 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. Except as limited herein, the City retains all management rights as set forth in the Meyers-Milias- Brown Act and Resolution No. 2001-50. 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 - Employee Relations Resolution No. 2001-50, the City acknowledges that PTEANB is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for part-time employees in those classifications specified in Exhibit "A" and meeting the following recognition requirements. 1. Recognition will continue for all employees recognized as of date of adoption of this MOU; thereafter, employees will become eligible for recognition after working a cumulative total of 1,000 hours in any fiscal year. 2. Recognition for unit membership may also occur whenever the City determines it is mandated by State or Federal law to provide Minimum Essential Coverage, as defined by the Federal Affordable Care Act. 3. Once eligible for recognition, employees remain covered under the MOU regardless of the number of hours subsequently worked. PTEANB 2022-20252025-2028 12-5 Page 12 B. Duration of Memorandum 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 janua 1, 2022August 23, 2025. This MOU shall remain in full force and effect until no�er 1,2025June 30, 2028, and the terms and conditions of this MOU shall continue after the date of expiration of this MOU in the event the parties have not yet agreed upon a successor MOU. The provisions of this MOU shall prevail over conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions and policies of the City of Newport Beach, and Federal and State statutes, rules and regulations which either specifically provide that agreements such as this prevail, confer rights which may be waived by any collective bargaining agreement, or are, pursuant to decisional or statutory law, superseded by the provisions of an agreement similar to this MOU. C. Employee Data and Access As required by law, the City shall provide PTEANB a regular list of all unit members including name, department, and job title. D. Modifications Any agreement, alteration, understanding, variation, 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. E. Subcontracting As provided in the Employer -Employee Relations Resolution No. 2001-50, the City shall determine the manner in which City services are to be provided, including whether the City should provide services directly or contract out work, including work that is currently being performed by Association members. In the event the City introduces a plan to outsource services 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 impact of the City's decision to contract out work, prior to contracting out such services. The City shall retain sole authority to decide whether or not to contract out work, including work that is currently being performed by Association members. This provision shall not limit the City's authority to enter into such an agreement for any City services. F. Savings Should any part of this MOU be rendered or declared illegal or invalid by legislation, decree of court of competent jurisdiction or other established governmental administrative tribunal, such invalidation shall not affect the remaining portions of this MOU. SECTION 2. COMPENSATION PTEANB 2nav22 POP52025-2028 12-6 Page 13 A. Pav for Time Worked 1. Salary Adjustments Effective August 23. 2025 salary adiustments for the part-time positions with full-time equivalents shall be tied to the salary adjustments received by the full-time equivalent position. Some part-time classifications are not associated with a full-time equivalent position. The salary adjustments for these classifications shall be tied to the salary adjustments identified in Exhibit Notwithstanding the above adjustments, the top step pay rate of Police Reserve Officer shall be, at a minimum, equal to Step 1 of Police Officer. Salary Schedule Adjustment r 011111 _ r _ Employees who have been at the GuFnent Top Step for longer than 12 months as o junrr 3 2023,wil advance to the New n T� Top Step in the nay period hiGh inc—ludc� July 4, 20Effective August 23, 2025, or as soon thereafter as is reasonably practicable, all part-time classification salary schedules will adjust to match the base salary hourly rates of the equivalent full-time classifications. Accordingly, employees working part-time in classifications that have a full-time counterpart will move to the full-time stew with the salary that is closest to their current salarv. whether hiaher or lower than their current ste Notwithstanding the above, part-time classifications that are aligned with full-time PTEANB 2022-20252025-2028 12-7 Page 14 classifications represented by the Newport Beach City Employees Association shall receive a 4 % equity adjustment effective August 23, 2025, or as soon thereafter as is reasonably practicable. 2. Compensation for Overtime - Normal Overtime a. Advanced Approval - Employees must have advanced approval from their supervisor to work overtime. b. FLSA Overtime - Overtime earned for actual work hours in excess of 40 in the employee's defined FLSA workweek. c. 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, Leave does not count as hours worked for purposes of calculating or earning overtime. d. Rate at Which Overtime is Calculated - Both FLSA and Contract Overtime (paid at time and one half - 1.5) shall be calculated at the regular rate of pay, except that the rate at which Contract Overtime is calculated shall not include the City's Cafeteria Plan Allowance, the opt -out Cafeteria Plan Allowance, or any cash back an employee may receive from the Cafeteria Plan Allowance by choosing benefits which cost less than the Allowance. e. Workweek for Purposes of Calculating Overtime - Employees workweek shall begin on Saturday at 12:00 a.m. and will end exactly 168 hours later the following Friday at 11:59 p.m. f. Reporting Time - The City calculates overtime in tenths of an hour. An employee who works in excess of three minutes of the next tenth should round up to the next tenth and if the employee works three minutes or less of the next tenth should round down. For example, if an employee whose normal work schedule ends at 5:00 p.m. works until 5:03 p.m. he/she should round down and not report the additional three minutes. However, if the employee works until 5:04 p.m., he/she should report an additional tenth of an hour of time worked. 3. Minimum Wage Adjustment Salary ranges of positions that fall below the State minimum wage due to increases in the State minimum wage rate will be adjusted to ensure that employees are earning at least the State minimum wage. 4. Assignment Pay Night Shift Differential: Police Department Staff: Unit members assigned to the Police Department shall be eligible for Night Shift Differential of $1.50 per hour, PTEANB 2022-20252025-2028 12-8 Page 15 payable for each regularly scheduled hour worked between 6:00 p.m. and 6:00 a.m. Library Staff: Unit members assigned to the Library Department shall be eligible for Night Shift Differential of $1.00 per hour, payable for each regularly scheduled hour worked after 5:00 p.m. and for all hours of shifts worked on Sundays. Overtime worked either as an extension of an assigned shift or scheduled as an overtime shift shall not qualify the employee for Night Shift Differential. To qualify for the differential, the hours worked have to be part of the employee's regularly assigned schedule. The parties agree that to the extent permitted by law, the shift differential pay in this section is special compensation and shall be reported to CalPERS as such pursuant to Title 2 CCR, Section 571(a)(4) Shift Differential Pay. Matron Pay: Female Police Department employees assigned matron duties shall receive one (1) hour straight time pay for each shift matron duties are performed. The employee must work a minimum shift of eight (8) hours to be eligible. Bilingual Pay: Employees certified as bilingual (Spanish) shall be eligible to receive seventy-five cents ($0.75) per hour in bilingual pay. The certification process will confirm the employee is fluent at the appropriate conversational level in speaking Spanish. Employees certified shall receive bilingual pay the first full pay period following certification. Additional languages may be considered upon Department Director determination of the benefit to the City and upon approval by the Human Resources Director. The parties agree that to the extent permitted by law, the Bilingual pay in this section is special compensation and shall be reported to CalPERS as such pursuant to Title 2 CCR, Section 571(a)(4) Bilingual Premium. SECTION 3. FRINGE BENEFITS A. Cafeteria Plan 111 I MY PTEANB 2022-20252025-2028 12-9 Page 16 • ► • • • 1 WHOWWRId 1l 11 ty the 1 1I �. I • 11 IN 11 Ill • • 11 � I � I ► A. NoIN11. PTEANB 2022-20252025-2028 12-10 Page 17 lie - - I W- -- AVM Al ea1VA F& F-01111 . .....WIN [rim 7--- . 1W.M., I I W-4,11 I HIM 11. M-1 _. TieF2 Group - empeyees., - . . _. ._ .. .itinixin M-1111 1141111. . e: ..:.;_:.:.e_:.��..::.��. MIMM The Citv has implemented an IRS aualified Cafeteria Plan. Unit members shall have the option of allocating Cafeteria Plan contributions to the City's existing medical insurance as program rules allow. Employees shall be allowed to change coverages in accordance with plan rules and during regular open enrollment periods. For employees enrolled in medical plans, the cafeteria amount is inclusive of each year's statutory minimum CalPERS medical insurance contribution. Employees eligible for opt -out benefits described below must provide proof of minimum essential coverage ("MEC") throuah another source. other than coveraae in the individual market. whether or not obtained through Covered California. An employee who enters the unit, whether as a new employee or as an employee coming from a full-time unit, shall have the most recent date he/she enters the unit be the date which dictates the employee's cafeteria benefit amount. Effective January 1, 2026, the cafeteria plan for part-time members will be administered as follows: All unit members will be offered the eauivalent of the minimum essential coveraae regardless of the number of hours worked. For example, if the MEC for 2026 equals $700 per month, all unit members enrolled in medical plans would be eligible to receive $700 per month towards medical benefits. No portion of the cafeteria benefit is payable to the emnlovee as taxable cash back. Further. there is no "oat out" cash benefit for PTEANB 2022-20252025-2028 12-11 Page 18 eligible unit members who waive coverage. Notwithstandina the above, these unit members are eliaible for the followina: Employees currently receiving $775 per month towards medical -only benefits will continue to receive $775 per month. Employees who receive an opt -out allowance of $263.40 per month will continue to receive $263.40 per month. No additional employees will be provided with this "opt out" benefit. Should the minimum essential coverage exceed $775 per month, the City shall adjust the monthly benefit to match the MEC for employees enrolled in medical -only benefits; however, the opt out benefit of $263.40 will not adjust. Employees currently receiving an "opt -out" cafeteria benefit of $3.25 per hour worked will continue to receive $3.25 per hour, up to a maximum of 60 hours per pay period. The opt out amount of $3.25 per hour will not be applied to paid leave, as it is not considered time worked for purposes of the $3.25 per hour benefit. B. 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 discussions regarding medical insurance for the purpose of discussing alternative approaches and proposals to providing healthcare coverage. In addition, should State or Federal laws concerning taxation of healthcare benefits change, the parties agree to meet and discuss the impact of such change. C. Flex Leave Members accrue flex leave in lieu of vacation and sick leave. Employees accrue Flex Leave at the rate of .06 hours for each hour worked. The maximum allowable balance for Flex Leave is one hundred twenty (4�0120) hours. Once an employee reaches the maximum allowable balance, Flex Leave will stop accruing until the employee's balance falls below 440-120 hours. D. Leave Sellback Employees have the option of converting accrued Flex Leave to cash on an hour for hour basis subject to the following: On or before the pay period which includes December 15 (starting on December 15, 2019) of each calendar year, an employee may make an irrevocable election to cash out accrued flex leave which will be earned in the following calendar year. The employee can elect to receive the cash out in the pay period which includes June 30 and/or the pay period which includes December 15 for those Flex Leave benefits that have been earned during that portion of the year. E. Jury Duty PTEANB employees legally required to serve as a juror, and who provide appropriate documentation, shall be eligible for leave with pay for jury service occurring during the PTEANB 202zo=� 20252025-2028 12-12 Page 19 employee's regularly scheduled shift, and as provided in the City of Newport Beach Employee Policy Manual. Employees will be paid for the hours they would have been regularly scheduled to work during those days when they were required to be on jury duty. F. Retirement Benefit 1. PERS Retirement The City contracts with the California Public Employees Retirement System (PERS) toPERS veto retoromon+ rovide "�t-sretirement -to-rbenefits -4tsfor its Miscellaneous employees. Pursuant to prior agreements and state mandated reform, the City has implemented first, second and third tier retirement benefits: Tier 1: For employees hired by the City and enrolled in PERS on or before November 23, 2012, the retirement formula shall be the 23 @2.5%55 calculated on the basis of the single highest year. Tier 2: For employees first hired by the City and enrolled in PERS between November 24 and December 31, 2012, or hired on or after January 1, 2013 and are current classic members of the retirement system, as defined in the Public Employees Pension Reform Act ("PEPRA"), the retirement formula shall be 20 @2%60 calculated on the average 36 highest months' salary. Tier 3: For employees first eligible for the PERS benefit on or after January 1, 2013, and who do not meet the Tier 2 criteria because they are new members as defined by the PEPRA, the retirement formula shall be 2%@62 calculated on the average 36 highest months' salary. 2. Employee Contributions :........:.: ""' _ I*Wwo ., ._ . .�� PTEANB 2022-20252025-2028 12-13 Page 111 Tier 1: 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 Ca/PERS 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, 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. The City contracts with PERS for the 4th Level 1959 Survivors Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military Service Credit, 2% Cost of Living Adjustment and the pre -retirement option settlement 2 death benefit (Section 21548). Employees in the classifications Police Cadet and Police Reserve Officer are excluded from membership in PERS, as provided in the contract between the City of Newport Beach and the Board of Administration of the Public Employees' Retirement System. 3. PARS Retirement PTEANB employees not enrolled in the PERS retirement system will participate in the Public Agency Retirement Services (PARS) program. The City will make a matching 3.75% contribution to PARS on behalf of the employees. G. Other Benefits Not Provided No other fringe benefits are provided to employees in the Part Time Unit. PTEANB 2022-20252025-2028 12-15 Page 112 SECTION 4. MISCELLANEOUS. A. Direct Deposit All employees shall participate in the payroll direct deposit system. B. Recreation Department Step Adiustment Unit members in the classification Recreation Leader, Senior Recreation Leader, Pool Lifeguard, Senior Pool Lifeguard, Senior Services Van Driver, Marine Naturalist Interpreter, and -Park Patrol Officer, Assistant Recreation Coordinator, or comparable classifications as amended, may be eligible for salary step increases upon meeting the following criteria: 365 days have passed since the last salary step increase; employee has worked a minimum of 125 hours in the classification within the preceding 365 days; and the employee is rated as "Contributor" or greater on his or her most recent performance evaluation. Additional salary steps must remain in the range in order to receive the adjustment. C. Telecommuting Program The City agrees to pilot a telecommuting program with unit members. Subject to supervisory approval, eligible employees will qualify for an annual telecommuting bank of hours equal to the number of hours they typically work in a pay period. Example: An employee who is regularly scheduled to work 32 hours per pay period would be eligible for 32 hours of telecommuting per calendar year, subject to supervisory approval. While unit members are invited to participate in policy formation, the terms and conditions are subject to management approval before the program will be implemented. Additionally, the provisions of the policy shall not trigger any right of grievance or appeal. This will be a pilot program which shall terminate upon the expiration of this MOU Once approved, a copy of the policy governing this program will be attached as an addendum to this MOU. D. 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 subiect to a repayment schedule established by the appointing authority under guidelines issued by the Finance Department or Human Resources. Such recovery shall not exceed 15% per month of disposable earnings, as defined by State law, except a mutually agreed upon accelerated payment plan for faster recovery. Recoupments under this section shall be limited to forty-eight (48) months. However, nothing in this section is intended to preclude the City from seeking recoupment of overpayments due to fraud or other knowing concealment through any available legal forum. Signatures are on the next page. PTEAN B ' ^'�P5202 5-2028 12-16 For PTEANB: x W, ". " I,. - Mary Crig President PTEANB 2992 =252025-2028 Page 113 For the City: X� R�Lf,74 Barbara J. Salvini Human Resources Director 12-17 Page 114 EXHIBIT A Some part-time classifications are not associated with a full-time equivalent position. The salary adjustments for these classifications shall be tied to the salary adiustments as follows: Job Classification BargainingBa[gainigg Unit GIS Technical Aide NBPTEA Intern NBCEA Librar Pa e NBCEA Literacy Coordinator NBCEA Maintenance Aide League Police Cadet NBPA Pool Life uard NBCEA Senior Pool Lifeguard NBCEA Pool Swim Instructor NBCEA Public Works Technical Aide NBPTEA Recreation Leader NBCEA Senior Recreation Leader NBCEA Support Services Aide NBFA Review Officer NBCEA Pursuant to Section 2A 1 of this MOU, Police Reserve Officer shall be, at a minimum equal to Step 1 of Police Officer. PTEAN B ' ^'�P5202 5-2028 12-18 ATTACHMENT B Estimated Cost of Contract with PTEANB 12-19 City of Newport Beach Part -Time Employees Association of Newport Beach July 22, 2025 Key Contract Terms Part-time salary adjustments will mirror those of the Salary Adjustments equivalent full-time positions. Part-time salary schedules will align with the base hourly rates of equivalent full-time positions. Employees will be placed at the full-time step closest to their current salary, whether higher or lower. Part-time positions aligned with Newport Beach City Employees Association classifications will receive a 4% equity adjustment. CalPERS Employee Pickup 11.5% Reduce employee contributions to 8% Cafeteria Plan Benefits Provide cafeteria plan benefits to all employees within the association. Summary of Proposal CostZ Baseline Compensation Base Pay $ 6,741,591 $ 420,918 $ 707,418 $ 930,888 Supplemental Pays 8,320 - - - Overtime 18,567 928 1,708 2,316 Pension Contribution 130,307 81,650 90,111 96,710 Cafeteria Plan 32,700 26,568 54,465 55,826 Other City Paid Benefits3 237,120 21,936 36,875 48,527 Total $ 7,168,605 $ 552,000 $ 890,576 $ 1,134,268 Cumulative Impact on Employee Compensation Base Salary Increase 6.24% 10.49% 13.81% Total Compensation Increases 7.70% 12.42% 15.82% Key Contract Terms Salary Adjustments 454,640 762,488 1,002,609 CalPERS Employee Pickup 70,792 73,624 75,832 Cafeteria Plan 26,568 54,465 55,826 Total $ 552,000 $ 890,576 $ 1,134,268 Notes 1Costs shown for FY 2025/26 reflect a full year of costs associated with the increase in compensation over the prior year, even though the agreement will not take effect until August 23, 2025. 2Costs shown in years two and three reflect the cumulative budget impact in each year as compared to the current budgeted amounts. 3Includes Medicare, PARS/CalPERS, Cafeteria Plan, Retiree Health Savings, and Flex Leave. 4Percentage shown in each year is as compared to current base salary, not the prior year. 5Measured 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 12-20