HomeMy WebLinkAbout13 - Tentative Agreement with Newport Beach City Employees AssociationQ �EwPpRT
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FROM:
CITY OF
NEWPORT BEACH
City Council Staff Report
November 18, 2025
Agenda Item No. 13
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
Grace K. Leung, City Manager - 949-644-3001,
gleung@newportbeachca.gov
PREPARED BY: Tara Finnigan, Assistant City Manager/ Acting Human Resources
Director — 949-644-3035, tinnigan@newportbeachca.gov
TITLE: Tentative Agreement with Newport Beach City Employees
Association
ABSTRACT:
The Memorandum of Understanding (MOU) between the City of Newport Beach (City)
and the Newport Beach City Employees Association (NBCEA or Association) expires
December 31, 2025. At the City Council's direction, the parties began negotiating the
terms and conditions of a new agreement 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
NBCEA 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 NBCEA is being presented for
public review and comment. The complete Agreement, which spans the period November
29, 2025 through June 30, 2028, will be presented for the City Council's consideration at
its December 9, 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 City Employees Association.
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Tentative Agreement with Newport Beach City Employees Association
November 18, 2025
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DISCUSSION:
The NBCEA represents just under 100 miscellaneous positions in administrative support,
finance, library services and recreational services occupations and is affiliated with the
Laborers' International Union of North America (LIUNA). During negotiations, City
representatives and NBCEA board members discussed wage adjustments, the medical
cafeteria allowance and structure, leave time, employee retirement contributions, and
other non -economic matters.
Earlier this fall, the two parties reached a Tentative Agreement to reduce NBCEA
members' California Public Employee Retirement System (CaIPERS) pension retirement
contributions. On September 23, 2025, the City Council adopted Resolution No. 2025-63,
and thereby approved a Side Letter Agreement with the NBCEA to reduce its members'
CaIPERS contributions to the following levels:
• Tiers I & II — 8% of compensation earnable
• Tier III — 8% of pensionable compensation or half the normal cost, whichever is
higher.
City and NBCEA representatives continued to meet through the month of October and
reached a Tentative Agreement earlier this month. Key provisions of the Tentative
Agreement include:
• Term: November 29, 2025 through December 31, 2028
• Salary Adjustments:
o November 29, 2025 — 5% increase
o Effective the first full pay period after January 1, 2027 — 4% increase
o Effective the first full pay period after January 1, 2028 — 3% increase
• Medical Insurance: The City will contribute $2,025 per month (plus the minimum
CaIPERS participating employee contribution) to each member's cafeteria plan
• Introduction of Longevity Pay starting at 15 years of full-time service with the City
• Adjustments to Shift Differential Pay and Holiday Leave
• Withdrawal from the LIUNA National Industrial Pension Fund
A draft version of the Tentative Agreement between the City and NBCEA is provided as
Attachment A (redline) and Attachment B (clean version). It should be noted that the
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Tentative Agreement with Newport Beach City Employees Association
November 18, 2025
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CalPERS contribution rates approved by the City Council on September 23 have been
incorporated into the draft MOU.
Costing information for the proposed Agreement is included as Attachment C. The total
cost of the contract is approximately $3.8 million.
NBCEA's members recently voted in favor of the Agreement. Following the City Council's
review of the Tentative Agreement with NBCEA, a final version of the successor MOU will
be presented to the City Council on December 9, 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 December 9, 2025, City Council meeting, City staff will implement the
provisions accordingly.
FISCAL IMPACT:
Detailed cost information is provided in Attachment C. Since the MOU covers the period
from November 29, 2025, through December 31, 2028, it will result in the following annual
fiscal impacts, totaling $3,784,234:
2025/26 $ 806,786
2026/27 $1,324,2318
2027/28 $1,653,210
The costs shown reflect the additional annual expenses for each corresponding fiscal
year. These amounts include the costs associated with the side letter approved on
September 23, 2025, which reduced the required CaIPERS pension contributions to 8%
or half of the normal cost, whichever is greater. On that same date, the City Council
approved Budget Amendment No. 26-027, appropriating $283,181 for the
aforementioned side letter with the NBCEA. Following the City Council's consideration of
the Tentative Agreement, staff will return with a budget amendment of $523,605 to
appropriate the funds necessary to cover the full 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.
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Tentative Agreement with Newport Beach City Employees Association
November 18, 2025
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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 of Newport
Beach and the Newport Beach City Employees Association (Redline)
Attachment B — Tentative Agreement and Proposed MOU Between the City of Newport
Beach and the Newport Beach City Employees Association (Clean)
Attachment C — Estimated Cost of Contract with NBCEA
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ATTACHMENT A
MEMORANDUM OF UNDERSTANDING BETWEEN
THE CITY OF NEWPORT BEACH AND NEWPORT BEACH CITY EMPLOYEES ASSOCIATION
This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered
into with reference to the following:
PREAMBLE
The Newport Beach City Employees Association ("NBCEA" or "Association"), a
recognized employee organization, affiliated with the Laborers' International Union of
North America, Local 777 (LIUNA), and the City of Newport Beach ("City"), a municipal
corporation and charter city, have been meeting and conferring, in good faith, with
respect to wages, hours, fringe benefits and other terms and conditions of
employment.
2. NBCEA representatives and City representatives have reached an agreement as to
wages, hours and other terms and conditions of employment. This shall apply to all
affected employees for the term of November 29, 2025,daR ��,20-= through
December 31, 2028 IDGG8mbeF 31, 2025 and this agreement has been embodied in
this MOU.
3. This MOU, upon approval by NBCEA and the Newport Beach City Council, represents
the total and complete understanding and agreement between the parties regarding
all matters within the scope of representation.
SECTION 1. GENERAL PROVISIONS
A. Recognition
In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers
Milias Brown Act of the State of California and the provisions of the Employer's/Employee
Labor Relations Resolution No. 2001-50, the City acknowledges that NBCEA is the
majority representative for the purpose of meeting and conferring regarding wages, hours
and other terms and conditions of employment for all employees in those classifications
specified in Exhibit "A" or as appropriately modified in accordance with the
Employer/Employee Resolution. All other classifications and positions not specifically
included within Exhibit "A" are excluded from representation by NBCEA.
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 November29, 2025dan���—,20 2. This MOU shall remain in full force and
effect until December 31, 20289eeenibe-r-Z��, and the provisions of this MOU
NBCEA MOU 20252--20285
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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 NBCEA officers designated by the NBCEA shall collectively be granted an
annual maximum of 150 hours paid release time for the conduct of NBCEA
business. Such time shall be exclusive of actual time spent in collective bargaining
and shall be scheduled at the discretion of the NBCEA officer. Every effort will be
made to schedule this time to avoid interference with City operations.
2. Release time designees shall be identified annually and notice shall be provided
to the City. Release time incurred shall be reported regularly in the form and
manner prescribed by the City.
3. Activities performed on release time shall include representation of members in
rights disputes, preparation for collective bargaining activities, and distribution of
NBCEA written communication in the 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
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.
hours,
and other terms and Genditiens T mnleymont shall��abjc r e the grieyanne
preGed Tres
3-2. 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:
NBCEA MOU 20252-20285
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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
(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. Emolovee Data and Access
The City shall provide NBCEA with access and information regarding new employees and
existing unit members as required by law. NBCEA designated officers shall be entitled to
solicit membership from new employees at their work site. This solicitation shall be made
from the total release time for NBCEA Officers, and shall be scheduled in a manner that
is not disruptive to departmental operations. Department heads may determine
appropriate times for new employee contact, but they cannot reasonably deny such
contact.
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
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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
rSalary
Base salary increases for all NBCEA represented classifications shall be as follows and
as specified in Exhibit A:
Effective November 29, 2025, there shall be a base salary increase of five percent (5.0%)
for all classifications in the bargaining unit.
Effective the first full pay period after January 1, 2027, there shall be a base salary
increase of four percent (4.0%) for all classifications in the bargaining unit.
Effective the first full pay period after January 1, 2028, there shall be a base salary
increase of three percent (3.0%) for all classifications in the baraainina unit.
NBCEA MOU 20252--20285
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Overtime
Advanced Approval - Employees must have advanced approval from their
supervisor to work overtime.
2. FLSA Overtime - Overtime earned for actual work hours in excess of 40 in the
employee's defined FLSA workweek.
3. Contract Overtime — Overtime earned for an employee whose hours paid in their
defined FLSA workweek exceeds 40. For purposes of calculating hours paid for
contract overtime, holidays occurring during the work week count as time worked.
The use of other forms of leave do not count as hours worked for purposes of
calculating hours paid for determining eligibility for contract overtime.
4. Rate at Which Overtime is Calculated — 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
NBCEA MOU 20252-20285
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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 4PO 9/80 or 4110), full-time employees are regularly
scheduled to work 40 hours in their defined FLSA workweek.
Reporting Time - The City calculates overtime in tenths of an hour. Employees
shall report their time worked to the nearest tenth of an hour.
Standby Duty
1. Defined
a. To be ready to respond immediately to calls for service;
b. to be reachable by telephone;
c. to remain within a specified distance from the employee's workstation; and
d. to refrain from activities which might impair the employee's ability to perform
their assigned duties.
2. Compensation
Standby duty shall be compensated at the rate of one hour of overtime compensation
for each eight hours of such duty. Standby duty on holidays shall be compensated at
the rate of two hours of overtime compensation for each eight hours of standby duty.
Should the employee be required to return to work while on standby status, the
provisions pertaining to compensation for call-back pay shall apply for the period of
time the employee is actually working.
GD. Callback Duty
1. Defined
Call-back 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
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their normal workstation. Those periods of overtime which are 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 two hours pay. If an employee works more
than two hours, said employee shall receive pay for actual hours worked.
D-.E. Accumulation of Compensatory Time Off
Unit members who are non-exempt from overtime may receive compensatory time off
(CTO), in lieu of cash, as compensation for overtime hours worked at the rate of one -and -
one -half hours 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.
E-.F. Shift Differential
Unit members who are regularly assigned a work schedule that ends beyond 6:00 p.m.
shall receive a shift differential pay of $2.004700 per actual hour worked; payable for each
hour worked after 6:00 p.m. Overtime worked as an extension of an assigned day shift
shall not qualify an employee for shift differential.
The parties agree that to the extent permitted by law, the City shall report to the California
Public Employees' Retirement System (CaIPERS) shift differential pay as Special
Assignment Pay pursuant to Title 2 CCR, Section 571(a)(4) and/or Section 571.1 (b)(3)
Shift Differential. However, for "new members" as defined by the Public Employees'
Pension Reform Act (PEPRA) of 2013, shift differential pay will not be reported as
pensionable compensation to CaIPERS.
F—. G. Incentive Shift for Library Members
For NBCEA members assigned to the Library Services Department, the Sunday work
shift will be considered an "incentive" shift. Unit members who work a regularly scheduled
shift of five hours on a Sunday will report their actual hours worked on their time sheet
plus three hours of incentive pay at the hourly base rate.
G-.H. Court Time
Employees who are required to appear in court during their off -duty hours in connection
with City business shall receive a minimum of two hours pay. If an employee is actually
NBCEA MOU 20252--20285
13-11
I$
in court for more than two hours, the member shall receive pay for actual hours worked.
1 .1. Certificate P
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. Effective January 1, 2014, the pay for eligible certificates was
converted from a percentage -based benefit to a flat dollar amount. The complete list of
eligible certificates and the corresponding benefit is listed in Exhibit B. All other
procedures associated with Certificate Pay remain in effect.
The parties agree that to the extent permitted by law, the City shall report to the California
Public Employees' Retirement System (CaIPERS) eligible certificate pays as Educational
Pay pursuant to Title 2 CCR, Section 571(a)(2) and/or 571.1(b)(2).
J. Acting Pay
NBCEA 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 (CaIPERS) acting pay as Premium Pay pursuant
to Title 2 CCR Section 571(a)(3) Temporary Upgrade Pay. For "new members" as defined
,-..-.-)nable GOrnpensa to Ca;°F=RS—The employee must be performing 100% of the
duties in the higher classification for temporary upgrade pay to be reportable. However,
for "new members" as defined by the Public Employees' Pension Reform Act (PEPRA) of
2013, acting pay will not be reported as pensionable compensation to CaIPERS.
K. 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 ($150.00) 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
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Department Director with the concurrence of the Human Resources Director.
The parties agree that to the extent permitted by law, the City shall report to the California
Public Employees' Retirement System (CaIPERS) bilingual pay as Special Assignment
Pay pursuant to Title 2 CCR, Section 571(a)(4) and/or 571.1(b)(3) Bilingual Premium.
L. 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
15-19
20-24
Over 25 years
Longevity Pay
1.0%
1.5%
2.0%
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
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.
All 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
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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.
1. Limit on Accumulation
Members hired prior to July 1, 1996:
Members hired prior to 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 subsequent to 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. Flex leave may be granted in'/4 hour increments.
B. Holiday Leave
The following days shall be observed as paid holidays (i.e., employees shall have the day
off with pay). With the exception of the "floating holiday" (where the employee chooses
the day off), employees who are required to work on the holiday will receive their pay for
the holiday and either pay or flex leave for the number of hours worked on the holiday.
New Year's Day
Martin Luther King Day
Washington's Birthday
Memorial Day
NBCEA MOU 20252--20285
January 1
January — 31d Monday
February — 3rd Monday
May — Last Monday
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Page I11
Floating Holiday*
Independence Day
Labor Day
Veterans Day
Thanksgiving Day
Friday After Thanksgiving
Christmas Eve
Christmas Day
New Year's Eve
Holiday Closure — Up to 3
Davs
July 1
July 4
September — 1 st Monday
November 11
November — 41" Thursday
November — 4t" Friday
December 24 (last 14 of workday)
December 25
December 31 Moot 14 of workday)
, BD 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.
Holidays listed above (except the floating holiday) occurring on a Saturday shall be
observed the preceding Friday. Holidays occurring on a Sunday shall be observed the
following Monday. (Half day holidays shall be observed prior to the observed holiday)
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 Q) days. The holiday closure pay is
specifically for use durinq the approved holiday closure. Example: If your
regular work schedule would have you workinq two days durinq 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. Working During a Holiday Closure If a unit member is required by their
supervisor to work durinq 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 Pav aims to fairly compensate members while ensuring
operational needs are met during approved holiday closures.
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The floating holiday is awarded on July 1. Eight hours of holiday leave added to the
member's der 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 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.
Leave Sellback
Employees shall have the option (on two occasions) of selling back on an hour for hour
basis, accrued flex er vaGatieR leave. In no event shall the flex or o tiel 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 leave to cash on an hour for
hour basis subject to the following: On or before the pay period which includes December
15 of each calendar year, an employee may make an irrevocable election to cash out
accrued flex leave which will be earned in the following calendar year. The employee can
elect to receive the cash out in the pay period which includes June 30 and/or the pay
period which includes December 15 for those flex leave benefits that have been earned
during that portion 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
NBCEA MOU 20252--20285
13-16
Page 113
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 leave earlier in the year
than described above provided that the remaining balance is not reduced below 160
hours.
When a part-time employee's status changes to full-time and enters the unit, all accrued
flex leave in the employee's bank at the time of appointment shall be converted to cash
at the employee's last part-time hourly rate on an hour for hour basis.
SECTION 4. FRINGE BENEFITS
A. Insurance
1. Benefits Information Committee
The City has established a Benefits Information Committee (BIC) composed of one
representative from each employee association group and up to three City
representatives. The Benefits Information Committee has been established to allow
the City to present data regarding carrier and coverage options, the cost of those
options, appropriate coverage levels and other health programs. The purpose of the
BIC is to provide each employee association with information about health
insurance/programs and to receive timely input from associations regarding preferred
coverage options and levels of coverage.
2. Medical Insurance
The City has implemented an IRS qualified Cafeteria Plan. In addition to the
contribution amounts listed below, the City shall contribute the minimum CalPERS
participating employer's contribution towards medical insurance for employees
enrolled in a CalPERS medical plan, per Government Code Section 22892.
Employees shall have the option of allocating Cafeteria Plan contributions towards the
City's existing medical, dental and vision insurance/programs.
Unused Cafeteria Plan funds shall be payable to the employee as taxable cash back.
Employees shall be allowed to change coverages in accordance with plan rules and
during regular open enrollment periods.
The City's contribution towards the Cafeteria Plan is Two Thousand and Twenty -Five
Dollars ($2,02510ne Thousand -,Seven Hundred Twenty Five egars ($4 72�), plus
the minimum CalPERS participating employer's contribution.
NBCEA members who do not enroll in any medical plan offered by the City must
provide evidence of group medical insurance coverage and execute an opt -out
NBCEA MOU 20252--20285
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P a g E 114
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 CaIPERS
participating employer's contribution) of the City contribution provided above, these
unused nofetera plan fund-sthe difference shall be paid to the employee as taxable
cash.
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.
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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 Proarams
NBCEA MOU 20252--202RF
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Page 115
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 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
The City shall provide an Employee Assistance Program (EAP) through a properly
licensed provider. Association members and their family members may access the EAP
subject to provider guidelines.
D. Retirement Benefit
The City contracts with the California Public Employees' Retirement System (CaIPERS)
to provide retirement benefits for its employees. Pursuant to prior agreements and state
mandated reform, the City has implemented three different tiers of retirement benefits,
categorized as Tier I, Tier II and Tier III.
1. Retirement Formula
NBCEA MOU 20252--20285
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P a g E 116
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 PEPRA, the
retirement formula shall be 2% @ 62 calculated on the average 36 highest months'
salary.
2. Employee Contributions
The Association has agreed to share in the rising cost of pension obligations. Under
the terms of this MOU, unit members will contribute additional amounts toward the
CalPERS retirement benefit depending on their tier, to the extent permissible by law.
Should any provision be deemed invalid, the City and Association agree to meet for
the purpose of renegotiating employee retirement contributions.
Employee retirement contributions that are in addition to the normal CalPERS Member
Contribution (of 7% or 8%) shall be calculated on base pay, special pays, and other
pays normally reported as "PERSable" compensation and will be made on a pre-tax
basis through payroll deduction, to the extent allowable by law. It is recognized that
these payments will not be reported to CalPERS as contributions toward either the
Member or Employer rate, as provided under Government Code Section 20516(f).
i ier i cmpioyees - snall contribute a total employee conrriaurion or eight
percent (8% (member contribution).
Tier 11 Employees - shall contribute a total employee contribution of eight
percent (8%) as follows: seven percent (7%) of compensation earnable
(member contribution) and one percent 0 %) of compensation earnable as cost
sharing per Government Code section 20516(f).
Tier 111 Employees - The minimum statutory employee contribution for
employees in Tier 111 is subject to the provisions of PEPRA and equals 50% of
the "total normal cost". Tier 111 employees shall make an additional contribution
of pensionable compensation toward retirement pursuant to Government Code
Section 20516(f), such that the total employee contribution equals no less than
eight percent (8%) of pensionable compensation (i.e., the greater of 8% of
pensionable compensation or 50% of the "total normal cost").
Under a separate agreement and ratified via a GentraGt amendment with GaIPERS
NBCEA MOU 20252--20285
13-20
Page 117
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NBCEA MOU 20252-20285
13-21
Page 118
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The City contracts with CaIPERS for the 4th Level 1959 Survivors Insurance Benefit,
$500 Lump Sum Death Benefit, Sick Leave Credit, Military Service Credit, 2% Cost of
Living Adjustment and the pre -retirement option settlement 2 death benefit
(Government Code Section 21548).
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NBCEA MOU 20252-20285
13-22
Page 119
E. Retiree Medical Benefit
This is an Integral Part Trust (IPT) RHS Retiree Health Savings (RHS) plan (formerly the
Medical Expense Reimbursement Program - "MERP"). Each member has an individual
RHS account ("Account"), which accumulates based on the category they fall under (see
Program Structure below). Funds from the Account may be used for eligible health care
expenses after separation, retirement or a change in personnel status to a position that
does not receive the RHS benefit. These changes in personnel status will activate the
Account and allow funds to be withdrawn until the Account balance is depleted. Since the
plan restricts all distributions to be spent for health insurance premiums and health care
expenses, as defined by the Internal Revenue Code Publication 502, § 213(d) and the
Plan document the contributions, fund investment earnings and benefit payments (when
withdrawn from the Account) are not taxable when posted. Additionally, certain
contributions may only be deposited upon retirement from the City. The categories are
provided below.
1. Background
In 2005, the City and NBCEA agreed to replace the previous "defined benefit" retiree
medical program with a new "defined contribution" program. The ^r^^oss of fully
GGRVGFtiRg—te the is engo!ng fGF aR eXteRdeepeed. During the
transition, employees and (then) existing retirees were administratively classified into
different categories. The benefit is structured differently for each of the categories.
The categories are as follows:
a. 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.
b. Category 2 - Employees who were active and enrolled in the previous defined
benefit as of December 31, 2005, eligible for the new defined contribution
program as of January 1, 2006 and whose age plus years of service as of
January 1, 2006 was less than 50.
c. Category 3 - Employees who were active and enrolled in the previous defined
benefit as of December 31, 2005, eligible for the new defined contribution
program as of January 1, 2006 and whose age plus years of service as of
January 1, 2006 was 50 or greater.
2. Eligibility
All 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
NBCEA MOU 20252-202Q`
13-23
Page 120
employee). This means if a unit member subsequently reappoints to a position which
offers the RHS benefit, they will be enrolled in "Category 1" and must revest in the
program. Any remaining balance deposited during prior eligibility will remain in the
Account.
Employees who become ineligible (no longer covered by City employee association
offering the RHS benefit) before vesting forfeit the City's Part B contribution. Said
employee will only receive Part A and Part C contributions. The only exception is an
active employee who separates before vesting due to an approved industrial disability.
In such case, the employee will receive exactly five years' worth of Part B
contributions, using the employee's age and compensation at the time of separation
for calculation purposes. This amount will be deposited into the employee's Account
at the time of separation.
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 CalPERS 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 CaIPERS participating employer's contribution (i.e., the
CalPERS statutory minimum amount) towards medical insurance after retirement. The
parties also agree that, for retirees selecting a CalPERS medical plan, or any other
plan with a similar employer contribution requirement, the required employer
contribution will be deducted from the employer's contribution to the retiree's account.
Part C contributions are determined by Association election and deposited into the
Account when flex leave hours are converted to taxable cash through leave cash -out
or at the time of separation or status change. Spillover pay does not qualify for Part C
contributions. Part C contributions are not reported to CalPERS as pensionable.
The Association determines the level of contribution for all unit members, subject to
NBCEA MOU 20252-202Q`
13-24
Page 121
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.
M-. 4 Benefit
a. Category 1: Employees in this category make Part A and receive Part B
contributions (subject to vesting) automatically each pay period through payroll
deductions. Part C contributions are received through cash outs. No
contributions are made to Category 1 participants after separation.
b. Category 2: Employees in this category make Part A and receive Part B
contributions (subject to vesting) automatically each pay period through payroll
deductions. Part C contributions are received through cash outs. No
contributions are made to Category 2 participants after separation.
If a Category 2 participant retires from the City with a minimum of 5 consecutive
years of full-time service, the City will contribute to the participant's Account a
one-time contribution equal to $100 per month for every month the participant
contributed to the previous "defined benefit" plan up to a maximum of 15 years
(180 months). This contribution is deposited into the Account at the time of
retirement, and only if the employee retires from the City and becomes a
CalPERS annuitant of the City of Newport Beach. No interest will be earned in
the interim.
Category 2 participants with less than five years of continuous contributions
into the prior defined benefit plan as of January 1, 2006: only the years of
service after January 1, 2006 count towards Part B contributions upon vesting.
NBCEA MOU 20252-202Q`
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Page 122
Contributions in years before 2006 will be paid out as stated in the above
paragraph.
c. Category : 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 CalPERS annuitant of the City.
C�.�_�•' u • l
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.
F. Tuition Reimbursement
Subject to the limitations below, NBCEA members attending accredited community
colleges, colleges, trade schools or universities, or recognized professional organizations
or agencies may apply for reimbursement of one hundred percent (100%) of the actual
cost of tuition, books, fees or other student expenses for approved job —related
coursework, seminars or professional development programs. 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
NBCEA MOU 20252-20285
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of the Human Resources Director or designee.
G. 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: €ffoctiit"e first day of the pay period which innli irloc
dan ��,2023, theThe 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 dan��,2023 dan��, 2024 dan��, 2025
Service
15-19 $2-0 $2-5 $30
20-25 $2-5 $30 $35
25+ $W $�5 $40
Years of service is determined by the number of continuous. full-time vears a member is
employed by the City. 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
NBCEA MOU 20252-20285
13-27
Page 124
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
b. Seniority shall include time spent on all 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.
NBCEA MOU 20252--20285
13-28
Page 125
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 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
NBCEA MOU 20252-202Q`
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Page 126
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.
PLC. 9180 Schedulinq PlanAltemate Work Schedules
Unit members work either a 5/40, 4110 or 9/80 work schedule subject to supervisor
approval.
Working a 4110 schedule is not an entitlement and may be revoked due to operational
needs. Denials of requests to work a 4110 schedule and/or the cancellation of existing
4110 schedules shall not be subiect to the grievance procedure in Section 5.F.
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.
Employees assigned to a 4110 schedule will work four 10-hour days per week with the
City determining the regular day off based on operational needs. Requests for specific
days off may be approved by the supervisor where feasible, but shall not be subject to
the grievance procedure in Section 5.F.
The City agrees to maintain flex -scheduling where it is currently operating successfully in
this unit.
G-.D. Labor Management Committee
The City will work with NBCEA leadership, through its managers, to establish labor-
management committees departmentally whenever it is mutually determined it is
appropriate to do so.
O-E. Discipline - Notice of Intent
Employees who are to be the subject of discipline equal to an unpaid suspension of three
(3) days or greater shall be entitled to prior written notice of intent to discipline at least
seven (7) calendar days prior to the imposition of the actual penalty. This written notice
NBCEA MOU 20252-20285
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shall contain a description of the event or conduct which justifies the imposition of
discipline. The notice shall also include the specific form of a -discipline intended, and the
employee shall be offered the opportunity for to a Skelly meeting before their Department
Director prior to the imposition of the penalty.
All other discipline resulting in less than a three (3) day suspension is not subject to the
aforementioned procedure.
This understanding is not intended to in any way reduce the rights of employees to due
process. Employees who have become the subject of a suspension of one or two days
who wish to appeal the suspension shall have the right to appeal the decision to the City
Manager or designee.
E-.F. Grievance 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. 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
this MOU.
A grievance shall be brought to the attention of the immediate supervisor for
discussion within ten (10) days after an employee or Association Board member knew,
or in the exercise of reasonable diligence should have known, the act or events upon
which the grievance arises. 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 the 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, MOU provision or policy the
interpretation of which is involved in the grievance, and the specific remedy or
NBCEA MOU 20252--20285
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P a g E 128
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.
Probation
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.
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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.
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).
1. Salary on Promotion
Determination of employee salary upon promotion shall be governed by Section 6.11 of
the Employee Policy Manual.
H_.J. Uniforms and Safety Equipment
For assigned Park Patrol staff, uniforms shall be worn at all times during regular business
hours. Park Patrol shall be provided with City designated shirts, shorts, pants, boots,
jacket, and hat annually. Additional equipment or supplies may be issued to employees
by the Department as deemed appropriate. If the provided winter jacket or work boots are
lost, the employee shall replace the item with one from an authorized vendor. Work boots
shall provide toe protection and meet Department safety standards. The Department
Head or designee may approve exceptions to wearing uniforms.
The City will continue its practice of directly paying for dry cleaning for individuals in the
Park Patrol classification.
Service Awards
For the purpose of determining service awards, if an employee has been employed by
the City on more than one occasion, non-consecutive time will be considered as part of
total service. Prior to system implementations, an employee is required to individually
notify the awards committee of all of the service time.
J L. Direct Deposit
All employees shall participate in the payroll direct deposit system.
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K,M. Telecommuting Program
N. 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.
O. 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
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range and effective date shall comply with section 9.28 of the City's EPM. This provision
shall terminate upon the expiration of this MOU.
L—.P. Separability
Should any part of this MOU or any provision herein contained be rendered or declared
invalid, by reason of any existing or subsequently enacted Legislation, or by decree of a
Court of competent jurisdiction, such invalidation of such part or portion of this MOU shall
not invalidate the remaining portion hereto, and same shall remain in full force and effect.
Signatures are on the next page.
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Executed this day of . 2025:
FOR THE NEWPORT BEACH CITY EMPLOYEES ASSOCIATION:
By:
Mariah Stinson, President
By:
Jaime Gonzalez, Sr. Labor Relations Representative
LIUNA Local 777
FOR THE CITY OF NEWPORT BEACH
By:
Joe Stapleton, Mayor
CITY OF NEWPORT BEACH
APPROVED AS TO FORM
By:
Aaron C. Harp, City Attorney
ATTEST:
By:
Melt Lena Shumway, 4ter+m-City Clerk
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Exhibit A
[Note: Salary schedule is in process and will be added as Exhibit A to final clean version of
MOUI
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32
Exhibit B
CITY EMPLOYEES ASSOCIATION
List of Proposed Certifications for Pay
MOU Term: January 1, 2022 - December 31, 2025
CERTIFICATE MONTHLY AMOUNT
Forklift Training Certificate " $45
Public Notary" $45
"Only those unit members who were receiving the certificate pay at time of the 2012-
15 MOU are eligible for the benefit.
"'Language added in 2015-18 MOU: only available to CEA members,
Certified Revenue Officer Certificate removed upon adoption of the 2022-25 MOU.
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ATTACHMENT B
MEMORANDUM OF UNDERSTANDING BETWEEN
THE CITY OF NEWPORT BEACH AND NEWPORT BEACH CITY EMPLOYEES ASSOCIATION
This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered
into with reference to the following:
PREAMBLE
The Newport Beach City Employees Association ("NBCEA" or "Association"), a
recognized employee organization, affiliated with the Laborers' International Union of
North America, Local 777 (LIUNA), and the City of Newport Beach ("City"), a municipal
corporation and charter city, have been meeting and conferring, in good faith, with
respect to wages, hours, fringe benefits and other terms and conditions of
employment.
2. NBCEA representatives and City representatives have reached an agreement as to
wages, hours and other terms and conditions of employment. This shall apply to all
affected employees for the term of November 29, 2025 through December 31, 2028
and this agreement has been embodied in this MOU.
3. This MOU, upon approval by NBCEA and the Newport Beach City Council, represents
the total and complete understanding and agreement between the parties regarding
all matters within the scope of representation.
SECTION 1. GENERAL PROVISIONS
A. Recognition
In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers
Milias Brown Act of the State of California and the provisions of the Employer's/Employee
Labor Relations Resolution No. 2001-50, the City acknowledges that NBCEA is the
majority representative for the purpose of meeting and conferring regarding wages, hours
and other terms and conditions of employment for all employees in those classifications
specified in Exhibit "A" or as appropriately modified in accordance with the
Employer/Employee Resolution. All other classifications and positions not specifically
included within Exhibit "A" are excluded from representation by NBCEA.
B. Term
Except as specifically provided otherwise, any ordinance, resolution or action of
the City Council necessary to implement this MOU shall be considered effective
as of November 29, 2025. This MOU shall remain in full force and effect until
December 31, 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.
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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 NBCEA officers designated by the NBCEA shall collectively be granted an
annual maximum of 150 hours paid release time for the conduct of NBCEA
business. Such time shall be exclusive of actual time spent in collective bargaining
and shall be scheduled at the discretion of the NBCEA officer. Every effort will be
made to schedule this time to avoid interference with City operations.
2. Release time designees shall be identified annually and notice shall be provided
to the City. Release time incurred shall be reported regularly in the form and
manner prescribed by the City.
3. Activities performed on release time shall include representation of members in
rights disputes, preparation for collective bargaining activities, and distribution of
NBCEA written communication in the 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. 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;
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(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. Emolovee Data and Access
The City shall provide NBCEA with access and information regarding new employees and
existing unit members as required by law. NBCEA designated officers shall be entitled to
solicit membership from new employees at their work site. This solicitation shall be made
from the total release time for NBCEA Officers, and shall be scheduled in a manner that
is not disruptive to departmental operations. Department heads may determine
appropriate times for new employee contact, but they cannot reasonably deny such
contact.
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
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provide services directly or contract out work, including work that is currently being
performed by Association members. In the event the City introduces a plan to outsource
services currently being performed by Association members to achieve greater efficiency
and/or cost savings, and upon request by the Association, the City shall meet and confer
with Association representatives to discuss the impacts of the City's decision to contract
out work. The City shall retain sole authority to decide whether or not to contract out work,
including work that is currently being performed by Association members. This provision
shall not limit the City's authority to enter into such an agreement for any City services.
G. Modifications
Any agreement, understanding, or waiver or modification of any of the terms or provisions
of this MOU shall not be binding upon the parties unless contained in a written document
executed by authorized representatives of the parties.
H. Association Dues
1. The collection of Association dues shall be handled through the payroll deduction
process.
2. The Association and LIUNA agree to defend, indemnify and hold harmless the City
for its collection of Association dues.
SECTION 2 —COMPENSATION
A. Salary
Base salary increases for all NBCEA represented classifications shall be as follows and
as specified in Exhibit A:
Effective November 29, 2025, there shall be a base salary increase of five percent (5.0%)
for all classifications in the bargaining unit.
Effective the first full pay period after January 1, 2027, there shall be a base salary
increase of four percent (4.0%) for all classifications in the bargaining unit.
Effective the first full pay period after January 1, 2028, there shall be a base salary
increase of three percent (3.0%) for all classifications in the bargaining unit.
B. Overtime
1. Advanced Approval - Employees must have advanced approval from their
supervisor to work overtime.
2. FLSA Overtime - Overtime earned for actual work hours in excess of 40 in the
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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
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, 9/80 or 4110), 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. Standby Duty
1. Defined
a. To be ready to respond immediately to calls for service;
b. to be reachable by telephone;
c. to remain within a specified distance from the employee's workstation; and
d. to refrain from activities which might impair the employee's ability to perform
their assigned duties.
2. Compensation
Standby duty shall be compensated at the rate of one hour of overtime compensation
for each eight hours of such duty. Standby duty on holidays shall be compensated at
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the rate of two hours of overtime compensation for each eight hours of standby duty.
Should the employee be required to return to work while on standby status, the
provisions pertaining to compensation for call-back pay shall apply for the period of
time the employee is actually working.
D. Callback Duty
1. Defined
Call-back 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. Those periods of overtime which are 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 two hours pay. If an employee works more
than two hours, said employee shall receive pay for actual hours worked.
E. Accumulation of Compensatory Time Off
Unit members who are non-exempt from overtime may receive compensatory time off
(CTO), in lieu of cash, as compensation for overtime hours worked at the rate of one -and -
one -half hours 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.
F. Shift Differential
Unit members who are regularly assigned a work schedule that ends beyond 6:00 p.m.
shall receive a shift differential pay of $2.00 per actual hour worked; payable for each
hour worked after 6:00 p.m. Overtime worked as an extension of an assigned day shift
shall not qualify an employee for shift differential.
The parties agree that to the extent permitted by law, the City shall report to the California
Public Employees' Retirement System (CaIPERS) shift differential pay as Special
Assignment Pay 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 CaIPERS.
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G. Incentive Shift for Library Members
For NBCEA members assigned to the Library Services Department, the Sunday work
shift will be considered an "incentive" shift. Unit members who work a regularly scheduled
shift of five hours on a Sunday will report their actual hours worked on their time sheet
plus three hours of incentive pay at the hourly base rate.
H. 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.
I. Certificate Pa
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. Effective January 1, 2014, the pay for eligible certificates was
converted from a percentage -based benefit to a flat dollar amount. The complete list of
eligible certificates and the corresponding benefit is listed in Exhibit B. All other
procedures associated with Certificate Pay remain in effect.
The parties agree that to the extent permitted by law, the City shall report to the California
Public Employees' Retirement System (CaIPERS) eligible certificate pays as Educational
Pay pursuant to Title 2 CCR, Section 571(a)(2) and/or 571.1(b)(2).
J. Acting Pay
NBCEA 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 (CaIPERS) acting pay as Premium Pay pursuant
to Title 2 CCR Section 571(a)(3) Temporary Upgrade Pay. The employee must be
performing 100% of the duties in the higher classification for temporary upgrade pay to
be reportable. However, for "new members" as defined by the Public Employees' Pension
Reform Act (PEPRA) of 2013, acting pay will not be reported as pensionable
compensation to CaIPERS.
K. Bilingual Pay
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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 ($150.00) 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 (CaIPERS) bilingual pay as Special Assignment
Pay pursuant to Title 2 CCR, Section 571(a)(4) and/or 571.1(b)(3) Bilingual Premium.
L. 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 Longevity Pay
15-19 1.0%
20-24 1.5%
Over 25 years 2.0%
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
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.
All 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
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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
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.
1. Limit on Accumulation
Members hired prior to July 1, 1996:
Members hired prior to 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 subsequent to 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. Flex leave may be granted in '/4 hour increments.
B. Holiday Leave
The following days shall be observed as paid holidays (i.e., employees shall have the day
off with pay). With the exception of the "floating holiday" (where the employee chooses
the day off), employees who are required to work on the holiday will receive their pay for
the holiday and either pay or flex leave for the number of hours worked on the holiday.
New Year's Day
Martin Luther King Day
Washington's Birthday
Memorial Day
Floating Holiday*
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January — 3rd Monday
February — 3rd Monday
May — Last Monday
July 1
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Independence Day
Labor Day
Veterans Day
Thanksgiving Day
Friday After Thanksgiving
Christmas Eve
Christmas Day
New Year's Eve
Holiday Closure — Up to 3
Days
July 4
September — 1 st Monday
November 11
November — 4t" Thursday
November — 4tn Friday
December 24
December 25
December 31
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.
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.
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. Working During 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.
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The floating holiday is awarded on July 1. Eight hours of holiday leave are added to the
member's 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 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.
E. Leave Sellback
Employees shall have the option (on two occasions) of selling back on an hour for hour
basis, accrued flex leave. In no event shall the flex 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 leave to cash on an hour for
hour basis subject to the following: On or before the pay period which includes December
15 of each calendar year, an employee may make an irrevocable election to cash out
accrued flex leave which will be earned in the following calendar year. The employee can
elect to receive the cash out in the pay period which includes June 30 and/or the pay
period which includes December 15 for those flex leave benefits that have been earned
during that portion 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
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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 leave earlier in the year
than described above provided that the remaining balance is not reduced below 160
hours.
When a part-time employee's status changes to full-time and enters the unit, all accrued
flex leave in the employee's bank at the time of appointment shall be converted to cash
at the employee's last part-time hourly rate on an hour for hour basis.
SECTION 4. FRINGE BENEFITS
A. Insurance
1. Benefits Information Committee
The City has established a Benefits Information Committee (BIC) composed of one
representative from each employee association group and up to three City
representatives. The Benefits Information Committee has been established to allow
the City to present data regarding carrier and coverage options, the cost of those
options, appropriate coverage levels and other health programs. The purpose of the
BIC is to provide each employee association with information about health
insurance/programs and to receive timely input from associations regarding preferred
coverage options and levels of coverage.
2. Medical Insurance
The City has implemented an IRS qualified Cafeteria Plan. In addition to the
contribution amounts listed below, the City shall contribute the minimum CalPERS
participating employer's contribution towards medical insurance for employees
enrolled in a CalPERS medical plan, per Government Code Section 22892.
Employees shall have the option of allocating Cafeteria Plan contributions towards the
City's existing medical, dental and vision insurance/programs.
Unused Cafeteria Plan funds shall be payable to the employee as taxable cash back.
Employees shall be allowed to change coverages in accordance with plan rules and
during regular open enrollment periods.
The City's contribution towards the Cafeteria Plan is Two Thousand and Twenty -Five
Dollars ($2,025), plus the minimum CalPERS participating employer's contribution.
NBCEA members who do not enroll in any medical plan offered by the City must
provide evidence of group medical insurance coverage and execute an opt -out
agreement releasing the City from any responsibility or liability to provide medical
insurance coverage on an annual basis.
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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.
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.
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 Proarams
1. IRS Section 125 Flexible Spending Account
Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable
income for payment of allowable expenses such as child care and medical expenses.
An Association member may request that medical, child care and other eligible
expenses be paid or reimbursed by the Section 125 Plan out of the employee's
account. The base salary of the employee will be reduced by the amount designated
by the employee for reimbursable expenses.
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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
The City shall provide an Employee Assistance Program (EAP) through a properly
licensed provider. Association members and their family members may access the EAP
subject to provider guidelines.
D. Retirement Benefit
The City contracts with the California Public Employees' Retirement System (CaIPERS)
to provide retirement benefits for its employees. Pursuant to prior agreements and state
mandated reform, the City has implemented three different tiers of retirement benefits,
categorized as Tier I, Tier II and Tier III.
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
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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 PEPRA, the
retirement formula shall be 2% @ 62 calculated on the average 36 highest months'
salary.
2. Employee Contributions
The Association has agreed to share in the rising cost of pension obligations. Under
the terms of this MOU, unit members will contribute additional amounts toward the
CalPERS retirement benefit depending on their tier, to the extent permissible by law.
Should any provision be deemed invalid, the City and Association agree to meet for
the purpose of renegotiating employee retirement contributions.
Employee retirement contributions that are in addition to the normal CalPERS Member
Contribution (of 7% or 8%) shall be calculated on base pay, special pays, and other
pays normally reported as "PERSable" compensation and will be made on a pre-tax
basis through payroll deduction, to the extent allowable by law. It is recognized that
these payments will not be reported to CaIPERS as contributions toward either the
Member or Employer rate, as provided under Government Code Section 20516(f).
Tier I Employees - shall contribute a total employee contribution of eight
percent (8%) (member contribution).
Tier 11 Employees - shall contribute a total employee contribution of eight
percent (8%) as follows: seven percent (7%) of compensation earnable
(member contribution) and one percent (1 %) of compensation earnable as cost
sharing per Government Code section 20516(f).
Tier 111 Employees - The minimum statutory employee contribution for
employees in Tier 111 is subject to the provisions of PEPRA and equals 50% of
the "total normal cost". Tier 111 employees shall make an additional contribution
of pensionable compensation toward retirement pursuant to Government Code
Section 20516(f), such that the total employee contribution equals no less than
eight percent (8%) of pensionable compensation (i.e., the greater of 8% of
pensionable compensation or 50% of the "total normal cost').
The City contracts with CalPERS for the 4th Level 1959 Survivors Insurance Benefit,
$500 Lump Sum Death Benefit, Sick Leave Credit, Military Service Credit, 2% Cost of
Living Adjustment and the pre -retirement option settlement 2 death benefit
(Government Code Section 21548).
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E. Retiree Medical Benefit
This is an Integral Part Trust (IPT) RHS Retiree Health Savings (RHS) plan (formerly the
Medical Expense Reimbursement Program - "MERP"). Each member has an individual
RHS account ("Account"), which accumulates based on the category they fall under (see
Program Structure below). Funds from the Account may be used for eligible health care
expenses after separation, retirement or a change in personnel status to a position that
does not receive the RHS benefit. These changes in personnel status will activate the
Account and allow funds to be withdrawn until the Account balance is depleted. Since the
plan restricts all distributions to be spent for health insurance premiums and health care
expenses, as defined by the Internal Revenue Code Publication 502, § 213(d) and the
Plan document the contributions, fund investment earnings and benefit payments (when
withdrawn from the Account) are not taxable when posted. Additionally, certain
contributions may only be deposited upon retirement from the City. The categories are
provided below.
1. Background
In 2005, the City and NBCEA agreed to replace the previous "defined benefit" retiree
medical program with a new "defined contribution" program. During the transition,
employees and (then) existing retirees were administratively classified into different
categories. The benefit is structured differently for each of the categories. The
categories are as follows:
a. 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.
b. Category 2 - Employees who were active and enrolled in the previous defined
benefit as of December 31, 2005, eligible for the new defined contribution
program as of January 1, 2006 and whose age plus years of service as of
January 1, 2006 was less than 50.
c. Category 3 - Employees who were active and enrolled in the previous defined
benefit as of December 31, 2005, eligible for the new defined contribution
program as of January 1, 2006 and whose age plus years of service as of
January 1, 2006 was 50 or greater.
2. Eligibility
All 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
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program. Any remaining balance deposited during prior eligibility will remain in the
Account.
Employees who become ineligible (no longer covered by City employee association
offering the RHS benefit) before vesting forfeit the City's Part B contribution. Said
employee will only receive Part A and Part C contributions. The only exception is an
active employee who separates before vesting due to an approved industrial disability.
In such case, the employee will receive exactly five years' worth of Part B
contributions, using the employee's age and compensation at the time of separation
for calculation purposes. This amount will be deposited into the employee's Account
at the time of separation.
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 CalPERS 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 CaIPERS participating employer's contribution (i.e., the
CalPERS statutory minimum amount) towards medical insurance after retirement. The
parties also agree that, for retirees selecting a CaIPERS 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
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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
CalPERS annuitant of the City of Newport Beach. No interest will be earned in
the interim.
Category 2 participants with less than five years of continuous contributions
into the prior defined benefit plan as of January 1, 2006: only the years of
service after January 1, 2006 count towards Part B contributions upon vesting.
Contributions in years before 2006 will be paid out as stated in the above
paragraph.
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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 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 CalPERS 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.
F. Tuition Reimbursement
Subject to the limitations below, NBCEA members attending accredited community
colleges, colleges, trade schools or universities, or recognized professional organizations
or agencies may apply for reimbursement of one hundred percent (100%) of the actual
cost of tuition, books, fees or other student expenses for approved job —related
coursework, seminars or professional development programs. 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.
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G. 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: 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
15-19 $30
20-25 $35
25+ $40
Years of service is determined by the number of continuous, full-time years a member is
employed by the City. 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,
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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
b. Seniority shall include time spent on all 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
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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 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
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qualified.
C. Alternate Work Schedules
Unit members work either a 5/40, 4110 or 9/80 work schedule subject to supervisor
approval.
Working a 4110 schedule is not an entitlement and may be revoked due to operational
needs. Denials of requests to work a 4110 schedule and/or the cancellation of existing
4110 schedules shall not be subject to the grievance procedure in Section 5.F.
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.
Employees assigned to a 4110 schedule will work four 10-hour days per week with the
City determining the regular day off based on operational needs. Requests for specific
days off may be approved by the supervisor where feasible, but shall not be subject to
the grievance procedure in Section 5.F.
The City agrees to maintain flex -scheduling where it is currently operating successfully in
this unit.
D. Labor Management Committee
The City will work with NBCEA leadership, through its managers, to establish labor-
management committees departmentally whenever it is mutually determined it is
appropriate to do so.
E. Discipline - Notice of Intent
Employees who are to be the subject of discipline equal to an unpaid suspension of three
(3) days or greater shall be entitled to prior written notice of intent to discipline at least
seven (7) calendar days prior to the imposition of the actual penalty. This written notice
shall contain a description of the event or conduct which justifies the imposition of
discipline. The notice shall also include the specific form of discipline intended, and the
employee shall be offered the opportunity for a Skelly meeting before their Department
Director prior to the imposition of the penalty.
All other discipline resulting in less than a three (3) day suspension is not subject to the
aforementioned procedure.
This understanding is not intended to in any way reduce the rights of employees to due
process. Employees who have become the subject of a suspension of one or two days
who wish to appeal the suspension shall have the right to appeal the decision to the City
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Manager or designee.
F. Grievance 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. 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
this MOU.
A grievance shall be brought to the attention of the immediate supervisor for
discussion within ten (10) days after an employee or Association Board member knew,
or in the exercise of reasonable diligence should have known, the act or events upon
which the grievance arises. 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 the 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, MOU provision 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
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findings and recommendations. The findings and recommendations of the uninvolved
Department Directors are advisory only and the City Manager's decision shall be final.
Time Limits: Grievances shall be processed from one step to the next within the time
limit indicated for each step. Time limits shall be strictly enforced. Any time limits can
be waived or extended only by mutual agreement confirmed in writing. Any grievance
not carried to the next step by the Employee or Association within the prescribed time
limit shall be deemed resolved upon the basis of the previous decision.
G. Probation
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 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.
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H. Salary on Reclassification
An employee who is reclassified will be provided with a salary increase to the nearest
step closest to five (5%) percent (not to exceed the maximum of the new salary range).
1. Salary on Promotion
Determination of employee salary upon promotion shall be governed by Section 6.11 of
the Employee Policy Manual.
J. Uniforms and Safety Equipment
For assigned Park Patrol staff, uniforms shall be worn at all times during regular business
hours. Park Patrol shall be provided with City designated shirts, shorts, pants, boots,
jacket, and hat annually. Additional equipment or supplies may be issued to employees
by the Department as deemed appropriate. If the provided winter jacket or work boots are
lost, the employee shall replace the item with one from an authorized vendor. Work boots
shall provide toe protection and meet Department safety standards. The Department
Head or designee may approve exceptions to wearing uniforms.
The City will continue its practice of directly paying for dry cleaning for individuals in the
Park Patrol classification.
K. Service Awards
For the purpose of determining service awards, if an employee has been employed by
the City on more than one occasion, non-consecutive time will be considered as part of
total service. Prior to system implementations, an employee is required to individually
notify the awards committee of all of the service time.
L. Direct Deposit
All employees shall participate in the payroll direct deposit system.
M. 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. The provisions
of the policy shall not trigger any right of grievance or appeal.
N. 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
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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.
O. 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 9.2B of the City's EPM. This provision
shall terminate upon the expiration of this MOU.
P. Separability
Should any part of this MOU or any provision herein contained be rendered or declared
invalid, by reason of any existing or subsequently enacted Legislation, or by decree of a
Court of competent jurisdiction, such invalidation of such part or portion of this MOU shall
not invalidate the remaining portion hereto, and same shall remain in full force and effect.
Signatures are on the next page.
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Executed this day of , 2025:
FOR THE NEWPORT BEACH CITY EMPLOYEES ASSOCIATION:
Mariah Stinson, President
Jaime Gonzalez, Sr. Labor Relations Representative
LIUNA Local 777
FOR THE CITY OF NEWPORT BEACH
Joe Stapleton, Mayor
ATTEST:
Lena Shumway, City Clerk
NBCEA MOU 2025-2028
CITY OF NEWPORT BEACH
APPROVED AS TO FORM
Aaron C. Harp, City Attorney
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Page 129
Exhibit A
[Note: Salary schedule is in process and will be added as Exhibit A to final clean version of
MOU]
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Exhibit B
CITY EMPLOYEES ASSOCIATION
List of Proposed Certifications for Pay
MOU Term: January 1, 2022 - December 31, 2025
CERTIFICATE MONTHLY AMOUNT
Forklift Training Certificate ` $45
Public Notary" $45
"Only those unit members who were receiving the certificate pay at time of the 2012-
15 MOU are eligible for the benefit.
"'Language added in 2015-113 MOU: only available to CEA members,
Certified Revenue Officer Certificate removed upon adoption of the 2022-25 MOU.
32
NBCEA MOU 2025-2028
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ATTACHMENT C
City of Newport Beach
Estimated Cost of Contract with NBCEA
Key Contract Terms
COLA
5.00% 4.00% 3.00%
Medical Insurance
Increase by $300/Month
CalPERS Employee Pickup
Reduce EE Contribution to 8%
15-19 YOS, 1%
Longevity Pay
20-24 YOS, 1.5%
25+ YOS, 2%
LIUNA Supplemental Pension Program
Withdrawal
Night Shift Differential
$2.00 per actual hour worked beyond 6:OOpm
Holiday Pay (closures)
3 days of paid leave
Holiday Pays (eves)
Christmas Eve and New Years Eve full pay
Summary of Proposal Cost 1
Baseline Compensation
Base Pay
$8,721,578
$413,079
$802,385
$1,088,104
Supplemental Pays
28,080
56,962
63,766
65,660
Overtime
25,567
1,278
2,352
3,190
Pension Contribution
497,899
283,181
385,202
411,541
Cafeteria Plan
2,049,300
29,856
29,856
29,856
Other City Paid BenefitS2
774,424
22,430
40,677
54,859
Total
$12,096,848
$806,786
$1,324,238
$1,653,210
Cumulative Impact on Employee Compensation
Base Salary Increase3
4.74%
9.20%
12.48%
Total Compensation Increase
6.67%
10.95%
13.67%
Key Contract Terms
COLA
467,900
898,447
1,215,671
Medical Insurance
29,856
29,856
29,856
CalPERS Employee Reduction
248,350
328,452
338,306
Night Shift Differential
3,717
3,717
3,717
Longevity Pay
31,910
37,711
38,824
Holiday Pays (eves)
5,011
5,211
5,367
Holiday Pays (closure)
20,042
20,844
21,469
Total
$ 806,786
$ 1,324,238
$ 1,653,210
Notes
1 Costs shown in years two and three reflect the cumulative budget impact in each year as compared to the current budgeted amounts.
2 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.
° 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.
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