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HomeMy WebLinkAbout06 - Key and Management Compensation Plan and Adoption of a MOU with the NBFMA 6-1 NEWPORT BEACH City Council Staff Report CITY OF January 26, 2016 Agenda Item No. 6 ABSTRACT: As part of the City Council’s desire for greater transparency in the labor negotiations process, the City initiated a new process of “sunshining” labor contracts or similar agreements prior to the City Council taking action. Sunshining affords the public an opportunity to consider the agreements, including the estimated costs, prior to adoption. On December 8, 2015, changes to the Key and Management Compensation Plan, which outlines pay and benefits for unrepresented employees, were sunshined. Similarly, following a Tentative Agreement reached with the Newport Beach Fire Management Association (NBFMA), the proposed NBFMA contract was submitted for City Council and public review on January 12, 2016. The complete successor MOU with the NBFMA for the period July 1, 2014 through June 30, 2018, and the revised Key & Management Compensation Plan for the period July 1, 2015 through December 31, 2018, are presented for City Council’s approval/adoption (or rejection), and is the final step in completing the agreements. RECOMMENDATION: a) Adopt Resolution No. 2016-13, A Resolution of the City Council of the City of Newport Beach, California, Adopting the Key and Management Compensation Plan, for the period July 1, 2015 through December 31, 2018; b) Adopt Resolution No. 2016-14, A Resolution of the City Council of the City of Newport Beach, California, Adopting a Memorandum of Understanding between the City of Newport Beach and the Newport Beach Fire Management Association, for the period July 1, 2014 through June 30, 2018; and TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dave Kiff, City Manager - 949-644-3001, dkiff@newportbeachca.gov Barbara Salvini, Human Resources Director 949-644-3259, bsalvini@newportbeachca.gov PREPARED BY: Maggie Williams-Dalgart, Senior Human Resources Analyst PHONE: 949-644-3337 TITLE: Approval of Key and Management Compensation Plan and Adoption of a Memorandum of Understanding with the Newport Beach Fire Management Association Approval of Key & Management Compensation Plan and Adoption of NBFMA MOU January 26, 2016 Page 2 6-2 c) Approve Budget Amendment No. 16BA-026 in the amount of $376,920 from the General Fund unappropriated surplus fund balance. FUNDING REQUIREMENTS: A comprehensive estimate of the costs associated with revisions to the Key & Management Compensation Plan was provided with the December 8, 2015 staff report. A revised estimate is provided with this report (Attachment C) and includes adjustments for Key & Management personnel in public safety positions, which had not been contemplated in the prior version. The cost estimate associated with the four year agreement with the NBFMA was provided on January 12, 2016 and is resubmitted as Attachment F. The combined cost to implement the provisions in FY2015-16 for these management groups is estimated to be $376,920. Sufficient unassigned General Fund balance is available to fund the proposed Key & Management Compensation Plan changes and adoption of the NBFMA MOU. DISCUSSION: Key & Management Group The Key & Management group consists of unrepresented supervisory, managerial and confidential employees, including certain managerial positions in public safety. To maintain equity, the City has historically provided Key & Management non-safety with the same changes to compensation and benefits as those afforded to employees in the City Employees Association (NBCEA) and Professional and Technical Employees Association (NBPTEA). On January 12, 2016 the City Council adopted MOUs for NBCEA and NBPTEA that provide adjustments to wages and benefits, as well as require employees to increase their contribution to the California Public Employees Retirement System (PERS) for retirement benefits. The proposed Key & Management Compensation Plan for the period July 1, 2015 through December 31, 2018, establishes pay and benefits for non-safety employees which mirror the NBCEA and NBPTEA, as follows: • Effective January 1, 2016, non-safety employees shall contribute an additional .35 percent, for a total contribution of 12.7 percent toward the PERS retirement benefit; and January 1, 2017, employees shall contribute an additional .30 percent, for a total of 13.0 percent toward the PERS retirement benefit • Salary adjustments of 2.65 percent each year, effective January 1, 2016, January 1, 2017 and January 1, 2018 • Effective January 1, 2016, an additional $76 per month contribution to the cafeteria benefit, for a total of $1,625; and on January 1, 2017, an additional $100 per month for a total benefit of $1,725 Approval of Key & Management Compensation Plan and Adoption of NBFMA MOU January 26, 2016 Page 3 6-3  A reduction of the cafeteria benefit from $1,249 to $1,000 per month for employees who opt-out of medical coverage, effective January 1, 2016 (or as soon as practicable following MOU adoption)  A one-time payment of $2,400 for all non-safety employees  Other changes include revisions to the Bereavement Leave policy to include employee’s step parents and step children and an increase in the Tuition Reimbursement Program from $1,500 to $2,000 annually Pay and benefits for certain public safety Key & Management positions have historically been tied to other public safety groups, including the Police Management Association, Fire Management Association, and Lifeguard Management Association. Accordingly, employees in the classifications of Assistant Police Chief, Assistant Fire Chief, and Assistant Chief, Lifeguard Operations, will receive cost-of-living (COLA) adjustments and provide additional PERS retirement contributions, with the intention of tying them to their respective safety management units (e.g.: the Assistant Police Chief will receive the same COLA and provide the same PERS contribution as employees in the Police Management Association). The amounts differ by classification and are included with the changes in the Key & Management Compensation Plan (Attachment B: Exhibit A). The proposed formal alignment with the safety management groups ensures the City maintains appropriate pay equity between the Assistant Chiefs and their safety management ranks. Newport Beach Fire Management Association The Newport Beach Fire Management Association represents the Fire Department Battalion Chiefs. Employees in these positions assist the Fire Chief in managing the department’s operations staff at eight fire stations and the department-wide training program. Representatives for the City and the Fire Management Association began negotiations on October 26, 2015. The parties met four times before a Tentative Agreement was reached on December 8, 2015. On January 12, 2016, the Tentative Agreement between the City and NBFMA was made available for public review and comment. The terms of the successor MOU with NBFMA include:  Term of four years, from July 1, 2014, through June 30, 2018  Additional employee contributions to the PERS pension benefit of .75 percent each year for four years (2015-2018), providing an additional 3 percent to the 9 percent employees were already contributing (12 percent total)  Salary adjustments of 2.75 percent each year, effective July 1, 2015, January 1, 2016, January 1, 2017 and January 1, 2018 Approval of Key & Management Compensation Plan and Adoption of NBFMA MOU January 26, 2016 Page 4 6-4  Effective January 1, 2016, an additional $150 per month contribution to the cafeteria benefit, for a total of $1,424; and in January 1, 2017, an additional $200 per month for a total benefit of $1,624  A reduction of the cafeteria benefit from $1,149 to $1,000 per month for employees who opt-out of medical coverage, effective January 1, 2016  A change in the overtime calculation to recognize additional required shift work  Elimination of Longevity Pay in 2017 to offset a future range adjustment to address compaction  Other changes include: revisions to the Bereavement Leave policy, addition of Strike Team Leader pay ($100 per month), limits on the number of consecutive shifts an employee can work, changes to compensatory time caps, and elimination of outdated and restrictive contract provisions The estimated cost of the changes for the 3 ½ year Key & Management Compensation Plan and the estimated cost of the 4 year contract with NBFMA are included in Attachments C and F Respectively. All costs are itemized by salary, supplemental pays, fringe benefits, pension, and employees offsets, projected through FY2018-19. The employee offsets, which represent the additional employee contributions towards pension and the reduction in the cafeteria allowance, provide a combined estimated savings of $475,331 over the term of contract. In accordance with NBFMA ratification procedures, the majority of members of the unit voted to approve the new MOU. The agreement will not become effective, per Government Code §3505.1, until the governing body, i.e., City Council, takes action to adopt it. Since the Key & Management Group is unrepresented, no action by employees in that group is required. If the City Council approves adoption of the Memorandum of Understanding with the NBFMA and the Key & Management Compensation Plan, Human Resources and Finance Department staff will work to implement the provisions as soon as practicable. The proposed changes are noted in italics and the comprehensive NBFMA MOU and the complete Key & Management Compensation Plan, if approved, will be published online. 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 Approval of Key & Management Compensation Plan and Adoption of NBFMA MOU January 26, 2016 Page 5 6-5 15378)of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: A. Resolution No. 2016-13 - Adopting the Key & Management Compensation Plan B. Exhibit A – Key & Management Compensation Plan for the Period July 1, 2015 through December 31, 2018 C. Estimated Costs of Key & Management Compensation Plan D. Resolution No. 2015-14 - Adopting a MOU with NBFMA E. Exhibit B – MOU with NBFMA for the period July 1, 2014 through June 30, 2018 F. Estimated Costs of NBFMA MOU G. Budget Amendment ATTACHMENT A RESOLUTION NO. 2016 -___________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADOPTING THE KEY & MANAGEMENT COMPENSATION PLAN WHEREAS,the City of Newport Beach has employees who are not represented by an exclusively recognized collective bargaining unit and therefore are not covered by a collective bargaining agreement; and WHEREAS, the City Council of the City of Newport Beach has previously established and recognized the unrepresented Key & Management Group, consisting of certain safety and non-safety management, professional and confidential classifications; and WHEREAS, the City Council of the City of Newport Beach adopted the Key & Management Compensation Plan (“Plan”) to provide for salary and benefits for employees in the Key & Management Group for the period July 1, 2012 through June 30, 2015; and WHEREAS, the City Council of the City of Newport Beach desires to modify and adopt a new Plan consistent with terms and conditions of employment of similarly situated employees in other recognized miscellaneous or safety bargaining units. NOW, THEREFORE, the City Council of the City of Newport Beach does RESOLVE as follows: Section 1. Wages, hours, fringe benefits and other terms of employment of employees included in the Key & Management Group shall be provided in accordance with the provisions of the attached Key & Management Compensation Plan (Exhibit A). Section 2. The term of the Plan will be for forty-two (42) months, effective retroactively to July 1, 2015, through December 31, 2018. Section 3:The City’s Salary Schedule shall be modified so as to be consistent with this Resolution. Section 4: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared invalid or unconstitutional. 6-6 ATTACHMENT A Section 5: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 6:This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. Adopted this __________ day of ____________, 2016. BY _____________________________________________ Mayor of the City of Newport Beach ATTEST: _________________________________ City Clerk 6-7 City of Newport Beach KEY AND MANAGEMENT COMPENSATION PLAN Effective July 1, 2015 through December 31, 2018 Key & Mgmt Comp Plan 2015-18 1 INTRODUCTION Consistent with applicable laws, the following represents the salary and benefit program established by the City Council for Key and Management. The Key and Management Compensation Plan shall in no manner be interpreted as a guaranteed or implied contract between the City and any employee or group of employees. The Key and Management Group is divided into five categories:  Executive Management  Administrative Management  Administrative Management-Safety  Division Management  Confidential Appendix A lists all classifications in each category. COMPENSATION A. Salary Non Safety: Key and Management non-safety employees (excluding City Manager, City Attorney, and City Clerk) will receive the following adjustments, as provided in Appendix A: Effective the pay period that includes January 1, 2016, base salaries will be increased by 2.65%. Effective the pay period that includes January 1, 2017, base salaries will be increased by 2.65%. Effective the pay period that includes January 1, 2018, base salaries will be increased by 2.65%. Safety: Pay rates for Safety employees shall be provided in Appendix A as follows: Effective the pay period that includes January 1, 2016, base salaries will be increased by 3.3% for the Assistant Police Chief classification. Thereafter, cost- of-living adjustments for the Assistant Police Chief classification shall be tied to the cost-of-living adjustments received by Police Management Association ATTACHMENT B 6-8 City of Newport Beach KEY AND MANAGEMENT COMPENSATION PLAN Effective July 1, 2015 through December 31, 2018 Key & Mgmt Comp Plan 2015-18 2 employees as follows: Effective the first pay period that includes January 1, 2017, base salary will be increased by 2.5%; effective the first pay period that includes January 1, 2018, base salary will be increased by 3.0%. Effective the pay period that includes January 1, 2016, base salaries for the Assistant Fire Chief classification will be increased by 4.0%. Thereafter, cost-of- living adjustments for the Assistant Fire Chief classification shall be tied to the cost-of-living adjustments received by Fire Management Association employees as follows: Effective the first pay period that includes January 1, 2017, base salary will be increased by 2.75%; effective the first pay period that includes January 1, 2018, base salary will be increased by 2.75%. The Assistant Chief, Lifeguard Operations classification’s cost-of-living adjustments are tied by prior Council resolution to the cost-of-living adjustments received by Lifeguard Management Association employees. As such, this classification will receive the following cost-of-living adjustments: Effective the first pay period that includes July 1, 2016, base salary will be increased by 2.5%; effective the first pay period that includes July 1, 2017, base salary will be increased by 2.5%. In addition, and provided as an internal and external equity adjustment, the Assistant Chief, Lifeguard Operations range shall be adjusted 5.0% effective January 1, 2016. Separate salary adjustments for the Police Chief and Fire Chief shall be as provided in their applicable Employment Agreements. B. Range Advancement Advancement through the salary range varies depending on the Group to which the employee is assigned: Executive Management - No steps; movement at the discretion of the City Manager. Administrative Management - Five-step range with eligibility for merit step increases on an annual basis. Administrative Management-Safety - Five-step range with eligibility for merit step increases on an annual basis. Division Management - Five-step range with eligibility for merit step increases on an annual basis. ATTACHMENT B 6-9 City of Newport Beach KEY AND MANAGEMENT COMPENSATION PLAN Effective July 1, 2015 through December 31, 2018 Key & Mgmt Comp Plan 2015-18 3 Confidential - Eight-step range with eligibility for merit step increases on an annual basis. Salary steps are placed in five percent (5%) increments within the range for Administrative Management, Administrative Management-Safety, Division Management, and Confidential groups. C. Performance Reviews and Anniversary Dates All Key and Management employees hired prior to December 31, 2001 will have a December 1, or first full pay period in December, anniversary date. Key and Management employees hired after December 2001 will have an anniversary date based upon hire date and hours of service. All Executive Management performance evaluations will be reviewed by the City Manager prior to implementation of any range advancement. D. Bilingual Pay Upon determination by the Department Director that an employee's ability to speak, read and/or write in Spanish or other language as approved, contributes to the Department, the employee shall be eligible to receive $150 per month in bilingual pay. A certification process will be conducted which will confirm that the employee is fluent at the street conversational level in speaking, reading and/or writing Spanish or other approved language. E. Non-Exempt Overtime and Compensatory Time Off Employees in non-exempt positions are eligible to receive overtime or compensatory time off. Overtime for non-exempt positions shall be paid at one- and-one-half (1½) times the employee’s regular rate of pay. Overtime work must be approved by the employee’s supervisor. Compensatory time off for non- exempt positions shall accrue at the rate of one-and-one-half (1½) times for every overtime hour worked. Employees may accumulate up to eighty (80) hours of Compensatory Time. Any hours in excess of eighty (80) will be paid off. Accumulation in excess of the eighty (80) hours may be approved at the discretion of the Department Director. F. Jury Duty A Key and Management employee called to serve as a juror shall notify his/her Supervisor on the first Workday following receipt of the summons. Key and Management employees of the City legally required to serve as a juror shall be ATTACHMENT B 6-10 City of Newport Beach KEY AND MANAGEMENT COMPENSATION PLAN Effective July 1, 2015 through December 31, 2018 Key & Mgmt Comp Plan 2015-18 4 entitled to leave with pay and all benefits for a period of up to sixty (60) days so long as his/her presence is legally required and the process outlined in the Employee Policy Manual is followed. G. Uniform Allowance – Public Safety As permissible by law, the City shall report to PERS the annual value of uniform allowance at the following rates: Assistant Police Chief - $1,350 Assistant Fire Chief - $1,519 Assistant Chief, Lifeguard Operations - $838 H. One-Time Payment Effective following adoption of the Key & Management Compensation Plan, or as soon thereafter as practicable, then currently employed non-safety Key & Management employees (excluding City Manager, City Attorney, and City Clerk) will receive a one-time payment of $2,400. It is understood this one-time payment does not meet the criteria under California Code of Regulations 571(b) as reportable compensation for retirement purposes. LEAVES Unless receiving a more enhanced leave benefit than that provided in the Key and Management Plan at the time of adoption of this 2015-18 Plan, employees in the Administrative Management-Safety classifications shall be tied to the leave benefits provided to the Key and Management group at large during the effective dates of this Plan. Employees hired or promoted into these classifications following adoption of the Compensation Plan shall be tied to the leave benefits provided to the Key and Management group at large. A. Holidays Observed Independence Day July 4 Labor Day First Monday in September Veteran’s Day November 11 Thanksgiving Day Fourth Thursday in November Day After Thanksgiving Friday following Thanksgiving Christmas Eve December 24 - last half of working day Christmas Day December 25 New Year’s Eve December 31- last half of working day New Year’s Day January 1 ATTACHMENT B 6-11 City of Newport Beach KEY AND MANAGEMENT COMPENSATION PLAN Effective July 1, 2015 through December 31, 2018 Key & Mgmt Comp Plan 2015-18 5 Martin Luther King Birthday Third Monday in January Washington’s Birthday Third Monday in February Memorial Day Last Monday in May Floating Holiday (1) July 1st Holidays will be paid based on the employee’s regular work day schedule. For example, if an employee is on a 9/80 schedule and the holiday is observed on a day that the employee is regularly scheduled to work 9 hours, the employee is entitled to receive 9 hours of holiday pay. However, if an employee is on a 9/80 schedule and the holiday is observed on a day that the employee is regularly scheduled to work 8 hours, the employee is entitled to receive 8 hours of holiday pay. Employees will receive 8 hours of holiday pay annually for the Floating Holiday. Holidays listed above (except the floating holiday) occurring on a Saturday shall be observed the preceding Friday. Holidays occurring on a Sunday shall be observed on the following Monday. (Half day holidays shall be observed prior to the observed holiday). B. Holidays – Public Safety The provisions contained in this section apply to Administrative Management- Safety (Assistant Chiefs) who are required to work without regard to holidays based on assignment. Said employees shall receive 3.7 hours per pay period of Holiday compensation as pay and reported to PERS as compensation earnable as defined in Government Code Sec. 20636. C. Flex Leave Regular full-time employees in the Administrative Management, Administrative Management-Safety, Division Management and Confidential categories enrolled in the flex leave program will earn leave according to the below. Years of Continuous Service Hrs Accrued per Pay Period Annual hours Maximum Allowable Balance (hours) 1 but less than 5 6.00 156.00 468.00 5 but less than 9 6.61 171.86 515.58 9 but less than 12 7.23 189.98 563.94 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 ATTACHMENT B 6-12 City of Newport Beach KEY AND MANAGEMENT COMPENSATION PLAN Effective July 1, 2015 through December 31, 2018 Key & Mgmt Comp Plan 2015-18 6 Spillover: Employees hired prior to July 1, 1996 shall be paid for earned Flex leave in excess of the employee’s maximum accrual rate (spillover) provided that they utilized at least 80 hours Flex leave the previous calendar year. Employees with 16 or more years of continuous service are required to use 120 hours of Flex leave the previous calendar year. Regular full-time employees in the Executive Management category will earn Flex leave according to the following schedule: Years of Continuous Service Hrs Accrued per Pay Period Annual hours Maximum Allowable Balance (hours) 1 but less than 15 8.77 228 684.06 15 and over 9.69 252 755.82 During the first three months of full-time employment, new regular employees shall not accrue paid leave. At the completion of three months of employment three months of accrued leave will be placed in the employee’s account. Note: If an employee becomes sick in the first three months of employment, the City will advance up to three (3) months of accrued Flex leave time to be used for the illness only. If the employee terminates employment prior to three (3) months, the employee will repay the equivalent to the number of Flex leave days that were advanced to the employee. 1. Limit on Accumulation Employees first hired, or rehired by the City subsequent to July 1, 1996, shall not be eligible for Flex leave spillover pay and shall not be entitled to accrue Flex leave in excess of the Flex leave accrual threshold. 2. Method of Use Flex leave may not be taken in excess of that actually accrued, and in no case, except for illness, may it be taken prior to the completion of an employee’s initial probationary period. The Department Director shall approve all requests for Flex leave, taking into consideration the needs of the Department, and whenever possible, the seniority and wishes of the employee. D. Sick Leave ATTACHMENT B 6-13 City of Newport Beach KEY AND MANAGEMENT COMPENSATION PLAN Effective July 1, 2015 through December 31, 2018 Key & Mgmt Comp Plan 2015-18 7 Key and Management employees employed by the City prior to initiation of the Flex leave program had separate sick and vacation leave banks. With the initiation of the Flex leave program, vacation leave was converted to Flex leave on an hour for hour basis and any sick leave hours remained in a bank to be used as provided in Section 11.2 (Sick Leave) of the Employee Policy Manual. E. Kin Care Employees may use up to ½ of Flex leave accrued per year to provide care for any member of the employee’s immediate family in need of care due to illness or injury. F. Bereavement Leave Bereavement leave shall be defined as “the necessary absence from duty by an employee having a regular or probationary appointment because of the death or terminal illness in his/her immediate family.” Unit members shall be entitled to forty (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, but should occur in proximate time to the occurrence. For the purposes of this section, immediate family shall mean an employee’s father, mother, stepfather, stepmother, brother, sister, spouse/domestic partner, child, stepchild, grandparents and the employee’s spouse/domestic partner’s father, mother, brother, sister, child and grandparents. The provisions of this Section shall not diminish or reduce any rights a member may have pursuant to applicable provisions of State or Federal law. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. G. Administrative Leave All overtime, either paid or compensatory time off, was eliminated for FLSA exempt Management personnel. In its place, Administrative Leave was granted, for a minimum of 8 hours and a maximum of 80 hours, as recommended by the Department Director with the approval of the City Manager, based upon the number of overtime hours normally worked by the individual exempt employee. H. Leave Sellback Twice annually, employees shall have the option of selling back, on an hour for hour basis, accrued Flex leave. In no event shall the Flex leave balance be ATTACHMENT B 6-14 City of Newport Beach KEY AND MANAGEMENT COMPENSATION PLAN Effective July 1, 2015 through December 31, 2018 Key & Mgmt Comp Plan 2015-18 8 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 2 (a), Retiree Medical Benefits. For the term of this Compensation Plan the Part C contributions for Flex will be at twenty-one percent (21%). BENEFITS A. Insurance 1. Medical and Dental 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. Effective July 1, 2015, the City's monthly contribution towards the Cafeteria Plan shall be $1,549 (plus the minimum CalPERS participating employer’s contribution). Effective the first pay issue in January 2016, the City’s contribution towards the Cafeteria Plan will increase by $76 to $1,625 per month (plus the minimum CalPERS participating employer’s contribution). Effective the first pay issue in January 2017, the City’s contribution towards the Cafeteria Plan will increase by $100 to $1,725 per month (plus the minimum CalPERS participating employer’s contribution). Employees shall have the option of allocating Cafeteria Plan contributions towards the City’s 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. Key and Management employees 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. Effective January 1, 2016, or as soon thereafter is practicable following City Council adoption of the Compensation Plan, the maximum cafeteria allowance provided to employees who execute an opt- out agreement shall be $1,000 per month. ATTACHMENT B 6-15 City of Newport Beach KEY AND MANAGEMENT COMPENSATION PLAN Effective July 1, 2015 through December 31, 2018 Key & Mgmt Comp Plan 2015-18 9 2. Vision Insurance Employees may purchase vision insurance upon hire and during benefits open enrollment. 3. Healthcare Reform Certain State and Federal laws, programs and regulations, including the Affordable Care Act, may impact future medical plan offerings. In the event reform measures alter healthcare coverage options, cost, or other elements of healthcare services with the City’s Miscellaneous bargaining units, cafeteria and/or healthcare benefits for employees in the Key and Management Group will be similarly provided. 4. Disability Insurance The City shall provide disability insurance with the following provisions: Weekly Benefit 66.67% gross weekly wages Maximum Monthly Benefit $10,000 Minimum Benefit $15 (STD)/$100 (LTD) Waiting Period 30 Calendar Days (STD) 180 Calendar Days (LTD) 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. Employees are responsible for the payment of the disability insurance cost in the amount of one (1%) percent of base salary. B. Additional Benefits 1. IRS Section 125 Flexible Spending Account The City provides a qualified Section 125 Flexible Spending Account which authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. ATTACHMENT B 6-16 City of Newport Beach KEY AND MANAGEMENT COMPENSATION PLAN Effective July 1, 2015 through December 31, 2018 Key & Mgmt Comp Plan 2015-18 10 2. Life Insurance The City shall provide life insurance for all regular full-time employees in $1,000 increments based on annual salary up to $50,000. 3. Employee Assistance Program Employees are eligible to receive EAP benefits, which provide confidential counseling and education on work and life issues, subject to provider guidelines. C. Retirement Benefits 1. PERS Retirement Formula The City contracts with California Public Employees Retirement System (PERS) to provide retirement benefits for its employees. Pursuant to prior agreements and state mandated reform, the City has implemented first, second and third tier retirement benefits: Tier 1 (“Legacy”): For employees hired by the City on or before November 23, 2012, the retirement formula for safety members shall be 3%@50 and the retirement formula for non-safety members shall be 2.5%@55, calculated on the basis of the highest consecutive 12 month period selected by the employee. Tier 2 (“Classic”): 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 not new members as defined in Government Code Section 7522.04(f), the retirement formula for safety members shall be 2%@50 (Lifeguard/Fire) or 3%@55 (Police), and the retirement formula for non- safety members shall be 2%@60, calculated on the basis of the highest consecutive 36 month period selected by the employee. Tier 3 (“PEPRA”): For employees first hired by the City on or after January 1, 2013, who are new members, the safety retirement formula shall be 2.7%@57 and the non-safety retirement formula shall be 2%@62, calculated on the basis of the highest consecutive 36 month period selected by the employee. The City’s contract with PERS also provides the 4th Level 1959 Survivor Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit ATTACHMENT B 6-17 City of Newport Beach KEY AND MANAGEMENT COMPENSATION PLAN Effective July 1, 2015 through December 31, 2018 Key & Mgmt Comp Plan 2015-18 11 (Miscellaneous only), Military Service Credit, 2% Cost of Living Adjustment and the pre-retirement option settlement 2 death benefit (Section 21548). 2. Employee Contributions Non Safety: Key and Management employees will contribute additional amounts toward the PERS retirement benefit, to the extent permissible by law. From July 1, 2015 through December 31, 2015, Key & Management non- safety members have been contributing, in addition to the member contribution, a portion of the Employer rate under a 20516(f) cost sharing agreement and employees in Tier 1 have also been contributing under 20516(a). The normal member rate and the cost sharing rate vary by Tier. However, the combined contribution rate for each Tier equals 12.35% of pensionable compensation, as provided in the prior Compensation Plan. Employee retirement contributions that are in addition to the normal PERS Member Contribution 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 the government tax code. Tiers 1: Effective the pay period including January 1, 2016, employees shall contribute an additional .35% for a total employee contribution of 12.70% of pensionable compensation, broken down as follows: 8.0% of the required member contribution and 2.42% and 2.28% of cost sharing under 20516(a) and 20516(f) respectively. Effective the pay period including January 1, 2017, employees shall contribute an additional .30% for a total employee contribution of 13.0% of pensionable compensation, broken down as follows: 8.0% of the required member contribution and 2.42% and 2.58% of cost sharing under 20516(a) and 20516(f) respectively. Tiers 2 and 3: Effective the pay period including January 1, 2016, Tier 2 and Tier 3 employees shall contribute an additional .35% of pensionable compensation towards retirement costs pursuant to Government Code Section 20516 (f), for a total of 12.70%. Effective the pay period including January 1, 2017, Tier 2 and Tier 3 employees shall contribute an additional .30% of pensionable compensation towards retirement costs for a total employee contribution of 13%. ATTACHMENT B 6-18 City of Newport Beach KEY AND MANAGEMENT COMPENSATION PLAN Effective July 1, 2015 through December 31, 2018 Key & Mgmt Comp Plan 2015-18 12 Safety: Based on prior agreement, employees in the Assistant Police Chief classification contributed the entire 9.0% of compensation earnable of the required member contribution, as well as an additional 3.8% of compensation earnable of the required employer contribution as cost sharing in accordance with Government Code section 20516(f). Effective the pay period that includes January 1, 2016, employees in this classification shall contribute an additional 1.8% of compensation earnable as cost sharing in accordance with Government Code section 20516(f) for a total employee contribution of 14.6%. Thereafter, PERS retirement contributions for the Assistant Police Chief classification shall be tied to the retirement contributions required by safety members of the Police Management Association. Based on prior agreement, employees in the Assistant Fire Chief classification contributed the entire 9.0% of compensation earnable of the required member contribution. Effective the pay period that includes January 1, 2016, employees in this classification shall contribute an additional 1.5% of compensation earnable as cost sharing in accordance with Government Code section 20516(f) for a total employee contribution of 10.5%. Thereafter, PERS retirement contributions for the Assistant Fire Chief classification shall be tied to the retirement contributions of safety members of the Fire Management Association. Accordingly effective the pay period that includes January 1, 2017 these employees shall contribute an additional .75% of compensation earnable as cost sharing for a total employee contribution of 11.25%. Effective the pay period that includes January 1, 2018 these employees shall contribute an additional .75% of compensation earnable as cost sharing for a total employee contribution of 12%. Pursuant to Resolution No. 2015-50, employees in the Assistant Chief, Lifeguard Operations classification were tied to contributions made by employees in the Lifeguard Management Association and contributed the entire 9.0% of compensation earnable of the required member contribution, as well as an additional 1.6% of compensation earnable of the required employer contribution as cost sharing in accordance with Government Code section 20516(f). Accordingly, effective the pay period that includes July 1, 2016, employees in this classification shall contribute an additional 1.5% of compensation earnable as cost sharing for a total employee contribution of 12.1%. Effective the pay period that includes ATTACHMENT B 6-19 City of Newport Beach KEY AND MANAGEMENT COMPENSATION PLAN Effective July 1, 2015 through December 31, 2018 Key & Mgmt Comp Plan 2015-18 13 July 1, 2017 these employees shall contribute an additional 1.5% of compensation earnable as cost sharing for a total employee contribution of 13.6%. PERS/pension contributions for the Police Chief and Fire Chief shall be as provided in their applicable Employment Agreements. 3. LIUNA Supplemental Pension The City shall contribute, on behalf of each Key and Management employee, one and one half percent (1.5%) of base salary into the LIUNA Supplemental Pension Fund. The City’s sole obligation is to forward the agreed upon amount to the fund. The City is not responsible for, nor does it make any representation regarding, the payment of benefits to unit members. Effective January 1, 2007, the City increased the base salary of all Key & Management employees by 1.5%, and then deducted that same amount as a mandatory employee contribution. For tax purposes, the contributions, although designated employee contributions, are being paid by the employer in lieu of contributions by the employee. The contributions are deemed “picked-up” and treated as employer contributions, thereby excluding the employee’s gross income until distributed. Employees cannot opt out of the “pick-up,” or receive the contributed amounts directly instead of having them paid to the plan. Participation at the same level will continue to be mandatory for members of the Key & Management Group. In accordance with correspondence received from a legal expert retained by the City, this amount will not be taxable, except for Medicare. Minor changes to other compensation related items that are calculated from base salary will also result from this administrative change. Key & Management employees who leave City employment prior to vesting in the LIUNA pension plan will have no right to the return of amounts contributed, or other recourse against the City concerning LIUNA. D. Retiree Medical Benefits 1. Background In 2005, the City and all Employee Associations agreed to replace the previous “defined benefit” retiree medical program with a new “defined contribution” program. The process of fully converting to the new program ATTACHMENT B 6-20 City of Newport Beach KEY AND MANAGEMENT COMPENSATION PLAN Effective July 1, 2015 through December 31, 2018 Key & Mgmt Comp Plan 2015-18 14 will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2006. b. Category 2 - Active employees hired prior to January 1, 2006, whose age plus years of service as of January 1, 2006, was less than 50 (46 for public safety employees). c. Category 3 - Active employees hired prior to January 1, 2006, whose age plus years of service was 50 or greater (46 for public safety employees) as of January 1, 2006. d. Category 4 - Employees who had already retired from the City prior to January 1, 2006, and were participating in the previous retiree medical program. 2. Program Structure This is an Integral Part Trust (IPT) Retiree Health Savings (RHS) Plan (formerly the Medical Expense Reimbursement Program - "MERP"). a. For employees in Category 1, the program is structured as follows: Each employee will have an individual RHS account (Employee Account). This account will accumulate contributions to be used for health care expense after separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. Contributions will be in three parts: Part A contributions (mandatory employee contributions): 1% of Salary. ATTACHMENT B 6-21 City of Newport Beach KEY AND MANAGEMENT COMPENSATION PLAN Effective July 1, 2015 through December 31, 2018 Key & Mgmt Comp Plan 2015-18 15 Part B contributions (employer contributions): $2.50 per month for each year of service plus year of age (updated every January 1st based on status as of December 31st of the prior year). Part C contributions (leave settlement as determined by Key and Management employees): Key and Management employees will determine the level of contribution, subject to the following constraints. All employees within Key and Management must participate at the same level. The participation level should be specified as a percentage of the leave balance on hand in each employee’s leave bank at the time of separation from the City. For example, if Key and Management employees determine to specify 50% of the leave balance as the participation level, then each member leaving the City or cashing out leave at any other time, would have the cash equivalent of 50% of the amount that is cashed out added to the RHS, on a pre-tax basis. The remaining 50% would be paid in cash as taxable income. Individual employees would not have the option to deviate from this breakout. Sick leave balances may also be included in the RHS Part C contributions, but only to the extent and within all the numeric parameters specified in the Employee Policy Manual. Sick leave participation is a separate item from Flex leave participation, and thresholds must be separately identified by the Key and Management group. Key and Management employees have agreed to Part C contributions at the level of sixty-five percent (65%) of Sick leave and twenty-one percent (21%) of Flex leave. This amount may be changed on a go forward basis, as determined among the Key and Management group. Nothing in this section restricts taking leave for time off purposes. Part A contributions may be included in PERS compensation. Part B and Part C contributions will not be included in PERS compensation. Part A contributions begin upon enrollment in the program and are credited to each RHS Employee Account each pay period. ATTACHMENT B 6-22 City of Newport Beach KEY AND MANAGEMENT COMPENSATION PLAN Effective July 1, 2015 through December 31, 2018 Key & Mgmt Comp Plan 2015-18 16 Eligibility for Part B contributions is set at five years of vested City employment. At that time, the City will credit the first five years’ worth of Part B contributions into the Employee Account (interest does not accrue during that period). Thereafter, contributions are made bi-weekly. Part C deposits, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon separation. If an employee leaves the City prior to five years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the RHS Employee Account. Such an employee will not be entitled to any Part B contributions. Distributions from RHS Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and his or her spouse and legal dependents – again only as permitted by IRS Publication 502. Qualification for dependency status will be determined by guidelines in IRC 152. If used for these purposes, distributions from the RHS accounts will not be taxable. Cash withdrawal for any other purpose is prohibited. Under IRS Revenue Ruling 2005-24, any balance remaining in the Employee Account after the death of the employee and his or her spouse and/or other authorized dependents (if any) must be forfeited. That particular RHS Employee Account will be closed, and any remaining funds will become general assets of the plan. The City’s Part B contributions during active employment constitute the minimum CalPERS participating employer’s contribution towards medical insurance after retirement. In addition, retirees selecting a CalPERS medical plan or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree’s RHS account. ATTACHMENT B 6-23 City of Newport Beach KEY AND MANAGEMENT COMPENSATION PLAN Effective July 1, 2015 through December 31, 2018 Key & Mgmt Comp Plan 2015-18 17 b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one-time City contribution to their individual RHS accounts that equates to $100 per month for every month they contributed to the previous “defined benefit” plan, to a maximum of 15 years (180 months). This contribution will be made only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. Employees in Category 2 who had less than five years’ service with the City prior to implementation of the new program will only receive Part B contributions back to January 1, 2006 when they reach five years total service. c. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute $400 per month into each of their RHS accounts after they retire from the City, to continue as long as the employee or spouse is still living. Each employee will contribute a flat $100 per month to the plan for the duration of their employment to partially offset part of this expense to the City. The maximum benefit provided by the City after retirement is $4,800 per year, accruing at the rate of $400per month. There is no cash out option for these funds, and they may not be spent in advance of receipt. Employees in this category will 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 will be made to the RHS account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. d. For employees (retirees) in Category 4, the structure is very similar to the previous retiree medical program, except that there is no cost share requirement, and the $400 City contribution after retirement ATTACHMENT B 6-24 City of Newport Beach KEY AND MANAGEMENT COMPENSATION PLAN Effective July 1, 2015 through December 31, 2018 Key & Mgmt Comp Plan 2015-18 18 can be used for any IRS authorized purpose, not just City insurance premiums. Effective July 1, 2006, a RHS account has been opened for each retiree in this category, and the City will contribute $400 per month to each account as long as the retiree or spouse remains living. 3. Administration Vendors have been selected by the City to administer the program. The contract expense for program-wide administration by the vendor will be paid by the City. However, specific vendor charges for individual account transactions that vary according to the investment actions taken by each employee, such as fees or commissions for trades, will be paid by each employee. The City’s Deferred Compensation Committee, or its successor committee, will have the authority to determine investment options that will be available through the plan. 4. Value of Benefit For all purposes, including compensation comparisons, the Retiree Medical Program shall be valued at 1% of salary on which PERS retirement is based (Part A); plus .25% of other compensation (Part B). E. Tuition Reimbursement Key and Management employees attending accredited community colleges, colleges, trade schools or universities, or recognized professional organizations or agencies may apply for reimbursement of the cost of tuition, books, fees or other student expenses for approved job–related coursework, seminars or professional development programs. Effective January 1, 2016, the reimbursment will increase by $500 to a maximum of $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. F. Auto Allowance Positions in the Executive Management and Administrative Management groups may be eligible for a limited auto allowance, between $200 and $400 per month, ATTACHMENT B 6-25 City of Newport Beach KEY AND MANAGEMENT COMPENSATION PLAN Effective July 1, 2015 through December 31, 2018 Key & Mgmt Comp Plan 2015-18 19 based on operational necessity and upon the determination of the City Manager. MISCELLANEOUS A. Probationary Period Newly hired employees shall serve a twelve-month probationary period. Any employee who is promoted shall be required to successfully complete a six (6) month probationary period in the new position. All Executive Management positions serve at-will and can be released from employment at any time. The City Manager, City Attorney and City Clerk serve at the pleasure of the City Council. B. Direct Deposit All newly hired employees shall participate in the payroll direct deposit system. C. Exempt and Non-exempt Status All classifications in Key and Management are classified as exempt under the FLSA, with the following exceptions: Administrative Assistants to the Police Chief, Fire Chief, City Attorney, Assistant City Manager, Human Resources Director Administrative Assistant-Confidential Fiscal Specialist - Confidential Human Resources Specialist I/II Paralegal Legal Assistant D. 9/80 Scheduling Plan The City agrees to maintain flex-scheduling where it is currently operating successfully. Any new flex scheduling must be approved by the City Manager prior to implementation. In January 2011, the 9/80 flex-schedule was modified to provide employees the option of alternating Fridays off only. To ensure effective coverage, employees on the 9/80 schedule are divided into groups A or B, with equal numbers of staff as much as possible, including management and supervisory staff, off on alternating Fridays. To ensure ongoing compliance with Fair Labor Standards Act, and to maintain organizational efficiency, deviations from established flex days, if legally permitted, will be considered on a case-by-case basis. ATTACHMENT B 6-26 City of Newport Beach KEY AND MANAGEMENT COMPENSATION PLAN Effective July 1, 2015 through December 31, 2018 Key & Mgmt Comp Plan 2015-18 20 E. Employee Policy Manual The City of Newport Beach's Employee Policy Manual shall govern all issues not addressed in this document with respect to wages, hours and other terms and conditions of employment. ATTACHMENT B 6-27 2.65% Job Classification Subgroup Min Max Min2 Max2 Accounting Manager Division Mgmt 61.02$ 74.14$ 10,576$ 12,852$ Admin Asst - Confidential Confidential 27.29$ 38.43$ 4,731$ 6,662$ Admin Asst to Asst City Mg Confidential 27.29$ 38.43$ 4,731$ 6,662$ Admin Asst to Fire Chief Confidential 27.29$ 38.43$ 4,731$ 6,662$ Admin Asst to HR Director Confidential 27.29$ 38.43$ $ 4,731 6,662$ Admin Asst to Police Chief Confidential 27.29$ 38.43$ 4,731$ 6,662$ Admin Ast to City Attny Confidential 27.29$ 38.43$ 4,731$ 6,662$ Administrative Analyst Confidential 32.46$ 45.68$ 5,626$ 7,918$ Administrative Manager Division Mgmt 45.36$ 55.13$ 7,863$ 9,556$ Assistant City Attorney Admin Mgmt 70.79$ 86.00$ 12,270$ 14,907$ Assistant City Clerk Confidential 31.63$ 44.51$ 5,482$ 7,715$ Assistant City Engineer Division Mgmt 62.49$ 75.95$ 10,832$ 13,165$ Asst to the CM Division Mgmt 58.09$ 70.60$ 10,069$ 12,238$ Budget Analyst Confidential 35.00$ 49.23$ 6,067$ 8,533$ Budget Analyst, Senior Confidential 40.50$ 57.00$ 7,019$ 9,880$ Budget Manager Division Mgmt 61.02$ 74.14$ 10,576$ 12,852$ City Traffic Engineer Division Mgmt 62.49$ 75.95$ 10,832$ 13,165$ Civil Eng., Prin - Pl Chk Division Mgmt 59.50$ 72.32$ 10,313$ 12,535$ Civil Engineer, Principal Division Mgmt 59.50$ 72.32$ 10,313$ 12,535$ Deputy City Attorney Division Mgmt 61.02$ 74.14$ 10,576$ 12,852$ Deputy City Clerk Confidential 28.67$ 40.35$ 4,969$ 6,994$ Deputy Comm Develp Dirctr Admin Mgmt 65.73$ 79.88$ 11,393$ 13,846$ Deputy Finance Director Admin Mgmt 65.73$ 79.88$ 11,393$ 13,846$ Deputy PW Director/City Eng Admin Mgmt 77.07$ 93.68$ 13,359$ 16,238$ Deputy Rec & Sr Director Admin Mgmt 62.54$ 76.02$ 10,841$ 13,177$ EMS Division Chief Division Mgmt 57.49$ 69.88$ 9,966$ 12,113$ Engineer, Senior Confidential 46.24$ 65.05$ 8,016$ 11,275$ Equipment Maint Supertdnt Division Mgmt 52.62$ 63.97$ 9,121$ 11,088$ Exec Asst to the City Manager Confidential 29.99$ 42.21$ 5,199$ 7,316$ Facilities Manager Confidential 46.24$ 65.05$ 8,016$ 11,275$ Field Maint Superintdnt Division Mgmt 52.62$ 63.97$ 9,121$ 11,088$ Field Superintdnt II Division Mgmt 52.62$ 63.97$ 9,121$ 11,088$ Fiscal Specialist - Confidential Confidential 26.47$ 37.26$ 4,589$ 6,459$ Harbor Resources Manager Division Mgmt 61.02$ 74.14$ 10,576$ 12,852$ Human Res. Analyst Confidential 35.82$ 50.40$ 6,210$ 8,736$ Human Res. Analyst, Sr.Confidential 39.53$ 55.63$ 6,852$ 9,642$ Human Res. Specialist I Confidential 27.13$ 38.12$ 4,703$ 6,608$ Human Res. Specialist II Confidential 29.99$ 42.21$ 5,199$ 7,316$ Human Resources Manager Division Mgmt 57.49$ 69.88$ 9,966$ 12,113$ IT Manager Admin Mgmt 62.54$ 76.02$ 10,841$ 13,177$ Legal Assistant Confidential 24.82$ 34.94$ 4,302$ 6,057$ Library Services Manager Division Mgmt 52.62$ 63.97$ 9,121$ 11,088$ Management Analyst, Senior Confidential 37.33$ 52.54$ 6,471$ 9,106$ Operations Support Supt.Division Mgmt 52.62$ 63.97$ 9,121$ 11,088$ Exhibit A Newport Beach Key & Management Classifications and Salary Ranges Confidential, Division Management, and Admin Management (2.65% range adjustment) effective January 1, 2016 Hourly Monthly ATTACHMENT B 6-28 2.65% Job Classification Subgroup Min Max Min2 Max2 Newport Beach Key & Management Classifications and Salary Ranges Confidential, Division Management, and Admin Management (2.65% range adjustment) effective January 1, 2016 Hourly Monthly Paralegal Confidential 29.10$ 40.95$ 5,044$ 7,097$ Park & Tree Superintendent Division Mgmt 52.62$ 63.97$ 9,121$ 11,088$ Planner, Principal Confidential 42.51$ 59.84$ 7,368$ 10,373$ Planning Manager Division Mgmt 54.45$ 66.18$ 9,437$ 11,471$ Police Support Svcs Admin Admin Mgmt 64.06$ 77.86$ 11,104$ 13,496$ Public Info Specialist Confidential 28.67$ 40.35$ 4,969$ 6,994$ Public Information Manager Division Mgmt 58.09$ 70.60$ 10,069$ 12,238$ Purchasing Agent Confidential 38.60$ 54.26$ 6,690$ 9,405$ PW Finance/Admin Manager Division Mgmt 54.45$ 66.18$ 9,437$ 11,471$ Recreation Manager Division Mgmt 42.14$ 51.22$ 7,304$ 8,879$ Revenue Manager Division Mgmt 61.02$ 74.14$ 10,576$ 12,852$ Senior Services Manager Division Mgmt 46.50$ 56.53$ 8,060$ 9,798$ Systems & Admin Manager Division Mgmt 49.23$ 59.84$ 8,533$ 10,373$ Executive Management1 (2.65% range adjustment) Job Classification Subgroup Min Max Min Max Assistant City Manager Executive Mgmt 73.94$ 110.89$ 12,816$ 19,221$ City Attorney Executive Mgmt 75.72$ 113.57$ 13,125$ 19,685$ City Clerk Executive Mgmt 46.19$ 69.28$ 8,006$ 12,009$ City Manager Executive Mgmt 90.49$ 135.73$ 15,685$ 23,527$ Community Development Director Executive Mgmt 70.15$ 105.22$ 12,160$ 18,237$ Deputy City Manager Executive Mgmt 70.15$ 105.22$ 12,160$ 18,237$ Finance Director/Treasurer Executive Mgmt 70.15$ 105.22$ 12,160$ 18,237$ Fire Chief Executive Mgmt 73.11$ 109.65$ 12,672$ 19,006$ Human Resources Director Executive Mgmt 66.36$ 99.54$ 11,503$ 17,254$ Library Services Director Executive Mgmt 66.36$ 99.54$ 11,503$ 17,254$ Municipal Operations Director Executive Mgmt 66.36$ 99.54$ 11,503$ 17,254$ Police Chief Executive Mgmt 74.03$ 111.03$ 12,832$ 19,245$ Public Works Director Executive Mgmt 70.15$ 105.22$ 12,160$ 18,237$ Rec & Senior Services Director Executive Mgmt 66.36$ 99.54$ 11,503$ 17,254$ Job Classification Subgroup Min Max Min Max Assistant Chief, Fire Admin Mgmt/Safety 78.22$ 95.06$ 13,558$ 16,476$ Assistant Chief, Lifeguard Operations Admin Mgmt/Safety 60.34$ 73.34$ 10,460$ 12,713$ Assistant Chief, Police Admin Mgmt/Safety 80.65$ 98.03$ 13,979$ 16,992$ 1 Excluding the City Manager, City Attorney, City Clerk, Police Chief and Fire Chief 2 Administrative Management - Safety 2 Range adjustments for Administrative Management/Safety are subject to change as they are tied to adjustments of the respective Management Safety units for their department Hourly Monthly Hourly Monthly ATTACHMENT B 6-29 2.65% Job Classification Subgroup Minimum Maximum Minimum Maximum2 Accounting Manager Division Mgmt 62.63$ 76.11$ 10,856$ 13,192$ Admin Asst - Confidential Confidential 28.02$ 39.45$ 4,856$ 6,838$ Admin Asst to Asst City Mg Confidential 28.02$ 39.45$ 4,856$ 6,838$ Admin Asst to Fire Chief Confidential 28.02$ 39.45$ 4,856$ 6,838$ Admin Asst to HR Director Confidential 28.02$ 39.45$ $ 4,856 6,838$ Admin Asst to Police Chief Confidential 28.02$ 39.45$ 4,856$ 6,838$ Admin Ast to City Attny Confidential 28.02$ 39.45$ 4,856$ 6,838$ Administrative Analyst Confidential 33.32$ 46.89$ 5,775$ 8,128$ Administrative Manager Division Mgmt 46.56$ 56.59$ 8,071$ 9,810$ Assistant City Attorney Admin Mgmt 72.66$ 88.28$ 12,595$ 15,302$ Assistant City Clerk Confidential 32.46$ 45.69$ 5,627$ 7,919$ Assistant City Engineer Division Mgmt 64.15$ 77.96$ 11,119$ 13,514$ Asst to the CM Division Mgmt 59.63$ 72.47$ 10,336$ 12,562$ Budget Analyst Confidential 35.93$ 50.53$ 6,228$ 8,759$ Budget Analyst, Senior Confidential 41.57$ 58.51$ 7,205$ 10,142$ Budget Manager Division Mgmt 62.63$ 76.11$ 10,856$ 13,192$ City Traffic Engineer Division Mgmt 64.15$ 77.96$ 11,119$ 13,514$ Civil Eng., Prin - Pl Chk Division Mgmt 61.07$ 74.23$ 10,586$ 12,867$ Civil Engineer, Principal Division Mgmt 61.07$ 74.23$ 10,586$ 12,867$ Deputy City Attorney Division Mgmt 62.63$ 76.11$ 10,856$ 13,192$ Deputy City Clerk Confidential 29.43$ 41.42$ 5,101$ 7,180$ Deputy Comm Develp Dirctr Admin Mgmt 67.47$ 82.00$ 11,695$ 14,213$ Deputy Finance Director Admin Mgmt 67.47$ 82.00$ 11,695$ 14,213$ Deputy PW Director/City Eng Admin Mgmt 79.11$ 96.16$ 13,713$ 16,668$ Deputy Rec & Sr Director Admin Mgmt 64.20$ 78.04$ 11,128$ 13,526$ EMS Division Chief Division Mgmt 59.02$ 71.74$ 10,230$ 12,434$ Engineer, Senior Confidential 47.47$ 66.77$ 8,228$ 11,574$ Equipment Maint Supertdnt Division Mgmt 54.01$ 65.67$ 9,362$ 11,382$ Exec Asst to the City Manager Confidential 30.79$ 43.33$ 5,337$ 7,510$ Facilities Manager Confidential 47.47$ 66.77$ 8,228$ 11,574$ Field Maint Superintdnt Division Mgmt 54.01$ 65.67$ 9,362$ 11,382$ Field Superintdnt II Division Mgmt 54.01$ 65.67$ 9,362$ 11,382$ Fiscal Specialist - Confidential Confidential 27.17$ 38.25$ 4,710$ 6,630$ Harbor Resources Manager Division Mgmt 62.63$ 76.11$ 10,856$ 13,192$ Human Res. Analyst Confidential 36.77$ 51.74$ 6,374$ 8,968$ Human Res. Analyst, Sr.Confidential 40.58$ 57.10$ 7,034$ 9,897$ Human Res. Specialist I Confidential 27.85$ 39.13$ 4,827$ 6,783$ Human Res. Specialist II Confidential 30.79$ 43.33$ 5,337$ 7,510$ Human Resources Manager Division Mgmt 59.02$ 71.74$ 10,230$ 12,434$ IT Manager Admin Mgmt 64.20$ 78.04$ 11,128$ 13,526$ Legal Assistant Confidential 25.48$ 35.87$ 4,416$ 6,217$ Library Services Manager Division Mgmt 54.01$ 65.67$ 9,362$ 11,382$ Management Analyst Confidential 38.32$ 53.93$ 6,643$ 9,348$ Operations Support Supt.Division Mgmt 54.01$ 65.67$ 9,362$ 11,382$ Paralegal Confidential 29.87$ 42.03$ 5,178$ 7,286$ Newport Beach Key & Management Classifications and Salary Ranges Confidential, Division Management, and Admin Management (2.65% range adjustment) Hourly Monthly effective January 1, 2017 ATTACHMENT B 6-30 2.65% Job Classification Subgroup Minimum Maximum Minimum Maximum2 Newport Beach Key & Management Classifications and Salary Ranges Confidential, Division Management, and Admin Management (2.65% range adjustment) Hourly Monthly effective January 1, 2017 Park & Tree Superintendent Division Mgmt 54.01$ 65.67$ 9,362$ 11,382$ Planner, Principal Confidential 43.63$ 61.43$ 7,563$ 10,648$ Planning Manager Division Mgmt 55.89$ 67.93$ 9,687$ 11,775$ Police Support Svcs Admin Admin Mgmt 65.76$ 79.92$ 11,399$ 13,853$ Public Info Specialist Confidential 29.43$ 41.42$ 5,101$ 7,180$ Public Information Manager Division Mgmt 59.63$ 72.47$ 10,336$ 12,562$ Purchasing Agent Confidential 39.62$ 55.70$ 6,867$ 9,654$ PW Finance/Admin Manager Division Mgmt 55.89$ 67.93$ 9,687$ 11,775$ Recreation Manager Division Mgmt 43.25$ 52.58$ 7,497$ 9,114$ Revenue Manager Division Mgmt 62.63$ 76.11$ 10,856$ 13,192$ Senior Services Manager Division Mgmt 47.73$ 58.03$ 8,274$ 10,058$ Systems & Admin Manager Division Mgmt 50.54$ 61.43$ 8,759$ 10,648$ Executive Management1 (2.65% range adjustment) Job Classification Subgroup Min Max Min Max Assistant City Manager Executive Mgmt 75.90$ 113.83$ 13,156$ 19,730$ City Attorney Executive Mgmt 75.72$ 113.57$ 13,125$ 19,685$ City Clerk Executive Mgmt 46.19$ 69.28$ 8,006$ 12,009$ City Manager Executive Mgmt 90.49$ 135.73$ 15,685$ 23,527$ Community Development Director Executive Mgmt 72.01$ 108.01$ 12,482$ 18,721$ Deputy City Manager Executive Mgmt 72.01$ 108.01$ 12,482$ 18,721$ Finance Director/Treasurer Executive Mgmt 72.01$ 108.01$ 12,482$ 18,721$ Fire Chief Executive Mgmt 73.11$ 109.65$ 12,672$ 19,006$ Human Resources Director Executive Mgmt 68.12$ 102.18$ 11,807$ 17,711$ Library Services Director Executive Mgmt 68.12$ 102.18$ 11,807$ 17,711$ Municipal Operations Director Executive Mgmt 68.12$ 102.18$ 11,807$ 17,711$ Police Chief Executive Mgmt 74.03$ 111.03$ 12,832$ 19,245$ Public Works Director Executive Mgmt 72.01$ 108.01$ 12,482$ 18,721$ Rec & Senior Services Director Executive Mgmt 68.12$ 102.18$ 11,807$ 17,711$ Job Classification Subgroup Min Max Min Max Assistant Chief, Fire Admin Mgmt/Safety 80.37$ 97.67$ 13,931$ 16,929$ Assistant Chief, Lifeguard Ops (effec 7/16)Admin Mgmt/Safety 61.85$ 75.18$ 10,721$ 13,031$ Assistant Chief, Police Admin Mgmt/Safety 82.66$ 100.48$ 14,328$ 17,417$ 1 Excluding the City Manager, City Attorney, City Clerk, Police Chief and Fire Chief 2 Range adjustments for Administrative Management/Safety are subject to change as they are tied to adjustments of the respective Management Safety units for their department Administrative Management - Safety 2 Hourly Monthly Hourly Monthly ATTACHMENT B 6-31 2.65% Confidential, Division Management, and Admin Management (2.65% range adjustment) Job Classification Subgroup Min Max Min Max2 Accounting Manager Division Mgmt 64.29$ 78.13$ 11,144$ 13,542$ Admin Asst - Confidential Confidential 28.76$ 40.50$ 4,985$ 7,019$ Admin Asst to Asst City Mg Confidential 28.76$ 40.50$ 4,985$ 7,019$ Admin Asst to Fire Chief Confidential 28.76$ 40.50$ 4,985$ 7,019$ Admin Asst to HR Director Confidential 28.76$ 40.50$ $ 4,985 7,019$ Admin Asst to Police Chief Confidential 28.76$ 40.50$ 4,985$ 7,019$ Admin Ast to City Attny Confidential 28.76$ 40.50$ 4,985$ 7,019$ Administrative Analyst Confidential 34.20$ 48.13$ 5,928$ 8,343$ Administrative Manager Division Mgmt 47.80$ 58.09$ 8,285$ 10,070$ Assistant City Attorney Admin Mgmt 74.59$ 90.62$ 12,929$ 15,707$ Assistant City Clerk Confidential 33.32$ 46.90$ 5,776$ 8,129$ Assistant City Engineer Division Mgmt 65.85$ 80.03$ 11,414$ 13,872$ Asst to the CM Division Mgmt 61.21$ 74.39$ 10,610$ 12,895$ Budget Analyst Confidential 36.88$ 51.87$ 6,393$ 8,991$ Budget Analyst, Senior Confidential 42.67$ 60.06$ 7,396$ 10,411$ Budget Manager Division Mgmt 64.29$ 78.13$ 11,144$ 13,542$ City Traffic Engineer Division Mgmt 65.85$ 80.03$ 11,414$ 13,872$ Civil Eng., Prin - Pl Chk Division Mgmt 62.69$ 76.20$ 10,866$ 13,208$ Civil Engineer, Principal Division Mgmt 62.69$ 76.20$ 10,866$ 13,208$ Deputy City Attorney Division Mgmt 64.29$ 78.13$ 11,144$ 13,542$ Deputy City Clerk Confidential 30.21$ 42.52$ 5,236$ 7,370$ Deputy Comm Develp Dirctr Admin Mgmt 69.26$ 84.17$ 12,004$ 14,590$ Deputy Finance Director Admin Mgmt 69.26$ 84.17$ 12,004$ 14,590$ Deputy PW Director/City Eng Admin Mgmt 81.21$ 98.71$ 14,076$ 17,110$ Deputy Rec & Sr Director Admin Mgmt 65.90$ 80.11$ 11,423$ 13,885$ EMS Division Chief Division Mgmt 60.58$ 73.64$ 10,501$ 12,764$ Engineer, Senior Confidential 48.73$ 68.54$ 8,446$ 11,881$ Equipment Maint Supertdnt Division Mgmt 55.44$ 67.41$ 9,610$ 11,684$ Exec Asst to the City Manager Confidential 31.61$ 44.48$ 5,478$ 7,709$ Facilities Manager Confidential 48.73$ 68.54$ 8,446$ 11,881$ Field Maint Superintdnt Division Mgmt 55.44$ 67.41$ 9,610$ 11,684$ Field Superintdnt II Division Mgmt 55.44$ 67.41$ 9,610$ 11,684$ Fiscal Specialist - Confidential Confidential 27.90$ 39.26$ 4,835$ 6,806$ Harbor Resources Manager Division Mgmt 64.29$ 78.13$ 11,144$ 13,542$ Human Res. Analyst Confidential 37.75$ 53.11$ 6,543$ 9,205$ Human Res. Analyst, Sr.Confidential 41.65$ 58.61$ 7,220$ 10,160$ Human Res. Specialist I Confidential 28.59$ 40.17$ 4,955$ 6,963$ Human Res. Specialist II Confidential 31.61$ 44.48$ 5,478$ 7,709$ Human Resources Manager Division Mgmt 60.58$ 73.64$ 10,501$ 12,764$ IT Manager Admin Mgmt 65.90$ 80.11$ 11,423$ 13,885$ Legal Assistant Confidential 26.15$ 36.82$ 4,533$ 6,382$ Library Services Manager Division Mgmt 55.44$ 67.41$ 9,610$ 11,684$ Management Analyst Confidential 39.34$ 55.36$ 6,819$ 9,595$ Operations Support Supt.Division Mgmt 55.44$ 67.41$ 9,610$ 11,684$ Newport Beach Key & Management Classifications and Salary Ranges effective January 1, 2018 Hourly Monthly ATTACHMENT B 6-32 2.65% Confidential, Division Management, and Admin Management (2.65% range adjustment) Job Classification Subgroup Min Max Min Max2 Newport Beach Key & Management Classifications and Salary Ranges effective January 1, 2018 Hourly Monthly Paralegal Confidential 30.66$ 43.15$ 5,315$ 7,479$ Park & Tree Superintendent Division Mgmt 55.44$ 67.41$ 9,610$ 11,684$ Planner, Principal Confidential 44.79$ 63.06$ 7,764$ 10,930$ Planning Manager Division Mgmt 57.37$ 69.73$ 9,944$ 12,087$ Police Support Svcs Admin Admin Mgmt 67.50$ 82.04$ 11,701$ 14,220$ Public Info Specialist Confidential 30.21$ 42.52$ 5,236$ 7,370$ Public Information Manager Division Mgmt 61.21$ 74.39$ 10,610$ 12,895$ Purchasing Agent Confidential 40.67$ 57.17$ 7,049$ 9,910$ PW Finance/Admin Manager Division Mgmt 57.37$ 69.73$ 9,944$ 12,087$ Recreation Manager Division Mgmt 44.40$ 53.97$ 7,696$ 9,355$ Revenue Manager Division Mgmt 64.29$ 78.13$ 11,144$ 13,542$ Senior Services Manager Division Mgmt 49.00$ 59.57$ 8,493$ 10,325$ Systems & Admin Manager Division Mgmt 51.87$ 63.06$ 8,992$ 10,930$ Executive Management1 (2.65% range adjustment) Job Classification Subgroup Min Max Min Max Assistant City Manager Executive Mgmt 77.91$ 116.85$ 13,505$ 20,253$ City Attorney Executive Mgmt 75.72$ 113.57$ 13,125$ 19,685$ City Clerk Executive Mgmt 46.19$ 69.28$ 8,006$ 12,009$ City Manager Executive Mgmt 90.49$ 135.73$ 15,685$ 23,527$ Community Development Director Executive Mgmt 73.92$ 110.87$ 12,812$ 19,218$ Deputy City Manager Executive Mgmt 73.92$ 110.87$ 12,812$ 19,218$ Finance Director/Treasurer Executive Mgmt 73.92$ 110.87$ 12,812$ 19,218$ Fire Chief Executive Mgmt 73.11$ 109.65$ 12,672$ 19,006$ Human Resources Director Executive Mgmt 69.93$ 104.89$ 12,120$ 18,181$ Library Services Director Executive Mgmt 69.93$ 104.89$ 12,120$ 18,181$ Municipal Operations Director Executive Mgmt 69.93$ 104.89$ 12,120$ 18,181$ Police Chief Executive Mgmt 74.03$ 111.03$ 12,832$ 19,245$ Public Works Director Executive Mgmt 73.92$ 110.87$ 12,812$ 19,218$ Rec & Senior Services Director Executive Mgmt 69.93$ 104.89$ 12,120$ 18,181$ Job Classification Subgroup Min Max Min Max Assistant Chief, Fire Admin Mgmt/Safety 82.58$ 100.36$ 14,314$ 17,395$ Assistant Chief, Lifeguard Ops (effec 7/17)Admin Mgmt/Safety 63.40$ 77.06$ 10,989$ 13,356$ Assistant Chief, Police Admin Mgmt/Safety 85.14$ 103.50$ 14,758$ 17,939$ 1 Excluding the City Manager, City Attorney, City Clerk, Police Chief and Fire Chief 2 Range adjustments for Administrative Management/Safety are subject to change as they are tied to adjustments of the respective Management Safety units for their department Hourly Monthly Administrative Management - Safety 2 Hourly Monthly ATTACHMENT B 6-33 AT T A C H M E N T  C Ex i s t i n g C o s t Pr o j e c t e d C o s t s B a s e C o s t Pe n s i o n 3 T o t a l Ba s e Co s t Pe n s i o n 3 T o t a l B a s e C o s t Pe n s i o n 3 Total Base Cost Pension 3 Total Base Cost Pension 3 Total Sa l a r y 2 No n S a f e t y 9, 9 0 3 , 3 7 3 2, 2 1 8 , 3 5 6 12 , 1 2 1 , 7 2 9 13 1 , 2 2 0 29 , 4 5 0 1 6 0 , 6 7 0 39 7 , 1 3 6 9 2 , 4 3 7 489,573 670,100 155,972 826,072 404,183 94,078 498,261 1,974,576 12.34% Sa f e t y 90 6 , 9 4 2 52 7 , 8 6 8 1, 4 3 4 , 8 1 0 13 , 7 8 4 7, 9 6 7 2 1 , 7 5 1 39 , 0 7 6 2 2 , 6 6 4 61,740 59,605 34,571 94,176 34,264 19,873 54,137 231,804 1.45% Su p p l e m e n t a l B e n e f i t s Ca r A l l o w a n c e $2 0 0 - $ 4 0 0 m o 54 , 9 0 1 - 54 , 9 0 1 Ce r t i f i c a t e P a y $5 5 / m o 3, 1 4 6 7 0 6 3 , 8 5 2 - - - - - - - - - - - - - 0.00% Bi l i n g u a l P a y ( f l a t $ a m o u n t ) $1 5 0 / m o 3, 6 0 0 8 0 8 4 , 4 0 8 - - - - - - - - - - - - - - Ho l i d a y a s P a y ( p u b l i c s a f e t y o n l y ) ap p r o x 4 . 5 % 42 , 4 6 0 2 5 , 5 6 1 6 8 , 0 2 1 64 9 3 7 5 1 , 0 2 4 1, 7 2 2 99 9 2 , 7 2 1 2,668 1,547 4,215 1,594 925 2,519 10,479 0.07% Un i f o r m A l l o w a n c e ( p u b l i c s a f e t y o n l y ) Se e K & M P l a n 6, 5 7 6 3 , 9 5 9 1 0 , 5 3 5 Me d i C a r e ( m a n d a t o r y p a y m e n t ) 1. 4 5 % 15 7 , 6 1 1 - 1 5 7 , 6 1 1 2 , 1 0 3 - 2 , 1 0 3 6, 3 2 5 - 6 , 3 2 5 10,581 - 10,581 6,357 - 6,357 25,366 0.16% Co m p e n s a t e d A b s e n c e s ( C i t y f u n d i n g o f l i a b i l i t y ) 3. 5 0 % 37 8 , 3 6 0 - 3 7 8 , 3 6 0 5, 0 7 5 - 5 , 0 7 5 15 , 2 6 7 - 1 5 , 2 6 7 25,540 - 25,540 15,346 - 15,346 61,228 0.38% Su b t o t a l 11 , 4 5 6 , 9 6 9 2, 7 7 7 , 2 5 7 14 , 2 3 4 , 2 2 6 15 2 , 8 3 1 37 , 7 9 2 1 9 0 , 6 2 3 45 9 , 5 2 6 1 1 6 , 1 0 0 575,627 768,493 192,091 960,584 461,744 114,875 576,619 2,303,453 Ot h e r C i t y P a i d B e n e f i t s Ca f e t e r i a P l a n ( f i x e d c o s t ) Se e K & M P l a n 1, 5 7 9 , 2 5 6 - 1 , 5 7 9 , 2 5 6 2 7 , 8 1 6 - 2 7 , 8 1 6 92 , 2 3 2 - 9 2 , 2 3 2 128,832 - 128,832 64,416 - 64,416 313,296 1.96% Em p l o y e e A s s i s t a n c e P r o g r a m ( f i x e d c o s t ) Va l u e i f u s e d 1, 9 6 9 - 1 , 9 6 9 - - - - - - - - - - - - - Sm a r t p h o n e ( r e i m b u r s e e m p l o y e e ) $8 0 / m o 61 , 9 9 0 - 6 1 , 9 9 0 - - - - - - - - - - - - - Li f e I n s u r a n c e ( $ 5 0 K m a x b e n e f i t ; f i x e d c o s t ) Va l u e i f u s e d 8, 9 0 4 - 8 , 9 0 4 - - - - - - - - - - - - - Re t i r e e H e a l t h S a v i n g s A c c o u n t ( e m p l o y e r p o r t i o n ) Se e K & M P l a n 12 0 , 1 8 3 - 1 2 0 , 1 8 3 - - - - - - - - - - - - - Su b t o t a l 1, 7 7 2 , 3 0 2 - 1 , 7 7 2 , 3 0 2 - - - - To t a l C o m p e n s a t i o n 13 , 2 2 9 , 2 7 1 2, 7 7 7 , 2 5 7 16 , 0 0 6 , 5 2 8 - - - On e T i m e I n - L i e u P a y m e n t ( 1 / 1 / 1 6 ) NA NA NA NA 1 7 7 , 7 4 0 - 1 7 7 , 7 4 0 - - - - - - - - - 177,740 1.11% - - - - Tu i t i o n R e i m b u r s e m e n t I n c r e a s e ( $ 5 0 0 / y r ) 2, 0 0 0 2, 0 0 0 2, 5 0 0 2,500 3,000 3,000 3,000 3,000 10,500 0.07% Of f s e t - A d d l E m p l o y e e C o n t r i b u t i o n t o P e n s i o n - - - - No n S a f e t y (1 7 , 7 9 9 ) (1 7 , 7 9 9 ) - ( 5 1 , 7 3 1 ) (51,731) - (68,762) (68,762) - (34,830) (34,830) (173,122) -1.08% Sa f e t y (5 , 3 6 4 ) (5 , 3 6 4 ) (1 4 , 0 6 2 ) (14,062) (18,614) (18,614) (9,805) (9,805) (47,845) -0.30% Of f s e t - R e d u c t i o n i n t h e C a f e t e r i a O p t O u t NA NA NA NA ( 3 4 , 3 6 2 ) - ( 3 4 , 3 6 2 ) (6 8 , 7 2 4 ) - ( 6 8 , 7 2 4 ) (68,724) - (68,724) (34,362) - (34,362) (206,172) -1.29% - - - 16 , 0 0 6 , 5 2 8 34 0 , 6 5 4 535,842 936,316 565,038 2,377,850 14.86% 1 Ke y a n d M a n a g e m e n t i s n o t a n e x c l u s i v e l y r e c o g n i z e d b a r g a i n i n g u n i t a n d c o n s i s t s o f u n r e p r e s e n t e d e m p l o y e e s 2 D o e s n o t i n c l u d e s a l a r y a d j u s t m e n t s f o r t h e f o l l o w i n g E x e c u t i v e M a n a g e m e n t p o s i t i o n s : C i t y M a n a g e r , C i t y A t t o r n e y , C i t y C l e r k , F i r e C h i e f , a n d P o l i c e C h i e f , w h o h a v e s e p a r a t e E m p l o y m e n t A g r e e m e n t s 3 R e p r e s e n t s t h e C i t y ' s p a y m e n t t o w a r d P E R S p e n s i o n c o s t s ( F Y 1 6 a d j u s t e d r a t e i s 2 2 . 4 4 % f o r n o n - s a f e t y a n d 5 7 . 8 % f o r s a f e t y ) . T h e a d j u s t e d r a t e f o r F Y 1 7 i s 2 3 . 2 7 % f o r n o n - s a f e t y a n d 5 8 . 0 % f o r s a f e t y a n d a p p l i e d t o F Y 1 8 a n d F Y 1 9 s i n c e t h o s e r a t e s a r e u n k n own at this time. Es t i m a t e d C o s t o f C h a n g e s t o K e y & M a n a g e m e n t Co m p e n s a t i o n P l a n 1 (c o n s i s t i n g o f 8 3 f u l l - t i m e e x e c u t i v e m a n a g e m e n t , a d m i n i s t r a t i v e m a n a g e m e n t / s a f e t y m a n a g e m e n t , d i v i s i o n m a n a g e m e n t , a n d c o n f i d e ntial positions) Du r a t i o n : J u l y 1 , 2 0 1 5 t h r o u g h D e c e m b e r 3 1 , 2 0 1 8 Year 4 (FY18-19) Total Costs as % of Total Comp Ye a r 2 ( F Y 1 6 - 1 7 ) Y e a r 3 ( F Y 1 7 - 1 8 ) To t a l C o s t ( L e s s O f f s e t ) Pa y / B e n e f i t s Va l u e o f Be n e f i t F Y 1 5 - 1 6 B u d g e t Y e a r 1 ( F Y 1 5 - 1 6 ) 1/26/16 6-34 ATTACHMENT D RESOLUTION NO. 2016 -____________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADOPTING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION WHEREAS,the City Council of the City of Newport Beach previously adopted Resolution No. 2001-50, the “Employer-Employee Relations Resolution,” pursuant to the authority contained in the Meyers-Milias-Brown Act, Government Code §3500; and WHEREAS, the City of Newport Beach supports effective communication and collaborative working relationships with its employee associations to promote improved relations while balancing good management practices; and WHEREAS, the City of Newport Beach previously entered into a Memorandum of Understanding with the Newport Beach Fire Management Association for the period of January 1, 2012, through June 30, 2014; and WHEREAS, representatives from the City of Newport Beach and representatives from the Newport Beach Fire Management Association have met and conferred in good faith and reached a Tentative Agreement on wages, benefits, and other terms and conditions of employment for the period July 1, 2014 through June 30, 2018; and WHEREAS, the City Council of the City of Newport Beach promotes transparency in the labor negotiations process and the terms and estimated costs of the Tentative Agreement with the Newport Beach Fire Management Association were provided for public review and comment on January 12, 2016; and WHEREAS, the City Council of the City of Newport Beach desires to replace the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Fire Management Association by adopting a successor Memorandum of Understanding for the period of July 1, 2014, through June 30, 2018. NOW, THEREFORE, the City Council of the City of Newport Beach hereby resolves as follows: Section 1:The recitals provided above are true and correct and are incorporated into the operative part of this resolution. Section 2:Wages, hours, fringe benefits and other terms and conditions of employment of employees represented by the Newport Beach Fire Management Association shall be provided in accordance with the provisions of the attached Memorandum of Understanding (Exhibit B). 6-35 ATTACHMENT D Section 3:The term of the Memorandum of Understanding shall be for 42 months, commencing retroactively to July 1, 2014, and remaining in full force and effect through June 30, 2018. Section 4:The City’s Salary Schedule shall be modified so as to be consistent with this Resolution. Section 5: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared invalid or unconstitutional. Section 6: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 7:This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this ____ day of _________, 2016. ______________________ Diane B. Dixon Mayor ATTEST: __________________________ Leilani I. Brown City Clerk 6-36 Attachment E Exhibit B MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: 1. The Newport Beach Fire Management Association ("NBFMA" or “Association”), a recognized employee organization, and the City of Newport Beach ("City"), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment. 2. NBFMA representatives and City representatives have reached a tentative agreement as to wages, hours and other terms and conditions of employment for the period from July 1, 2014 through June 30, 2018 and this tentative agreement has been embodied in this MOU. 3. The City acknowledges and appreciates the cooperation of NBFMA during the meet and confer process leading to the adoption of this 2014-2018 MOU. 4. This MOU, upon approval by NBFMA 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 NBFMA 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 NBFMA. 6-37 2 NBFMA MOU 2014 - 2018 B. Duration of Memorandum 1. Except as specifically provided otherwise, any ordinance, resolution or action of the City Council necessary to implement this MOU shall be considered effective as of July 1, 2014. This MOU shall remain in full force and effect through June 30, 2018, and the provisions of this MOU shall continue after the date of expiration of this MOU in the event the parties are meeting and conferring on a successor MOU. 2. The terms and conditions of this MOU shall prevail over any conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions and policies of the City of Newport Beach, and federal and state statutes, rules and regulations which either specifically provide that agreements such as this prevail, confer rights which may be waived by any collective bargaining agreement, or are, pursuant to decisional or statutory law, superseded by the provisions of an agreement such as, or similar to, this MOU. C. Scope 1. All present written rules and currently established practices and employee 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, or in the case of the Department SOP’s falling within the scope of representation, the City has given notice to the Association and, upon request, met and conferred on any proposed changes which fall within the scope of representation. The parties agree to meet and confer changes to department SOP, rule, or regulation if such proposed change materially impacts any matter within the scope of representation. 2. Pursuant to this MOU, the City reserves and retains all of its inherent exclusive and non-exclusive managerial rights, powers, functions and authorities ("Management Rights") as set forth in Resolution No. 2001-50 . D. Bulletin Boards 1. Space shall be provided on bulletin boards within the Fire Department at their present location for the posting of notices and bulletins relating to NBFMA business, meetings, or events. All materials posted on bulletins boards shall indicate the name of the organization responsible. Material posted shall not contain personal attacks on any City official or employee, any material which constitutes harassment, discrimination or retaliation on the basis of race, gender, ethnicity, religion, age, sexual orientation, or 6-38 3 NBFMA MOU 2014 - 2018 other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. 2. Material posted and messages sent through electronic mail (E-Mail) shall not contain personal attacks on any City official or employee, any material which constitutes harassment, discrimination or retaliation on the basis of race, gender, ethnicity, religion, age, sexual orientation, or other statutorily or constitutionally impermissible basis, as well as any pornographic or obscene material. E-Mail may be used for Association business on a limited basis and consistent with Department Policy. E. Conclusiveness This MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the life of this MOU, neither party shall be compelled 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. F. Modifications Any agreement, alteration, understanding, variation, or waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties. G. Savings Should any part of this MOU be rendered or declared illegal or invalid by legislation, decree of court of competent jurisdiction or other established governmental administrative tribunal, such invalidation shall not affect the remaining portions of this MOU provided, however, should the provisions of this MOU relating to salary increases, fringe benefits, or the compensation policy be declared invalid the City shall provide alternative forms of compensation such that NBFMA members suffer no financial detriment by virtue of the decision or ruling with the manner and form of the compensation to be determined by the parties after meeting and conferring in good faith. H. Impasse In the event of an impasse (the failure to agree on a new MOU after the express term of the existing MOU has expired), the parties may agree on mediation pursuant to the procedure outlined in Section 16 of Resolution No. 2001-50 or a 6-39 4 NBFMA MOU 2014 - 2018 successor resolution. Upon request by the Association the parties will engage in non-binding fact finding pursuant to State law. I. Definitions For the purposes of this MOU these terms shall have the following meanings: 1. The term "member" or "NBFMA member" shall mean all persons within classifications represented by NBFMA. 2. The term "staff employee" shall mean any NBFMA member who is assigned to work a 40 hour workweek. 3. The term "line employee" shall mean any NBFMA member assigned to work an average 56 hour workweek in 24 hour shift increments. 4. The term "Municipal Fire Departments in Orange County" or "Municipal Fire Departments" shall mean all City operated Fire Departments and the Orange County Fire Authority. SECTION 2. - COMPENSATION A. Salary 1. Guaranteed Salary The salary for the position of Fire Battalion Chief shall maintain at least a 9.5% salary differential between the top step of Fire Captain and the bottom step of the Fire Battalion Chief. Adjustments to the salary of Battalion Chief shall be reflected in corresponding adjustments to other positions represented by NBFMA necessary to maintain the salary differentials listed in Exhibit A. 2. Salary Adjustments – this MOU Period Base salary increases for all NBFMA represented classifications shall be as follows and as specified in Exhibit A: Effective the payroll period that includes July 1, 2015, there shall be a base salary increase of 2.75%. Effective the payroll period that includes January 1, 2016, there shall be a base salary increase of 2.75%. Effective the payroll period that includes January 1, 2017, there shall be a base salary increase of 2.75%. 6-40 5 NBFMA MOU 2014 - 2018 Effective the payroll period that includes January 1, 2018, there shall be a base salary increase of 2.75%. B. Overtime - Hours Worked 1. The City and Association agree that all unit classifications are properly exempted from the provisions of the Fair Labor Standards Act. However, NBFMA members may be required to work additional floor shifts in excess of their regular work schedule. Effective July 1, 2016, off-duty employees in the Battalion Chief classification who are assigned by the Fire Chief or designee to additional fire suppression work shift for an emergency assignment, or to replace another Battalion Chief who is on an approved leave, will receive overtime pay equal to one-and-one-half times’ the employees base rate of pay. Use of Flex Leave, Comp Time, or other paid leaves are not considered hours worked for the purpose of determining overtime eligibility. Regular staff meetings or other assignments will not be eligible for overtime at the 1½ rate and shifts exchanges between two Battalion Chiefs do not qualify for overtime compensation. 2. Strike Team Actions. In the event that a Unit employee is assigned to provide fire suppression services as part of a regional, state, or federal strike team organized by State or Federal officials and when all of the below Conditions exist, that Unit employee shall be paid at the time and one-half (T½) 56-hour rate. The Conditions are: • The Unit employee is working overtime hours; • The Strike Team is operating outside of the city limits; • The Unit employee is on duty on the Strike Team for more than eight (8) hours; • A disaster declaration has been approved by the State or Federal government for the fire suppression action; and • The costs for these overtime hours are specifically authorized for reimbursement by the state or federal government. 3. Compensatory Time. In lieu of overtime members may elect to accrue compensatory time off. Staff personnel may accrue a maximum of 120 hours. Line personnel may accrue a maximum of 196 hours. Personnel must use all accrued compensatory time by time of retirement. The provisions for accrual and use of compensatory time shall be provided in Fire Department Standard Operating Procedure. 4. All other overtime not specified above will be at the straight time rate. 6-41 C. R C o b b p c A v re re h D. S N s N a p re A u re a S n N b w 1 2 Required Un City shall pa f the requ adges and elts, sweat roviding em lothing. As permissi value of pr equirement eflect cloth ealth and s Scholastic/C NBFMA me cholastic/ce NBFMA mem nd scholas aycheck fo esponsibilit Achievemen nreasonab eceive scho pproved ev Scholastic/C umber of u NBFMA me y accredite with the follo . Scholasti Degree AA/AS BA/BS . Certificat Coursew Certified niform ay the entir ired NBFD d insignias, tshirt, and mployee w ible by law rovided un ts. The par ing such a safety relate Certificate A embers are ertificate a mbers may stic/certifica r the pay p y of the nt Pay. A ly withheld olastic/certi ven though Certificate a nits and/or mber shall ed commun owing: ic Achievem te Pay work Chief Fire e cost of p D uniform. uniform p turnout sa with socks, w, the City niforms at rties agree as pants, s ed equipme Achievemen e entitled achievemen y apply for i ate achieve eriod imme NBFMA Approval o d or delaye ficate achie h the mem achievemen degrees re receive sc nity college ment Scholast 3.5% 5.5% Officer 6 roviding NB The requi ants, unifo fety clothin underwea shall repor $1,519 an the report shirts, jacke ent, includin nt Pay to additio nt ("Schola increases p ement pay ediately afte member of the me ed, and th evement pa ber may h nt pay is co eceived by t cholastic ac s, state co tic Pay % BFMA mem red NBFD rm shirts, ng. City sh ar, cap or rt as pensi nnually in ted value o ets, and re ng safety bo nal compe astic/Certific pursuant to shall be i er approval to apply ember's a he member ay prior to have been ontingent u the employ chievement olleges, or u Compen 3.0% NBFMA mber with e uniform i uniform jac all not be workout s ionable com accordanc of uniforms elated attire oots and tu ensation co cate Achie this Sectio included in by the Fire for Schol application r shall not the date th eligible pri upon years yee. pay for de universities nsation A MOU 2014 - ach compo ncludes sh ckets and responsible shoes, or o mpensation ce with P s is intende e and excl urnout gear. ontingent u evement P on when eli n the mem e Chief. It i lastic/Certif shall not t be entitle he applicatio ior to appr of service egrees awa s in accord - 2018 onent hoes, liner, e for other n the PERS ed to ludes . upon Pay"). gible ber's s the ficate t be ed to on is roval. e and arded ance 6-42 7 NBFMA MOU 2014 - 2018 Strike Team Leader * $100 per month * Effective July 1, 2016 E. Bilingual Pay Employees certified as bilingual (Spanish) shall be eligible to receive One Hundred Fifty ($150.00) Dollars per month in bilingual pay. The certification process will confirm that employees are fluent at the street conversational level in speaking, reading and 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 Fire Chief. F. Court Standby Pay NBFMA members who, pursuant to Subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off-duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBFMA members shall, when required to appear in court pursuant to a Subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. G. Compaction Adjustment Effective July 1, 2017, the Battalion Chief salary range will be adjusted by 3.0% to address compaction between Fire Captain and Battalion Chief. SECTION 3. - LEAVES A. Flex Leave 1. NBFMA members shall accrue flex leave as follows. It is mutually understood that accrual rates have been modified to provide for the longevity increase set forth below: Longevity Years of Accrual Accrual Pay Con’t. Svc Hours/Pay Period Hours/Pay Period Increase Line Employees Staff Employees 6-43 8 NBFMA MOU 2014 - 2018 Less than 5 9.77 6.97 0.00% 5 but less than 9 10.69 7.63 0.00% 9 but less than 12 11.62 8.33 0.00% 12 but less than 16 12.54 8.95 0.00% 16 but less than 20 12.54 8.95 1.5% 20 but less than 25 12.54 8.95 2.5% 25 and over 12.54 8.95 3.5% 2. The Flex leave program shall be administered as follows: a. NBFMA members shall not accrue flex leave until continuously employed by the Newport Beach Fire Department for a period of three (3) months provided, however, if a member on the flex leave program becomes sick during the first three months of employment, the City will advance up to three (3) months of accrual for line employees for use by the member to recover from illness. In the event the City advances paid leave time and the employee is terminated or resigns before completing three months of continuous employment, the member's final check shall be reduced by an amount equal to the number of flex leave hours advanced multiplied by the member's hourly rate of pay. b. NBFMA members shall accrue three (3) months of flex leave immediately upon completing three (3) months continuous employment with the Newport Beach Fire Department, provided however, this amount shall be reduced by any flex leave time advanced during the first three months of employment. c. Members may accrue flex leave up to a maximum of fifty-two (52) times the member's bi-weekly accrual rate. Earned flex leave in excess of the maximum permitted will be paid bi-weekly at the member's hourly rate of pay (“Spillover Pay”). NBFMA members may, at any time, elect to receive pay (at the member's normal hourly rate) for all accrued flex leave in excess of 72 hours for a line employees and 40 hours for staff employees. However, NBFMA members may not elect to buy down accrued Flex Leave below the current threshold for payment (52 times the member's bi-weekly accrual rate) unless, during the twelve months preceding the election, the member has taken at least ninety-six (96) hours of paid leave if a line employee and eighty (80) hours of paid leave if a staff employee. Employees, who have accrued in excess of fifty-two (52) times the member’s bi-weekly accrual, shall accrue no additional time, unless through use of the time or any authorized cash payment, the 6-44 9 NBFMA MOU 2014 - 2018 accrued hours decrease to less than fifty-two (52) times the bi- weekly accrual rate. In no case shall the accrual again exceed fifty- two (52) times the bi-weekly accrual rate. d. All requests for scheduled flex leave shall be submitted to appropriate department personnel. In no event shall a member take or request flex leave in excess of the amount accrued. e. Members shall be paid for all accrued flex leave at their then current hourly rate of pay upon termination of the employment relationship. f. Concurrent with the July 1, 2017, 3% compaction salary range adjustment as stated in Section 2, G, the Longevity Pay incentive program in Section 3, A, 1 will be eliminated for all members. B. Telestaff Selection System The City commits to maintain Telestaff subject to budgetary constraints outlined in this Section. The City shall, for each fiscal year during the term of this MOU, adopt a budget which provides for the payment of overtime specifically for the purpose of implementing Telestaff. The amount to be budgeted shall be calculated by computing the Vacation/Flex leave time (leave) normally accrued by each member during a fiscal year (total annual leave) multiplying total annual leave, by that member's overtime rate of pay (value of leave) and then adding the value of leave for each NBFMA member. Each member's overtime rate of pay shall be calculated on the basis of the member's highest anticipated rate of pay during the upcoming fiscal year. The total "value of leave" for all members shall be identified in the budget as the "LEAVE COVERAGE FUND." C. Holiday Time 1. Accrual The provisions of this subsection shall apply to all NBFMA members on a pro-rata basis. NBFMA members who are line employees shall accrue holiday time at the rate of 5.54 hours per pay period. NBFMA who are staff employees shall accrue holiday time at the rate of 3.96 hours per pay period. All employees including Staff Employees shall receive their holiday time in pay (PERSable). Holiday pay shall be paid bi-weekly with the regular check. 2. Staff Employees 6-45 10 NBFMA MOU 2014 - 2018 Staff Employees may be required to take specified City holidays off, in the sole discretion of the Fire Chief. Time will be charged against the employee’s flex leave bank. D. Bereavement Leave Bereavement leave shall be defined as "the necessary absence from duty by an employee having a regular or probationary appointment because of a death or terminal illness in his/her immediate family.” Staff employees shall be entitled to five (5) working days of Bereavement Leave per event while Line Employees shall be entitled to ninety (90) hours of Bereavement Leave per event (terminal illness followed by death is considered one event). Leave hours need not be used consecutively, but should occur in proximate time to the occurrence. Bereavement leave shall be administered in accordance with the provisions of the Employee Policy Manual. For the purpose of this section immediate family shall mean an employee’s father, stepfather, mother, stepmother, brother, sister, wife, husband, child, stepchild, or grandparent, and the employee’s spouse/domestic partner’s mother, father, brother, sister, child or grandparent. The provisions of this Section shall not diminish or reduce any rights a member may have pursuant to applicable provisions of State or Federal law. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. E. Jury Duty NBFMA members who are assigned to line positions and are called to jury duty shall be excused for each 24 hour shift during which the member is required to attend court and sit on a jury or await assignment. F. Family Sick Leave Unit employees shall be entitled to use one-half (1/2) of their annual leave accrual for an illness of a dependent which requires the presence of the employee. Leave shall be administered in accordance with the provisions of the Employee Policy Manual. The provisions of this Section shall not be construed to affect or reduce the right of any employee to any unpaid family medical leave authorized by State or Federal law. G. Worker's Compensation Leave Any Safety NBFMA employee who has been incapacitated by reason of any injury or illness which has been determined to have arisen out of or in the course of his or her employment shall receive compensation in accordance with the provisions of Section 4850 et. seq. of the Labor Code of the State of California. H. Reassignment 6-46 11 NBFMA MOU 2014 - 2018 In the event a line employee is reassigned to a staff position, or a staff employee is reassigned to a line position, the City shall automatically convert the Flex Leave, Bereavement Leave and other benefits from the position previously held to the newly assigned position provided. The ratio for conversion of staff employee benefits to line employee benefit shall be 7/5 and the ratio for converting line employee benefits to staff employee benefits shall be 5/7. SECTION 4. - FRINGE BENEFITS A. Medical Insurance 1. Benefits Information Committee 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 group with information about health insurance/programs and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. City Contribution The City has implemented an IRS qualified Cafeteria Plan. In addition to the amounts listed below, the City shall contribute the minimum CalPERS participating employer’s contribution towards medical insurance. Employees shall have the option of allocating Cafeteria Plan contributions towards the City’s existing medical, dental and vision insurance/programs. The City and NBFMA will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. Any 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 parties recognize that from July 1, 2014 through December 31, 2015, the City has contributed $1,274 per month (plus the PERS minimum contribution) toward the Cafeteria Plan. Effective the pay issue that includes: January 1, 2016, the City’s contribution towards the Cafeteria Plan will increase by $150.00 to $1,424.00 per month (plus the minimum CalPERS participating employer’s contribution). 6-47 12 NBFMA MOU 2014 - 2018 January 1, 2017, the City’s contribution towards the Cafeteria Plan will increase by $200.00, to $1,624.00 (plus the minimum CalPERS participating employee’s contribution). On or before July 1, 2017, at the request of either party, the parties shall meet and confer in good faith to discuss possible changes to the medical benefit program, or other elements of healthcare services as a result of the Affordable Care Act (ACA) or changes in law, provided, however, that any changes to the MOU only may occur by mutual agreement of the parties. Unit members who do not enroll in any health care plan offered by the City must provide evidence of health care insurance coverage and execute an opt out agreement releasing the City from any responsibility or liability to provide health care insurance coverage, on an annual basis. Current employees electing to opt-out of City provided medical coverage will be eligible to receive a maximum Cafeteria Allowance of $1,149 per month. Effective the first pay issue in January 2016, or as soon thereafter is practicable following MOU adoption, the opt-out Cafeteria Allowance will be $1,000 per month. 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 health plan offerings as agreed upon by the Benefits Information Committee. B. Additional Health Insurance/Programs 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. The City shall maintain a “reimbursable account program” in accordance with the provisions of Section 125 of the Internal Revenue Code, pursuant to which an Association member may request that medical, child care and other eligible expenses be paid or reimbursed by the City out of the employee’s account. The base salary of 6-48 13 NBFMA MOU 2014 - 2018 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: Weekly Benefit 66.67% gross weekly wages Maximum Benefit $10,000/month Minimum Benefit $15 (STD) and $100 (LTD) Waiting Period 30 Calendar Days (STD) 180 Calendar Days (LTD) 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. Concurrent with the commencement of this program, employees assumed responsibility for the payment of the disability insurance cost in the amount of one (1.0%) percent of base salary. Simultaneously, the City increased base wages by one (1.0%) percent. 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 retires from City employment. 4. Employee Assistance Program City shall provide an Employee Assistance Program (EAP) through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines. C. Retirement Benefits 1. Retirement Formula 6-49 14 NBFMA MOU 2014 - 2018 The City contracts with the California Public Employees Retirement System (“CalPERS” or “PERS”) to provide retirement benefits for its employees. Pursuant to prior agreements and state mandated reform, the City has implemented first, second and third tier retirement benefits as follows: Tier I (“Legacy”): Employees hired by the City on or before November 23, 2012, the retirement formula shall be 3%@50, calculated on the basis of the highest consecutive 12 month period selected by the employee. Tier II (“Classic”): Employees first hired by the City between November 24 and December 31, 2012, or hired on or after January 1, 2013 and who are not new members as defined in Government Code Section 7522.04(f), the retirement formula shall be 2%@50, calculated on the basis of the highest consecutive 36 month period selected by the employee. Tier III (“PEPRA”): Employees first hired by the City on or after January 1, 2013, who are new members, the retirement formula shall be 2.7%@57 calculated on the basis of the highest consecutive 36 month period selected by the employee. 2. Employee Contributions Unit members shall contribute amounts toward the PERS retirement benefit, to the extent permissible by law, as set forth below. Should any such provision be deemed invalid, the City and Association agree to meet for the purpose of renegotiating employee retirement contributions or other equivalent economic adjustments. Employee retirement contributions that are in addition to the normal PERS Member Contribution shall be made in accordance with Government Code §20516(f) and calculated on base pay, special pays, and other pays normally reported as pensionable compensation, and will be made on a pre-tax basis through payroll deduction, to the extent allowable by the Internal Revenue Code. Tiers I and II: Effective July 1, 2015, Tier I and II members shall contribute the full statutory member contribution, equal to 9% of pensionable compensation, plus an additional .75% of pensionable compensation of the Employer rate, for a total contribution of 9.75%. Effective January 1, 2016, Tier I and II members shall contribute the full statutory member contribution, equal to 9% of pensionable compensation, 6-50 15 NBFMA MOU 2014 - 2018 plus an additional 1.5% of pensionable compensation of the Employer rate, for a total contribution of 10.5%. Effective January 1, 2017, Tier I and II members shall contribute the full statutory member contribution, equal to 9% of pensionable compensation, plus an additional 2.25% of pensionable compensation of the Employer rate, for a total contribution of 11.25%. Effective January 1, 2018, Tier I and II members shall contribute the full statutory member contribution, equal to 9% of pensionable compensation, plus an additional 3.0% of pensionable compensation of the Employer rate, for a total contribution of 12.0%. Tier III: The normal member contribution rate for Tier III members is 50% of the total normal cost and is calculated annually for possible adjustments, as provided in the PERS valuations. For FY15-16 and FY16-17, the member contribution is 11.25% and 10.5% of pensionable compensation, respectively. Effective the pay period that includes January 1, 2017, Tier III members will contribute the full statutory member contribution equal to 10.5% of pensionable compensation, plus an additional .75% of pensionable compensation of the Employer rate for a total contribution of 11.25% of pensionable compensation. Effective the pay period that includes January 1, 2018, Tier III members will contribute the full statutory member contribution, plus an additional percentage of pensionable compensation of the Employer rate to achieve a total contribution of 12.0%. 3. The City’s contract with PERS shall also provide for: a. The military buy-back provisions pursuant to Section 20930.3 of the California Government Code and the highest year benefit pursuant to Section 20042. b. The Level 4 1959 Survivors Benefits. c. The pre-retirement option settlement 2 death benefit (Section 21548). 4. To the extent allowed by PERS, the IRS and other applicable regulatory agencies and laws, unit members who shall be enrolled in the 2% @ 50 retirement formula or 2.7% @ 57 formula, shall be eligible to participate in 6-51 16 NBFMA MOU 2014 - 2018 a defined contribution plan to be administered by the City or its designee in accord with said regulatory agency regulations and laws. The defined contribution plan shall be funded by allowing each affected employee to contribute a percentage of base salary each payroll period. The City shall match any such employee contributions up to a maximum of 1.5% of base salary. The employee only contributions shall be deemed fully vested at the time of its deposit. The employer only matching contribution shall vest upon a PERS retirement being implemented as follows: 100% - age 55+; 80% - age 54; 60% - age 53, 40% - age 52; 20% - age 51. D. Retiree Medical Benefit 1. Background In 2005, the City and all Employee Associations agreed to replace the previous “defined benefit” retiree medical program with a new “defined contribution” program. The process of fully converting to the new program will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2005. b. Category 2 - Active employees hired prior to January 1, 2006, whose age plus years of service as of January 1, 2005 was less than 50 (46 for public safety employees). c. Category 3 - Active employees hired prior to January 1, 2006, whose age plus years of service was 50 or greater (46 for public safety employees) as of January 1, 2005. d. Category 4 - Employees who had already retired from the City prior to January 1, 2006, and were participating in the previous retiree medical program. 2. Program Structure This is an Integral Part Trust (IPT) Retiree Health Savings Plan (“RHS”, formerly the MERP plan): a. For employees in Category 1, the program is structured as follows: Each employee will have an individual RHS account for bookkeeping purposes, called his or her “Employee Account.” This account will 6-52 17 NBFMA MOU 2014 - 2018 accumulate contributions to be used for health care expense after separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. Contributions will be in three parts. Part A contributions (mandatory employee contributions): 1% of Salary. Part B contributions (employer contributions): $2.50 per month for each year of service plus year of age (updated every January 1st based on status as of December 31st of the prior year). Part C contributions (leave settlement as determined by Association): The Association will determine the level of contribution for all employees it represents, subject to the following constraints. All employees within the Association must participate at the same level, except that Safety members and Non-safety members within an Association may have different levels. The participation level should be specified as a percentage of the leave balance on hand in each employee’s leave bank at the time of separation from the City. For example, if the Association wishes to specify 50% of the leave balance as the participation level, then each member leaving the City, or cashing out leave at any other time, would have the cash equivalent of 50% of the amount that is cashed out added to the RHS, on a pre-tax basis. The remaining 50% would be paid in cash as taxable income. Individual employees would not have the option to deviate from this breakout. The Association has decided to participate in Part C contributions at the level of zero percent (0%) Flex. This amount may be changed, on a go forward basis, as part of a future meet and confer process. However, the participation level must be the same for all employees within the Association except that Safety members and Non-safety members within an Association may have different levels. Additionally, 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. Spillover pay and Compensatory Time are not eligible for Part C contributions. 6-53 18 NBFMA MOU 2014 - 2018 Nothing in this section restricts taking leave for time off purposes. Sick leave balances may also be included in the RHS Part C contributions, but only to the extent and within all the numeric parameters specified in the Employee Policy Manual. Section 11.21 of the Manual contains a schedule, which specifies the amount of sick leave that can be “cashed out,” based on time of service. The manual also caps the number of hours that can be “cashed out” at 800, and specifies that sick leave hours are “cashed out” on a 2 for 1 basis (800 hours of sick leave are converted to 400 hours for cash purposes). Sick leave participation is a separate item from vacation/flex leave participation, and thresholds must be separately identified by the Association. Part A contributions may be included in PERS compensation. Part B and Part C contributions will not be included in PERS compensation. Part A contributions begin upon enrollment in the program and are credited to each RHS Employee Account each pay period. Eligibility for Part B contributions is set at five years of vested City employment. At that time, the City will credit the first five years’ worth of Part B contributions into the Employee Account (interest does not accrue during that period). Thereafter, contributions are made bi-weekly. Part C deposits, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon separation. If an employee leaves the City prior to five years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the RHS Employee Account. Such an employee will not be entitled to any Part B contributions. The exception to this is a full-time employee, participating in the program, who leaves the City due to industrial disability during the first five years of employment. In such cases, 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 RHS account at the time of separation. Distributions from RHS Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and his or her spouse and legal 6-54 19 NBFMA MOU 2014 - 2018 dependents – again only as permitted by IRS Publication 502. Qualification for dependency status will be determined by guidelines in IRC 152. If used for these purposes, distributions from the RHS accounts will not be taxable. Cash withdrawal for any other purpose is prohibited. Under recent IRS Revenue Ruling 2005-24, any balance remaining in the Employee Account after the death of the employee and his or her spouse and/or other authorized dependents (if any) must be forfeited. That particular RHS Employee Account will be closed, and any remaining funds will become general assets of the plan. The parties agree that the City’s Part B contributions during active employment constitute the minimum CalPERS participating employer’s contribution 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 City contribution will be withdrawn from the retiree’s RHS account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one-time City contribution to their individual RHS accounts that equates to $100 per month for every month they contributed to the previous “defined benefit” plan, to a maximum of 15 years (180 months). This contribution will be made only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. Employees in Category 2 who had less than five years’ service with the City prior to implementation of the new program will only receive Part B contributions back to January 1, 2006 when they reach five years total service. c. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute $400 per month into each of their RHS accounts after they retire from the City, to continue as long as the employee or spouse is still living. Each employee will contribute a flat $100 per month to the plan for the duration of their employment to partially offset part of this expense to the City. The maximum benefit provided by the City after retirement is $4,800.00 per year, accruing at the rate of $400.00 per month. There is no 6-55 20 NBFMA MOU 2014 - 2018 cash out option for these funds, and they may not be spent in advance of receipt. Employees in this category will 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 will be made to the RHS account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. d. For employees (retirees) in Category 4, the structure is very similar to the previous retiree medical program, except that there is no cost share requirement, and the $400 City contribution after retirement can be used for any IRS authorized purpose, not just City insurance premiums. Effective July 1, 2006, a RHS account has been opened for each retiree in this category, and the City will contribute $400 per month to each account as long as the retiree or spouse remains living. 3. Administration Vendors have been selected by the City to administer the program. The contract expense for program-wide administration by the vendor will be paid by the City. However, specific vendor charges for individual account transactions that vary according to the investment actions taken by each employee, such as fees or commissions for trades, will be paid by each employee. The City’s Deferred Compensation Committee, or its successor committee, will have the authority to determine investment options that will be available through the plan. 4. Value of Benefit For all purposes, including compensation comparisons, the Retiree Medical Program shall be valued at 1% of salary on which PERS retirement is based (Part A); plus .25% of other compensation (Part B). E. Tuition Reimbursement Maximum tuition reimbursement for NBFMA members shall be $1,500 per fiscal year. 1. College Courses NBFMA members attending accredited community colleges, colleges, trade schools or universities may apply for reimbursement of one hundred percent 6-56 21 NBFMA MOU 2014 - 2018 (100%) of the actual cost of tuition, books, fees or other student expenses for approved job–related courses. 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. 2. Non-College Courses NBFMA members attending job-related classes, courses, and seminars given by recognized agencies, organizations or individuals other than accredited college institutions may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, parking fees, travel and lodging expenses. Job-related courses and seminars will be considered pre-authorized in the following areas: management and supervision, oral and written communications, conflict resolution, fire ground operations, rescue systems, legal issues, media relations, risk management, EMS, health and safety, apparatus operator, auto extrication, fire prevention, arson investigation, and critical incident stress management. Reimbursement is contingent upon the successful completion of the course. Successful completion means a document or certificate showing successful completion of the class or seminar. All claims for tuition reimbursement require the approval of the Fire Training Chief before submittal to Human Resources. F. Annual Physical Examinations All NBFMA members shall participate in the Department Fitness Program as outlined in Department SOP. G. Physical Conditioning Equipment/Apparel City shall provide workout apparel for each NBFMA member, to be replaced on an “as needed” basis. NBFMA members shall wear City provided workout apparel when working out on duty. SECTION 5. - MISCELLANEOUS PROVISIONS 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 6-57 22 NBFMA MOU 2014 - 2018 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. 1. Definitions a. "Layoffs" or "Laid off" shall mean the non-disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a specific Classification within a Series calculated from the date on which the employee was first granted permanent status, subject to the following: i. Credit shall be given only for continuous service subsequent to the most recent appointment to permanent status in the Classification or Series; ii. Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time spent on any other authorized or unauthorized leave of absence. iii. For purposes of determining layoffs within any Classification, seniority shall mean the time an employee has worked within any Series. c. "Classification" shall mean one full time position identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part-time, seasonal or temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). d. "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 which constitute a Series. e. "Bumping Rights", "Bumping" or "Bump" shall mean the right of an employee in a higher Classification who is subject to layoff to displace a less senior employee in a lower Classification within the Series. No employee shall have the right to Bump into a 6-58 23 NBFMA MOU 2014 - 2018 Classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience, provided, however, the City shall allow an employee to become re-certified as an EMT or a paramedic in the event the employee's certification has expired due to promotion to another position. An employee has the right to "Bump" into only those positions the employee has previously held with the Department. 2. Procedures In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: a. Temporary and probationary employees within any Classification shall, in that order, be laid off before permanent employees. b. Employees within a Classification shall be laid off in inverse order of seniority; c. 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, provided, however, that the determination of the employee to be terminated from the position of Firefighter shall be based on seniority within the Series. An employee who has Bumping Rights shall notify the Department Director within seven (7) working days after notice of layoff of his/her intention to exercise Bumping Rights. d. 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 in inverse order of their position on the eligibility list or lists from which they were appointed. In the event at least one of the employees was not appointed from an eligibility list, the Department Director shall determine the employee(s) to be laid off. 3. Notice Employees subject to lay-off shall be given at least thirty (30) days advance notice of the layoff or thirty (30) days pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, holiday leave (if any), and accumulated sick leave to the extent permitted by law, the provisions of this Memorandum of Understanding, or City policy. 4. Re-Employment 6-59 24 NBFMA MOU 2014 - 2018 Permanent and probationary employees who are laid off shall be placed on a Department re-employment list in reverse order of layoff. Re- employment lists will be valid for two (2) years. The re-employment list shall remain in effect until exhausted by removal of all names on the list. 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 to appointment to the position, provided, he or she reports to work 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, certified, return receipt requested, and addressed to the employee at his or her past known address. Any employee shall have the right to refuse to be placed on the re-employment list or the right to remove his or her name from the re-employment list by sending written confirmation to the Human Resources Director. 5. Demotion Permanent and probationary employees who are demoted because of reduced staffing levels shall be placed on a Department promotional list in reverse order of demotion. This promotional list shall remain in effect until exhausted by removal of all names on the list. 6. Severance Pay Permanent employees who are laid off shall, as of the date of lay-off, receive one week severance pay for each year of continuous service with the City of Newport Beach, but in no case to exceed ten (10) weeks of severance compensation. C. Fire Suppression Staffing Levels Move-up and move-down coverage shall be used to staff the fire suppression battalion chief position in the absence of available battalion chiefs. D. Staff Assignment Schedule NBFMA members assigned to staff positions shall have the option to work a 5/40, 4/10 or 9/80 schedule; the staff member and the Fire Chief must mutually agree to the schedule selected prior to it becoming effective. The Fire Chief retains the right to assign the staff member to a different schedule, or deny the member’s request for a change of schedule, if the Fire Chief determines that the member is not able to perform their job duties or the operational needs of the department are not being met. Employees will be given 2 weeks’ notice if the Fire Chief determines a change in schedule is needed in order to minimize disruption of the member’s personal/professional obligations. In addition, occasionally and 6-60 25 NBFMA MOU 2014 - 2018 at the discretion and approval of the Fire Chief, FLSA exempt employees working a 4/10 or 9/80 schedule may adjust their regularly scheduled day off if such change does not disrupt departmental operations. E. Consecutive Shifts Effective concurrent with this 2014-18 MOU, members shall be limited to working four (4) 24-hour shifts in a row, after which time the employee shall not work during the next consecutive 24 hour shift. A fifth consecutive shift may be permitted with Fire Chief or designee approval, based upon operational needs. Signatures on the following page 6-61 6-62 Effective July 1, 2015 (2.75% adjustment)Min Max Min Max Fire Batt Chief 80 Hrs (+7.5%)$63.81 $77.57 $11,060 $13,445 Fire Line Batt Chf 112 Hrs $42.39 $51.53 $10,288 $12,504 Effective January 1, 2016 (2.75% adjustment) Fire Batt Chief 80 Hrs (+7.5%)$65.56 $79.70 $11,364 $13,815 Fire Line Batt Chf 112 Hrs $43.56 $52.95 $10,571 $12,848 Effective January 1, 2017 (2.75% adjustment) Fire Batt Chief 80 Hrs (+7.5%)$67.37 $81.89 $11,677 $14,194 Fire Line Batt Chf 112 Hrs $44.76 $54.40 $10,861 $13,202 Effective July 1, 2017 (3% compaction adjustment) Fire Batt Chief 80 Hrs (+7.5%) $69.39 $84.35 $12,027 $14,620 Fire Line Batt Chf 112 Hrs $46.10 $56.03 $11,187 $13,598 Effective January 1, 2018 (2.75% adjustment) Fire Batt Chief 80 Hrs (+7.5%) $71.29 $86.67 $12,358 $15,022 Fire Line Batt Chf 112 Hrs $47.37 $57.58 $11,495 $13,972 Hourly Pay Rate Monthly Pay Rate Newport Beach Fire Management Association Classifications and Pay Rates 27 6-63 ATTACHMENT E AT T A C H M E N T  F Ex i s t i n g C o s t Projected Costs B a s e C o s t P e n s i o n T o t a l B a s e Co s t P e n s i o n * T o t a l Base Cost Pension * Total Base Cost Pension * Total Sa l a r y 56 3 , 0 9 3 33 8 , 9 8 2 90 2 , 0 7 5 2 3 , 4 4 1 14 , 1 1 1 3 7 , 5 5 2 3 9 , 5 7 0 23,821 63,391 74,721 45,505 120,226 221,170 18.78% ( 2 . 7 5 % i n c r e a s e s o n 7 / 1 5 , 1 / 1 6 , 1 / 1 7 , 1 / 1 8 ) * * - Su p p l e m e n t a l B e n e f i t s - Sc h o l a s t i c 3. 5 % - 5 . 5 % 2 9 , 6 7 0 17 , 8 6 1 47 , 5 3 1 1 , 2 3 5 74 3 1 , 9 7 8 2 , 0 8 5 1,255 3,340 3,937 2,398 6,335 11,653 0.99% Ce r t i f i c a t e P a y 3. 0 % 1 6 , 8 9 3 10 , 1 7 0 27 , 0 6 3 70 3 42 3 1 , 1 2 6 1 , 1 8 7 715 1,902 2,242 1,365 3,607 6,635 0.56% Ho l i d a y P a y 5. 0 % 2 7 , 8 5 3 16 , 7 6 8 44 , 6 2 1 1 , 1 5 9 69 8 1 , 8 5 7 1 , 9 5 7 1,178 3,135 3,696 2,251 5,947 10,939 0.93% Lo n g e v i t y P a y * * 1. 5 % - 3 . 5 % 7 3 0 43 9 1, 1 6 9 30 18 4 8 2 7 4 165 439 (4,366) (2,659) (7,025) (6,538) -0.56% Me d i C a r e ( m a n d a t o r y p a y m e n t ) 1. 5 % 9 , 2 4 4 - 9, 2 4 4 38 5 - 3 8 5 6 5 0 - 650 858 - 858 1,893 0.16% Co m p e n s a t e d A b s e n c e s ( C i t y f u n d i n g o f l i a b i l i t y ) 3. 5 % 1 9 , 7 0 8 - 1 9 , 7 0 8 82 0 - 8 2 0 1 , 3 8 5 - 1,385 1,836 - 1,836 4,041 0.34% Su b t o t a l 1 0 4 , 0 9 8 45 , 2 3 8 14 9 , 3 3 6 4, 3 3 2 1, 8 8 2 6 , 2 1 4 7 , 5 3 8 3,313 10,851 8,203 3,355 11,558 28,623 Ot h e r C i t y P a i d B e n e f i t s Ca f e t e r i a P l a n ( f i x e d c o s t ) Re f e r t o M O U 39 , 5 0 4 - 3 9 , 5 0 4 1 , 8 0 0 - 1 , 8 0 0 6 , 0 0 0 - 6,000 8,400 - 8,400 16,200 1.38% Em p l o y e e A s s i s t a n c e P r o g r a m ( f i x e d c o s t ) Va l u e i f u s e d 95 - 95 - - - - - - - - - - Ce l l P h o n e $8 0 / m o 3, 8 4 0 - 3 , 8 4 0 - - - - - - - - - - Un i f o r m A l l o w a n c e ( r e p o r t a b l e v a l u e o n l y ) $7 5 / m o 0 3 , 6 4 6 3, 6 4 6 - - Li f e I n s u r a n c e ( $ 5 0 K m a x b e n e f i t ; f i x e d c o s t ) Va l u e i f u s e d 42 0 - 4 2 0 - - - - - - - - - - Re t i r e e H e a l t h S a v i n g s A c c o u n t ( e m p l o y e r s h a r e ) Re f e r t o M O U 9, 2 2 5 - 9 , 2 2 5 - - - - - - - - - - Su b t o t a l 53 , 0 8 4 3, 6 4 6 56 , 7 3 0 - - Ov e r t i m e 69 , 6 0 0 - 69 , 6 0 0 - - - 18,603 - 18,603 19,000 - 19,000 37,603 3.19% To t a l C o m p e n s a t i o n 78 9 , 8 7 5 38 7 , 8 6 6 1, 1 7 7 , 7 4 1 - - - - - - - - Of f s e t - A d d l E m p l o y e e P i c k U p o f P E R S P e n s i o n C o s t s - - - - ( 7 , 5 1 3 ) ( 7 , 5 1 3 ) - ( 1 2 , 8 4 3 ) (12,843) - (18,896) (18,896) (39,252) -3.33% ( . 7 5 a d d l p i c k u p 7 / 1 5 , 1 / 1 6 , 1 / 1 7 , a n d 1 / 1 8 ) Of f s e t - R e d u c t i o n i n t h e C a f e t e r i a A l l o w a n c e O p t O u t NA N A N A ( 1 , 7 8 8 ) - ( 1 , 7 8 8 ) ( 3 , 5 7 6 ) - (3,576) (3,576) - (3,576) (8,940) -0.76% 1, 1 7 7 , 7 4 1 36 , 2 6 6 82,426 136,712 255,404 21.69% * R e p r e s e n t s t h e C i t y ' s p a y m e n t t o w a r d P E R S p e n s i o n c o s t s ( F Y 1 6 a n d F Y 1 7 r a t e i s 6 0 . 2 % a n d i s p r o j e c t e d t o b e 6 0 . 9 % i n F Y 1 8 ) . ** I n e x c h a n g e f o r e l i m i n a t i n g L o n g e v i t y P a y i n 2 0 1 7 , B a t t a l i o n C h i e f r a n g e w i l l b e a d j u s t e d 3 % t o a d d r e s s c o m p a c t i o n ; i n c r e a s e i s i n c l u d e d i n Y e a r 3 e s t i m a t e s Costs as % of Total Comp Total Ye a r 1 ( F Y 1 5 - 1 6 ) Co s t E s t i m a t e o f 4 Y e a r C o n t a c t w i t h N e w p o r t B e a c h F i r e M a n a g e m e n t A s s o c i a t i o n Co n t r a c t T e r m : J u l y 1 , 2 0 1 4 t h r o u g h J u n e 3 0 , 2 0 1 8 To t a l C o s t ( L e s s O f f s e t ) Pa y / B e n e f i t s Va l u e o f Be n e f i t F Y 1 5 - 1 6 B u d g e t (r e p r e s e n t i n g 4 f u l l - t i m e B a t t a l i o n C h i e f p o s i t i o n s ) Year 2 (FY16-17)Year 3 (FY17-18)1/26/16 6-64 ATTACHMENT * 6-65