HomeMy WebLinkAbout16 - Tentative Agreement with the Part Time Employees Association of Newport Beach (PTEANB)��WPaRT CITY OF
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City Council Staff Report
June 14, 2016
Agenda Item No. 16
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Dave Kiff, City Manager - 949-644-3001,
dkiff@newportbeachca.gov
Barbara J. Salvini, Human Resources Director
949-644-3259, bsaivini@newportbeachca.gov
PREPARED BY: Maggie Williams-Dalgart, Senior Human Resources Analyst
PHONE: 949-644-3259
TITLE: Tentative Agreement with the Part Time Employees Association of
Newport Beach (PTEANB)
ABSTRACT:
The Part Time Employees Association of Newport Beach (PTEANB) is a recognized
employee association and the majority representative of certain part-time positions. The
Memorandum of Understanding (MOU) between the City of Newport Beach and
PTEANB expired on July 1, 2015. Negotiations with PTEANB were delayed due to
changes in the unit leadership and because the City already was in negotiations with
several of the City's full-time units.
On March 4, 2016, representatives from the City and PTEANB began meeting and
conferring in good faith regarding wages, benefits and other terms and conditions of
employment. A Tentative Agreement on the terms of a successor MOU was reached on
May 26, 2016. In furtherance of the City Council's goal to provide greater transparency
in the negotiations process, the Tentative Agreement and its associated cost are being
presented to afford the public the opportunity to review and comment. The final MOU
will be presented for City Council consideration at the June 28, 2016 regular meeting.
RECOMMENDATION:
a) Determine that the action is exempt from the California Environmental Quality Act
(CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA
Guidelines because it will not result in a physical change to the environment,
directly or indirectly; and
16-1
Tentative Agreement with PTEANB
June 14, 2016
Page 2
b) Receive and consider the Tentative Agreement between the City of Newport
Beach and the Part Time Employees Association of Newport Beach.
FUNDING REQUIREMENTS:
There is no fiscal impact related to this item for fiscal year 2015-16. The estimated cost
of the contract with PTEANB, if it is adopted at the June 28, 2016 meeting, is provided
in Attachment B. The cost to implement the terms of the contract for fiscal year 2016-17
is approximately $93,300.
DISCUSSION:
Excluding the City's approximately 220 seasonal beach lifeguards, the City employs an
additional 325 part-time employees who assist with providing City services such as
recreation programs, library programs, police support, and administrative and clerical
assistance throughout the City. Depending on department and job assignment, part-
time employees typically work anywhere from 10 to 35 hours per week. When these
employees work 1,000 hours in a fiscal year, they are enrolled in PTEANB, which is the
exclusively recognized bargaining unit and representing approximately 65 of the 325
part-time employees.
The City's contract with PTEANB expired July 1, 2015. Negotiations with the group
began on March 4, 2016 and additional meetings were held on March 17, April 7 and
28, and May 13. The final meeting was held on May 26, 2016 when a Tentative
Agreement between the City and PTEANB was reached (Attachment A). Topics
discussed included salary adjustments, rising pension costs, and obligations to provide
mandated healthcare benefits for certain part-time positions as required under the
Affordable Care Act. PTEANB members agreed to contribute an additional .65 percent
toward the pension benefit, for a total employee contribution of 13 percent effective July
1, 2016. This contribution amount is one of the highest among Orange County agencies
and provides significant long term savings. Additionally, the Tentative Agreement
between the City and PTEANB includes the following major provisions:
• Term of three and one-half years, from July 1, 2015, through December 31, 2018
• Wage adjustments
o July 1, 2016 -
2.65%
o July 1, 2017
- 2.0%
o July 1, 2018 -
1.5%
• A restructuring of the Cafeteria/Medical benefit, creating a 3 -tier system based on
bargaining unit enrollment and healthcare coverage eligibility
16-2
Tentative Agreement with PTEANB
June 14, 2016
Page 3
o Tier 1 — employees who work thirty or more hours per week will be eligible
for a cafeteria benefit between $550 - $775 per month (based on PTEANB
eligibility date)
o Tier 2 — employees who work less than thirty hours per week and are
PTEANB eligible prior to July 1, 2016, will receive a cafeteria allowance
between $3.25 - $4.25 per hour
o Tier 3 — employees new to PTEANB after July 1, 2016, and who work less
than thirty hours per week, no cafeteria benefit will be offered
• A reduction in the cafeteria opt -out benefit (applies to employees grandfathered
with the benefit under prior contract)
• Modifications to Night Standby for Library Department staff and formalized
language concerning salary step adjustments for part-time staff in the Recreation
and Senior Services Department
The estimated cost of the Tentative Agreement with PTEANB and future years is
included in Attachment B. It has been City practice to adjust the salary ranges for all
part-time positions (except seasonal lifeguards) simultaneous with the adjustments
provided to PTEANB. The costing includes COLAs for all 325 part-time employees and
is projected through FY18-19 with itemized salary, benefits, pension, and employee
offsets. The employee offsets, which include the additional employee contribution
towards pension and the restructuring of the cafeteria benefit, provides an approximate
savings of $55,500 over the term of the contract.
A proposed draft version of the MOU between the City and PTEANB is included in
Attachment C (MOU revisions noted in italics). Following City Council review of the
Tentative Agreement with PTEANB, and ratification by the unit members, a final version
of the successor MOU will be presented to the City Council at its June 28, 2016 regular
meeting.
During the review period, the costing information and proposed revisions to the MOU
will be posted on the City's website.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will
not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it
has no potential for resulting in physical change to the environment, directly or
indirectly.
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Tentative Agreement with PTEANB
June 14, 2016
Page 4
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A - Tentative Agreement between the City of Newport Beach and the Part
Time Employees Association of Newport Beach
Attachment B - Estimated Cost of Contract with PTEANB
Attachment C - Draft MOU between City and PTEANB
16-4
Attachment A
Teri a tine Algneema n 1 Bei m a a n i he
City of N ewpori Beach and 1 I e Pari Tirn a Irn ployees As socia 1 ion of N ewpori Beach
On May 26, 201(, nepnesenl al ives barn the CHy of Newport Beach and ire Fad Time Emn la )lees
Assoaiatian ol Newport Beach (FTVNB) regal od general agreernant on tie terms al a suaaessar
N emonandum oil Understanding to the one Thai Expired July 1, 1019. Tl a provisions o'l a new conlraat are
as follows:
Tenm
Rily 1, 201511 rough De aemL en 31, 101 it (42 mons l s)
Corn penvaiion
0 1.( !151, k ase salary incnease aflleitive the pay po niod inch ding 7jj1/16
0 1.0% Lase salary incneam oMestiva the pay period including 7ij1/17
0 1.4% L ase salary increase eflfle4tive the pay pe riod including 7ij1/18
+
PERS Reiirerneni ContnibLitions
E-Ifaalkie II a pa)l neriad inalc dint 7/1,j19, Inn nla)lecs in all Tiers shall nay an additional .65%
is Nia nd ret iremenl co:iia, uncle r oast 3harin8 p rovision 2O519(fl), ilor a tot al employee
coni ribul ion of 13.01/,
+ Cafeteifla Benelii — Benefii:i Based on IR r
Effealkie 1/1,177, crease a 3 -Tien Beneilil siruature, re planing the current hounly nate atiuciure.
Tier eligibility will L a L ased on hour! woo ed and data al enrollmant info PTE�INB.
Tier 1 - Emn lo)lee Working 10+ Hours F er V! eek
Group A (PTEiINB meml an beilora 7/1/14) -111779 per month. Al portion of II a ;l ]]9
Thal rfloo U I I a doilinilion o-1"minimum a�:ioritiala(Niena@a"(N IC) will app lyic rnadioaI
ac Nierage ( nl)l, wii1 tl a nemainder a ligible ilor aash bank. Ror 1019, the MAC [i ;j4aa.
Imployees not iakin@ city ni ediaa I mini provide pnoof c I ocher group nova nage and
viill reaeive 1l a ca!il L ack portk n only. Minimum esjantial aovenage may adjust
a rinua llr, l tit t he lull calel eria contribui is n dill not Exceed $775 pen m e nt h.
+
Group B (PTUINB meml a n all er ]il1/14 AIND enr( lled in medical pla n) - $550 per
mons l , a Ilocaled I a ni edioal on ly cove rage (no cash L ack)
Tien 1 — Work ing Less lhan 30 Ha ur:i RE n 111 eek and PTEAINB memL an belora ]/1/19
+ Clroup �l (rn a ni bei be -lane 7ij1/16 and enrolled in medical) —$4.25 per l c ur woaked, l c
max c 160 hours pen nay period.
• Clnoup B ("Clpi-Oul",en( t enrolled in me dical a nd PTEPINB memben pnion to 7)11/14) —
$3.25 per hour worked, lo rr ani o-1 60 V ours pe n pay na riod.
+ Clnoup C (not a ni olled in medical a nd RTIAN9 ni Ei mber l: a tv+ia e In 'Jill/14 and ])17/16) -
Nc CIpl-Clot otlered (Marna as current)
16-5
TierI— \Aorlin€ Leis tlan30Hours PerlNaal and RTAANBrnarnlanon/ite ;/1/7016
Na M fateria benefit ofierad
Fore mpla y lees a m olled in City medical plans in Tie rs land Z l l a cafe'l a ria amount is in alush ie of
tl a PER] dasignaled minimuni niadiaal imitinance aontrubulian.
• 1 lea 11 hcane Il a lonrn
Acid to Section 3, M, t1 a lollowinf II rovision nege rding 1 I e Aflorde l le line Ad: Tr e R a rlies
roaallniae ll e t aonlain Slate � nd Federal laws, 1lrogra rns and regulations, irraluclin€I the /Iflord L le
Cane alai, may impacl frilure medical plan oflenings. Eicher partrl may regluasl io neogan
discussions regarding rne(liaal insurance flor the purpose of disausiina a ltannative apgroaal as and
gropor Is to providing l ae Ithaare coverage. In addition, should Slate on RedEM I laws aonaennin€I
'la)atian oil l aaltl ogre benelliis change, Ile pe nlies agree to meet and discuss the impacl al sual
change.
• Cafe leiiia I e r elil — When on Paid Leave
A Ifaathie 7/1,1:1; , flor emnloyeei in Tie r 2, Gra up Al, paid lei pie shall be as unied as time we nked for
11 a purpose o-1coni inuind II a ;14.31 1 ourlycafele iia benefit.
• Libna ny Nigt 111 ill Ditlenenlial
N odily sect ion 7, A(3), Ni€ I t 31 if1 Di lfa nenl is 1,1 a in a luda a $1 per I a ur dille reni ial flor a i a[ I a un
worl ad after 5:00 RN for RTFIANB emnlqlees Thai worl fon Libnary Services. Oventin a wa nked i s
an exien sion o-1 an assigned day sI ift sl a 11 not glua IM.1 a n e rn 11 la }lee fa r Nig I t I I ill Diffenentie 1.
•
Hoare alion & Senior Senvioes Depa Omani SalanySlep Inane ase Praotiae
Acid section 3, A(4), employees in the alassifiaaiion 9 o-1 Faareation Iaacler, Ionian Recreaiian
Leader, R a a I I i-leguard, Sen ion I ool I ifa€ lua rd, Se nior Seruices N a n Driver, N a rine Ni turalisi
interpreter and 0 a 0 Ratrol Cillicersl all ka eligible lora salarysla11 inarai se ill II a fa IlaViin8
criteria ane mel: 394 cle 11s h� s acarued sinae 1I a Iasi salary stag in are ase; 125 hours have been
worl ad in aurreni jot alaisillicaiion; a penformanoe evalue tion has I aen aon 11leted byihe
supeii0sorwill a rating a 13.0 Coni ribuior a r above; and addiiion aI steps remain inIIa salary
na n ja flor projre,ision.
PTEAINB Represenialiues and Uibl Fenresantaiives aguaa la neaarnmend to dein Rrincipal9 Ile ienms
outlined al (via. This Taniaiive agreernant it suljeal to annnopriate naiifiaaiion by PTEAINB mernlanst in,
a dopa ion l 11 Cit)l Oa unail, and approve l as to -lorm by 1 he Cil )l Atl orney.
non the City o-1 Newport Beaal
&k&M,C
F al: eaaa Redyl<, Hurnan WResourceMn
��p-/ �
Date
Non 1 he Part Time Imploya es /Isla a iatia n of
Newport Bea41
Steve Iahoge1, PTEAINB Presideni
A L
Dai e
5,I26)116 16-6
ATTACHMENT B
Estimated Cost of Successor MOU with the Part Time Employees Association of Newport Beach
Contract Term: July 1, 2015 through December 31, 2018
(for part-time employees in all City Departments excluding seasonal lifeguards)
Existing Cost
Projected Costs
* Represents the City's contribution toward the PERS benefit for part-time employees enrolled in either the PERS plan or PARS plan
6/14/16
16-7
FY15-16 Budget
FY16-17
FY17-18
FY18-19
Costs as %
Cost
PTEANB
Cost PT
Unrep. Pension*
Total
Base
Cost
Pension
Total
Base
Cost
Pension
Total
Base
Cost
Pension
Total
Pay/Benefits
Total
of Total
Comp
Salary
1,675,316
2,022,624 670,833
4,368,773
97,995
12,294
110,289
173,914
21,899
195,813
115,996
14,667
130,663
436,765
9.43%
(Incr: 7/16 = 2.65%; 7/17= 2.0%; 7/18 = 1.5%)
-
Supplemental Benefits
-
MediCare (mandatory payment)
24,292
29,328 -
53,620
1,421
-
1,421
2,522
-
2,522
1,682
-
1,682
5,625
0.12%
Cafeteria Plan
211,200
211,200
Total Compensation
1,910,808
2,051,952
4,633,593
99,416
12,294
111,710
176,436
21,899
198,335
117,678
14,667
132,345
442,390
Offset -Addl Employee Pick Up of
-
-
-
(11,178)
(11,178)
-
(11,690)
(11,690)
-
(6,016)
(6,016)
(28,884)
-0.62%
PERS Pension Costs (.65% on 7/16)
Offset - Reduction in the Cafeteria
(6,585)
-
(6,585)
(13,530)
-
(13,530)
(6,585)
-
(6,585)
(26,700)
-0.58%
Allowance
Total Cost (Less Offset)
93,947
173,115
119,744
386,806
8.35%
* Represents the City's contribution toward the PERS benefit for part-time employees enrolled in either the PERS plan or PARS plan
6/14/16
16-7
Atlaahmeni C
MEMCRAINDUM CF UNDERSTANDING
BETWEEN THE CITY C F NBWPC RT BEACH AND
THE PAR1111IME EMRIJOYEES ASSC CIATION CF NBWPC RT BEACH
This M BMC RAf DLIV CF L � DBRSIIAN ❑Ifs C ilhereiriafiler referrec to as "MCL") is
erillered inia with referericre to the following:
PRBA MBU13
The Part slime Bmlployees Alssociaiian of N ewplort Bleach Il"RiIBAN B" on
"Assocriatiori"), a recrognized employee organization, and the City of N ew Mort
Beach ("City"), a municipal corporation and crrarter city, ha%e been meelling and
conferring, in gooc faith, wilt respect io wages, hours, frringe beriefits anc other
terms anc crondillions of employment.
2. RTEANB representatives anc City replreserrlaiives have reacrr ed an agreement
a:i to wages, hours and oir er ierm s and conditions of employment as plrovided in
this MemonandU m of Unc erstanding ilMC L) for the period from Ju,y 1, 2G15
ilhroug h Decemt er 31, 2G 15.
3. This MCL, upon approval ty RTEANB and the Newport Beacrh City Council,
represents the lolal anc complelle understanding and agreement between the
parties regarding all matters within the scope of represeriiaiion. Bxcept as
limited herein, the Clity retairis all mianagement righ4s as set forth in ire Meyers -
IV ilias-Browri Act and ResolL tion No. 2CIO'I-50.
SIBC TIC N 1. — C eneral Proviisic ns
A. Recognition
In accorc ancre Wtr the provisions of the Cr arter of tr e City of IN ewport Beach,
ire Meyers-Milias-Browri Act of the State of California and the provisions of the
Bmiploy er-8m ployee Relations Resolution No. 2001-50, tr a City acknowledges
trait P -MAN 9 is ire majority representative for the purpose of meelling and
cronferring regarc ing wages, hours and otter terms and crondiiions of
employment fon pari -time err ployees in tr ose classifications specrified in Exhibit
"A" and meeting the following recognition regL iremients.
Recognition will coritinue for all employees recrognized as of c ate of
adoption of this MOU; irereaftlen, employees will tecome eligible for
recognition after working a cumulative total of '1,OCIO hOL rs in any fiscal
year.
2. Flecognition for unit memtership may also ocrcrur whenever the Gityl
derlermines h .fa manaailed by Srlarle or Feoerai yaw ilo grovide Minimum
R119ANB 2019-20161
•
C.
M
EI
a
Essential Coverage, as defMnea by ilhe FleaeiW Affoidable Care Act.
3. C nce eligit le for recognition, emiploy ees remain co%ered unc er the MC U
regardless of the number of hours subsequently workec .
Dunalion of Nerriorandumi
Except as speciiflcally provided otherwise, any ordinance, iiesolLiion or action of
tr e City Council necessary to implement tr is MOU sr all be cionsic erec effective
as of July 1, 2015. This MCU sl -all nEirriain in full foiice and effect until Decerr bei
31, 201E, aric ire terms anc conditions of iris MCL shall continue afileii the date
of expinaiion of this MCU in ire event ife parties have not yet agreed upon a
successor M CU.
The tenmis and conditions of this MCL shall prevail oVEir conflicting clrovisions of
the Newport Beach Ciiy Charier, thEl ordinances, resolutions and policies of tf e
Ciiy of Newport Beach, and federal and state siaiutes, rules and regulations
w I- ich either specifically provide that agreements such as this prevail, confer
rights which may be waived by any collective bargaining agreement, or ane,
pL rsuarii to decisional or s aiLiory law, superseded by the piiovisions of an
agreem ent similar to this M C L
EmployeEi Data and Access
L pori reqs est, each my iF e City shall provide PTEANB a regular list of all unit
memibers including name, department, and job title.
Conclusiveness
This MOU contains all of the covenants, stipulations, and provisions agreed L pori
by the partiEis. Thell0fore, for the life of this MCU, neither party shall bEi
ciorripelled to meet aric confer conciEirnirig any issL a contained r erein.
Modifications
Any agreement, alteration, uric erstanc incl, variation,
any of the fermis or pro%isioris of this MOU al -all not
unless contained in a written docL mient Eixecutec by
of the parr ies.
'--lubcontracling
or waiver or modification of
be binding upon the parties
authorized represeniaikes
As provided in the Bmployer-Bmiployee Relations Resolution No. '41001-50, lr e
City sr all delermiine the manner in whicr Ciiy serviciEis ane to be provic ed,
inciluding whether the City should pro\ide servicies directly or contracit out work,
including work lrat is currently being performed by Associalion mlemibens. In tre
4
PIIEArs B 20' 5-20'1 fl
16-9
event the City introduces a plan io outsourcie :cervices to acir leve grealE r
efficiency andilor cost savings, and L pori regL est by it a Association, the City
shall meet and cionfer with Association representatives io disclL ss the imipacit of
the Ciiy':i decision 10 contract OLt work, prior io corilraciing out such servicies.
The City shall retain sole authority io decide whether or not to coniracit ori work,
inclucing work that is currEnlly being performed by Associaticin members. This
flrovisioin at all riot limit the City's auihoirity to enter into such an agrE emierii for
any City services.
G. Savinm
S r ould any pari of this NCL be rendered or declarec illegal or invalid by
legislation, decree of cCL rt of cioimpeierit jL risdiclion or oiler eslablishec
governmental admiinisi OKe tribunal, such invalidation shall ncii afiecit the
remaining florticiris cf this N C L .
SECTION 2. — Compensation
A. Ray fcir Time WcrkEc
1. S alary Adiustm ents
9flective the pay periiod_including July 1, 2616, blase salaries WILL be
increased by 2.651%
Eflecitive the pay period including July 1, 20171, emiployee base salaries
will be increased by 2.G%.
Efieciii%e the pay period including juilyl 1, 2015, employee base salaries
will be increased by 1.5%.
NciMithstanding the above adjLslmient.i, the top step pay ra1E of Police
Re;ierve CfficEr shall be, at a minimum, equal ici Step 1 cf Police Cfficer.
2. Corripenaaticirrfon Cvertimie - Ncinmial Cveriimie
Normal oiverlimE is defined as any scheduled hcc rs worked in excess of
the basic work week. Foii the purposes cf this seclioin, Ile basic work
week is 40 lours, cir as deierminec by the Department ❑irectcr and
apprci�ed by the Ciiy Manager, which cicica.rs between a fixed and
negularly recurring pericic cf 168 hcL rs - 7 consecutive 34 l cur pericids -
t eginning at 0001 cin Saiz rday and ending at midnight the fcillcwing
Friday.
❑efiniiioin of I- owls Worked - Hours work ec are defined as hOL rs whicl
emiplciyees are required io bE periorming ilein regular duties or tither
3
NT9AN9 2015-20' 9
16-10
duties assigned by it e City.
Nonmial o%ertimie fon all nori-exemipli employees shall be plaid at orae-aric-
one-half ('1 -'1)2' times the regular raie of pay, as provided uric er City policy
anc in compliance with applicable State and Federal laws or regulations.
3. Assignment Flay (f ew'
Night Elt if Difllenential:
Pclice Departrrent S11aff.Unill members assignec to tta Police
Department shall be eligible for N ight Shift Differeriiial of $1.50 per
hOL r, payable fon each regularly scheduled hour workec between
6:00 p.m. and 6:00 a.m.
Liblrary Staff. Unit members assignea tc ,the Libraryl Departmenil
shlaill be eAigitlle for Might SMA Differentiiall of $1.6( Fer hcur,
payable fcr each reg0larly sctleculled hour workec after 51:00 p.m.
Overtime worked either as an exitenaicn of an assignea shift cr scheoulec
as an overtime shifil st V nct duality Me errpAcyee fcr Nigh11 SIMI
Differential
Matron Ravi Female Rolice Department employees assigned matron
dt. hies shall receive one 111) tour 'sllraigr l time pay for eacr shifil matron
dL lies are periormied. ilhe employee rrIL Si work a miinimium shifil of eigr i
(8; hours iobe eligible.
Bilingual Ray: Employees cerlifled as bilingual ilSpariish; shall be eligible
to receive seventy-five cents (1$0.75; per tour in bilingual pay. The
cedificaiion process will confinmi the errplloyee is fluerii at ire appropriate
conversational level in spleaking Spanish. Orriployees ceriifiec shall
receive bilingual pay the first ilull pay period following cerliflcation.
Additional languages may k e considered upon DE partmient Director
deterrriinallion of ire benefit to the City and L pori apiproval by ire I -L urian
Resources Director.
SEC111C h 3. — Fringe Benefits
A. Cafeteria Rlan
1P a Ciiy has implerrienlec an IRS qt. alifled Cafeteria Rlan. Employees shall
ha%e the option of allocating Calleieria Rlan contributions towards the City's
exisiirig mec ical inst. rance as program rules allow. 8miployees at all be allowed
to change coverages in accordance with Milan rules and clL ring regL lar open
enrollment periods. For employees enrolled in medical plains, the cafeteria
4
RTEAN9 2015-2018
16-11
arr ouril is inclusive of the PERS c esignalec minimum rr edicial insurance
ciontribc lion. 8rriployees waiving medical coverage and eligit le for opt-oul
benefllsi c escrit ed t elow must prop ide proof of olr er gro1,p coy erage in order to
receK a the aafelleria beriefit.
Cafeileria Plan — 3 E enefiil Tiers
From juiyl 2015 through December 2016, for P71E/NIB errployee's enroJeo in a
City meoicall plan, the City's ccrnlriblution toward the cafeteria blenelit shall be
14.50 per he ur worker, tc a rr axuimum cf 64 he ura per flay) pleric d. Emplloyleea
whc tlecame PTEANEI rremblers on or blefcre June 30, 2014, and who "cplil oull"
tly providing flrocl of cilher group) cioverage, shall be e/ig.ib/e for a cafeteria beneMl
cf $3.75 per hcur worked, to a rraxuimum cf 64 hours pier flay) period.
Effective ,,anuary 1, 2017k the C,Nlyl shahl adcpIl a „ Tiered Cafeteria beneMl
structure. 71er eiligibRityl is blasec on the date cf enrodrrent intc the PTEANEI anc
healilh ccverage requirements set lcrth blyl the Fleoerail Aflbrdablle Care Oct
(hereinafter referrec tc as Ilhe Acil".)
711ERI 1
Criteria: 71er 1 blenelits are avahlatlile to uniil memtlers ilc whom the Cillyl must offer
affordable heahlh ccverage as required tly the Act. Under ilhe Acill's current
delinhicn, eligitl/e unit memtlers in this grcupl wcrk an average of 30 hcura or
more per week as oeterminec blyl the Ciilyl's ilcok-blacik rreasuremenil meilhoc fcr
determining ernpilcylee eligibility fcr hea)Vh coverage. Unit memtlers fcuno llc be
eiligitl/e uaing ilhe look -Hack measurement will Le Obied 71er 1 tlenefits the
fchlc wing January. Eligibility may a�lsc cccur when ctherwise mandateo under the
Acta
7lier 1 - Grcup A: This tlenefit level applies to employees who first enrolled
as F171EANB memtlers pricr tc July 1, 2014 ano work 30 hcurs or more pier
week. Effecilive Januaryl 1, 2017, the City shaill provide a cafeteria benefit
of $ 775 per month fcr these me rr biers. Each year, in ora er to meet
Min,imurr Essential Coverage (MEC) guidelines as establlisheo tlyl the Act,
the City shall ioentifyl the florticn of the cafeteria tbnefill that is ahlocalled IIc
meoical-onllyl coverage. 71he remaining florticn cf the cafeteria blenelit may
be used toward ilhe purchase of ado,itional rr ecical cc verag e cr ble
paylatlle tc the emflloylee as taxatlle cash flack. Fcr e>iarrip/e, .in 2016, the
MEC is 1400 per month and the City would icentify 1400 per month ilo
meoicall-cnllyl coverage. Ernpi1cylees enrodeo in MEWcall plans wculc tie
eiligiblle tc receive 1400 tcwaros rr ecical-only ano $„ 75 for the purchase of
aochlionall medical coverage or playable as ilaxiatlle cash flack. 71he
arrounils allccalled llc medical-cnlyi versus other blenefillwcash Hack may
aa,"usil annuahyl in cider for the Cillyl ilo meet ills cL igation to rreet MEC
requiremenils.
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RTBAN9 2015-2018
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Hier 1 - Grcup 8: This benefit ,leve,l aplpllies to errp,loyees whlc first
enrchled as PTEANEI merrbers cn cr after July 1, 2014 ano wcrk 1�0 hlcurs
or more per week. Effective January 1, 2017, the Ciilyl shla)[l provice a
aafeileria benef ill of $550 pler rr onthl tc warc med icall beneliits. 7lflis amount
is ahlc cialled tc rr ec icia l beneliits c nlyl ilo meed IIhle MEC. No pertion c f the
cafeteria benefit is payable tc llhle emplloyee as Taxable cash) back. 71hlere
is nc "c p it out" ciashl benefit for eligible a nit members who waiv a cioverage.
Slhculo the Minimum Essernlial Coverage exiceec $550 per me nth, the City
sOa,V aajust the mcrnlh ly benefit tc ccmpllyl with the MEC threshloilc.
TIIER 2
Criteria: 711E 2 benefh1s are availlabile to empilcyees who fust enroilleo as PTEANIB
nembEra plrior tc July 1, 2016 and 110 whlcrr llhle City is noel required by the Act to
offer affordable hleahlhl cioverage. In acccrdancie w,illhl ilhle Acil',i currernl deiiniilion,
unh members .in Tier 2 wcrk an average cl iless than 30 hlcurs per week as
determiner by the City's clock -back measurement methlcd lcr determining
employee a hig ihility for hlea,lthl cc v erag e.
Tier 2 - Group A: For Tier 2 unit n ember,i whlc are enrc filled in a City
meciciall pl,lan effective January) 1, 2017, the Chlyl w lil provide a cafeteria
benefit cf X4.25 plerhlour for each hlcur waked, tc a maximum of 60 hours
per p ayl Aeric d. Use of paid 1leave sh Ia V be cions,idere d as time worked for
iltle purpose o1 aontinuiing llhle $4.2 1 per hour benefit.
Tier 2 Group B (1) For Tier 2 employees whlc Mist enrol6lEd as P7IEANIEi
membErs Frior to Julys 1, 2014 and wt waive medical cioverage, effeculive
January) 1, 20171, shlaV receive from llhle CNyl an "opt out" caleter,ia benefit
of $3.25 per hlc ur worked, 1Ic a n axi,imu n of 66 hlc urs per p ay perioc. Paid
cleave shahl nct be ccn9UGErec, as time worker for IIhle purpose of ciontinuing
the �L25 per hour benefiil. (2) T(h)ere is no `bell cull" benef,ill for emplilcyees
whlo waive meoiciail coverage anc who beciame P71E/AIB members on or
after Juilyi 1, 2014.
`191d:M
71er 3 ap p flies filo employees who first enro Vee as PTEANEI m embers cn or after
July 1, 2016 anc ilc whom the City is nct required by the Act to offer affordable
hlEalthl coverage. In aciaoroance with the Act's current delinillicn, unit membera in
Tier 3 work an average cf fess thlan -'0 hlcurs plEr week as determ�inee byl the
Cillyl'a ilcok-back measurement method for cetermining erripiloyee ellgibillity for
health) coverage. Unill members in Tier 3 co not rE ce�ive any cafeteria benefit.
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R119ANB 2015-•2018
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B. hleaJtticiare Refcrm
The parties reciognize that ciertain State ana FeceraJ lavas, plrcgrams, ana
regullations, incJuding 11t1e Afforcabile Care / ct, may implacil future mecicaJ plan
offerings. EGthler party may request tc recplen ckiciussicns regarding mecicaJ
insurance for iltle glurpcse of discuaaing alternative aplplrcachlea anc prcplosa,ls tc
prcviding heallthcare ccverage. 47 adoition, stlould Sllalle cr Feoerail laws
concerning taxatkn of hlealilhcare benefills ctlange, thle parties agree llc meet anc
discuss tale irr pact of such) change.
C. Ray fc r Leave
The City implemented a Flex Leave piicgram in which employees recei%e pay fcir
leap a credits fc r each he L r we iik ed at 11-e rate of .04 hours for eacil• hGH r worked.
Credills will be planed in an indi%idcal Flex Leave barik tr each employee and will
be subject to being paic CIL 1 upon bi-weekly reqs est, c rily is the extent that an
erriploiyee f as earried such credits. The m aximum actin al of pay ikir leave f culls
will be cine f unc red 11100; kt rs. Cncie an emrllcyee reaches tl a maximum
accrual rate, Flex Leave will stop accrL ing until the employee's balance falls
below 100 hciL rs.
D. , i ry Duty
R11BAN EI erripiciyees legally required to serve as a jL rcr, and \N • of prci� ide
appropriate do cc rr entatic ri, shall be eligible for lea\ a with pay fc r .jL ry service
oiccunning cinly,duning 11 he employee's regularly scheduled sl-ifil, and as provided in
11-e City off Newport Beach Brriployee Pclicy Manual.
B. REtirerr ent Benefit
I. RBR.I Reliremerii
The City ccriiracis with the California Public Bmiplcyees Reliremerii
System QRBR.I; loi pnci\ide retiremerit beriefits for its Miscellaneous
emiplcyees. Rur9L ant ioi pricer agreements and state mandated reform, the
City has im plemiented Mist, second and ll-ird tier retirement beriefits:
Tier 1: Fcir employees hired t y il' e Cily anc enrcl�led in PERS on cui
before November 23, 2012, the retiremerill ikirmiula shall be ll- e 2.5% 55
calculalled cin the basis of the single f igl- est y ear.
Tie r 2: For e mipllciyees first 1- fired by 11-e Clity ana enrc illed in PEIRS
between November 24 and December 31, 2012, or hired cin or afiler
Jarivaryl 'I, 2013 and ane current miemibens cif the relliremeril system, as
definec in Put lic Bmiplc y ees Rensicin Reforms Act, ll- e neiiremeni fcirm0a
shall be 2% 6CI calculated cin the a%erage 36 highest mcinihs' salaryl.
7
R11EA� EI 20'15-2018
16-14
Tier 3: For employees first eligible for the FIBREI beriefit, on or after
January 'I, 2013, and who do not meet the Tien 2 ciriieria, the retirement
forms la shall be 20io 62 calculated on the average 36 highest rnionihs'
salaryl.
2. Bmiployee Coriinibutioris
FI-18AN8 employees will continue to pay the siaiLiory nonmial memiter
ciontribc tion for aM Tiers. Bmil:lloyee retirement ciontribc tions referenced
below that are in ac diiion to the normal FIBRS Merriber Contribl. tion will be
made on a pre-iax basis throLclh payroll; dedL ction, to the extent allowable
by the government tax code. It is reciogniaed chat hese l:layrrienis will not
be reported to PERS as coritribufions toward either ire rriember or
employer rale and fall outside ire sccpe of "cost-sharing," as provided
under GC Sleciiion 20516(lf).
-Hier 'I Bmiplcyees: affective Juilyl 1, 2016, Tier 1 employees shall
contritute 10.42% lowand the ncnmal ;Memiber Ccriinibuticri plus an
acicitional 2.58% cf pay toward retinemient ccsis pursuant to Gcvernrrieni
Code Election 20516(f1, for a inial of '113.0%.
-Hier 2 Erriplcyees: affective i r e pay perk d inch ding July 1, 2( 16, Tier 2
emplcyees sr all ccntribuie 71io tcward the normal Member Corilribution
plL s an adc iticrial 6.0% of pay toward retirement ciosis PL rsuarii to
Government Code Section 20516Qf), for a tctal of 13.00%.
Tier 3 Bmiplcyees: The minimumi statutory employee ccriiribution fcr
employees in -Hier 3 is subject to the pnc visic ns cf the Public Bmilaloyees'
Pension Reform Act cf 2101'eI QFIBFIRA; and ecluals 50% of the "total normal
ccst." For FY 16-17, the employee rate is 5.5% and is 91.bjeci is change
based cri annual PERS actuarial valuations.
Effective ire pay pericc inch ding julyl 1, 2016, Tier 3 employees shall
corifribute 9.500/6 tcward the member ciontribOicn plus an ac ditional 7.5%
cf clay tcward retiremient ccsts pc rsuarit lo Government Code Clecticn
2051GIf; , for ? a total cf 13.00N. Ili ilhe rr embler cor tr fLutior rate for
Errpiloyees ".in Tier " ahall bleciome greater or (less than 51.51% in future
years, as aeterm,inec t AE RS va,luatior, the as c,hiorail cor0 blution mace
bly ilhe emrllloylee under 205116(f will be increasec or aecreased
accorc ingly so thall ilhe iloilail emrlloylee contribluilior equals 13.0%.
The City contracts with FIBRS fcr the 0 Level 1999 SuRiivcrs Inst rance
Benefit, $500 Lumip Elurri Death Beriefit, Slick Leave Credit, Military
Service Crec it, 2% Cost of Living AdjL stmient and the pre-retiremient
optic settlement 'el death benefit ilElecticn'ell 548).
n.
RTHAN812015-2018
16-15
3. BARS Retirem ent
R11BANE] employees not enrollec in the RBFIISI reiirerrent system will
pariiaipate in the Rt. blic Agency Retirerr ent Ser%iices (PARS; progiiam .
IR e City will rr ake a rr atching 3.75% coriiribution to PARS on behalf of
tl• a employees.
Employees in the classifications Police Cadet and Police Reserve Cfficer
are exCIL dec from mlerrlbersf ip in PERS, as provided in the coniraci
beMeen the City of Newport Beach and the Board of plc ministration of the
Public Employees' Retirement System.
F. Other Benefits Noi Provided
No other fringe benefits are prop idec to emiploy ees in the Part - lime Unii.
SECTIIC N 4. - M iscellanecius.
A. Diiieci Deposit
All employees sr all participate in the payroll c irecit deposit sysierri.
B. RlEcireation DepartmEnt Step Adiustmenil
Unit merriblers in the classitication Flecreation Leader, Senior RlecrEation deader,
PoojI Lifeguard, Senior Pool Lifeguara, Senior Ser-Ocies Van Driver, Marine
tilailuraJisdl, lnterpieller, and Park PailroJ Cffiicer, of com�aratlle cJasaifications as
a mE no E d, ma yl be eJigiLile for sa lafyl 81E p increases upon meeting the folJc wing
criteria: 365 days ha ve passE d sinde tilde Ja sil se lary step incree ae; err p loyee rias
worker a minimum ct 125 hours in thlE classifica ilicn vu lilt in the pre cea ing 365
days; and the em�lgjee Ja rated as "Ccntribluilcr" ci greailEr cn his or hler mcst
recient performance E vailuaticn. AdditicnaI salary steps must remain in thlE range
in oraertc receive dile ac,'ustrr,ent.
Signatures c bile fbillcawing page
R71 E IP NB 2015-2018
16-16
Executed this day of
2016:
PART TIME EMPLOYEES ASSOCIATION OF NEWPORT
BEACH
m
Steve Schogel, President
CITY OF NEWPORT BEACH
Diane B. Dixon, Mayor
ATTEST:
Leilani Brown, City Clerk
APPROVED AS TO FORM:
Aaron Harp, City Attorney
m U10c►
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PTEANB 2015-2018
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