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HomeMy WebLinkAbout06 - MOU with the Part Time Employees Association of Newport Beach��WPaRT CITY OF O � _ z NEWPORT BEACH Cq</ Fp P City Council Staff Report June 28, 2016 Agenda Item No. 6 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, bsalvini@newportbeachca.gov PREPARED BY: Maggie Williams-Dalgart, Senior Human Resources Analyst, mwilliams-dalgart@newportbeachca.gov PHONE: 949-644-3337 TITLE: Memorandum of Understanding with the Part Time Employees Association of Newport Beach On June 14, 2016, the Tentative Agreement between the City of Newport Beach and the Part Time Employees Association of Newport Beach (PTEANB) was submitted for City Council and community review. The terms of the Tentative Agreement and estimated cost of the three and one-half year contract was provided to provide greater transparency in the labor negotiations process. The full and complete Memorandum of Understanding (MOU) with PTEANB for the period July 1, 2015 through December 31, 2018, includes changes to wages, benefits, and other terms and conditions of employment that are subjects of collective bargaining as required under the Meyers- Milias-Brown Act, California Government Code sections 3500-3510. This MOU is presented for City Council's approval/adoption (or rejection), and is the final step in the meet and confer process with PTEANB. (Attachment B) 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 b) Adopt Resolution No. 2016-84, A Resolution of the City Council of the City of Newport Beach, California, Adopting the Memorandum of Understanding between the City of Newport Beach and the Part Time Employees Association of Newport Beach and Establishing Salary Ranges for Certain Represented and Unrepresented Part -Time Positions, for the period July 1, 2015 through December 31, 2018. 6-1 MOU with the Part Time Employees Association of Newport Beach June 28, 2016 Page 2 FUNDING REQUIREMENTS: The estimated cost of the three and one-half year agreement with PTEANB was provided on June 14, 2016, and is resubmitted as Attachment D. The cost to implement the provisions in FY16-17 is estimated to be approximately $94,000. There are sufficient funds in the FY16-17 budget to cover the impact of the anticipated changes. DISCUSSION: Depending on their job assignment, City of Newport Beach part-time employees typically work anywhere from 10 to 35 hours per week. Certain part-time employees become PTEANB members when they work at least 1,000 hours in a fiscal year. The PTEANB is an exclusively recognized bargaining unit representing approximately 65 part-time employees, primarily from the Recreation and Senior Services Department, Library Services, and the Police Department. The City's contract with PTEANB expired July 1, 2015. Negotiations with the group began on March 4, 2016 and concluded on May 26, 2016. Topics discussed during negotiations included wage adjustments, increasing costs of pension obligations to the California Public Employees Retirement System (PERS), and healthcare obligations under the Federal Affordable Care Act (ACA). To address the pension obligation, PTEANB members have agreed to contribute another .65 percent towards their retirement benefit. PTEANB members, along with the City's other non -safety groups, will be contributing 13 percent of their "PERSable" compensation towards their retirement benefit. In addition, PTEANB agreed to restructure the cafeteria plan to reduce costs and allow for more streamlined reporting under the ACA. The Memorandum of Understanding between the City and PTEANB includes the following salient 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 - 2.00% o July 1, 2018 - 1.50% • A restructuring of the cafeteria/medical benefit, creating a tiered benefit based on date of enrollment in the bargaining unit and healthcare coverage eligibility under the ACA o Tier 1 — employees who work thirty or more hours per week will be eligible for a cafeteria allowance between $550 - $775 per month 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 6-2 MOU with the Part Time Employees Association of Newport Beach June 28, 2016 Page 3 o Tier 3 — employees new to PTEANB after July 1, 2016, and who work less than thirty hours per week, will not receive a cafeteria allowance • A reduction in the cafeteria opt -out benefit (applies to employees grandfathered with the benefit under prior contract) • Clarification language regarding Night Standby pay for Library Department staff and formalized language concerning salary step adjustments for part-time staff in the Recreation and Senior Services Department In addition to the 65 part-time PTEANB members, the City employs approximately 260 unrepresented part-time employees (excluding seasonal lifeguards), who typically work less than 1,000 hours in a fiscal year and receive limited benefits as required by law. It has been City practice to adjust the salary ranges for these part-time positions simultaneously with the adjustments provided to PTEANB. This is done to ensure pay rates are equitable, competitive, and compliant with City policies and Federal and State laws and regulations. To provide for consistency in pay practices among part-time positions, it is proposed the adjustments for PTEANB be applied to unrepresented part- time employees as provided in Attachment C, Salary Ranges for Part -Time Classifications. The estimated cost of the MOU with PTEANB, as well as the cost of the salary adjustments for designated part-time positions for FY16-17 and future years is included in Attachment D. Costs are itemized by salary, pension, and cafeteria benefit, and include employee offsets, such as increased employee pension contributions and savings to the City based on reductions to the cafeteria plan benefit. In accordance with PTEANB ratification procedures, the majority of unit members 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. If the City Council approves adoption of the Memorandum of Understanding with PTEANB, Human Resources and Finance Department staff will work to implement the provisions as soon as practicable. The proposed changes to the MOU are noted in italics and the comprehensive MOU and cost analysis of the complete contract, if approved, will be published online. City staff would like to thank the PTEANB leadership for the collaborative and respectful way in which they approached these negotiations and appreciate their willingness to come to the table to address key issues, including pension reform and cafeteria benefit changes. These are challenging times for city governments and an effective partnership between the City and its bargaining units remains vital in continuing to provide the community with excellent services. 6-3 MOU with the Part Time Employees Association of Newport Beach June 28, 2016 Page 4 ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A - Resolution No. 2016-84 Adopting a MOU with PTEANB and Establishing Part -Time Salary Ranges Attachment B - 2015-18 MOU with PTEANB Attachment C - Salary Ranges for Part -Time Classifications Attachment D - Estimated Cost of 3'/2 Year Contract with PTEANB ME Attachment A RESOLUTION NO. 2016-84 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 PART TIME EMPLOYEES ASSOCIATION OF NEWPORT BEACH AND ESTABLISHING SALARY RANGES FOR CERTAIN REPRESENTED AND UNREPRESENTED PART-TIME POSITIONS 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 Part Time Employees Association of Newport Beach (PTEANB) for the period September 3, 2013 through June 30, 2015; and WHEREAS, representatives from the City of Newport Beach and the PTEANB have met and conferred in good faith and reached a Tentative Agreement on wages, benefits, and other terms and conditions of employment; and WHEREAS, the Tentative Agreement and estimated cost to implement a successor Memorandum of Understanding with the PTEANB was submitted for City Council and public review on June 14, 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 PTEANB by adopting a Memorandum of Understanding for the period of July 1, 2015, through December 31, 2018; WHEREAS, in order to attract, retain and remain competitive in the job market, salary adjustments for unrepresented part-time positions have historically been tied to salary adjustments for part-time positions represented by PTEANB; WHEREAS, the City Council of the City of Newport Beach desires to maintain the historical salary relationship between represented and unrepresented part-time positions, and establish salary ranges for certain part-time positions. 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 for employees represented by the PTEANB shall be provided in accordance with the provisions of the attached Memorandum of Understanding (Attachment B). Section 3: The term of the Memorandum of Understanding shall be for 42 months, commencing retroactively to July 1, 2015, and remaining in full force and effect through December 31, 2018. Section 4: Salary ranges for certain represented and unrepresented part-time positions for the period July 1, 2016 through December 31, 2018, including positions represented by PTEANB, shall be as provided in Attachment C. Section 5: The City's Salary Schedule shall be modified so as to be consistent with this Resolution. Section 6: 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 7: 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 8: 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 .ol Attachment B MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE PART TIME EMPLOYEES ASSOCIATION OF NEWPORT BEACH This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE 1. The Part Time Employees Association of Newport Beach ("PTEANB" or "Association"), a recognized employee organization, and the City of Newport Beach ("City"), a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment. 2. PTEANB representatives and City representatives have reached an agreement as to wages, hours and other terms and conditions of employment as provided in this Memorandum of Understanding (MOU) for the period from July 1, 2015 through December 31, 2018. 3. This MOU, upon approval by PTEANB and the Newport Beach City Council, represents the total and complete understanding and agreement between the parties regarding all matters within the scope of representation. Except as limited herein, the City retains all management rights as set forth in the Meyers-Milias- Brown Act and Resolution No. 2001-50. SECTION 1. — General Provisions A. Recognition In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers-Milias-Brown Act of the State of California and the provisions of the Employer -Employee Relations Resolution No. 2001-50, the City acknowledges that PTEANB is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for part-time employees in those classifications specified in Exhibit "A" and meeting the following recognition requirements. 1. Recognition will continue for all employees recognized as of date of adoption of this MOU; thereafter, employees will become eligible for recognition after working a cumulative total of 1,000 hours in any fiscal year. 2. Recognition for unit membership may also occur whenever the City determines it is mandated by State or Federal law to provide Minimum 1 PTEANB MOU 2015-2018 M Essential Coverage, as defined by the Federal Affordable Care Act. 3. Once eligible for recognition, employees remain covered under the MOU regardless of the number of hours subsequently worked. B. Duration of Memorandum Except as specifically provided otherwise, any ordinance, resolution or action of the City Council necessary to implement this MOU shall be considered effective as of July 1, 2015. This MOU shall remain in full force and effect until December 31, 2018, and the terms and conditions of this MOU shall continue after the date of expiration of this MOU in the event the parties have not yet agreed upon a successor MOU. The terms and conditions of this MOU shall prevail over conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions and policies of the City of Newport Beach, and Federal and State statutes, rules and regulations which either specifically provide that agreements such as this prevail, confer rights which may be waived by any collective bargaining agreement, or are, pursuant to decisional or statutory law, superseded by the provisions of an agreement similar to this MOU. C. Employee Data and Access Upon request, each July the City shall provide PTEANB a regular list of all unit members including name, department, and job title. D. 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 contained herein. 11111ir156TOlf : •N . 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. F. Subcontracti As provided in the Employer -Employee Relations Resolution No. 2001-50, the City shall determine the manner in which City services are to be provided, including whether the City should provide services directly or contract out work, including work that is currently being performed by Association members. In the PTEANB MOU 2015-2018 event the City introduces a plan to outsource services to achieve greater efficiency and/or cost savings, and upon request by the Association, the City shall meet and confer with Association representatives to discuss the impact of the City's decision to contract out work, prior to contracting out such services. The City shall retain sole authority to decide whether or not to contract out work, including work that is currently being performed by Association members. This provision shall not limit the City's authority to enter into such an agreement for any City services. 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. SECTION 2. — Compensation A. Pay for Time Worked 1. Salary Adjustments Effective the pay period including July 1, 2016, base salaries will be increased by 2.65% Effective the pay period including July 1, 2017, employee base salaries will be increased by 2.0%. Effective the pay period including July 1, 2018, employee base salaries will be increased by 1.5%. Notwithstanding the above adjustments, the top step pay rate of Police Reserve Officer shall be, at a minimum, equal to Step 1 of Police Officer. 2. Compensation for Overtime - Normal Overtime Normal overtime is defined as any scheduled hours worked in excess of the basic work week. For the purposes of this section, the basic work week is 40 hours, or as determined by the Department Director and approved by the City Manager, which occurs between a fixed and regularly recurring period of 168 hours - 7 consecutive 24 hour periods - beginning at 0001 on Saturday and ending at midnight the following Friday. Definition of Hours Worked - Hours worked are defined as hours which employees are required to be performing their regular duties or other 3 PTEANB MOU 2015-2018 Wei duties assigned by the City. Normal overtime for all non-exempt employees shall be paid at one -and - one -half (1-1/2) times the regular rate of pay, as provided under City policy and in compliance with applicable State and Federal laws or regulations. 3. Assignment Pay (New) Niaht Shift Differential: Police Department Staff.- Unit members assigned to the Police Department shall be eligible for Night Shift Differential of $1.50 per hour, payable for each regularly scheduled hour worked between 6:00 p.m. and 6:00 a.m. Library Staff.- Unit members assigned to the Library Department shall be eligible for Night Shift Differential of $1.00 per hour, payable for each regularly scheduled hour worked after 5:00 p.m. Overtime worked either as an extension of an assigned shift or scheduled as an overtime shift shall not qualify the employee for Night Shift Differential. Matron Pay: Female Police Department employees assigned matron duties shall receive one (1) hour straight time pay for each shift matron duties are performed. The employee must work a minimum shift of eight (8) hours to be eligible. Bilingual Pay: Employees certified as bilingual (Spanish) shall be eligible to receive seventy-five cents ($0.75) per hour in bilingual pay. The certification process will confirm the employee is fluent at the appropriate conversational level in speaking Spanish. Employees certified shall receive bilingual pay the first full pay period following certification. Additional languages may be considered upon Department Director determination of the benefit to the City and upon approval by the Human Resources Director. SECTION 3. — Fringe Benefits A. Cafeteria Plan The City has implemented an IRS qualified Cafeteria Plan. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical insurance as program rules allow. Employees shall be allowed to change coverages in accordance with plan rules and during regular open enrollment periods. For employees enrolled in medical plans, the cafeteria 0 PTEANB MOU 2015-2018 6-10 amount is inclusive of the PERS designated minimum medical insurance contribution. Employees waiving medical coverage and eligible for opt -out benefits described below must provide proof of other group coverage in order to receive the cafeteria benefit. Cafeteria Plan — 3 Benefit Tiers From July 2015 through December 2016, for PTEANB employees enrolled in a City medical plan, the City's contribution toward the cafeteria benefit shall be $4.50 per hour worked, to a maximum of 64 hours per pay period. Employees who became PTEANB members on or before June 30, 2014, and who "opt out" by providing proof of other group coverage, shall be eligible for a cafeteria benefit of $3.75 per hour worked, to a maximum of 64 hours per pay period. Effective January 1, 2017, the City shall adopt a 3 Tiered Cafeteria benefit structure. Tier eligibility is based on the date of enrollment into the PTEANB and health coverage requirements set forth by the Federal Affordable Care Act (hereinafter referred to as "the Act".) 991VA i Criteria: Tier 1 benefits are available to unit members to whom the City must offer affordable health coverage as required by the Act. Under the Act's current definition, eligible unit members in this group work an average of 30 hours or more per week as determined by the City's look -back measurement method for determining employee eligibility for health coverage. Unit members found to be eligible using the look -back measurement will be offered Tier 1 benefits the following January. Eligibility may also occur when otherwise mandated under the Act. Tier 1 - Group A: This benefit level applies to employees who first enrolled as PTEANB members prior to July 1, 2014 and work 30 hours or more per week. Effective January 1, 2017, the City shall provide a cafeteria benefit of $775 per month for these members. Each year, in order to meet Minimum Essential Coverage (MEC) guidelines as established by the Act, the City shall identify the portion of the cafeteria benefit that is allocated to medical -only coverage. The remaining portion of the cafeteria benefit may be used toward the purchase of additional medical coverage or be payable to the employee as taxable cash back. For example, in 2016, the MEC is $400 per month and the City would identify $400 per month to medical -only coverage. Employees enrolled in medical plans would be eligible to receive $400 towards medical -only and $375 for the purchase of additional medical coverage or payable as taxable cash back. The amounts allocated to medical -only versus other benefits/cash back may adjust annually in order for the City to meet its obligation to meet MEC requirements. 5 PTEANB MOU 2015-2018 6-11 Tier 1 - Group B: This benefit level applies to employees who first enrolled as PTEANB members on or after July 1, 2014 and work 30 hours or more per week. Effective January 1, 2017, the City shall provide a cafeteria benefit of $550 per month toward medical benefits. This amount is allocated to medical benefits only to meet the MEC. No portion of the cafeteria benefit is payable to the employee as taxable cash back. There is no "opt out" cash benefit for eligible unit members who waive coverage. Should the Minimum Essential Coverage exceed $550 per month, the City shall adjust the monthly benefit to comply with the MEC threshold. TIER 2 Criteria: Tier 2 benefits are available to employees who first enrolled as PTEANB members prior to July 1, 2016 and to whom the City is not required by the Act to offer affordable health coverage. In accordance with the Act's current definition, unit members in Tier 2 work an average of less than 30 hours per week as determined by the City's look -back measurement method for determining employee eligibility for health coverage. Tier 2 - Group A: For Tier 2 unit members who are enrolled in a City medical plan effective January 1, 2017, the City will provide a cafeteria benefit of $4.25 per hour for each hour worked, to a maximum of 60 hours per pay period. Use of paid leave shall be considered as time worked for the purpose of continuing the $4.25 per hour benefit. Tier 2 - Group B: (1) Tier 2 employees who first enrolled as PTEANB members prior to July 1, 2014 and who waive medical coverage, effective January 1, 2017, shall receive from the City an "opt out" cafeteria benefit of $3.25 per hour worked, to a maximum of 60 hours per pay period. Paid leave shall not be considered as time worked for the purpose of continuing the $3.25 per hour benefit. (2) There is no "opt out" benefit for employees who waive medical coverage and who became PTEANB members on or after July 1, 2014. TIER 3 Tier 3 applies to employees who first enrolled as PTEANB members on or after July 1, 2016 and to whom the City is not required by the Act to offer affordable health coverage. In accordance with the Act's current definition, unit members in Tier 3 work an average of less than 30 hours per week as determined by the City's look -back measurement method for determining employee eligibility for health coverage. Unit members in Tier 3 do not receive any cafeteria benefit. A PTEANB MOU 2015-2018 6-12 B. Healthcare Reform The parties recognize that certain State and Federal laws, programs, and regulations, including the Affordable Care Act, may impact future medical plan offerings. Either party may request to reopen discussions regarding medical insurance for the purpose of discussing alternative approaches and proposals to providing healthcare coverage. In addition, should State or Federal laws concerning taxation of healthcare benefits change, the parties agree to meet and discuss the impact of such change. C. Pay for Leave The City implemented a Flex Leave program in which employees receive pay for leave credits for each hour worked at the rate of .04 hours for each hour worked. Credits will be placed in an individual Flex Leave bank for each employee and will be subject to being paid out upon bi-weekly request, only to the extent that an employee has earned such credits. The maximum accrual of pay for leave hours will be one hundred (100) hours. Once an employee reaches the maximum accrual rate, Flex Leave will stop accruing until the employee's balance falls below 100 hours. D. Jury Duty PTEANB employees legally required to serve as a juror, and who provide appropriate documentation, shall be eligible for leave with pay for jury service occurring only during the employee's regularly scheduled shift, and as provided in the City of Newport Beach Employee Policy Manual. E. Retirement Benefit 1. PERS Retirement The City contracts with the California Public Employees Retirement System (PERS) to provide retirement benefits for its Miscellaneous employees. Pursuant to prior agreements and state mandated reform, the City has implemented first, second and third tier retirement benefits: Tier 1: For employees hired by the City and enrolled in PERS on or before November 23, 2012, the retirement formula shall be the 2.5% 55 calculated on the basis of the single highest year. Tier 2: For employees first hired by the City and enrolled in PERS between November 24 and December 31, 2012, or hired on or after January 1, 2013 and are current members of the retirement system, as defined in Public Employees Pension Reform Act, the retirement formula shall be 2%(a-)60 calculated on the average 36 highest months' salary. 7 PTEANB MOU 2015-2018 6-13 Tier 3: For employees first eligible for the PERS benefit on or after January 1, 2013, and who do not meet the Tier 2 criteria, the retirement formula shall be 2%(@62 calculated on the average 36 highest months' salary. 2. Employee Contributions PTEANB employees will continue to pay the statutory normal member contribution for all Tiers. Employee retirement contributions referenced below that are in addition to the normal PERS Member Contribution will be made on a pre-tax basis through payroll deduction, to the extent allowable by the government tax code. It is recognized that these payments will not be reported to PERS as contributions toward either the member or employer rate, as provided under GC Section 20516(f). Tier 1 Employees: Effective July 1, 2016, Tier 1 employees shall contribute 10.42% toward the normal Member Contribution plus an additional 2.58% of pay toward retirement costs pursuant to Government Code Section 20516(f), for a total of 13%. Tier 2 Employ: Effective the pay period including July 1, 2016, Tier 2 employees shall contribute 7% toward the normal Member Contribution plus an additional 6.% of pay toward retirement costs pursuant to Government Code Section 20516(f), for a total of 13.%. Tier 3 Employees: The minimum statutory employee contribution for employees in Tier 3 is subject to the provisions of the Public Employees' Pension Reform Act of 2012 (PEPRA) and equals 50% of the "total normal cost." For FY16-17, the employee rate is 5.5% and is subject to change based on annual PERS actuarial valuations. Effective the pay period including July 1, 2016, Tier 3 employees shall contribute 5.5% toward the Member Contribution plus an additional 7.5% of pay toward retirement costs pursuant to Government Code Section 20516(f), for a total of 13%. If the member contribution rate for employees in Tier 3 shall become greater or less than 5.5% in future years, as determined by PERS valuation, the additional contribution made by the employee under 20516(17 will be increased or decreased accordingly so that the total employee contribution equals 13%. The City contracts with PERS for the 4th Level 1959 Survivors Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military Service Credit, 2% Cost of Living Adjustment and the pre -retirement option settlement 2 death benefit (Section 21548). n. PTEANB MOU 2015-2018 6-14 3. PARS Retirement PTEANB employees not enrolled in the PERS retirement system will participate in the Public Agency Retirement Services (PARS) program. The City will make a matching 3.75% contribution to PARS on behalf of the employees. Employees in the classifications Police Cadet and Police Reserve Officer are excluded from membership in PERS, as provided in the contract between the City of Newport Beach and the Board of Administration of the Public Employees' Retirement System. F. Other Benefits Not Provided No other fringe benefits are provided to employees in the Part Time Unit. SECTION 4. - Miscellaneous. A. Direct Deposit All employees shall participate in the payroll direct deposit system. B. Recreation Department Step Adjustment Unit members in the classification Recreation Leader, Senior Recreation Leader, Pool Lifeguard, Senior Pool Lifeguard, Senior Services Van Driver, Marine Naturalist Interpreter, and Park Patrol Officer, or comparable classifications as amended, may be eligible for salary step increases upon meeting the following criteria: 365 days have passed since the last salary step increase; employee has worked a minimum of 125 hours in the classification within the preceding 365 days; and the employee is rated as "Contributor" or greater on his or her most recent performance evaluation. Additional salary steps must remain in the range in order to receive the adjustment. Signatures on the following page er PTEANB MOU 2015-2018 6-15 Executed this day of , 2016: ATTEST: m PART TIME EMPLOYEES ASSOCIATION OF NEWPORT BEACH By: Steve Schogel, President CITY OF NEWPORT BEACH No heilani Brown, City Clerk Diane B. Dixon, Mayor APPROVED AS TO FORM: Aaron Harp, City Attorney 10 PTEANB MOU 2015-2018 6-16 EXHIBIT "A" Represented Classifications PTEANB 2015-2018 Assistant, Department - PT Assistant, Office - PT Crime Prevention Specialist - PT Fiscal Clerk - PT Fiscal Clerk, Senior - PT Fiscal Specialist - PT GIS Technical Aide GIS Technician - PT Intern IT Technician - PT Librarian I - PT Library Assistant - PT Library Clerk 1/11 - PT Library Page Literacy Coordinator Maintenance Aide Marine Naturalist Interpreter Marketing Specialist - PT Paralegal - PT Park Patrol Officer - PT Permit Technician 1/11 - PT Police Cadet Police Community Services Officer - PT Police Dispatcher - PT Police Reserve Officer Pool Lifeguard Pool Lifeguard, Senior Pool Swim Instructor Public Works Technical Aide Recreation Coordinator, Assistant Recreation Leader Recreation Leader, Senior Review Officer Senior Services Van Driver - PT Student Aide Support Services Aide 11 PTEANB MOU 2015-18 6-17 Attachment C City of Newport Beach Salary Ranges for Part -Time Classifications Effective July 1, 2016 - 2.65% adjustment Hourly Pay Rate Monthly Pay Rate Position Title Minimum Maximum Minimum Maximum2 Accountant - PT $29.87 $42.04 $5,178 $7,286 Assistant, Department - PT $21.00 $29.55 $3,640 $5,123 Assistant, Office - PT $17.92 $25.28 $3,107 $4,382 Code Enforcement Officer Trainee - PT $21.09 $29.68 $3,656 $5,144 Crime Analyst, Senior - PT $29.66 $41.74 $5,140 $7,234 Crime Prevention Specialist - PT $27.91 $39.28 $4,838 $6,809 Custody Officer - PT $25.56 $35.97 $4,430 $6,235 Facilities Maintenance Worker II - PT $20.21 $28.43 $3,503 $4,929 Fiscal Clerk - PT $18.94 $26.65 $3,283 $4,619 Fiscal Clerk, Senior - PT $22.05 $31.00 $3,822 $5,373 Fiscal Specialist - PT $25.55 $35.92 $4,429 $6,226 GIS Technical Aide $13.23 $18.62 $2,293 $3,228 GIS Technician - PT $26.24 $36.91 $4,548 $6,398 Human Resources Analyst - PT $34.54 $48.62 $5,987 $8,427 Human Resources Specialist 1/11 - PT $26.17 $40.71 $4,535 $7,057 Intern $16.81 - $2,914 - IT Technician - PT $20.36 $28.66 $3,528 $4,968 Librarian I - PT $25.84 $36.34 $4,478 $6,299 Library Assistant - PT $22.00 $30.91 $3,813 $5,357 Library Clerk 1/11- PT $17.11 $25.45 $2,966 $4,411 Library Page $10.97 $14.02 $1,902 $2,430 Lifeguard Cadet $12.32 - $2,135 - Lifeguard Trainee ` $10.00 - $1,733 - Literacy Coordinator $24.63 $34.65 $4,268 $6,007 Maintenance Aide $13.27 $18.68 $2,301 $3,238 Marine Naturalist Interpreter $15.34 $16.90 $2,658 $2,929 Marketing Specialist - PT $26.16 $36.80 $4,534 $6,379 Paralegal - PT $28.09 $39.53 $4,868 $6,852 Park Patrol Officer- PT $19.61 $23.83 $3,398 $4,130 Permit Technician 1 /11- PT $24.41 $39.53 $4,231 $6,852 Police Cadet $11.51 $13.99 $1,995 $2,425 Police Community Services Officer - PT $20.44 $31.71 $3,543 $5,496 Police Dispatcher - PT $26.08 $36.72 $4,521 $6,364 Police Reserve Officer $22.67 $31.88 $3,929 $5,526 Pool Lifeguard $12.47 $15.16 $2,162 $2,628 Pool Lifeguard, Senior $18.06 $22.00 $3,130 $3,813 Pool Swim Instructor $14.71 $17.88 $2,550 $3,099 Pool Swim Instructor Trainee $10.00 - $1,733 - Public Works Technical Aide $13.23 $18.62 $2,293 $3,228 Recreation Coordinator, Assistant - PT $19.88 $27.96 $3,446 $4,847 Recreation Leader $12.23 $14.85 $2,119 $2,575 Recreation Leader, Senior $15.58 $18.96 $2,701 $3,286 Review Officer $31.34 $36.28 $5,432 $6,288 Senior Services Van Driver - PT $19.26 $27.12 $3,338 $4,701 Student Aide $11.56 $14.75 $2,003 $2,557 Support Services Aide $20.21 $28.43 $3,503 $4,929 Compensated as listed on the schedule, or California minimum wage, whichever is greater 6-18 City of Newport Beach Salary Ranges for Part -Time Classifications Effective July 1, 2017 - 2.0% adjustment Hourly Pay Rate Monthly Pay Rate Position Title Minimum Maximum Minimum Maximum2 Accountant - PT $30.47 $42.88 $5,281 $7,432 Assistant, Department - PT $21.42 $30.14 $3,713 $5,225 Assistant, Office - PT $18.28 $25.79 $3,169 $4,470 Code Enforcement Officer Trainee - PT $21.52 $30.27 $3,730 $5,247 Crime Analyst, Senior - PT $30.25 $42.57 $5,243 $7,379 Crime Prevention Specialist - PT $28.47 $40.07 $4,935 $6,945 Custody Officer - PT $26.07 $36.69 $4,519 $6,359 Facilities Maintenance Worker II - PT $20.62 $29.00 $3,573 $5,027 Fiscal Clerk - PT $19.32 $27.18 $3,348 $4,711 Fiscal Clerk, Senior - PT $22.49 $31.62 $3,898 $5,481 Fiscal Specialist - PT $26.06 $36.64 $4,517 $6,350 GIS Technical Aide $13.50 $18.99 $2,339 $3,292 GIS Technician - PT $26.76 $37.65 $4,639 $6,526 Human Resources Analyst - PT $35.23 $49.59 $6,107 $8,595 Human Resources Specialist 1/11 - PT $26.69 $41.53 $4,626 $7,198 Intern $17.15 - $2,973 - IT Technician - PT $20.76 $29.23 $3,599 $5,067 Librarian I - PT $26.35 $37.06 $4,568 $6,425 Library Assistant - PT $22.44 $31.53 $3,889 $5,465 Library Clerk 1/11- PT $17.45 $25.96 $3,025 $4,499 Library Page $11.19 $14.30 $1,940 $2,479 Lifeguard Cadet $12.56 - $2,178 - Lifeguard Trainee * $10.50 - $1,820 - Literacy Coordinator $25.12 $35.35 $4,354 $6,127 Maintenance Aide $13.54 $19.06 $2,347 $3,303 Marine Naturalist Interpreter $15.64 $17.23 $2,711 $2,987 Marketing Specialist - PT $26.68 $37.54 $4,624 $6,506 Paralegal - PT $28.65 $40.32 $4,965 $6,989 Park Patrol Officer - PT $20.00 $24.30 $3,466 $4,212 Permit Technician 1 /11- PT $24.90 $40.32 $4,316 $6,989 Police Cadet $11.74 $14.27 $2,034 $2,474 Police Community Services Officer - PT $20.85 $32.34 $3,613 $5,606 Police Dispatcher - PT $26.61 $37.45 $4,612 $6,492 Police Reserve Officer $23.12 $32.52 $4,007 $5,637 Pool Lifeguard $12.72 $15.46 $2,205 $2,681 Pool Lifeguard, Senior $18.42 $22.44 $3,192 $3,889 Pool Swim Instructor $15.00 $18.24 $2,601 $3,161 Pool Swim Instructor Trainee * $10.50 - $1,820 - Public Works Technical Aide $13.50 $18.99 $2,339 $3,292 Recreation Coordinator, Assistant - PT $20.28 $28.52 $3,515 $4,944 Recreation Leader $12.47 $15.15 $2,161 $2,626 Recreation Leader, Senior $15.89 $19.34 $2,755 $3,352 Review Officer $31.97 $37.00 $5,541 $6,414 Senior Services Van Driver - PT $19.64 $27.66 $3,405 $4,795 Student Aide $11.79 $15.05 $2,044 $2,608 Support Services Aide $20.62 $29.00 $3,573 $5,026 Compensated as listed on the schedule, or California minimum wage, whichever is greater 6-19 City of Newport Beach Salary Ranges for Part -Time Classifications Effective July 1, 2018 - 1.5% adjustment Hourly Pay Rate Monthly Pay Rate Position Title Minimum Maximum Minimum Maximum2 Accountant - PT $30.93 $43.52 $5,360 $7,543 Assistant, Department - PT $21.74 $30.60 $3,769 $5,303 Assistant, Office - PT $18.56 $26.18 $3,216 $4,537 Code Enforcement Officer Trainee - PT $21.84 $30.72 $3,785 $5,325 Crime Analyst, Senior - PT $30.70 $43.21 $5,322 $7,490 Crime Prevention Specialist - PT $28.90 $40.67 $5,009 $7,050 Custody Officer - PT $26.46 $37.24 $4,587 $6,455 Facilities Maintenance Worker II - PT $20.93 $29.44 $3,627 $5,103 Fiscal Clerk - PT $19.61 $27.59 $3,399 $4,782 Fiscal Clerk, Senior - PT $22.83 $32.09 $3,957 $5,563 Fiscal Specialist - PT $26.45 $37.19 $4,585 $6,445 GIS Technical Aide $13.70 $19.28 $2,374 $3,342 GIS Technician - PT $27.16 $38.22 $4,708 $6,624 Human Resources Analyst - PT $35.76 $50.33 $6,199 $8,724 Human Resources Specialist 1/11 - PT $27.09 $42.15 $4,695 $7,306 Intern $17.41 - $3,017 - IT Technician - PT $21.07 $29.67 $3,653 $5,143 Librarian I - PT $26.75 $37.62 $4,637 $6,521 Library Assistant - PT $22.77 $32.00 $3,948 $5,546 Library Clerk 1/11- PT $17.72 $26.35 $3,071 $4,567 Library Page $11.36 $14.52 $1,969 $2,516 Lifeguard Cadet $12.75 - $2,210 - Lifeguard Trainee * $11.00 - $1,907 - Literacy Coordinator $25.50 $35.88 $4,419 $6,219 Maintenance Aide $13.74 $19.34 $2,382 $3,353 Marine Naturalist Interpreter $15.88 $17.49 $2,752 $3,032 Marketing Specialist - PT $27.08 $38.10 $4,694 $6,604 Paralegal - PT $29.08 $40.93 $5,040 $7,094 Park Patrol Officer - PT $20.30 $24.67 $3,518 $4,275 Permit Technician 1 /ll- PT $25.27 $40.93 $4,380 $7,094 Police Cadet $11.91 $14.49 $2,065 $2,511 Police Community Services Officer - PT $21.16 $32.83 $3,668 $5,690 Police Dispatcher - PT $27.00 $38.01 $4,681 $6,589 Police Reserve Officer $23.47 $33.01 $4,067 $5,721 Pool Lifeguard $12.91 $15.70 $2,238 $2,721 Pool Lifeguard, Senior $18.69 $22.77 $3,240 $3,948 Pool Swim Instructor $15.23 $18.51 $2,640 $3,209 Pool Swim Instructor Trainee ` $11.00 - $1,907 - Public Works Technical Aide $13.70 $19.28 $2,374 $3,342 Recreation Coordinator, Assistant - PT $20.59 $28.95 $3,568 $5,018 Recreation Leader $12.66 $15.38 $2,194 $2,665 Recreation Leader, Senior $16.13 $19.63 $2,796 $3,402 Review Officer $32.45 $37.56 $5,624 $6,510 Senior Services Van Driver - PT $19.94 $28.08 $3,456 $4,867 Student Aide $11.97 $15.27 $2,074 $2,647 Support Services Aide $20.93 $29.44 $3,627 $5,102 " Compensated as listed on the schedule, or California minimum wage, whichever is greater 6-20 ATTACHMENT D Estimated Cost of Successor MOU with the Part Time Employees Association of Newport Beach and Salary Adjustments for Unrepresented Part -Time Contract Term: July 1, 2015 through December 31, 2018 (for part-time employees in all City Departments excluding seasonal lifeguards) Existing Cost Projected Additional Costs * Represents the City's contribution toward the PERS benefit for part-time employees enrolled in either the PERS plan or PARS plan 6/28/16 6-21 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% Benefit Total Cost (Less Offsets) 93,947 173,115 119,744 1 386,806 8.35% * Represents the City's contribution toward the PERS benefit for part-time employees enrolled in either the PERS plan or PARS plan 6/28/16 6-21