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c�<,FORN'P City Council Staff Report
January 11, 2022
Agenda Item No. 14
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Grace K. Leung, City Manager - 949-644-3001,
[email protected]
PREPARED BY: Barbara J. Salvini, Human Resources Director PHONE: 949-644-3259
TITLE: Approval of Side Letters of Agreement with the Newport Beach City Employees Association and Newport Beach Professional and Technical Employees Association
ABSTRACT:
On November 16, 2021, the City Council for the City of Newport Beach (City) approved the adoption of Memoranda of Understanding (MOUs) with the Newport Beach City Employees Association (CEA) and the Newport Beach Professional and Technical Employees Association (ProfTech). Both MOUs are effective January 1, 2022, through December 31, 2025, and cover wages, benefits, and other terms and conditions of employment for employees represented by these two groups. To recognize and retain existing CEA and ProfTech members, Side Letter Agreements (Side Letters) which provide for existing unit members to receive a one-time bonus are being presented for the City Council's approval and adoption. This is the final step in the meet and confer process to amend the CEA and ProfTech MOUs.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve the Side Letter of Agreement to the Memorandum of Understanding between the City of Newport Beach and the Newport Beach City Employees Association; c) Approve the Side Letter of Agreement to the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Professional and Technical Employees Association; and
d) Approve Budget Amendment No. 22-036 appropriating $344,000 in increased expenditures in various City division salary accounts from the unappropriated fund balances of various City funds.
14-1
Approval of Side Letters of Agreement with the
Newport Beach City Employees Association and Newport Beach Professional and Technical Employees Association
January 11, 2022
DISCUSSION:
The Newport Beach City Employees Association (CEA) and Professional and Newport Beach Technical Employees Association (ProfTech) are exclusively recognized bargaining units. The CEA represents 94 budgeted, miscellaneous positions in administrative support, finance, library services and recreational services occupations.
The ProfTech represents 78 budgeted, miscellaneous positions in engineering, planning, and information technology occupations. Both units are affiliated with the Laborers' International Union of North America, Local 777 (LIUNA). After meeting and conferring with both associations over the terms and conditions of their employment, the City Council approved successor Memoranda of Understanding (MOUs) on November 16, 2021, each with a term of January 1, 2022 through December 31, 2025.
The attached Side Letters of Agreement with CEA and ProfTech provide for a one-time bonus in the amount of $2,000 for all bargaining unit members in paid status for the entirety of the first full pay period following City Council adoption of the side letters. This will be a lump sum payment that is non -pensionable and will not be reported to CalPERS.
All other provisions, terms and covenants set forth in the existing MOUs will remain unchanged.
Over the past year, the City has experienced an increase in retirements and separations of non -probationary employees who have worked for the City for at least five years. The bonus is intended to recognize and retain existing unit members whose knowledge, experience and training elevate the level of public service received by the City's residents and visitors on a daily basis. Their institutional knowledge is invaluable and warrants recognition. Further, the bonus is consistent with Council's approval of other City employee MOUs which provide for one-time bonuses of $2,000 for covered association members.
If the City Council approves adoption of the Side Letter Agreements, City staff will work to implement the provisions as soon as practicable.
FISCAL IMPACT:
A total of $344,000 will be required to implement the terms of the Side Letter Agreements.
To the extent that positions are vacant at the time of City Council approval, there will be some budget savings associated with the vacancies, estimated to be approximately $16,000 of the $344,000 requested appropriation.
14-2
Approval of Side Letters of Agreement with the
Newport Beach City Employees Association and Newport Beach Professional and Technical Employees Association
January 11, 2022
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 — Side Letter of Agreement to the Memorandum of Understanding between the City of Newport Beach and the Newport Beach City Employees Association
Attachment B — Side Letter of Agreement to the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Professional and Technical Employees Association
Attachment C — Budget Amendment No. 22-036
14-3
ATTACHMENT A
SIDE LETTER OF AGREEMENT
BETWEEN
CITY OF NEWPORT BEACH
AND
THE NEWPORT BEACH CITY EMPLOYEES ASSOCIATION
This Side Letter of Agreement ("Agreement") is made and entered into this _ day of December 2021 by and between the City of Newport Beach ("City") and the Newport Beach City Employees Association ("Association") (collectively "Parties") with respect to the following:
WHEREAS, on November 16, 2021, the City Council adopted Resolution No. 2021-109 approving a Memorandum of Understanding ("MOU") between the Parties with a term of January 1, 2022 through December 31, 2025; and WHEREAS, to aid in the recognition and retention of valuable employees, the Parties wish to modify the MOU; and
WHEREAS, the effective date of the change below is the first day of the pay period following City Council approval of this Agreement; WHEREAS, this side letter of agreement will not have the effect of an agreement, and will not be binding on either party, until it is ratified by the affecting bargaining unit and approved by the City Council; and
NOW, THEREFORE, it is mutually agreed between the Parties as follows:
1. Section 2, Compensation, of the MOU is amended to add Subsection L which shall read as follows:
L. Lump Sum Bonus (FY 2021-22). All Bargaining Unit Employees in paid status for the entirety of the first full pay period following City Council adoption of this side letter in Fiscal Year 2021-22 will receive a one- time bonus in the amount of $2,000. The parties intend and understand that this lump sum payment is non -pensionable and will not be reported to CalPERS. The parties also agree that this payment is intended to be specific to the pay period in which it is paid and is to be considered part of the regular rate for this pay period only.
2. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in full force and effect.
Signatures are on the next page.
City Employees Association Side Letter Agreement Page 1 of 2 14-4
Executed this day of )2022.
CITY OF NEWPORT BEACH: NEWPORT BEACH CITY
EMPLOYEES ASSOCIATION:
Grace K. Leung, City Manager A ne oughty, P sident
APPROVED AS TO FORM: ATTEST:
Charles Sakai, Special Counsel Leilani Brown, City Clerk City Employees Association Side Letter Agreement Page 2 of 2 14-5
ATTACHMENT B
SIDE LETTER OF AGREEMENT
BETWEEN
CITY OF NEWPORT BEACH
AND
THE NEWPORT BEACH PROFESSIONAL AND TECHNICAL
EMPLOYEES ASSOCIATION
This Side Letter of Agreement ("Agreement") is made and entered into this _ day of December 2021 by and between the City of Newport Beach ("City") and the Newport Beach Professional and Technical Employees Association ("Association") (collectively "Parties") with respect to the following:
WHEREAS, on November 16, 2021, the City Council adopted Resolution No. 2021-109 approving a Memorandum of Understanding ("MOU") between the Parties with a term of January 1, 2022 through December 31, 2025; and WHEREAS, to aid in the recognition and retention of valuable employees, the Parties wish to modify the MOU; and
WHEREAS, the effective date of the change below is the first day of the pay period following City Council approval of this Agreement; WHEREAS, this side letter of agreement will not have the effect of an agreement, and will not be binding on either party, until it is ratified by the affecting bargaining unit and approved by the City Council; and
NOW, THEREFORE, it is mutually agreed between the Parties as follows:
1. Section 2, Compensation, of the MOU is amended to add Subsection M which shall read as follows:
M. Lump Sum Bonus (FY 2021-22). All Bargaining Unit Employees in paid status for the entirety of the first full pay period following City Council adoption of this side letter in Fiscal Year 2021-22 will receive a one- time bonus in the amount of $2,000. The parties intend and understand that this lump sum payment is non -pensionable and will not be reported to CalPERS. The parties also agree that this payment is intended to be specific to the pay period in which it is paid and is to be considered part of the regular rate for this pay period only.
2. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in full force and effect.
Signatures are on the next page.
Professional and Technical Employees Association Side Letter Agreement Page 1 of 2 14-6
Executed this day of
CITY OF NEWPORT BEACH:
Grace K. Leung, City Manager
APPROVED AS TO FORM:
Char es akai, Special Counsel
2022.
NEWPORT BEACH
PROFESSIONAL AND TECHNICAL
EMPLOYEES ASSOCIATION:
R aaPuesident
y
ATTEST:
Leilani Brown, City Clerk
Professional and Technical Employees Association Side Letter Agreement
14-7
ATTACHMENT C
�( City of Newport Beach
K z BUDGET AMENDMENT
2021-22 BA#: 22-036
Department: Human Resources
ONETIME: ❑ Yes ❑ No
Requestor: Barbara Salvini
Approvals
❑ CITY MANAGER'S APPROVAL ONLY
Finance Director: e_77) Date
D COUNCIL APPROVAL REQUIRED City Clerk: Date
EXPLANATION FOR REQUEST:
To increase expenditure appropriations for a lump sum payment to each member of CEA and Prof -Tech in accordance ❑ from existing budget appropriations with the Side Letter of Agreements. ❑ from additional estimated revenues ❑� from unappropriated fund balance
Fund # Org Object Project Description Increase or (Decrease) $ Subtotal $
EXPENDITURES
Fund #
Org
Object
Project Description
Increase or (Decrease) $
010
01010005
714001
CITY CLERK ADMIN - LUMP SUM PAYMENT
6,000.00
010
01025005
714001
HUMAN RESOURCES - LUMP SUM PAYMENT
2,000.00
010
01030005
714001
FINANCE ADMIN - LUMP SUM PAYMENT
2,000.00
010
01030301
714001
FINANCIAL PLANNING - LUMP SUM PAYMENT
10,000.00
010
01030302
714001
FINANCIAL REPORTING - LUMP SUM PAYMENT
8,000.00
010
0103031
714001
REVENUE SERVICES - LUMP SUM PAYMENT
24,000.00
010
01040005
714001
FIRE ADMINISTRATION - LUMP SUM PAYMENT
3,000.00
010
01040401
714001
FIRE OPERATIONS - LUMP SUM PAYMENT
2,000.00
010
01040404
714001
EMERGENCY MEDICAL SERVICES - LUMP SUM PAYMENT
1,000.00
010
01040405
714001
JUNIOR LIFEGUARDS - LUMP SUM PAYMENT
500.00
010
01040406
714001
LIFEGUARD OPERATIONS - LUMP SUM PAYMENT
1,500.00
010
01050005
714001
CDD ADMIN - LUMP SUM PAYMENT
6,000.00
010
0105041
714001
INSPECTIONS - LUMP SUM PAYMENT
17,000.00
010
0105042
714001
PLAN CHECKS/PERMITS - LUMP SUM PAYMENT
31,000.00
010
01050501
714001
PLANNING - LUMP SUM PAYMENT
20,000.00
010
01050503
714001
CODE ENFORCEMENT - LUMP SUM PAYMENT
6,000.00
010
01050505
714001
REAL PROPERTY GEN FUND - LUMP SUM PAYMENT
2,000.00
010
01060005
714001
LIBRARY ADMIN - LUMP SUM PAYMENT
8,000.00
010
0106021
714001
CDM BRANCH LIBRARY - LUMP SUM PAYMENT
4,000.00
010
0106022
714001
MARINERS BRANCH LIBRARY - LUMP SUM PAYMENT
12,000.00
010
0106023
714001
CENTRAL LIBRARY - LUMP SUM PAYMENT
32,000.00
010
0106024
714001
BALBOA BRANCH LIBRARY - LUMP SUM PAYMENT
2,000.00
010
01060601
714001
TECHNICAL PROCESSING - LUMP SUM PAYMENT
6,000.00
010
01070005
714001
RECREATION ADMIN - LUMP SUM PAYMENT
4,000.00
010
0107010
714001
PROGRAM SUPPORT - LUMP SUM PAYMENT
18,000.00
010
0107012
714001
ADULT SPORTS - LUMP SUM PAYMENT
2,000.00
010
0107014
714001
YOUTH PROGRAMS - LUMP SUM PAYMENT
2,000.00
010
0107018
714001
PARK PATROL - LUMP SUM PAYMENT
4,000.00
010
0107020
714001
NEWPORT COAST COMMUNITY CENTER - LUMP SUM PAYME
2,000.00
010
0107021
714001
COMMUNITY YOUTH CENTER - LUMP SUM PAYMENT
2,000.00
010
0107023
714001
MARINA PARK - LUMP SUM PAYMENT
4,000.00
010
0107031
714001
OASIS - LUMP SUM PAYMENT
8,800.00
010
0107032
714001
OASIS FITNESS CENTER - LUMP SUM PAYMENT
2,400.00
010
0107033
714001
OASIS TRANSPORTATION - LUMP SUM PAYMENT
2,800.00
010
01080005
714001
PUBLIC WORKS ADMIN - LUMP SUM PAYMENT
10,000.00
14-8
Fund #
Org
Object Project
Description
Increase or (Decrease) $
010
0108011
714001
WQ/CONSERVATION/ENVIRONMENTAL - LUMP SUM PAYME
2,000.00
010
0108012
714001
TRAFFIC & TRANSPORTATION - LUMP SUM PAYMENT
18,000.00
010
01080801
714001
ENGINEERING SERVICES - LUMP SUM PAYMENT
22,000.00
010
01080807
714001
MOD ADMIN - LUMP SUM PAYMENT
2,000.00
100
10045451
714001
HARBOR DEPARTMENT - LUMP SUM PAYMENT
2,000.00
701
7019052
714001
WATER SYSTEM SERVICE - LUMP SUM PAYMENT
5,000.00
764--.--76420203-..-714001--------
CITY MGR INFORMTN TECHNOLOGY - LUMP SUM PAYMENT
25,000.00
Subtotal $ 344,000.00
BALANCE
Fund #
Object
Description
Increase or (Decrease) $
010
300000
GENERAL FUND - FUND BALANCE CONTROL
(312,000.00)
100
300000
TIDE & SUBMERGED LANDS
FUND - FUND BALANCE CONTROL
(2,000.00)
701
300000
WATER ENTERPRISE FUND -
FUND BALANCE CONTROL
(5,000.00)
764
300000
IT ISF - FUND BALANCE CONTROL
(25,000.00)
Subtotal) $ (344,000.00)
Fund Balance Change Required
14-9