NEWPORT BEACH PR
OFESSIONAL AND TECHNICAL EMPLOYEEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING AND SIDE LETTERS
January 1, 2022June 28, 2025 through December 31, 2025June 30, 2028 17-4
ATTACHMENT A
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF NEWPORT BEACH
AND
THE NEWPORT BEACH
PROFESSIONAL AND TECHNICAL
EMPLOYEES ASSOCIATION
June 28, 2025 through June 30, 2028
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MEMORANDUM OF UNDER STANDING BETWEEN
THE CITY OF NEWPORT BEACH PROFESSIONAL AND TECHNICAL
EMPLOYEES ASSOCIATION
This MEMORANDUM OF UNDERSTANDING (h ereinafter referred to as "MOU") is entered into with reference to the following:
PREAMBLE
1. The Newport Beach Professional and Technical Employees Association ("NBPTEA" or "Association"), a recognized employee organization, affiliated with the Laborers' International Union of North America, Local 777 (LIUNA), and the City of Newport Beach ("City") , a municipal corporation and charter city, have been meeting and conferring, in good faith, with respect to wages, hours, fringe benefits and other terms and conditions of employment.
2. NBPTEA representatives and City representatives have reached an agreement as to wages, hours and other terms and conditions of employment. This shall apply to all affected employees for the term of January 1, 2022June 28, 2025 through December 31, 2 025June 30, 2028 and this agreement has been embodied in this MOU.
3. This MOU, upon approval by NBPTEA and the Newport Beach City Council, represents the total and complete u nderstanding and agre ement between the parties regarding all matters within the scope of representation.
SECTION 1. General Provisions
A. RECOGNITION
In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers Milias Brown Act of the State of California and the provisions of the Employer's/Employee Labor Relations Resolution No. 2 001-50, the City acknowledges that NBPTEA is the majority representative for the purpose of meeting and conferring regarding wages, hours and other terms and conditions of employment for all employees in those clas sifications specified in Exhi bit "A" or as appropriately modified in accor dance with the Employer/Emplo yee Resolution. All other classifications and positions not specifical ly included within Exhibit "A" are excluded from representation by NBPTEA.
B. TERM
1. Except as specifica lly provided otherwise, any or dinance, resolution or action of the City Council nece ssary to implement this MOU shall be considered effective as of January 1, 2022June 28, 2025. This MOU shall remain in full force and effect until December 31, 2025June 30, 2028 , and the provisions of 17-6
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this MOU shall continue after the date of expiration of this MOU in the event the parties are meeting and conferring on a successor MOU.
2. The provisions of this MOU shall prevail over conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions and policies of the City, and federal and state statutes, rules and regulations which either s pecifically provide that agreements such as this prevail, confer rights which may be waived by any collective bargaining agreement, or are, pursuant to decisi onal or statutory law, superseded by the provisions of an agreement similar to this MOU.
C. RELEASE TIME
1. Three NBPTEA officers designated by the NBPTEA shall collectively be granted an annual maximum of 150 hours paid rele ase time for the conduct of NBPTEA business. Such time shall be exclusive of actual time spent in collective bargaining and shall be scheduled at the discretion of the NBPTEA officer. Every effort will be made to schedule this time to avoid interference with City operations.
2. Release time designees shall be identif ied annually and notice shall be provided to the City. Release time incurred sha ll be reported regularly in the form and manner prescribed by the City.
3. Activities performed on release time s hall include representat ion of members in rights disputes, preparation for collective bargaining activities, and distribution of NBPTEA written communication in the workplace.
4. Each January, the City will examine the number of Release Time hours the Association used the preceding year. If the Association used more than 75% of the hours normally granted (150), the Association will be granted an additional 30 hours for that year.
D. SCOPE
1. All present written rules and current est ablished practices and employees' rights, privileges and benefits that are within the scope of repr esentation shall remain in full force and effect during the term of th is MOU unless specifically amended by the provisions of this MOU.
2. The practical consequences of a Managem ent Rights decision on wages, hours, and other terms and conditions of employment shall be subject to the grievance procedures.
3. Pursuant to this MOU, the City reserves and retains all its inherent exclusive and non-exclusive managerial rights, powers, functions and authorities ("Management Rights") as set forth in Resolution No. 2001-50. Management Rights include, but are not limited to, the following:
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(a) the determination of the purposes and functions of City Departments;
(b) the establishment of standards of service;
(c) to assign work to employees as deemed appropriate;
(d) the direction and supervision of its employees;
(e) the discipline of employees;
(f) the power to relieve employees from duty for lack of work or other legitimate reasons;
(g) to maintain the efficiency of operations;
(h) to determine the methods, means and personnel by which operations are to be conducted;
(i) the right to take all necessary actions to fulfill the Department's responsibilities in the event of an emergency; and
(j) the exercise of complete control and discretion over the manner of organization, and the appropriate technology, best suited to the performance of departmental functions.
The practical consequences of a Management Rights decision on wages, hours, and other terms and conditions of employm ent shall be subject to the grievance procedures.
E. EMPLOYEE DATA AND ACCESS
In January and July of each year, the NBPTEA wi ll be provided with a listing of all unit members. The listing will include name, department, and job title. Information concerning the NBPTEA prepared by the NBPTEA will be provided to new employees at the time of orientation.
The City shall provide NBPTEA with access and information regarding new employees and existing unit members as required by law. NBPTEA designated officers shall be entitled to solicit membership from new employees at their work site.
This solicitation shall be made from the total release time for NBPTEA Officers and shall be scheduled in a manner that is not disruptive to depart mental operations.
Department heads may dete rmine appropriate times for new employee contact, but they cannot reasonably deny such contact.
F. CONCLUSIVENESS
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With the exception of a separate MOU covering retirement issues, this MOU contains all of the covenants, stipulations, and provisions agreed upon by the parties. Therefore, for the term of this MOU, neither party shall be compelled, and each party expressly waives its rights to request the other to meet and confer concer ning any issue within the scope of representation except as expressly prov ided herein or by mutu al agreement of the parties. No representative of either party has the authority to make, and none of the parties shall be bound by, any statement, re presentation or agreement reached prior to the execution of this MOU and not set forth herein.
As provided in the Employer-Employee Relations Resolution No. 2001-50, the City shall determine the way City services are to be pr ovided, including whet her the City should provide services directly or contract out wo rk, including work that is currently being performed by Association members. In the event the City introduces a plan to outsource services currently being performed by Association members to achieve greater efficiency and/or cost savings, and upon request by the Association, the City shall meet and confer with Association representatives to discuss the impacts of the City's decision to contract out work. The City shall retain sole authority to decide whether or not to contract out work, including work that is currently being performed by Association members. This provision shall not limit the City's authority to enter into such an agreement for any City services.
G. MODIFICATIONS
Any agreement, understanding, or waiver or modification of any of the terms or provisions of this MOU shall not be binding upon the parties unless contained in a written document executed by authorized representatives of the parties.
H. ASSOCIATION DUES
1. The collection of Associ ation dues shall be handled through the payroll deduction process.
2. The Association and LIUNA agree to defend, indemnify and hold harmless the City for its collection of Association dues.
SECTION 2. COMPENSATION
A. SALARY
Base salary increases for all NBPTEA represented classifi cations shall be as follows and as specified in Exhibit A:
Effective the pay period that in cludes January 1, 2022 June 28, 2025 , base salaries will be increased by one five percent (15.0%) for all represented classifications.
Effective the first full pay period that includes following January 1, 2023July 1, 2026 , 17-9
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base salaries will be increased by three four percent ( 34.0%) for all represented classifications.
Effective the first full pay period that includesperiod following January 1, 2024July 1, 2027, base salaries will be in creased by three percent (3 .0%) for all represented classifications.
Effective the pay period that includes January 1, 2025, base salaries will be increased by three percent (3.0%) for all represented classifications.
Salary Schedule Adjustment
Effective the pay period which includes July 1, 2023, the City will add a new top step (“New Top Step”) to the salary schedule for all represented positions, which shall be five percent (5%) more than t he current top step (“Current Top Step”). The Parties acknowledge and agree that the first step for all represented positions currently in effect is not eliminated.
With the following exception, step advancement through the salary ranes is unaffected by the addition of the New Top Step:
Employees who have been at the Current Top Step for longer than 12 months as of June 30, 2023, will advance to the New Top Step in the pay period which includes July 1, 2023.
B. OVERTIME
1. Advanced Approval - Employees must have advanced approval from their supervisor to work overtime.
2. FLSA Overtime - Overtime ear ned for actual work hours in excess of 40 in the employee's defined FLSA workweek.
3. Contract Overtime - Overtime earned fo r an employee whose hours paid in their defined FLSA workweek exceeds 40. For pur poses of calculating hours paid for contract overtime, holidays occurring during the work week count as time worked.
The use of other forms of leave do not count as hours worked for purposes of calculating hours paid for determining eligibility for contract overtime.
4. Rate at Which Overtime is Calculated -FLSA and Contract Overtime (paid at time and one half - 1.5) shall be calculated at t he regular rate of pay, except that the rate at which Contract Overtime is calculated shall not include the City's Cafeteria Plan Allowance, the opt-out Cafeteria Plan Allow ance, or any cash back an employee may receive from the Cafeteria Plan Allowance by choosing benefits which cost less than the Allowance.
5. Workweek for Purposes of Calculating Overtime - For employees who work the 17-10
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9/80 work schedule, their def ined FLSA workweek shall begin exactly four hours after the start time of their shift on their alternating regular day off (i.e., their eight- hour day) and end exactly 168 hours later. Fo r employees who work a 5/40 work schedule, their workweek shall begin on Saturday at 12:01 a.m. and will end exactly 168 hours later the following Saturday at 12:00 a.m.
6. Work Schedule - Regardless of the type of work schedule an employee is assigned (e.g., 5/40 and 9/80), full-time employees are regularly scheduled to work 40 hours in their defined FLSA workweek.
7. Reporting Time - The City calculates over time in tenths of an hour. Employees shall report their time worked to the nearest tenth of an hour.
C.
D. WEEKEND STANDBY DUTY
Information Technology staff assigned standby duty for the purpose of responding to calls for service during the weekendoff hours shall be paid $3 per hour for each hour of assigned standby duty. Weekend will be defined as the 62 hours beginning on Friday at 5:00 p.m. and concluding Monday at 7:00 a.m. for a total of 62 hours per weekend. Time on standby is not considered hours worked. Standby pay will not be piggybacked with any other paid time, such as call-back, scheduled or unscheduled overtime, or if working a scheduled shift . This provision is not intended to be a guarantee of hours and the City shall retain the right to determine when standby duty shall be assigned.
E. CALLBACK DUTY
1. Defined
Callback duty requires the employee to respond to a re quest to retu rn to their workstation after the normal work shift has been completed and the employee has left their normal workstation. Those pP eriods of overtime which had have been scheduled by the Department Director prio r to the end of the normal work shift are not considered callback duty.
2. Compensation
All employees shall receive a minimum of two three (2)3) hours pay. If an employee works more than two (2) three (3) hours, they shall rece ive pay for actual hours worked.
F. ACCUMULATION OF COMPENSATORY TIME OFF
Unit members who are non-exempt from ov ertime may receive compensatory time off (CTO), in lieu of cash, as compensation for overtime hours worked at the rate of one-and- one-half hours for each hour of overtime worked. An employee may only 17-11
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earn CTO if requested and then approved by the em ployee's supervisor. Callback time may be converted to CTO with supervisor approval.
Employees may accumulate up to 80 hours of CTO. Any hours earned in excess of 80 will be paid out to the employee the following pay period. Once a unit member reduces the balance below 80 hours, additional hours may be earned again up to the 80 hour cap.
G. SHIFT DIFFERENTIAL
Unit members who are regularly assigned a work schedule of which four or more hours are worked between the hours of 5 p.m. and 5 a.m. shall receive a shift differential pay of
$1.00 per actual hour work ed; payable for each hour worked after 5 p.m.
Overtime worked as an extension of an assigned day shift shall not qualify an employee for shift differential.
The parties agree that to the extent permitt ed by law, the City shall report to the California Public Employees' Retirement System (Ca/PERS) shi ft differential pay as Special Assignment Pay pursuant to Titl e 2 CCR, Section 571(a )(4) and/or Section 571.1 (b)(3) Shift Differential. However, for “new members” as defined by the Public Employees' Pension Reform Act (PEPRA) of 2013, shift differentia l pay will not be reported as pensionable compensation to CalPERS.
H. ASSOCIATE CIVIL ENGINEER AND JUNIOR CIVIL ENGINEER
Employees in the class of Associate Civil Engineer and Junior Civil Engineer who are registered by the State of California shall receive an additional compensation of five (5%) percent of base pay per month.
I. COURT TIME
Employees who are required to appear in cour t during their off-duty hours in connection with City business shall receive a minimum of two hours pay. If an employee is actually in court for more than two hours, the member shall receive pay for actual hours worked.
J. CERTIFICATE PAY
Effective January 1, 2013, the certificate pay program was modified to eliminate "inactive" certificates and "sunset" certain active certif icates. Employees currently receiving pay for a "sunset" certificat e are considered grandfathered under the program, but no further employ ees shall be eligible. The complete list of eligible certificates and the correspondi ng benefit is listed in Exhi bit B. All other procedures associated with certificate pay remain in effect, including a limitation of payment for a maximum of five certificates per employee.
The parties agree that to the extent permitted by law, the City shall report to the 17-12
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California Public Employees' Retirement System (Ca l/PERS) eligible certificate pays as Educational Pay pursuant to Title 2 CCR, Section 571(a)(2) and/or 571.1(b)(2).
K. ACTING PAY
NBPTEA employees are eligible to receiv e "acting pay" only after completing 80 consecutive hours in the higher classification. On ce the 80 hour requirement has been satisfied, acting pay will be gran ted for all hours wo rked above 40 hours beginning with the 41 st hour worked in the higher clas sification. Acting pay is an additional 7. 5% of the
employee's base pay rate.
The parties agree that to the extent permitted by law, and in accordance with Government Code §20480 Out-of-Class Appointment Limitations, the City shall report to the California Public Employees' Reti rement System (Ca/PERS) acting pay as Premium Pay pursuant to Title 2 CCR Section 571(a)(3) Temporary Upgrade Pay.
However, F f or "new members" as defined by the Public Employees' Pension Reform Act (PEPRA) of 2013, acting pay will no t be reported as pensionable compensation to Cal/PERS. The employee must be pe rforming 100% of the duties in the higher classification for temporary upgrade pay to be reportable.
L. BILINGUAL PAY
Upon determination of the D epartment Director that an em ployee's ability to speak, read and/or write in Spanis h contributes to the Depart ment providing better service to the public, employees in positions that require additional languages as part of their normal duties shall be eligible to receive One Hundred Fifty ($150) dollars per month (paid each pay period) in bilingual pay. Th e certification proce ss will confirm the employee is fluent at the street conversational level in speaking, reading and/or writing Spanish. Employees certified shall receive bilingual pay the first full pay period following certification.
Additional languages may be cert ified for compensation purs uant to this section by the Department Director with the concurrence of the Human Resources Director.
The parties agree that to the extent permitted by law, the City shall report to the California Public Employees' Retirement System (Ca/PE RS) bilingual pay as Special Assignment Pay pursuant to Title 2 CCR, Section 571(a)(4) and/or 571.1(b)(3) Bilingual Premium.
M. ASSIGNMENT PAY
An employee appointed by the Community Development Director to regularly perform the duties of the Zoning Administrator as set fo rth in the Zoning Code shall be provided temporary assignment pay at five percent (5%) above the employee's base pay, to be paid on an hourly basis for all hours worked in the assignment. This assignment pay is temporary and will cease once the employee is no longer per forming the duties of the 17-13
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Zoning Administrator.
Assistant Planners appointed by the Planning Director to regularly perform the lead duties at the Plan Check Counter shall be provided temporary assignment pay at five (5%) percent above the employee's base pay, paid on an hourly basis for all hours worked in the assignment. This assignment pay will cease once the employee is no longer performing the duties of the lead person at the Plan Check Counter.
N. LONGEVITY PAY
Unit members shall receive longevity pay based on their continuous years of full- time service with the City of Newport Beach as follows:
Completed Years of Continuous
Service
Longevity Pay
15 – 19 1%
20-24 1.5%
Over 25 years 2%
These pays are not cumulative (e.g., at 20 years of service, total longevity pay will be 1.5%). The parties agree that to the extent permitted by law, Longevity Pay is special compensation and shall be reported to CalPERS as such pursuant to Title 2 CCR, Section 571(a)(1) and 571.1(b)(1).
N. 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 par ties intend and understand that this lump sum payment is non-pensionable and will not be reported to Ca lPERS. 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.
SECTION 3. LEAVES
A. FLEX LEAVE
Members accrue flex leave in lieu of vacation and sick leave. An employee accrues a designated number of flex leave hours while in paid status and based upon years of service. Years of service is determined by the number of continuous, full-time years a member is employed by the City.
Unit members shall accrue flex leave at the following hourly rates:
Years of Continuous
Service
Hrs. Accrued Per
Pay Period
Annual Hours Max Allowable
Balance (hours)
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Less than 5 6.00 156.00 468.00
5 but less than 9 6.61 171.86 515.58
9 but less than 12 7.23 187.98 563.94
12 but less than 16 8.15 211.90 635.70
16 but less than 20 8.77 228.02 684.06
20 but less than 25 9.38 243.88 731.64
25 and over 10.00 260.00 780.00
Members shall accrue three (3) months (i.e., 39 hours) of flex leave in the manner and as provided above upon completion of three (3) months of continuous employment with the City, provided however, this amount shall be reduced by any flex leave time advanced during the first three (3) months of employment. At the completion of three (3) months of employment, three (3) months of accrued Flex leave will be placed in the employee's account.
1. Limit on Accumulation
Members hired prior toon or before July 1, 1996:
Members hired prior on or beforeto July 1, 1996, shall be paid for earned flex leave in excess of the maximum allowable balance as spillover pay at the member's hourly rate of pay provided that they have utilized at least eighty (80) hours of flex leave the previous calendar year. Employees accruing at the 16 years of cont inuous service level or above shall be required to use 120 hours of fl ex leave the previous calendar year to receive spillover pay. Employees who have not utilized the required amount of leave the prior calendar year shall not be eligible to accrue time above the maximum allowable balance.
Employees hired after July 1, 1996:
Employees first hired or rehired by the City subsequent toafter July 1, 1996 are not eligible for flex leave spillover pay and are not entitled to accrue flex leave in excess of the flex leave maximum allowable balance.
2. Method of Use
The Department Director shall approve all requests for flex leave taking into consideration the needs of the Department, and whenever possible the wishes of the employee.
B. HOLIDAY LEAVE
The following days shall be observed as paid holidays (i.e., employees shall have the day off with pay). With the exception of the "floati ng holiday" (where the employee chooses the day off) , employees Employees who are required to work on the holiday will receive their pay for the holiday asnd either pay or flex /leave for the number of hours worked on the holiday.
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New Year's Da y Januarv 1
Martin Luther King Day January- 3 rd Monday
Washington's Birthdav February - 3 rd Monday
Memorial Dav Mav - Last Mondav
Floatinq Holidav* Jultv 1
Independence Da y July 4
Labor Dav September- 1st Mondav
Veterans Dav Novembe r 11
Thanksgiving Day November - 4 th Thursday
Friday After Thanksgiving November- 4 th Friday
Christmas Eve December 24 (last½ of workday)
Christmas Dav December 25
New Year's Eve December 31 (last½ of workday)
Holiday Closure – Up to 3 Days TBD based on closure dates*
Holidays are paid based on the employee's regular workday schedule. For example, if an employee is on a 9/80 schedule and the holiday is observed on a day that the employee is regularly scheduled to work nine hours, the employee is ent itled to receive nine hours of holiday pay. However, if an employee is on a 9/80 schedule and the holiday is observed on a day that the employee is regularly schedul ed to work eight hours, the employee is eligible to receive eight hours of holiday pay. If an employee must work on one of the holidays listed above, (except the floating ho liday), the employee w ill be credited with a maximum of eight hours per holiday.
1. Holidays listed above (except the floating holiday) occurring on a Saturday shall be observed the preceding Friday. Holidays occurring on a Sunday shall be observed the following Monday . (Half day holidays shall be observed prior to the observed holiday)..
2. Holiday pay will be paid only to employees who work their scheduled day before and scheduled day after a holiday or are on authorized paid leave (e.g. paid leave that has been reviewed and approved by the Department Director).
3. Holiday Closure – If the City Council approves a holiday closure for City Hall, the following applies:
a. Holiday Closure Pay Unit members w ill receive holiday closure pay for the days they would have normally been sc heduled to work during the closure period, up to a maximum of three (3) days. The holiday closure pay is specifically for use during the approved holiday clos ure. Example: If your regular work schedule would have you working two days during a three-day holiday closure, you will receive two days of holiday closure pay, not three.
You will not automatically get three days if your schedule does not call for it.
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b. Working During a Holiday Closure If a unit member is required by their supervisor to work during a holiday closure, they may bank their holiday hours to flex, up to a maximum of eight hours for each day the employee is required to work during the holiday closure.
The Holiday Closure Pay aims to fair ly compensate members while ensuring operational needs are met during approved holiday closures.
The floating holiday is awarded on July 1. Eight hours of holiday leave is are added to the member's vacation or flex leave bank on the first pay period in July each year.
C. BEREAVEMENT LEAVE
Bereavement leave shall be defined as "the necessary absence from duty by an employee because of the death or terminal illness in of an immediate family member." Unit members shall be entitled to 40 hours of bereavement leave per calendar year per incident (terminal illness followed by death is considered one incident). Be reavement leave shall be administered in accordance with the provis ions of the Employee Policy Manual. Leave hours need not be used consecutively, however they should be used in proximate time to the occurrence. For the purposes of this section, immedi ate family shall mean an employee's father, mother, st epfather, stepmother, brother, sister, spouse/domestic partner, child, stepchild, grandchild, grandparents and the member's spouse's/domestic partner's father, mother, brother, sister, child, grandchild and grandparents. The provisions of this section shall not dimi nish or reduce any rights a member may have pursuant to applicable provis ions of state or federal law. A member requesting bereavement leave shall notify their superviso r as soon as possible of the need to take leave.
D. REPRODUCTIVE LOSS LEAVE
Eligible employees are entitled to five unpaid days for each reproductive loss event.
Multiple reproductive loss events are covered, up to a maximum of 20 days of reproductive loss leave within a twelve-month period.
D.E. LEAVE SELLBACK
Employees shall have the option (on two o ccasions) of selling back on an hour for hour basis, accrued flex or vacation leave. In no event shall the flex or vacation leave balance be reduced below one hundred and si xty (160) hours. Hours sold back will be subject to the Retiree Health Savings Plan Part C contributions, per Section 4 (F), Retiree Medical.
For the term of this MOU the Association has elected Part C contributions for Flex at 0%.
Employees shall have the option of converting accrued flex /eave to cash on an hour for hour basis subject to the following: On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out 17-17
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accrued flex leave which will be earned in the following calendar year. The employee can elect to receive the cash out in the pay period which includes June 30 and/or the pay period which includes December 15 for thos e flex /eave benefits that have been earned during that portion of the year. In no event shall the flex leave balance be reduced below 160 hours.
In addition to the above, an employee wh o has an "unforeseen emergency" (defined as an unanticipated emergency that is caused by an event beyond the control of the employee and that would result in severe financial hardship to the employee if early withdrawal were not permitted) shall be entitled to make a request to the Director of Human Resources for a payoff of accrued flex leave. The amount of flex leave which may be cashed out is limited to the amount necessary to meet the emergency. If there is an unforeseen emergency, an employ ee can cash out flex /eave earlier in the year than described above provided that the remaining balance is not reduced below 160 hours.
SECTION 4. FRINGE BENEFITS
A. INSURANCE
1. Benefits Information Committee
The City has established a Benefits Inform ation Committee (BIC) composed of one representative from each employee association group and up to three City representatives. The Benefits Information Co mmittee has been established to allow the City to present data regarding carrier and coverage options, t he cost of those options, appropriate coverage levels an d other health programs. The purpose of the BIC is to provide each employee association with information about health insurance/programs and to receive timely input from associations regarding preferred coverage options and levels of coverage.
2. Medical Insurance
The City has implemented an IRS qualified Cafeteria Plan. In addition to the contribution amounts listed below, the City shall contri bute the minimum CalPERS participating employer's contribution towards medical insurance for employees enrolled in a CalPERS medical plan, per Government Code Sectio n 22892. Employees shall have the option of allocating Cafeteria Plan contributions towa rds the City's existing medical, dental and vision insurance/programs ,
provided that any cash-out option complies with IRS
Section 125 requirements.
Unused Cafeteria Plan funds shall be payable to the employee as taxable cash back.
Employees shall be allowed to change cove rages in accordance with plan rules and during regular open enrollment periods.
The City's contribution towards the Cafeteria Plan is One Two Thousand Seven Hundred and Twenty-Five Dollars ($ 1,72,025), plus the minimum CalPERS participating 17-18
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employer's contribution.
NBPTEA members who do not enroll in any medical plan offered by the City must provide evidence of group medical insurance coverage and ex ecute an opt-out agreement releasing the City from any responsibility or liability to provide medical insurance coverage on an annual basis.
Employees hired prior to March 16, 2019 who elect to opt out of medical coverage offered by the City because they have provided proof of minimum essential coverage ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California) will receive One Thousand Dollars ($1,000) per month in taxable cash. For these same employees, if they elect medical coverage and spend less than $1,725 (plus the minimum CalPERS participat ing employer’s contribution) of the City contribution provided above, th e difference shall be paid to the employee as taxable cash biweekly. if they elect medical coverage and spend less than the City contribution provided ab ove, those unused cafeteria plan funds shall be paid to the employee as taxable cash.
Employees hired on or after March 16, 2019 who elect to opt out of medical coverage offered by the City because they have prov ided proof of MEC through another source (other than coverage in the individual mark et, whether or not obt ained through Covered California) shall receive Five Hundred Dollars ($500) per month in taxable cash. For these same employees, if they elect medical coverage and spend less than the City contribution provided above, there shall be no cash back provided.
On or before July 1, 2023, at the request of either party, the parties shall meet and confer in good faith to discuss possible changes to the medical benefit program, contribution levels, or other elements of healthcare services, provided, however, that any changes to the MOU may only occur by mut ual agreement of the parties.
3. Dental Insurance
The existing or comparable dental plans shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee.
4. Vision Insurance
The existing or a comparable vision plan sh all be maintained as part of the City's plan offerings as agreed upon by the Benefits Information Committee.
5. Healthcare Reform
The parties recognize that certain state and federal laws, programs and regulations, including the Affordable Care Act, may impact future medical plan offerings., Either party may request to reopen Section 4A(2) regardi ng medical insurance for the purpose of discussing alternative approaches and proposal s to providing healthcare coverage. 17-19
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Additionally, should state or federal laws concerni ng taxation of healthcare benefits change, the parties agree to meet and discuss the impact of such change.
B. Additional Insurance Programs
1. IRS Section 125 Flexible Spending Account
Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as child care and medical expenses. An Association member may request that medical, child care and other eligible expenses be paid or reimbursed by the Section 125 Plan out of the employee's account. The base salary of the employee will be reduced by t he amount designated by the employee for reimbursable expenses.
2. Disability Insurance
The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to all regular full-time employees with the following provisions:
Short-Term Disabilit
y Lon g-Term Disability
Benefit Amount 66.67% of covered wages 66.67% of covered wa ges Maximum Benefit $1,846 weekly $15,000 monthly
Waiting Period 30 calendar days 180 calendar days
Employees shall not be required to exhaust accrued paid leaves prior to receiving benefits under the disability insurance program. Empl oyees may not supplement the disability benefit with paid leave once the waiting period has been exhausted.
3. Life Insurance
The City shall provide life insurance for a ll regular full-time employees in $1,000 increments equal to one times the employee's annual salary up to a maximum of $50,000.
At age 70 the City-paid life insu rance is reduced by 50% of the pre-70 amount. This amount remains in effect until the employee terminates from City employment.
C. Employee Assistance Program
City shall provide an Employee Assist ance Program (EAP) through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines.
D. Retirement Benefit
The City contracts with California Public Employees Retirement System (Ca/PERS) to provide retirement benefits for its empl oyees. Pursuant to prior agreements and 17-20
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state mandated reform, the City has implemented three different tier s of retirement benefits, categorized as Tier I, Tier II and Tier Ill.
1. Retirement Formula
Tier
/: I: For employees hired by the City on or before November 23, 2012, the retirement formula shall be the 2.5%@ 55 calculated on the basis of the single highest year.
Tier //: II: For employees first hired by the City between November 24 and December 31, 2012 or hired on or after January 1, 2013 and who are current classic members of the retirement system, as defined in the Public Employees' Pension Reform Act ("PEPRA"), the retirement formula shall be 2% @ 60 calc ulated on the average 36 highest months' salary.
Tier III/: For employees first hired by the City on or after January 1, 2013, and who do not meet the Tier II criteria because they are new members as defined by PEPRA, the retirement formula shall be 2% @ 62 calculated on the average 36 highest months' salary.
2. Employee Contributions
The Association has agreed to share in the rising cost of pension obligations. Under the terms of this MOU, unit members will contribute additional amounts toward the CalPERS retirement benefit, to the extent permissible by law. Should any provision be deemed invalid, the City and Association agree to meet for the purpose of renegotiating employee retirement contributions.
Employee retirement contributio ns that are in addition to the normal CalPERS Member Contribution (of 7% or 8%) shall be calculated on base pay, special pays, and other pays normally reported as "PERSable" compensat ion and will be made on a pre-tax basis through payroll deduction, to the extent allowabl e by law. It is recognized that these payments will not be reported to CalPERS as contributions toward either the Member or Employer rate, as provided under Government Code Section 20516(f).
Under a separate agreement and ratified via a contract amendment with CalPERS in 2008, Tier I employees shall contribute 2.42% compensation earnable (as cost sharing) per Government Code section 20516(a).
Tier I Employees - shall contribute a total em ployee contribution of 13% as follows:
Tier I - Eight percent (8%) member contribution, 2.42% of compensation earnable as cost sharing per Government Code sect ion 20516(a) and 2.58% of compensation earnable as cost sharing per Government Code section 20516(f).
Temporary Reduction. Effective the pay period that includes January I, 2023, Tier I Employees shall contribute a total employee contribution of 11.5% as follows: Tier I - Eight percent (8%) member contributions, 2.42% of compensation earnable as cost sharing per Government Code section 20516(a) and 1.08% of compensation earnable as cost sharing 17-21
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per Government Code section 20516(f). This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2025. Accordingly, effective the pay period that includes January 1, 2026, Tier I Employees shall contribute a total employee contribution of 13% as follows: Tier I - Eight percent (8%) member contribution,
2.42% of compensation earnable as cost sharing per Government Code section 20516(a) and 2.58% of compensation ea rnable as cost sharing per Government Code section 20516(f).
Tier II Employees - shall contribute a tota l employee contributio n of 13% as follows:
seven percent (7%) (compens ation earnable) member cont ribution and six percent (6%) of compensation earnable as cost sharing per Government Code section 20516(f).
Temporary Reduction. Effectiv e the pay period that includes January I, 2023, Tier II Employees shall contribute a total employee contribution of 11.5% as follows: seven percent (7%) (compensation earnable) me mber contribution and four and one-half percent (4.5%) of compensation earnable as cost sharing per Government Code section 20516(f). This reduction in the employee contribut ion rate sunsets at the end of the last full pay period in December 2025. Accordingly, effective the pay period that includes January I, 2026, Tier II employees shall cont ribute a total employee contribution of 13% as follows: seven percent (7%) (compensat ion earnable) member contribution and six percent (6%) of compensation earnable as co st sharing per Government Code section 20516(f).
Tier Ill Employees - The minimum statutory employee contribution for employees in Tier Ill is subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier Ill employees shall make an additional contribut ion of pensionable compensation toward retirement pursuant to Government Code Section 20516(f), such that the total employee contribution equals 13% of pensionable compensation.
Temporary Reduction. Effective the pay period that includes January I, 2023, the minimum statutory employee contribution for em ployees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f), such that the total employee contribution equals no less than 11.5% of pensionable compensation (i.e., the greater of 11.5% or 50% of the "total normal cost"). This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2025. Accordingly, effective the pay period that includes January I, 2026, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost".
Tier III employees shall make an additiona l contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f), such that the total employee contribution equals no less than 13% of pensiona ble compensation (i.e., the greater of 13% or 50% of the "total normal cost").
The City contracts with Ca/PERS for the 4th Level 1959 Survivors Insurance Benefit, $500 17-22
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Lump Sum Death Benefit, Sick Leave Credit, Milit ary Service Credit, 2% Cost of Living Adjustment and the pre-retirement option se ttlement 2 death benefit (Government Code Section 21548).
Tier I:
Tier I employees shall contribute eight perc ent (8%) of compensation earnable for the CalPERS member contribution.
Tier II:
Tier II employees shall contribute the statut ory CalPERS Member C ontribution equal to seven percent (7%) of compensation earnable , plus an additional on e percent (1%) of compensation earnable toward retirement costs under Government Code Section 20516(f), for a total contribution of 8% of compensation earnable.
Tier III:
The minimum statutory employee contribution fo r employees in Tier III, subject to the provisions of the Public Employees’ Pens ion Reform Act (PEPRA) equals 50% of the “total normal cost”, and is calculated annually for possible adjustments as provided in the CalPERS valuations.
In addition to the statutorily required 50% contribution of total normal costs, Tier III employees shall contribute an additional am ount of pensionable compensation toward retirement pursuant to Government Code se ction 20516(f) so that their contribution equals a total of 8% of pensionable compensation. Provided, however, that the employee contribution shall never fall below the statutory required contribution.
E. LIUNA Supplemental Pension
The unit members agree to pay any costs and/ or contributions associated with its members' participation in t he LIUNA Supplemental Pens ion Fund. The City's sole obligation is to forward the agreed upon amount to the fund. The City is not responsible for, nor does it make any representation regarding the payment of benefits to unit members.
The employees' contributions to the LIUNA Supplemental Pension Fund are deemed "picked-up" and treated as employer contributions. Employees cannot opt out of the "pick- up," or receive the contributed amounts directly instead of having them paid to the plan.
Participation at the same level will cont inue to be mandatory for members of the Association.
The Association agrees with the procedural change, and change and acknowledges that members who leave City employment prior to vesting in the LIUNA pension plan will still have no right to return of amounts contributed, or other recourse against the City 17-23
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concerning LIUNA.
Effective March 16, 2019, unit members agree to pick up the actual costs and contributions required by LI UNA for participation in the LIUNA Supplemental Pension Fund for as long as its members participate in the LIUNA Supplemental Pension Fund.
The parties are not precluded from discussing the LIUNA Supplemental Pension in future labor negotiations.
The Association and LIUNA agree to defend, indemnify and hold harmless the City for its actions pursuant to this section. This includes, but is not limited to, any challenge by any member of the bargaining unit related to making contributions to the LIUNA Supplemental Pension Fund or receiving benefits from the LIUNA Supplemental Pension Fund.
During the course of this MOU, either party may request a meeting to discuss the LIUNA Supplemental Pension Fund, however any alterations to the Plan administration must be agreed upon by both parties.
F. Retiree Medical Benefit
This is an Integral Part Trust (/PT) RHS Retiree Health Savings (RHS) plan (formerly the Medical Expense Reimbursement Program - "M ERP"). Each member has an individual RHS account ("Account"), which accumulates based on the category they fall under (see Program Structure below). Funds from the A ccount may be used for eligible health care expenses after separation, retirement or a change in personnel status to a position that does not receive the RHS benefit. These changes in personnel status will activate the Account and allow funds to be withdrawn until the Account balance is depleted. Since the plan restricts all distributions to be spent fo r health insurance premiums and health care expenses, as defined by the Internal Reve nue Code Publication 502, § 213(d) and the Plan document the contributions, fund investment earnings and benefit payments (when withdrawn from the Acc ount) are not taxed. Additionally , certain contributions may only be deposited upon retirement from the City. The categories are detailed below.
1. Background
In 2005, the City and NBPTEA agreed to replac e the previous "defined benefit" retiree medical program with a new "defined contri bution" program. The process of fully converting to the new program is ongoing for an extended period. During the transition, employees and (then) existing retirees were administratively classified into different categories. The benefit is structured differently for each of the categories. The categories are as follows:
(b) Category 1 - Employees who become e ligible for the benefit after January 1, 2006. This may include new hires, rehires and part-time employees appointing to full-time status.
(c) Category 2 - Employees who were ac tive and enrolled in the previous 17-24
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defined benefit as of December 31, 2005, eligible for the new defined contribution program as of January 1, 2006 and wh ose age plus years of service as of January 1, 2006 was less than 50.
(d) Category 3 - Employees who were ac tive and enrolled in the previous defined benefit as of December 31, 2005, eligible for the new defined contribution program as of January 1, 2006 and whose age plus years of service as of January 1, 2006 was 50 or greater.
2. Eligibility
All Association members are eligible for the RHS benefit. Howe ver, if a member separates or changes positions to a bargaini ng unit which does not offer this benefit, the member is no longer eligible for any contributions to the pl an and their Account will be activated for use and withdrawal of funds by the employee (or former employee). This means if a unit member subsequently reappoints to a position which offers the RHS benefit, they will be enrolled in "Category 1" and must revest in the program. Any remaining balance deposited duri ng prior eligibility wi ll remain in the Account.
Employees who become ineligible (no longer covered by a City employee association offering the RHS benefit) before vesting forfei t the City's Part B contribution. Said employee will only receive Part A and Part C contribution s. The only exception is an active employee who separates before vesting due to an approved industrial disability.
In such case, the employee will receive exactly five years' worth of Part B contributions, using the empl oyee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's Account at the time of separation.
RHS accounts are deemed forfeited if t he Participant dies with no IRS eligible Survivors to assume the account balance. An eligible Survivor is defined as (a) the Participant's lawful spouse, (b) the Particip ant's child under the age of 27 as defined by /RC Section 152(f)(1), or (c) any other individual who is a person described in /RC Section 152(a). Upon the death of the Participant's survivors, remaining RHS assets are returned to the employer's RHS trust after 12 months from the notification of death.
Survivors may not designate a beneficiary under the RHS plan.
3. Account Contributions
Account contributions are categorized as Part A, Part B and Part C.
Part A contributions are a mandatory, automatic 1% employee contribution deducted each pay period and deposited into the Account through payroll. Deductions begin the pay period in which the employee becomes eligible and are reported to Ca/PERS as pensionable.
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Part B contributions require a five year vesting period which begins when the employee becomes eligible for the RHS benefit. At the conclusion of the vesting period, the City will credit the first five years' worth of Part B contributions into the Account (interest does no t accrue during that period and the contributions are calculated at $2.50 per month for each year of the employ ee's full-time service plus age) and begin to contribute $2.50 per month for each year of the employee's full-time service plus age (e.g. 30 years old and five years of service would be a factor of 35. $2.50 x 35 = $87.50 per month). This factor is updated annually in the pay period including January 1. Part B contributions are not reported to CalPERS as pensionable.
The parties agree that the City 's Part B contributions during active employment constitute the minimum CalPERS participa ting employer's contribution (i.e., the Ca/PERS statutory minimum amount) towards medical insurance after retirement. The parties also agree that, for retirees sele cting a Ca/PERS medical plan, or any other plan with a similar employer contributi on requirement, the required employer contribution will be deducted from the employer's contribution to the retiree's account.
Part C contributions are determi ned by Association electi on and deposited into the Account when flex leave hours are converted to taxable cash through leave cash-out or at the time of separation or status change. Spillover pay does not qualify for Part C contributions. Part C contributions are not reported to CalPERS as pensionable.
The Association determines the level of cont ribution for all unit members, subject to the following constraints. All employees within the Associat ion must participate at the same level. The participation level shall be s pecified as a percentage of the flex leave balance available in each employee's leave bank at the time of separation from the City, or status change, or as a percentage of the flex leave balance being cashed out.
For example, if the Associat ion wishes to elect 30% Part C contributions, then each member leaving the City, or cashing out e ligible leave at any other time, would have the cash equivalent of 30% of the amount that is cashed out deposited to their RHS Account on a pre-tax basis. The remaining 70% would be pa id in cash as taxable income. Individual employees do not have the option to dev iate from this breakout.
The Association may change the Part C co ntribution amount as part of a meet and confer process. The purpose and focus of these changes should be toward long-term, trend type adjustments. Due to IRS restrict ions regarding "const ructive receipt," the City will impose restrictions against frequent spikes or drops that appear to be tailored toward satisfying the desires of a group of imminent retirees.
The Association has decided to participate in Part C contributions at the level of zero percent (0%) flex leave.
Nothing in this section restricts taking leave for time off purposes.
4. Benefit
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(a) Category 1: Employees in this categor y make Part A and receive Part B contributions (subject to vesting) automatically each pay period through payroll deductions. Part C contributions ar e received through cash outs. No contributions are made to Category 1 participants after separation. (b) Category 2: Employees in this categor y make Part A and receive Part B contributions (subject to vesting) automatically each pay period through payroll deductions. Part C contributions ar e received through cash outs. No contributions are made to Category 2 participants after separation.
If a Category 2 participant retires from the City with a minimum of 5 consecutive years of full-time service, the City will contribute to the parti cipant's Account a one- time contribution equal to $100 per month for every month the participant contributed to the previous "defined benefit" plan up to a maximum of 15 years (180 months). This contribution is deposited into the Account at the time of retirement, and only if the employee retires from the City and beco mes a Ca/PERS annuitant of the City of Newport Beach. No interest will be earned in the interim.
For Category 2 participants with less than five years of continuous contributions into the prior defined benefit plan as of January 1, 2006, only the years of service after January 1, 2006 count towards Part B contributions upon vesting. Contributions in years before 2006 will be paid out as stated in the above paragraph. (c) Category 3: Employees in this category make Part A contributions automatically each pay period through payroll deduction s. Category 3 participants do not receive any Part B contributions. Part C contributions are received through cash outs.
If an eligi
ble Category 3 participant retires from the City of Newport Beach, the City will deposit $400 per month into the Account upon retirement, up to a maximum of $4,800 per year, less the CalPERS minimum required employer contribution as determined by CalPERS annually, which shall continue as long as the empl oyee or surviving spouse/qualified dependen t is still living. To offset this expense to the City, active Category 3 participants will contribute an ad ditional $100 per month to the plan until retirement. There is no cash out option for these funds and they cannot be spent in advance of receipt.
Category 3 participants also receive an additional one-time City contribution of $75 per month for every month they contributed to the previous plan prior to January 1, 2006, up to a maximum of 15 years (180 months). This contribution is deposited into the Account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. Contributions are contingent upon remaining a CalPERS annuitant of the City.
5. Administration
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Vendors have been selected by the City to administer the program. The contract expense for program-wide administration by the vendor will be paid by the City. However, specific vendor charges for individual account transactions that vary according to the investment actions taken by each employee, such as fees or commissions for trades, will be paid by each employee.
The City's Deferred Compensation Committ ee, or its successor committee has the authority to determine investment options that will be available through the plan.
G. Tuition Reimbursement
Subject to the limitations below, NBPTEA members attending accredited community colleges, colleges, trade schools or universities, or recognized professional organizations or agencies may apply for reimbursement of one hundred percent (100%) of the actual cost of tuition, books, fees or other student expenses for approved job-related coursework, seminars or prof essional development programs. Travel expenses are not eligible for reimbursement. The maximum annual benefit is $2,000 per fiscal year.
Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Human Resources Director or designee.
H. Deferred Compensation
All members: Each unit member shall have the right to enroll in the deferred compensation program set up by the City and subject to the rules of IRS Code section 457. Unit members who enroll in the City deferred compensation program are eligible for City contributions to their City deferred compensation account as follows:
One-Time Deposit: Effective the first day of the pay period which includes January 1, 2023, unit members who are enrolled in the City's defe rred compensation program will receive a one-time deposi t of five hundred dollars ($500). The City is only obligated to make the contribution if the unit member has enrolled in the deferred compensation program as of the first day of the pay period which includes January 1, 2023. This deposit is for this pay period only and does not carry over to subsequent pay periods. There is no retroactivity.
Matching City Contributions: Effective the first day of t he pay period which includes January 1, 2023, the City shall match a unit member's deferred compensation contribution up to a maximum of thirty do llars ($30) per month. The City is only obligated to make the contribution if the unit member has enrolled in the deferred compensation program. T here is no retroactivity.
Additional matching City contributions to Deferred Compensation Based on Years of Service: In addition to the City contri bution provided above, the City shall match 17-28
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contributions to eligible unit members' deferred compensation accounts as follows:
Years of
Service
January 1, 2023 January 1, 2024 January 1, 2025
15-19 $20 $25 $30
20-25 $25 $30 $35
25+ $30 $35 $40
Under federal law, there is an annual maxi mum contribution wh ich may be made to an employee's IRS Code section 457 a ccount. Although the City will be making contributions to the members' accounts each pay period as described above, it is the members' responsibility to track their total contribution amount. If a member's account contributions reach the annual IRS Code section 457 maximum, the City will stop making contributions for the remainder of the calendar year and shall not owe the member any additional compensation under this section.
SECTION 5. - Miscellaneous
A. Reductions in Force/Layoffs
The provisions of this section shall a pply when the City Manager determines that a reduction in the work force is warranted becaus e of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in m unicipal services, a reduction in the demand for service or other reasons unrelated to the performance of duties by any specific employee. Reductions in force are to be accomplished, to the extent feasible, on the basis of seniority within a particular Classification or Se ries and this Section should be interpreted accordingly.
DEFINITIONS
1. "Bumping Rights", "Bumping" or "Bump" shall mean (1) the right of an employee, based upon seniority within a series to bump into a lower ranking classification within the same series, (2) to be followed by an employee being permitted to bump into a classification within a different series. The latter bumping shall be based upon unit wide seniority and shall be limited to a classification in which the employee previously held regular status.
No employee shall have the right to bump into a classification for which the employee does not possess the minimum qualifications such as specialized education, training or experience.
2. "Classification" shall mean one or more full time positions identical or similar in duties not including part-time, seasonal or temporary positions. Classification within a Series shall be ranked according to pay (lowest ranking, lowest pay).
3. "Layoffs" or "Laid Off' shall mean the non-disci plinary termination of employment.
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4. "Seniority" shall mean the time an empl oyee has worked in a Classification or Series calculated from the date on which the employee was first granted regular status in the curr ent Classification or any Classific ation within the Series, subject to the following:
a. Credit shall be given only for continuous service subsequent to the most recent appointment to regular status in the Classification or Series; and b. Seniority shall include time spent on a // City state and/or f ederally protected and authorized leaves but shall not include ti me spent on any unauthorized leave of absence.
5. "Series" shall mean two or more classi fications within a Department which require the performanc e of similar duties with the higher-ranking classification(s) characterized by the need for less supervisi on by superiors, more difficult assignments, more supervisory responsibilities for subordinates.
The City Manager shall dete rmine those classifications following a meet and consult process which constitute a Series.
PROCEDURE
In the event the City Manager determines to reduce the number of employees within a classification, the following procedures are applicable:
1. Probationary employees within any Classi fication shall be laid off before regular employees.
2. Employees within a Classification shall be laid off in inverse order of Seniority.
3. An employee subject to Layoff in one Classification shall have the right to Bump a less senior employee in a lower ranking Classification within a Series. An employee who has Bumping rights shall notify t he Department Directo r within three (3) working days after notice of Layoff of their intention to exercise Bumping Rights.
4. In the event two or more employees in the same Classification are subject to Layoff and have the same Seniorit y, the employees shall be laid off following the Department Director's consideration of finalized performance evaluations.
NOTICE
Employees subject to Lay-off shall be given at least thirty (30) days advance notice of the Layoff or thirty (30) days' pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave and holiday leave (if any).
REEMPLOYMENT
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Employees who are laid off shall be placed on a Department re-employment list in reverse order of Layoff. The re-employment list shall expire in eighteen (18) months. In the event a vacant position occurs in the Classification which the employee occupied at the time of Layoff, or a lower ranking Class ification within a Series, the employee at the top of the Department re-employment list shall have the right within seven (7) days of written notice of appointment. Notice shall be deemed given when personally delivered to the employee or deposited in the U.S. Mail, first class postage prepaid, and addressed to the employee at their last known address. Any employee shall have the right to refuse to be placed on the re-employment list or the right to remove their name from the re-employment list by sending written confirmation to the Human Resources Director.
SEVERANCE
If an employee is Laid Off from their job wi th the City for economic reasons, the City will grant severance pay in an amount equal to one week of pay for every full year of continuous employment service to the City up to ten (10) weeks of pay.
B. Recruitment and Selection
Position vacancy announcements for available City positions shall be distributed in a manner that reasonably assures unit members access to the announcements. In order to select the most qualified individual for vaca nt positions the City will continue its practice of "banding" candidates into one of the following ratings: Outstanding, Highly Recommended, Recommended, and Not Recomme nded, during the testing process.
Department Directors review qualified candidates in band order, beginning with the top band and are permitted to hire any eligible c andidate from the list (minimum rating of Recommended).
Where no less than 2 unit members achieve top three ranking on a certified eligible list, selection to the position shall be made with pr eference given to the unit members so qualified.
C. 9/80 Scheduling PlanAlternate Work Schedule
Unit members may work either a 5/40 or 9/80 work schedule. an alternative work schedule (e.g., 9/80, 4/10) subject to supervisor approval.
Employees assigned to the 9/80 work schedule will have alternating Fridays off with the City determining which em ployees will work on each alternating Friday to ensure effective coverage of the work. Supervisors may approve a different alternating day off based on extenuating business circumstances.
The City agrees to maintain flex-scheduling where it is currently operating successfully in this unit.
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D. Labor Management Committee
The City will work with NBPTEA leadership
, through its managers, to establish labor-
management committees departmentally whenever it is mutually determined it is appropriate to do so.
E. Grievance Procedure
Any employee or group of employees may file a grievance regarding the interpretation or
application of the "Employer-Employee Rela tions Resolution" (RESOLUTION 2001-50), this MOU, or of rules and regulations, adversely affecting an employee's wages, hours, or conditions of employment. Except as otherwise provided by law, the Grievance Procedure is the sole and exclusive method by which an employee or the Association may challenge the interpretation and/or application of a provision of the MOU.
A grievance shall be filed according to the following procedure:
Step 1: A
grievance may be f iled by any employee on their own behalf, or jointly by a group of employees, or by the Association.
A grievance shall be brought to the attention of the immediat e supervisor for discussion within ten (10) days after an employee or A ssociation Board member knew, or in the exercise of reasonable diligence should have known, the act or events upon which the grievance is based. If the Employ ee or the Association (if fil ed by the Association is not satisfied with the decision reached through th e informal discussion or if extenuating circumstances exist, the Employee or Associat ion shall have the right to file a formal grievance in accordance with Step 2 of this section. Grievances not presented within the time period shall be considered resolved.
The supervisor shall meet with the grievant to settle grievance and give a written answer to the grievant within seven (7) calendar da ys from receipt of the grievance by the supervisor. When the immediate supervisor is also the department head the grievance shall be presented in Step 2.
Step 2: If the employee or the Association (if filed by the Association) is not in agreement with the decision rendered in Step 1, the grievant shall have the right to present a formal grievance to the Department Director within ten (10) Days after the discussion in Step 1.
The right to file a grievance petition shal l be waived in the event the Employee or Association fails to file a formal grievance within ten (10) Days after the occurrence of the incident that forms the basis of the grievance. All formal grievances shall be submitted on the form prescribed by the Human Resources Director and no formal grievance shall be accepted until the form is complete. The forma l grievance shall contain a clear, concise statement of the grie vance, the facts upon which the grievance is based, the rule, regulation or policy the interpretation of which is involved in the grievance, and the specific remedy or remedies sought by the griev ant. The Department Director should render a written decision within ten (10) Days after receipt of the formal grievance. 17-32
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Step 3: If the formal grievance has not been satisfactorily adj us ted in Step 2, it may be
appealed to the City Manager wit hin ten (10) Days after the Employee receives the decision. The City Manager may accept or reject the decision of the Department Director and shall render a written decis ion within ten (10) Days after conducting a grievance hearing. The decision of th e City Manager shall be final and conclusive. If mutually agreeable, a meeting may be conduc ted involving all affected pa rties at any step in the grievance procedure prior to a decision. The City M anager may delegate uninvolved Department Directors to act on behalf of the City Manager to provide findings and recommendations. The findings and recommendat ions of the uninvolved Department Directors are advisory only and the City Manager's decision shall be final.
Time Limits: Grievances shall be processed from one step to the next within the time limit indicated for each step. Time limits shall be strictly enforced. Any time limits can be waived or extended only by mutual agreement confirmed in writing. Any grievance not carried to the next step by the Employee or Association within the prescribed time limit shall be deemed resolved upon the basis of the previous decision.
F. Probation
1. Probationary Period
Newly hired employees shall serve a twel ve (12) month pro bationary period.
The
probationary period for promoted employees shall be six (6) months.
Newly hired employees shall become eligible for their first step increase after twelve (12) months. All other City rules regarding step increases shall remain unchanged.
2. Failure of Probation
(a) New Probation
An employee on new probation may be released at the sole discretion of the City at any time without right of appeal or hearing.
(b) Promotional Probation
An employee on promotional probation may be fa iled at any time without right of appeal or hearing and except that failing an employee on promoti onal probation must not be arbitrary, capricious or unreasonable.
An employee who fails promotional probati on shall receive a per formance evaluation stating the reason for failure of promotional probation.
When an employee fails their promotional probation, the employee shall have the right to return to their former class provided the employee was not in the previous class for the 17-33
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purpose of training for a promotion to a higher class. When an employee is returned to
their former class, the employee shall serve the remainder of any uncompleted probationary period in the former class.
If the employee's former class has been delet ed or abolished, the employee shall have the right to return to a class in their former occupational series closest to, but no higher than, the salary range of the class which the employee occupied immediately prior to promotion and shall serve the remainder of any probationary period not completed in the former class.
G. Salary on Reclassification
An employee who is reclassified
will be provided with a salary increase to the nearest
step closest to five (5%) percent (not to exceed the maximum of the new salary range).
H. Direct Deposit
All employees shall participate in the payroll direct deposit system.
I. Uniforms
For assigned Community Development , and Public Works D epartment and Harbor
Department staff whose regular daily duties involv e field work outside of the office, uniforms shall be worn at all ti mes during regular business hours. Field staff shall be provided with City designated apparel as determined by the Department which may include but is not limited to collared shirts (polo or bu tton down as determined by Department hat(s), shirt(s),) annually and one City designated winter jacket (s), and appropriate footwear.; replacement on an as-needed basis. In addition, inspections staff (Building and Public Works) will be prov ided one pair of work boots annually. If the provided winter jacket or work bootsjacket or footwear are lost, the employee shall replace them with one items meeting Department spec ifications. Work boots shall provide toe protection and meet Department safety standards for construction sites. The Department Head or designee may approve exceptions to wearing uniforms.
J. Telecommuting Program
The City agrees to a telecommuting program that will provide for 80 hours per calendar year of tele
commuting hours to be used in accordance with City policy. While unit members are invited to participate in poli cy formation, the terms and conditions are subject to management approval before the program will be implemented. Additionally, Tthe provisions of the policy shall not trigger any right of grievance or appeal. This will be a pilot program which shall terminate upon the expiration of this MOU Once approved, a copy of the policy governing this program will be attached as an addendum to this MOU 17-34
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K. Classification and Compensation Studies
In accordance with the City of Newport Beach Employee Policy Manual (EPM), the City Manager shall reclassify and/or adjust salary schedules for Association positions upon a determination that said adjustment(s) are warranted as a result of a job audit or classification and compensation study. The Association may submit up to three job study requests per fiscal year to the Human Resources Director . If the position requested requires analysis of other positions in the series, each position studied counts towards the total of three job audits per fiscal year.
The Human Resources Director may terminate a study upon a determination that there is no substantial evidence of a material cha nge in duties, or of the need to adjust the compensation. At the time of the request for a job audit, the Associat ion will provide the bases for the job audit request, including but not limited to, all subs tantial evidence of a material change in duties, and/or the bases for asserting said position’s compensation requires adjusting. The job audit should include a detailed analysis of the work performed by, or expected of, the employee(s) and a comparison of that work with the job specifications for the classification. The Human Resources Director shall submit a completed job audit, together with recommendations to the Department Director, the City Manager and the Association.
In the event a position warra nts adjustment in job duti es and/or compensation, the salary range and effective date shall comply with section 9.2B of the City's EPM. This provision shall terminate upon the expiration of this MOU.
K.L.
Separability
Should any part of this MOU or any prov
ision herein contained be rendered or declared
invalid, by reason of any existing or subsequent ly enacted Legislation, or by decree of a Court of competent jurisdiction, such invalidation of such part or portion of this MOU shall not invalidate the remaining portion hereto, and same shall remain in full force and effect.
M. Overpayment
Employees will be notified by Payroll or Hu man Resources prior to the recovery of overpayments on paychecks. Recovery of more than 15% of net pay will be subject to a repayment schedule established by the appointing authority under guidelines issued by the Finance Department or Human Resources. Such recovery shall not exceed 15% per month of disposable earnings, as defined by State law, except a mutually agreed upon accelerated payment plan for faster recovery.
Recoupments under this section shall be limit ed to forty-eight (48) months. However, nothing in this section is intended to prec lude the City from seeking recoupment of overpayments due to fraud or other knowing concealment through any available legal forum.
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Signatures are on the next page.
Side Letter – January 11, 2022
Side Letter – August 23, 2022
[Side Letter – November 29, 2022]
Side Letter – April 11, 2023
Side Letter – September 24, 2024 – supersedes 11.29.22 SL 17-36