July 22, 2025
Agenda Item No. 12
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 - 949-644-3259, [email protected] TITLE:
Tentative Agreement with the Part Time Employees Association of Newport Beach (PTEANB) ABSTRACT:
The Memorandum of Understanding (MOU) between the City of Newport Beach and the Part Time Employees Association of Newport Beach (PTEANB or Association) expires December 31, 2025. At the City Council’s direction, the parties began negotiating the terms and conditions of a new agreement well in advance of the expiration date, with the goal of implementing a successor agreement with enhanced benefits as soon as possible. A Tentative Agreement (Agreement) has been reached. The Agreement addresses wages, benefits and other terms and conditions of employment for employees represented by PTEANB and was negotiated as required under the Meyers-Milias-Brown Act, California Government Code §3500.
To promote greater transparency in the negotiations process, including the costs associated with the labor contract, the Agreement with PTEANB is being presented at this time for public review and comment. The complete Agreement, which spans the period August 23, 2025, through June 30, 2028, will be presented for City Council consideration at the August 26, 2025, regular meeting.
RECOMMENDATIONS:
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; and b) Receive and consider the Tentative Agreement between the City of Newport Beach and the Part Time Employees Association.
DISCUSSION:
Although the City employs a couple hundred or so part-time employees, only a third of them are eligible members of the PTEANB. PTEANB recognizes membership for part-time employees who have worked at least 1,000 hours in any fiscal year, or, when the City determines membership is required under state or federal law for medical coverage. These members work throughout the City organization, providing support to various departments, including, but not limited to, the library, recreation and police departments. Association and City representatives have met and conferred in good faith and arrived at a Tentative Agreement. The Agreement addresses wages, benefits and other terms and conditions of employment for employees represented by the PTEANB, as required under the Meyers-Milias-Brown Act, California Government Code §3500.
Key provisions of the Tentative Agreement between the City and PTEANB include:
Term: August 23, 2025, through June 30, 2028
Salary Adjustments:
Part-time salary adjustments will be tied to the salary adjustments received by the full-time equivalent positions.
Part-time employee salary schedules will adjust to match the base salary hourly rates of the equivalent full-time classifications. Members will move to the full-time step with the salary that is closest to their current salary, whether higher or lower than their current step.
Part-time classifications aligned with the full-time classifications which are represented by the Newport Beach City Employees Association shall receive a 4% equity adjustment.
Medical Insurance: Effective January 1, 2026, the City will offer part-time members minimal essential coverage, as adjusted from year to year by the federal government. The current amount is $706.40 per month; the amount for 2026 is not yet available. Some unit members’ medical or opt-out benefit may be grandfathered, depending on hire date.
Employee Retirement Contributions: Employee retirement contributions will adjust as follows:
Tiers I & II – 8% of compensation earnable
Tier III – 8% of pensionable compensation or half of the normal cost, whichever is higher.
Adjustments to the flex leave accrual cap.
A draft version of the Tentative Agreement between the City and PTEANB is provided as Attachment A. Changes to the current agreement are noted in redline. Costing information is included in Attachment B. The total cost of the contract is approximately $2.6 million.
PTEANB’s members have voted in favor of the Agreement.
Following City Council review of the Tentative Agreement, a final version of the successor MOU will be presented to the City Council on August 26, 2025. In the interim, the costing information and proposed MOU revisions will be posted for public review on the City’s website.
The Agreement will not become effective until the City Council formally adopts it. If approved at the August 26, 2025, City Council meeting, City staff will implement the provisions accordingly.
FISCAL IMPACT:
Detailed cost information is provided in Attachment B. Since the MOU covers the period from August 23, 2025, through June 30, 2028, it will result in the following annual fiscal impacts to implement the terms of the agreement, totaling $2,576,844:
Fiscal Year
Amount
2025/26
$552,000
2026/27
$890,576
2027/28
$1,134,268
$2,576,844
The costs shown reflect additional annual expenses for the corresponding fiscal years. Sufficient projected unassigned General Fund balance reserves are available to support the required appropriations. Following the City Council’s consideration of the Tentative Agreement, staff will return with a budget amendment to appropriate the funds needed to cover the cost of the contract for Fiscal Year 2025-26. Adequate funding will be included in the annual budget for subsequent years.
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 – Tentative Agreement with the Part Time Employees Association of Newport Beach (PTEANB)
Attachment B – Estimated Cost of Contract with the PTEANB 12-3
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Tentative Agreement with the Part Time Employees Association of Newport Beach (PTEANB) July 22, 2025
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