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HomeMy WebLinkAbout05 - MOU with the Newport Beach Lifeguard Management AssociationTO: FROM: CITY OF NEWPORT BEACH City Council Staff Report September 24, 2019 Agenda Item No. 5 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Grace K. Leung, City Manager - 949-644-3001, gleung@newportbeachca.gov Barbara J. Salvini, Human Resources Director - 949-644-3259, bsalvini@newportbeachca.gov PREPARED BY: Barbara J. Salvini, Human Resources Director, bsalvini@newportbeachca.gov PHONE: 949-644-3259 TITLE: Resolution No. 2019-83: Adopting a Memorandum of Understanding with the Newport Beach Lifeguard Management Association and Establishing Salary Ranges for Unit Members and the Position of Assistant Chief, Lifeguard Operations ABSTRACT: A Tentative Agreement (Agreement) regarding a Memorandum of Understanding (MOU) between the City of Newport Beach (City) and the Newport Beach Lifeguard Management Association (NBLMA) was submitted at the September 10, 2019 Regular Meeting to provide the City Council and the community an opportunity to consider the terms and cost of the Agreement. The proposed MOU is now presented for City Council approval/adoption (or rejection) and is the final step in the meet and confer process with the NBLMA. Included in the recommendation is a salary range adjustment for the Assistant Chief, Lifeguard Operations position, which has historically been tied to the NBLMA for salary and PERS pension contributions. 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) Adopt Resolution No. 2019-83, A Resolution of the City Council of the City of Newport Beach, California, Adopting a Memorandum of Understanding Between the City of Newport Beach and the Newport Beach Lifeguard Management Association and Establishing Salary Ranges for Unit Members and the Position of Assistant Chief, Lifeguard Operations; and 5-1 Resolution No. 2019-83: Adopting a Memorandum of Understanding with the Newport Beach Lifeguard Management Association and Establishing Salary Ranges for Unit Members and the Position of Assistant Chief, Lifeguard Operations September 24, 2019 Page 2 c) Approve Budget Amendment No. 20-011 appropriating $62,449 to salary and benefit accounts from unappropriated General Fund surplus fund balance for the remainder of Fiscal Year 2019-20. FUNDING REQUIREMENTS: The cost estimate of the successor MOU with the NBLMA was presented to the Council for consideration at the September 10, 2019 regular meeting. A budget amendment appropriating the cost to implement the terms for the remainder of Fiscal Year 2019-20, from the General Fund unappropriated surplus fund balance, in the amount of $62,449 is required. The fiscal impact of the NBLMA contract is estimated at $257,421 for the entire three-year term of the contract as shown in Attachment D. DISCUSSION: The following discussion was provided, in part, with the September 10, 2019 staff report and is included here for reference: The Newport Beach Lifeguard Management Association (NBLMA or Association) is an exclusively recognized bargaining unit and represents 11 full-time safety employees (Lifeguard Captain, Lifeguard Battalion Chief) and 2.25 part-time safety employees (Lifeguard Officer). Positive and productive discussions between the Association and City have resulted in a proposed successor Agreement. Salient provisions of the Agreement include: • Term of three (3) years, from January 1, 2019 through December 31, 2021 • Wage adjustments ✓ Pay Period Following Council Approval — 1.75% ✓ January 1, 2020 — 1.75% ✓ January 1, 2021 — 1.75% Adjustments to the City's contribution to the Cafeteria Plan as follows: ✓ $21 per month increase for full-time members ✓ $16 per month increase for part-time members ✓ Revisions to the Cafeteria Plan for new employees Adjustments to ability to earn and use of Compensatory Time Off A one-time, Lump Sum Payment of $1,500 for each employee, which will not be reported to CalPERS as compensation earned/pensionable compensation As stated in the Key and Management Compensation Plan 2019-2021, the Assistant Chief, Lifeguard Operations classification's cost -of -living adjustments are tied to the cost - of -living adjustments received by the Newport Beach Lifeguard Management Association Battalion Chiefs. 5-2 Resolution No. 2019-83: Adopting a Memorandum of Understanding with the Newport Beach Lifeguard Management Association and Establishing Salary Ranges for Unit Members and the Position of Assistant Chief, Lifeguard Operations September 24, 2019 Page 3 On August 21, 2019, the City was notified that in accordance with their ratification procedures, the majority of NBLMA members voted to approve the Agreement. The Agreement will not become effective, per Government Code §3505.1, until the governing body, i.e., City Council, takes action to adopt it. If the City Council approves adoption of the successor MOU with the NBLMA, Human Resources staff will work to implement the provisions as soon as practicable. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Resolution No. 2019-83 Attachment B — Exhibit A to Attachment A (NBLMA MOU) Attachment C — Salary Schedule for Assistant Chief, Lifeguard Operations Attachment D — Estimated Cost of Contract with NBLMA Attachment E — Budget Amendment 5-3 ATTACHMENT A RESOLUTION NO. 2019- 83 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, ADOPTING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION AND ESTABLISHING SALARY RANGES FOR UNIT MEMBERS AND THE POSITION OF ASSISTANT CHIEF, LIFEGUARD OPERATIONS WHEREAS, the City Council of the City of Newport Beach ("City Council") previously adopted Resolution No. 2001-50, the "Employer -Employee Relations Resolution," pursuant to the authority contained in the Meyers-Milias-Brown Act, Government Code §3500, et seq.; WHEREAS, the City of Newport Beach ("City") supports effective communication and collaborative working relationships with its employee associations to promote improved relations while balancing good management practices; WHEREAS, the City previously entered into a memorandum of understanding with the Newport Beach Lifeguard Management Association ("NBLMA"), a recognized employee organization, for the term of June 12, 2018 through December 31, 2018 ("2018 MOU"); WHEREAS, representatives from the City and the NBLMA met and conferred in good faith and reached a tentative agreement on wages, benefits, and other terms and conditions of employment ("Tentative Agreement'), which are memorialized in the Memorandum of Understanding between the City and NBLMA ("Memorandum of Understanding") attached hereto as Exhibit A and incorporated herein by this reference; WHEREAS, the NBLMA ratified said Tentative Agreement on August 21, 2019; WHEREAS, City of Newport Beach Charter Section 601 requires the City Council to provide the number, titles, qualifications, powers, duties and compensation of all officers and employees of the City; WHEREAS, Newport Beach Municipal Code Section 2.28.010 provides that, upon recommendation of the City Manager, the City Council may establish by resolution the salary range or rate for each position; WHEREAS, by adopting this resolution, the City Council intends to amend the salary range for the position of Assistant Chief, Lifeguard Operations; WHEREAS, the City Manager has reviewed the salary schedule provided in this resolution and recommends approval; 5-4 Resolution No. 2019 - Page 2 of 3 WHEREAS, the City Council received and considered the Tentative Agreement at its regular meeting on September 10, 2019; WHEREAS, the City Council received and considered the Memorandum of Understanding at its regular meeting on September 24, 2019; WHEREAS, by adopting this resolution, the City Council also intends to amend the salary schedule for employees represented by the NBLMA to be in conformance with the Memorandum of Understanding; WHEREAS, by adopting this resolution, the City Council intends to amend the salary range for the position of Assistant Chief, Lifeguard Operations; and WHEREAS, by adopting this resolution, the City Council also desires to replace the 2018 MOU by adopting the Memorandum of Understanding attached hereto as Exhibit A to serve as the successor agreement between the City and the NBLMA for the period of January 1, 2019 through December 31, 2021. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby adopt the Memorandum of Understanding that is attached hereto and incorporated herein as Exhibit A. Wages, hours, fringe benefits and other terms and conditions of employment for employees represented by the NBLMA shall be provided in accordance with the provisions of the Memorandum of Understanding which shall serve as the successor agreement between the City and the NBLMA. Section 2: Effective the pay period following City Council adoption of this resolution, the salary range for the Assistant Chief, Lifeguard Operations position shall be $11,293 to $13,727 per month. Section 3: Effective the pay period following City Council adoption of this resolution, the salary ranges for all NBLMA represented classifications shall be in accordance with the Memorandum of Understanding. Section 4: The City's Salary Schedule shall be modified to be consistent with this resolution. Section 5: The Memorandum of Understanding shall be effective from the date of January 1, 2019 through December 31, 2021. 5-5 Resolution No. 2019 - Page 3 of 3 Section 6: The Memorandum of Understanding supersedes in all respects any and all terms and provisions of all prior memorandums of understanding between City and employees represented by NBLMA, except to the extent that any term or provision of this Memorandum of Understanding expressly provides otherwise. Section 7: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 8: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 9: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 10: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 24th day of September, 2019. Diane B. Dixon Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CI ATTORNEY'S JOFtE a ion C. Harp City Attorney Attachment: Exhibit A — Memorandum of Understanding 5-6 ATTACHMENT B Exhibit A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION January 1, 2019 through December 31, 2021 5-7 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION TABLE OF CONTENTS Preamble Section 1. General Provisions Durationof Memorandum................................................................................................ 1 Scope............................................................................................................................. 1 Conclusiveness..............................................................................................................2 Savings........................................................................................................................... 2 OtherTerms and Conditions........................................................................................... 2 Unit Classification Titles.................................................................................................. 2 Section 2. Compensation SalaryAdjustments......................................................................................................... 2 One-time Lump Sum Payment....................................................................................... 3 SpecialAssignment Pay.................................................................................................. 3 Overtime.......................................................................................................................... 3 Uniforms......................................................................................................................... 4 CallOut........................................................................................................................... 4 Scholastic Achievement Pay........................................................................................... 4 NightStandby.................................................................................................................. 5 Move -up Pay................................................................................................................... 5 Move -down Pay............................................................................................................. 5 CourtStandby Pay.......................................................................................................... 6 LongevityPay................................................................................................................. 6 Section 3. Leaves FlexLeave....................................................................................................................... 6 Useof Flex...................................................................................................................... 7 FamilySick Leave........................................................................................................... 8 HolidayTime................................................................................................................... 8 Bereavement Leave........................................................................................................ 9 Section 4. Fringe Benefits Insurance........................................................................................................................ 9 Additional Health Insurance/ Programs......................................................................... 11 5-8 Employee Assistance Program..................................................................................... 12 The Retirement Benefit................................................................................................. 12 RetireeHealth Benefits Program................................................................................... 14 Tuition Reimbursement................................................................................................. 17 Section 5. Miscellaneous Provisions Reduction in Force/Layoffs............................................................................................ 18 Discipline....................................................................................................................... 20 Health and Fitness Evaluations..................................................................................... 20 Provisionfor Sun Protection.......................................................................................... 20 Fitness Equipment and Exercise Time.......................................................................... 21 EmployeePolicy Manual............................................................................................... 21 DirectDeposit................................................................................................................ 21 EXHIBIT A — Represented Classifications and Pay Rates ........................................... 23 5-9 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION This Memorandum of Understanding (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE 1. Authorized representatives of the CITY OF NEWPORT BEACH (hereinafter referred to as "CITY") and authorized representatives of the NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION (hereinafter referred to as "NBLMA") a recognized employee organization, met and conferred, exchanging various proposals concerning wages, hours, fringe benefits and other terms and conditions of employment of employees represented by NBLMA (hereinafter referred to as "EMPLOYEES") for the period of January 1, 2019 through December 31, 2021 . SECTION 1. GENERAL PROVISIONS A. Duration of Memorandum The terms of this MOU are to remain in full force and effect from January 1, 2019 through December 31, 2021. B. Scope 1. All present written rules and currently established practices and employee rights, privileges and benefits that are within the scope of representation shall remain in full force and effect during the term of this MOU unless specifically amended by the provisions of this MOU, or in the case of the Department Standard Operating Procedures (SOPs) falling within the scope of representation, the City has given notice to the Association and, upon request, met and conferred on any proposed changes which fall within the scope of representation. When the Department proposes to change any SOP departmental rule or regulation, it will provide a copy of such change to the Association no less than seven (7) days prior to implementation of the proposed change. If such proposed change materially impacts any matter within the scope of representation, then the parties agree to meet and confer over such impact. 2. Pursuant to this MOU, the City reserves and retains all of its inherent exclusive and non-exclusive managerial rights, powers, functions and authorities ("Management Rights") as set forth in Resolution No. 2001-50. NBLMA MOU 2019-21 5-10 C. Conclusiveness Except as provided for in this agreement, this MOU contains all of the covenants, stipulations and provisions agreed upon by the parties. D. Savings Should any part of this MOU or any provision herein contained be rendered or declared invalid, by reason of any existing or subsequently 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. E. Other Terms and Conditions Except as to those matters expressly covered by this MOU, all terms and conditions of employment may be changed or amended after meeting and conferring, in good faith. Unless specifically provided in this MOU, Part-time members shall only receive those benefits in this MOU which are specifically set forth as applicable to Part- time members. F. Unit Classification Titles Unit classifications are listed in Exhibit A. For all compensation comparison purposes, actual job duties, and not classification titles, will be utilized. SECTION 2. COMPENSATION A. Salary Adjustments Base salary increases for all NBLMA represented classifications shall be as follows and as specified in Exhibit A: Effective the pay period following City Council approval of this MOU, base salaries will be increased by one and three quarters percent (1.75%) for all members of the bargaining unit. NBLMA MOU 2019-21 2 5-11 Effective the pay period including January 1, 2020, base salaries will be increased by one and three quarters percent (1.75%) for all members of the bargaining unit. Effective the pay period including January 1, 2021, base salaries will be increased by one and three quarters percent (1.75%) for all members of the bargaining unit. B. One -Time Lump Sum Payment All members of the bargaining unit employed by the City at the beginning if the pay period following City Council approval of this 2019-2021 MOU shall receive a one- time payment (subject to tax withholdings) of one thousand five hundred dollars ($1,500.00). This payment shall be made by the beginning of the second pay period following City Council approval of this 2019-2021 MOU. This one-time payment shall not be reported to Ca1PERS as compensation earnable or pensionable compensation as it is being provided in the same fiscal year in which a base salary increase is being provided to members of this bargaining unit. C. Special Assignment Pay Boat Pay: Lifeguard Captains certified for and assigned to boat operations shall receive additional compensation of 2.5% of base salary for their job classification. Boat assignment pay will be assigned to a qualified Captain and compensated only when performing boat duties. Training Pay: The Lifeguard Captain assigned as the "Training Captain" will receive an additional 7.5% of base pay while assigned the responsibilities of training. D. Overtime Unit employees shall receive overtime compensation for all hours worked in excess of forty (40) in any work week. Time worked shall be rounded to the nearest quarter of an hour (seven (7) minutes or less round down; eight (8) minutes or more round up). Paid time off shall be considered time worked for the purposes of calculating MOU overtime. The rate at which MOU overtime (overtime which is in addition to that which is required by the FLSA) is paid does not include any contributions to the City's Cafeteria Plan as set forth in Section 4 — Fringe Benefits of the MOU. Unit employees shall have the option of requesting to earn compensatory time off (CTO) for all overtime, including training time, in lieu of overtime compensation. All use of compensatory time off shall be subject to existing City rules. The time during which an employee may use accrued CTO is subject to approval by the department head or his/her designee with due regard for the wishes of the employee and the need to provide service. However, an employee wishing to use his/her accrued CTO shall provide the City with reasonable notice of such request. A request to use CTO without reasonable notice may still be granted NBLMA MOU 2019-21 5-12 within the discretion of the supervisor or manager responsible for considering the request. Notwithstanding this paragraph, the parties agree that employees cannot use CTO from June 15 through Labor Day each year. The maximum accrual of CTO shall be eighty (80) hours. Effective January 1, 2020, an employee may only accrue up to eighty (80) hours of CTO per calendar year. E. Uniforms The City shall pay the entire cost of providing full-time and part-time NBLMA members with each component of the required NBLMA uniforms. The required NBLMA uniform includes uniform pants, uniform shirts, safety shoes, badges and insignias, uniform jackets and liners, belts, dive equipment, foul weather gear, personal floatation device and helmet. The City shall not be responsible for providing employees with socks, underwear, cap, workout shoes, or other clothing. As permissible by law and subject to the provisions and limitations under the Public Employees' Retirement Law, including restrictions on reporting uniform allowance as pensionable compensation for "non -classic" members hired after January 1, 2013, the City shall report the value of provided uniforms at $838 per year ($32.23 per pay period) in accordance with PERS requirements. The parties agree the reported value of uniforms is intended to reflect clothing such as pants, shirts, jackets, and related attire and excludes health and safety related equipment. F. Call Out Call out compensation shall be in accordance with the following provisions: 1. All emergency call out time shall be calculated to the nearest one quarter (1/4) hour of time worked. 2. A minimum of two (2) hours (including travel time),If the two hours causes the employee to exceed forty (40) hours in the week, the rate of pay shall be at one and one half (1 1/2) times the employee's rate of pay. Employees will be considered "on duty" at the beginning of each emergency call out for a minimum of two (2) hours or until completed. Employees will not be compensated for additional call outs that occur during the initial two (2) hour response period, or during normal working hours. G. Scholastic Achievement Pay Employees in the classification of Lifeguard Captain shall receive two percent of base salary (2%) if they receive a Bachelor's Degree. Employees in the classification of Lifeguard Battalion Chief shall receive one percent (1 %) of base salary if the receive a Master's Degree. NBLMA MOU 2019-21 4 5-13 A "degree" shall be awarded by an institution accredited by the State of California, the United States Department of Education, the Council for Higher Education, or the Distance Education Training Council. H. Night Standby A full-time or part-time employee assigned to standby duty (as defined by Department Policy) for purposes of being on call to handle emergency situations arising at times other than during normal working hours shall be guaranteed two and a half (2.5) hours of pay at the employee's rate of pay for each calendar day of such standby duty. Employees shall have the option of receiving compensatory time off at straight time in lieu of pay for night standby. This compensatory time off is part of same bank which is subject to the maximum accrual of compensatory time off set forth in Section 2D above. Move -up Pay Temporary upgrading shall be defined as the temporary assignment of an employee to work in a job classification, which is assigned to a salary schedule higher than his/her regular job classification. Employees temporarily upgraded to the following job classifications and equivalent positions shall receive a five percent (5%) pay differential over their rate of pay for all time worked in the higher job classification if they are assigned to work in the higher job classification for a period of one (1) working hour or longer. Lifeguard Captain Lifeguard Battalion Chief All holiday, flex leave and other paid leave shall be paid at the employee's rate of pay. Assignments to higher rated classifications shall be made at the sole discretion of the City. J. Move -down Pay Employees who work down — a temporary assignment of an employee to work in a job classification, which is assigned to a salary schedule lower than his her regular job classification (i.e., a Battalion Chief who moves down as a Lifeguard Captain or a Lifeguard Captain who moves down as a Lifeguard Officer) shall be paid at the top step of the classification to which the employee moved down unless the top step of the moved down classification is higher than their current rate of pay. In that case, they will be paid at the regular pay rate. NBLMA MOU 2019-21 5 5-14 K. Court Standby Pay All NBLMA members who, pursuant to subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off—duty, to remain within a certain response time from court, shall be considered to be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBLMA members shall, when required to appear in court pursuant to a subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be considered to be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. L. Longevity Pay Employees in the Unit shall receive Longevity Pay as follows: Years of Service 16 but less than 20 20 but less than 25 25 and over SECTION 3. LEAVES A. Flex Leave 1. Basis for Accrual Full -Time Members: Longevity Pay 1.0% 1.5% 2.5% Regular full-time employees enrolled in the Flex Leave program will earn leave in accordance with the following schedule: Years of continuous Accrual per Maximum Hours service in the unit pay period/hrs Annual Accrual 1 but less than 5 5.54 288.08 5 but less than 9 6.15 319.80 9 but less than 12 6.77 352.04 12 and over 7.69 399.88 Part -Time Members: Regular part-time employees shall be enrolled in the Flex Leave program and accrue leave time at the rate of .04 hours for each hour worked. NBLMA MOU 2019-21 C 5-15 2. Limit on Accumulation and Cash Out of Flex Leave Employees shall be entitled to accrue flex leave up to a maximum of fifty- two (52) times the member's bi-weekly accrual rate. This limit on accumulation shall apply to both full-time and part-time members. Earned flex leave in excess of the maximum permitted is currently paid bi-weekly at the member's hourly rate of pay ("spillover pay"). Members shall be eligible for flex leave spillover pay only if they have utilized at least eighty (80) hours of flex leave the previous calendar year. Employees who have not utilized eighty (80) hours of leave for full time and sixty (60) hours for part-time the prior calendar year shall not be eligible for "spillover pay". Once an employee accrues the maximum accrual limit, he/she will not accrue additional flex leave until he/she uses leave and reduces his/her accrual below the accrual limit. Employees shall have the option of converting accrued Flex Leave 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 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 the pay period which includes December 15 for those Flex Leave benefits that have been earned during that portion of the year. In no event shall the flex leave balance be reduced below one hundred and sixty (160) hours. On or before December 31, 2018, each employee shall have the one-time option of cashing out all or a portion of Flex Leave benefits credited to his/her account as of that date. However, in no event shall the flex leave balance be reduced below one hundred and sixty (160) hours when the leave is cashed out. �C1LVArain01on91�'. Flex leave may not be taken in excess of that actually accrued. The Department Director or designee shall approve all requests for flex leave taking into consideration the needs of the Department, and whenever possible the seniority and wishes of the employee. Flex leave may be granted on an hourly basis. B. Use of Flex Level A staffing shall run from June 15th through Labor Day. During this period of time, full-time and part-time NBLMA personnel may be limited to a total of forty (40) hours usage of flex leave requiring backfill. Additional flex leave during this period may be approved if, in the opinion of management, adequate staffing levels can be maintained. NBLMA MOU 2019-21 5-16 C 91 Family Sick Leave Unit employees shall be entitled to use an amount of time equal to one-half (1/2) of their annual leave accrual for an illness of a family member as defined below which requires the presence of the employee. Such time may be taken from the employee's annual leave accrual or leave bank, at the employee's choice. Leave shall be administered in accordance with the provisions of the Employee Policy Manual (EPM). For purposes of family sick leave, family member shall mean spouse, parent, (parent shall mean biological, foster, or adoptive), child (child shall mean biological, adopted, or foster child; a stepchild; a legal ward; or a child of an employee standing in local parentis), grandchild, grandparent, sibling oras modified by State or Federal law. Holiday Time As described in the following paragraph, employees shall receive leave or pay for the following holidays: Independence Day Labor Day Veteran's Day Thanksgiving Day Friday following Thanksgiving Christmas Eve Christmas New Year's Eve New Year's Day Martin Luther King Day Washington's Birthday Memorial Day Floating Holiday (1) July 4 1 st Monday in September November 11 4th Thurs. in November Last 1/2 of working day December 25 Last 1/2 of working day January 1 3rd Monday in January 3rd Monday in February Last Monday in May For employee's birthday or other holiday. Full time employees receive 96 hours of holiday time per year, 1/2611 (3.69 hours) per pay period which will be paid or accrued each pay period. Part-time employees receive 72 hours of holiday time per year, 1/261h (2.77 hours) per pay period which will be paid or accrued each pay period. When an employee becomes an NBLMA member, he/she shall select to receive either pay, leave or a combination of both pay and leave for the holidays. When a part-time employee in the unit is appointed to a full-time classification, he/she shall select to receive either pay, leave or a combination of both pay and leave for the additional twenty-four (24) hours. To the extent permitted by law, this holiday compensation shall be reported to PERS as special compensation and shall be regarded as compensation earnable as defined in Government Code Sec. 20636 (c) (6) for purposes of computing retirement benefits and contributions. NBLMA MOU 2019-21 5-17 E. Bereavement Leave Bereavement Leave shall be defined as the necessary absence from duty by an employee because of the death or terminal illness in his/her immediate family. NBLMA full-time members shall be entitled to 40 hours bereavement leave per incident (terminal illness followed by death is considered one incident) and 32 hours bereavement leave for part-time members. Leave hours need not be used consecutively, but should occur in proximate time to the occurrence, but no more than 90 days from the date of the death of the family member. Immediate family shall mean an employee's father, stepfather, mother, stepmother, brother, sister, spouse/domestic partner, child, stepchild and grandparent, and the employee's spouse/domestic partner's father, mother, brother, sister, child and grandparent. An employee requesting bereavement leave shall notify his/her supervisor as soon as possible of the need to take leave. Probationary Employ. An employee serving his/her initial probationary period who takes leave under this section who for any reason terminates his/her employment prior to the completion of such probationary period shall have his/her final pay check reduced by the value of the leave taken. SECTION 4. FRINGE BENEFITS A. Insurance 1. Benefits Information Committee The City has established a Benefits Information Committee composed of one representative from each employee association and up to three City representatives. The Benefits Information Committee has been established to allow the City to present data regarding carrier and coverage options, the cost of those options, appropriate coverage levels and other health care issues. The purpose of this Committee is to provide each employee association with information about health care issues and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. Citv Contribution The City has implemented an IRS qualified Cafeteria Plan. The City contribution toward the Cafeteria Plan shall be as set forth below. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical, dental and vision insurance/programs. The City and NBLMA will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. NBLMA MOU 2019-21 9 5-18 Any unused Cafeteria Plan funds shall be payable to the employee as taxable cash back. Employees shall be allowed to change coverages in accordance with plan rules and during regular open enrollment periods. a. Full -Time Members: The City's contribution towards the Cafeteria Plan is $1,624 (plus the minimum CalPERS participating employer's contribution). Effective the pay period following City Council approval of this 2019-2021 MOU, this amount will increase to $1,645. Full time NBLMA members who do not want to enroll in any medical plan offered by the City must provide proof of minimum essential coverage ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California) and execute 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 the first day of the pay period following City Council approval of this 2019-2021 MOU 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 $1,000 per month in taxable cash. For these same employees, if they elect medical coverage and spend less than the City contribution provided above, those unused cafeteria plan funds shall be paid to the employee as taxable cash. Employees hired on or after the first day of the pay period following City Council approval of this 2019-2021 MOU 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) shall receive $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. b. Part -Time Members: Part-time NBLMA members receive a monthly cafeteria benefit of $585. Effective the pay period following City Council approval of this 2019- 2021 MOU, this amount will increase to $601. For part-time employees enrolled in medical plans, the cafeteria amount is inclusive of the PERS designated minimum medical insurance contribution. For employees who do not enroll in a medical plan there shall be no opt out cafeteria benefit. Part-time time NBLMA members who do not want NBLMA MOU 2019-21 10 5-19 to enroll in any medical plan offered by the City must provide proof of minimum essential coverage ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California). 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings for full-time employees as agreed upon by the Benefits Information Committee. 4. Vision Insurance The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee for full-time employees. B. Additional Health Insurance/Proarams 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. The City shall maintain a "reimbursable account program" in accordance with the provisions of Section 125 of the Internal Revenue Code, pursuant to which a full-time Association member may request that medical, child care and other eligible expenses be paid or reimbursed by the City out of the employee's account. The base salary of the employee will be reduced by the 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 regular full-time employees with the following provisions - Short -Term Disability Long -Term Disability Benefit Amount 66.67% of covered 66.67% of covered 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. Employees may not supplement the disability benefit with paid leave once the waiting period has been exhausted. Employees shall pay one percent (1 %) of base salary as a post - tax deduction for this benefit. NBLMA MOU 2019-21 11 5-20 3. Life Insurance The City shall provide life insurance for 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 insurance is reduced by 50% of the pre -70 amount (i.e., a maximum of $25,000). This amount remains in effect until the employee retires from City employment. Employees may also purchase supplemental life insurance at their own cost. C. Employee Assistance Program City shall provide an Employee Assistance Program (EAP) for Association members through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines. D. The Retirement Benefit 1. Retirement Benefit Formula The City contracts with PERS to provide retirement benefits for its employees. Pursuant to prior agreements and state mandated reform, the City has implemented first, second and third tier retirement benefits: Tier 1: For employees enrolled by the City of Newport Beach as Safety members on or before November 23, 2012, the retirement formula shall be 3%@50 calculated on the basis of the single highest year. Tier 2: For classic member (as defined in the Public Employees' Pension Reform Act) employees enrolled in CalPERS by the City of Newport Beach as Safety members on or after November 24, 2012, the retirement formula is 2%@50. For these same employees, final compensation will be based on the highest annual average compensation earnable during the three consecutive years of employment immediately preceding the effective date of his or her retirement or any other three consecutive year period chosen by the employee as set forth in Government Code section 20037. Tier 3: For employees enrolled by the City of Newport Beach as Safety members on or after January 1, 2013 who are new members as defined in the Public Employees' Pension Reform Act), the retirement formula shall be 2.7%@57 provided for by the Public Employees' Retirement Law at Government Code section 7522.25(d). For these same employees, final compensation will be based on the highest annual average compensation earnable during the three consecutive years of employment immediately preceding the effective date of his or her retirement NBLMA MOU 2019-21 12 5-21 or any other three consecutive year period chosen by the employee as set forth in Government Code section 7522.32(a). The City's contract with PERS also provides for: b. The military buy-back provisions pursuant to Section 20930.3 of the California Government Code and the highest year benefit pursuant to Section 20042. C. The Level 4 1959 Survivors Benefits. d. The pre -retirement option settlement 2 death benefit (Section 21548). 2. Employee Contributions Tier 1 and 2 Employ All unit members in Tiers 1 and 2 will pay the full 9% "safety member" contribution of PERS reportable earnings. This payment will be made on a pre-tax basis through payroll deduction pursuant to IRS Code Section 414(h)(2). This contribution will not be considered as part of employee's "compensation earnable" under Government Code section 20636. Unit members will, in addition to the 9% normal member contribution, contribute 4.6% of pensionable compensation toward retirement costs as permitted under Government Code §20516(0, for a total contribution of 13.6%. Tier 3 Employees: The minimum statutory employee contribution for employees in Tier 3 is subject to the provisions of the Public Employees' Pension Reform Act (PEPRA) and equals 50% of the "total normal cost" as determined by PERS. For FYI 7-18, the employee Safety rate is 10.5% and is subject to change based on annual PERS actuarial valuations. In addition to the statutorily required 50% contribution of total normal costs, Tier 111 employees shall contribute 3.10% of pensionable compensation toward retirement costs pursuant to Government Code § 20516(f), for a total contribution of 13.6%. If future fiscal year member contribution rates for employees in Tier 111 become greater or less than 10.5%, the additional contribution made by the employee under 20516(f) will be increased or decreased accordingly so that the total employee contribution equals 13.6%. In the event CalPERS pension provisions for new or existing employees are modified by State or Federal legislation, resulting in changes to previously negotiated terms, the parties agree to meet and confer to discuss appropriate changes to the MOU. NBLMA MOU 2019-21 13 5-22 E. Retiree Health Benefits Program (Full -Time Classifications Only) Background In 2005, the City and all Employee Associations agreed to replace the previous "defined benefit" retiree medical program with a new "defined contribution" program. The process of fully converting to the new program will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of four categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2006. b. Category 2 - Active employees hired prior to January 1, 2006, whose age plus years of service as of January 1, 2006 was less than 50 (46 for public safety employees). C. Category 3 - Active employees hired prior to January 1, 2006, whose age plus years of service was 50 or greater (46 for public safety employees) as of January 1, 2006. 2. Program Structure This is an Integral Part Trust (IPT) Retiree Health Savings (RHS) Plan (formerly the Medical Expense Reimbursement Program "MERP') and applies only to regular full-time NBLMA employees. a. For employees in Category 1, the program is structured as follows: Each employee will have an individual RHS account for bookkeeping purposes, called his or her "Employee Account." This account will accumulate contributions to be used for health care expenses after separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. Contributions will be in three parts. Part A contributions (mandatory employee contributions): 1 % of salary. Part B contributions (employer contributions): $2.50 per month for each year of service plus year of age (updated every January 1 st based on status as of December 31 St of the prior year). NBLMA MOU 2019-21 14 5-23 Part C contributions (leave settlement as determined by Association): The Association will determine the level of contribution for all employees it represents, subject to the following constraints. All employees within the Association must participate at the same level. The participation level should be specified as a percentage of the leave balance on hand in each employee's leave bank at the time of separation from the City. For example, if the Association wishes to specify 50% of the leave balance as the participation level, then each member leaving the City or cashing out leave at any other time, would have the cash equivalent of 50% of the amount that is cashed out added to the RHS, on a pre-tax basis. The remaining 50% would be paid in cash as taxable income. Individual employees would not have the option to deviate from this breakout. The Association has decided to participate in Part C contribution, at the level of zero percent (0%). This amount may be changed, on a go forward basis, as part of the future meet and confer process. However, the participation level must be the same for all employees within the Association. Additionally, the purpose and focus of these changes should be toward long-term, trend type adjustments. Due to IRS restrictions regarding "constructive 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. Spillover pay is not eligible for Part C contributions. Nothing in this section restricts taking leave for time off purposes. Part A contributions may be included in PERS compensation. Part B and Part C contributions will not be included in PERS compensation. Part A contributions begin upon enrolment in the program and are credited to each RHS Employee Account each pay period. Eligibility for Part B contributions is set at five years of vested City employment (i.e. five years at full time status). At that time, the City will credit the first five years' worth of Part B contributions into the Employee Account (interest does not accrue during that period). Thereafter, contributions are made bi-weekly. Part C deposits, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon separation. If an employee leaves the City prior to five years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the RHS Employee Account. Such an employee will not be entitled to any Part NBLMA MOU 2019-21 15 5-24 B contributions. The exception to this is a full-time employee, participating in the program, who leaves the City due to industrial disability during the first five years of employment. In such cases, the employee will receive exactly five years' worth of Part B contributions, using the employee's age and compensation at the time of separation for calculation purposes. This amount will be deposited into the employee's RHS account at the time of separation. Distributions from RHS Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502), and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and his or her spouse and legal dependents — again only as permitted by IRS Publication 502. Qualification for dependency status will be determined by guidelines in IRC 152. If used for these purposes, distributions from the RHS accounts will not be taxable. Cash withdrawal for any other purpose is prohibited. Under recent IRS Revenue Ruling 2005-24, any balance remaining in the Employee Account after the death of the employee and his or her spouse and/or other authorized dependents (if any) must be forfeited. That particular RHS Employee Account will be closed, and any remaining funds will become general assets of the plan. The parties agree that the City's Part B contributions during active employment constitute the minimum CalPERS participating employer's contribution (i.e., the CalPERS statutory minimum amount) towards medical insurance after retirement. The parties also agree that, for retirees selecting a CalPERS medical plan, or any other plan with a similar employer contribution requirement, the required City contribution will be withdrawn from the retiree's RHS account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one- time City contribution to their individual RHS accounts that equates to $100 per month for every month they contributed to the previous "defined benefit" plan, to a maximum of 15 years (180 months). This contribution will be made only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. Employees in Category 2 who had less than five years' service with the City prior to implementation of the new program will only receive NBLMA MOU 2019-21 16 5-25 Part B contributions back to January 1, 2006 when they reach five years total service. C. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute $400 per month into each of their RHS accounts after they retire from the City, to continue as long as the employee or spouse is still living. Each employee will contribute a flat $100 per month to the plan for the duration of their employment to partially offset part of this expense to the City. The maximum benefit provided by the City after retirement is $4,800 per year, accruing at the rate of $400 per month. There is no cash out option for these funds, and they may not be spent in advance of receipt. Employees in this category will 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 will be made to the RHS account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. 3. Administration 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 Committee, or its successor committee, will have the authority to determine investment options that will be available through the plan. F. Tuition Reimbursement Full-time and part-time NBLMA members attending accredited community colleges, colleges or universities 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 courses. 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 NBLMA MOU 2019-21 17 5-26 courses. All claims for tuition reimbursement require the approval of the Human Resources Director. NBLMA members attending pre -approved, directly job-related classes, courses and seminars given by recognized agencies, organizations or individuals other than accredited college institutions may apply for reimbursement of actual cost of tuition, books, fees or other student expenses. Reimbursement is contingent upon the successful completion of the course. Successful completion means a document or certificate showing successful completion of the course or seminar. All claims for reimbursement require the approval of Fire Chief or designee before submittal to Human Resources. Maximum tuition reimbursement for full-time employees shall be $1,500 per fiscal year and the maximum reimbursement for part-time employees shall be $1,125 per fiscal year. SECTION 5. MISCELLANEOUS PROVISIONS A. Reductions in Force/Layoffs The provisions of this section shall apply to full-time and part-time members when the City Manager determines that a reduction in the work force is warranted because of actual or anticipated reductions in revenue, reorganization of the work force, a reduction in municipal 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 Series and this Section should be interpreted accordingly. Definitions a. "Layoffs" or "Laid off" shall mean the non—disciplinary termination of employment. b. "Seniority" shall mean the time an employee has worked in a Classification or Series calculated from the date on which the employee was first granted regular status in their current Classification or any Classification within the Series, subject to the following: Credit shall be given only for continuous service (as described in the next paragraph) subsequent to the most recent appointment to regular status in the Classification or Series; Seniority shall include time spent on industrial leave, military leave and leave of absence with pay, but shall not include time NBLMA MOU 2019-21 18 5-27 oil 3 spent on any other authorized or unauthorized leave of absence. C. "Classification" shall mean one or more full time positions identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part—time, seasonal or temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). d. In this bargaining unit, there is one Series made up of the three classifications represented by the Association — Lifeguard Officer, Lifeguard Captain and Lifeguard Battalion Chief. e. "Bumping Rights", "Bumping" or "bump" shall mean the right of an employee, based upon seniority within a series, to displace a less senior employee in a lower Classification within the Series. Procedures In the event the City Manager determines to reduce the number of employees within a Classification, the following procedures are applicable: a. Employees within a Classification shall be laid off in inverse order of seniority; b. 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 within the bargaining unit, provided, however, that the determination of the employee to be terminated from the position shall be based on seniority within the Series. An employee who has Bumping Rights shall notify the Department Director within seven (7) working days after notice of layoff of his/her intention to exercise Bumping Rights. d. In the event two or more employees in the same Classification are subject to layoff and have the same seniority, the employees shall be laid off in inverse order of their position on the eligibility list or lists from which they were appointed. In the event at least one of the employees was not appointed from an eligibility list, the Department Director shall determine the employee(s) to be laid off. 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, holiday leave (if any). NBLMA MOU 2019-21 19 5-28 4. Re—Employment Regular and probationary employees who are laid off shall be placed on a Department re—employment list in reverse order of layoff. The re— employment list shall remain in effect until exhausted by removal of all names on the list. In the event a vacant position occurs in the Classification which the employee occupied at the time of layoff, or a lower ranking Classification within a Series, the employee at the top of the Department re—employment list shall have the right to appointment to the position, provided, he or she reports to work 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, certified, return receipt requested, and addressed to the employee at his or her last known address. Any employee shall have the right to refuse to be placed on the re—employment list or the right to remove his or her name from the re— employment list by sending written confirmation to the Human Resources Director. 5. Severance Pay Regular employees who are laid off shall, as of the date of lay—off, receive one week severance pay for each year of continuous service with the City of Newport Beach, to a maximum of ten (10) weeks of severance pay. B. Discipline Any discipline shall be in accordance with the Department SOP and the Employee Policy Manual. C. Health and Fitness Evaluations All NBLMA members shall participate in the Department Fitness Program. D. Provision for Sun Protection The first full pay period of each fiscal year, the City will provide $400 to each full-time unit member and $300 to each part-time unit member for sunglasses and other sun protection materials (not restricted to use at Lifeguard Store). 2. Each unit employee shall receive an annual skin cancer screening, which will be conducted either on or off duty at the Department's discretion. Employees directed to receive this screening off duty shall receive one (1) hour of compensatory time off as compensation. NBLMA MOU 2019-21 20 5-29 E. Fitness Equipment and Exercise Time The City will provide up to $3,000 per year towards the purchase of fitness equipment to be used on duty for the intended benefit of NBLMA. The actual equipment to be purchased shall be recommended by NBLMA, and shall require the final approval of the Fire Chief. Unit employees shall be allowed up to three (3) hours per week for on duty physical fitness training. F. Employee Policy Manual The City and NBLMA have agreed on implementation of the City's revised 2001 Employee Policy Manual. Should additional revisions to the Manual be proposed, the City will meet and confer on applicable policy manual provisions which are within the scope of bargaining. G. Direct Deposit All Unit employees shall participate in the City's Direct Deposit Program. Signatures on the following page NBLMA MOU 2019-21 21 5-30 Executed this day of NEWPORT BEACH LI BY: 12019: MA GEMENT ASSOCIATION Gary Coro ell, esident 1 S n n1 Ure, ViceW54sident CITY OF NEWPORT BEACH BY: Diane B. Dixon, Mayor CITY OF NEWPORT BEACH APPROVFDAS TO FORM r' -w ATTEST: BY: Leilani Brown, City Clerk NBLMA MOU 2019-21 eter J. Plown, Special Counsel 22 5-31 City of Newport Beach LIFEGUARD MANAGEMENT ASSOCIATION SALARY SCHEDULE ADJUSTMENTS REVISION DATE: SEPTEMBER 28, 2019 1.75% COST OF LIVING ADJUSTMENT Position Title Hourly Pay Rate 1 Min Max Monthly Pay Rate Z Min Max LIFEGUARD BATTALION CHIEF $44.76 $62.92 $7,758 $10,907 LIFEGUARD CAPTAIN $35.54 $50.05 $6,160 $8,675 LIFEGUARD CAPTAIN + 7.5%3 $38.20 $53.75 $6,621 $9,317 LIFEGUARD OFFICER (PART TIME) $26.46 $37.23 $4,586 $6,453 REVISION DATE: JUNE 20, 2020 1.75% COST OF LIVING ADJUSTMENT Position Title Hourly Pay Rate 1 Min Max Monthly Pay Rate Z Min Max LIFEGUARD BATTALION CHIEF $45.54 $64.02 $7,894 $11,097 LIFEGUARD CAPTAIN $36.16 $50.93 $6,268 $8,827 LIFEGUARD CAPTAIN + 7.5%3 $38.87 $54.70 $6,737 $9,481 LIFEGUARD OFFICER (PART TIME) $26.92 $37.88 $4,666 $6,566 REVISION DATE: JUNE 19, 2021 1.75% COST OF LIVING ADJUSTMENT Position Title Hourly Pay Rate 1 Monthly Pay Rate Z Min Max Min Max LIFEGUARD BATTALION CHIEF $46.34 $65.14 $8,032 $11,292 LIFEGUARD CAPTAIN $36.80 $51.82 $6,378 $8,982 LIFEGUARD CAPTAIN + 7.5% 3 $39.55 $55.65 $6,855 $9,646 LIFEGUARD OFFICER (PART TIME) $27.39 $38.54 $4,747 $6,681 1 Hourly pay rates are rounded to the nearest hundredth. Z Monthly pay rates are rounded to the nearest whole dollar. 3 LIFEGUARD CAPTAIN + 7.5% includes compensation for the Lifeguard Captain responsible for training. Citywide Salary Schedule Effective June 22, 2019 5-32 ATTACHMENT C City of Newport Beach SALARY SCHEDULE ADJUSTMENTS POSITION: ASSISTANT CHIEF, LIFEGUARD OPERATIONS This position is covered by the Key & Management Compensation Plan. However, the cost of living adjustment dates and amounts are tied to the Lifeguard Management Association. COST OF LIVING ADJUSTMENTS Salary Schedule Revision Dates Hourly Pay Rate 1 Monthly Pay Rate Z Min Max Min Max September 28, 2019 - 1.75% $65.15 $79.19 $11,293 $13,727 June 20, 2020 - 1.75% $66.29 $80.58 $11,490 $13,967 June 19, 2021- 1.75% $67.45 $81.99 $11,691 $14,211 1 Hourly pay rates are rounded to the nearest hundredth. Z Monthly pay rates are rounded to the nearest whole dollar. Citywide Salary Schedule Effective June 22, 2019 5-33 ATTACHMENT D NBLMA Tentative Agreement for Contract Term January 1, 2019 through December 31, 2021: COLA 1.75% each year for 3 years, Cafeteria increase ($21/month full-time and $16/month part-time) & one-time payment of $1,500 per employee. Savings in Year 1 due to implementation in October 2019 following Council approval. am, 08/02/2019 11 Authorized Full-time Safety Employees 2.25 Authorized Part-time Safety Employees Year 11 1.75% 1.75% FY20 COLA Year COLA Year Cost of Budget 1.75% 2 3 Increases COLA Savings Cost Base Payz 1,290,249 22,579 (16,935) 5,645 45,554 68,930 120,129 Supplemental Pay Scholastic Pay 13,102 229 (172) 57 463 700 1,220 Holiday Pay 53,089 929 (697) 232 1,874 2,836 4,943 Longevity 8,957 157 (118) 39 316.24 479 834 Boat Assignment (based on 1,111 hours); 1,261 22 (17) 6 44.52 67 117 Standby Pay (based on 1,471 hours)3 65,636 1,149 (861) 287 2,317 3,507 6,111 Subtotal 142,045 2,486 (1,864) 621 5,015 7,589 13,225 Pension Contribution 4 Pension Normal Cost (Safety = 28.092%) 380,471 6,719 (5,039) 1,680 13,555 20,511 35,745 Pension Unfunded Actuarial Liability (Safety = 48.277%)6 663,827 11,546 (8,660) 2,887 23,294 35,248 61,429 Subtotal 1,044,298 18,265 (13,699) 4,566 36,849 55,759 97,174 Other City Paid Benefits Medicare (mandatory payment of 1.45%) 23,051 410 (307) 407 803 1,202 2,412 Compensated Absences 45,158 790 (593) 198 1,594 2,413 4,205 Cafeteria Plan 238,852 3,348 (2,511) 837 3,348 3,348 7,533 Employee Assistance Program (EAP) 249 - - - - - Uniform Allowance (Tier 1 & 2 eligible only) 8,380 Smartphone Allowance 1,920 Sun Protection Allowance ($400/year full-time & $300/year part-time) 5,300 Cancer Screening' Life Insurance (policy based on annual base pay with cap of $50,000) 1,576 Retiree Health Savings (Post Employment Healthcare Contribution) 9,450 - - One-time non-PERSable lump sum payment$ - - 21,000 21,000 Subtotal 333,936 4,548 (3,411) 22,442 5,745 6,963 35,149 Offset - Employee Pick Up of PERS Pension Costs (Safety =13.6%) (184,859) (3,253) 2,439 (813) (6,562) (9,930) (17,305) Subtotal (184,859) (3,253) 2,439 (813) (6,562) (9,930) (17,305) Overtime (based on fiscal year 2018 actual hours = 2,612.25) 88,445 1,901 (1,426) 475 3,482 5,091 9,048 Total 2,714,114 46,527 (34,895) 32,936 90,083 134,402 257,421 Salary Increase Only 1.75% 3.53% 5.34% Total Comp Increase Only 1 1.71% 3.32% 4.95% 1 Savings and cost based on COLA start date of October 2019, following Council approval. z Estimate is based primarily on FY 20 budget with some pays and benefits based in prior year actuals as noted. 3 Boat Assignment and Standby pay based on average of: Boat - Fiscal Year 18 actual hours of 1,113 and Calendar Year 18 actual hours of 1,109. Standby - Fiscal Year 18 actual hours of 1,517 and Calendar Year 18 actual hours of 1,425. ° PERS Tiers: Tier 1 Full Time Employees = 11 Tier 3 Part Time Employees = 3 Pension Normal Cost and Unfunded Actuarial Liability (UAL) percentages from PERS FY 20 actuarial valuation. 6 UAL cost excludes City's FY 20 discretionary UAL payment. 6 Cafeteria for full-time increases by $252/EE ($21/month) in Yr 1 for full-time and $192/EE ($16/month) in Yr 1 for part-time employees Cafeteria for full-time employees is currently $1,624 per month, will go to $1,645 per month in Yr 1. Cafeteria for part-time employees is currently $585 per month, will go to $601 per month in Yr 1. ' Cancer Screening is optional to employees and was not utilized in FY19. Cost is $232 for each screening. If all unit members participated in the cancer screening benefit, the annual cost would be $3,593. 5-34 SEW PART ATTACHMENT E City of Newport Beach } Y i BUDGET AMENDMENT 2019-20 Department: Human Resources Requestor: Barbara Salvini ❑ CITY MANAGER'S APPROVAL ONLY 0 COUNCIL APPROVAL REQUIRED ONE TIME: Des D\10 BA#: 20-011 Approvals Prepared by: Walid Hardin Dom fA00 tc •c Finance Director: Date Citv Clerk: Date EXPLANATION FOR REQUEST: To increase salaries and benefit expenditure appropriations from General Fund unappropriated fund balance to ❑romexisting budget appropriations provide funding levels commensurate with the Newport Beach Lifeguard Management Association Memorandum of ❑rom additional estimated revenues Understanding with the City. The budget amendment provides the additional funding needed for the remainder of ✓prom unappropriated fund balance Fiscal Year 2019-20. The Fiscal Year 2020-21 budget will be developed to include the full cost increases associated with the contract. REVENUES Fund # Org (EXPENDITURES Object Project Fund # Org Object 01040406 711002 01040406 712009 01040406 712012 01040406 712007 01040406 713009 01040406 723003 01040406 722002 01040406 727016 01040406 721001 01040406 714001 01040406 724002 01040406 713002 (FUND BALANCE Description Subtotal Project Description Lifeguard Operations - Salaries Safety Lifeguard Operations - Scholastic Achievemen Lifeguard Operations - Holiday Pay Safety Lifeguard Operations - Longevity Pay Safety Lifeguard Operations - Stand By Pay Lifeguard Operations - Pension Normal Cost S Lifeguard Operations - Pension Member Conth Lifeguard Operations - Medicare Fringes Lifeguard Operations - Cafeteria Allowance Fu Lifeguard Operations - Lump Sum Payment Lifeguard Operations - EE Contribution Safety Lifeguard Operations - Overtime Safty, & 1/2 Ti Subtotal Fund # Object Description 010 300000 General Fund - Fund Balance Control Increase or (Decrease) $ Increase or (Decrease) $ $28,450.00 $289.00 $1,169.00 $197.00 $1,446.00 $5,581.62 $2,875.38 $808.00 $2,511.00 $21,000.00 �S4.094 ;C' $2,216.00 $62,449.00 Increase or (Decrease) $ Subtotal i- ., _, Fund Balance Change Required 5-35