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Tentative Agreement with Newport Beach Employees League Association (LEAGUE) <br />January 8, 2019 <br />Page 2 <br />FUNDING REQUIREMENTS: <br />The LEAGUE MOU and resolution will be presented to the Council for consideration at <br />the January 22, 2019 Council meeting, along with a budget amendment appropriating the <br />first six months' cost of $103,422 from the General Fund Unappropriated Fund Balance. <br />The estimated cost of the contract with the LEAGUE is provided in Attachment B. <br />DISCUSSION: <br />LEAGUE represents approximately 105 non -safety employees in municipal operations <br />and utilities occupations, including park, beach and street maintenance, water and <br />wastewater services and equipment/mechanical maintenance. The LEAGUE is affiliated <br />with the Orange County Employees Association (OCEA). During negotiations, City staff <br />members, LEAGUE members, and respective legal representatives discussed wage <br />adjustments, overtime, certification pays, leaves, deferred compensation and additional <br />language for payment clarification, deferred compensation options, and other non- <br />economic matters. <br />Salient provisions of the Agreement between the City and LEAGUE include: <br />• Term of three (3) years, from January 1, 2019 through December 31, 2021 <br />• Wage Adjustments <br />✓ January 1, 2019 — 1.90% <br />✓ January 1, 2020 — 1.90% <br />✓ January 1, 2021 — 1.92% <br />• Matching City contribution of a maximum of $25 per month for those employees <br />contributing at least $25 per month in their individual deferred compensation plan. <br />• Restructuring of contract overtime. <br />• Modifications to Certificate Pay. <br />A proposed draft version of the Tentative Agreement between the City and Association is <br />included in Attachment A with changes from the current agreement in redline. Costing <br />information is included in Attachment B. The total cost of the three-year agreement is <br />estimated to be $ 1,323,025. <br />In accordance with the LEAGUE ratification procedures, the majority of members voted <br />to approve the Tentative Agreement on November 28, 2018 (Attachment A). The <br />Agreement will not become effective, per Government Code §3505.1, until the governing <br />body, e.g. City Council, takes action to adopt it. If the City Council approves adoption of <br />the Amended MOU with LEAGUE, Human Resources staff will work to implement the <br />provisions as soon as practicable. <br />7-2 <br />