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Home My WebLink About14 - Approval of Side Letters of Agreement with the NBCEA and NBPTEAQ SEW Pp�T CITY OF z NEWPORT BEACH c�<,FORN'P City Council Staff Report January 11, 2022 Agenda Item No. 14 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Grace K. Leung, City Manager - 949-644-3001, gleung@newportbeachca.gov PREPARED BY: Barbara J. Salvini, Human Resources Director PHONE: 949-644-3259 TITLE: Approval of Side Letters of Agreement with the Newport Beach City Employees Association and Newport Beach Professional and Technical Employees Association ABSTRACT: On November 16, 2021, the City Council for the City of Newport Beach (City) approved the adoption of Memoranda of Understanding (MOUs) with the Newport Beach City Employees Association (CEA) and the Newport Beach Professional and Technical Employees Association (ProfTech). Both MOUs are effective January 1, 2022, through December 31, 2025, and cover wages, benefits, and other terms and conditions of employment for employees represented by these two groups. To recognize and retain existing CEA and ProfTech members, Side Letter Agreements (Side Letters) which provide for existing unit members to receive a one-time bonus are being presented for the City Council's approval and adoption. This is the final step in the meet and confer process to amend the CEA and ProfTech MOUs. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve the Side Letter of Agreement to the Memorandum of Understanding between the City of Newport Beach and the Newport Beach City Employees Association; c) Approve the Side Letter of Agreement to the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Professional and Technical Employees Association; and d) Approve Budget Amendment No. 22-036 appropriating $344,000 in increased expenditures in various City division salary accounts from the unappropriated fund balances of various City funds. 14-1 Approval of Side Letters of Agreement with the Newport Beach City Employees Association and Newport Beach Professional and Technical Employees Association January 11, 2022 Page 2 DISCUSSION: The Newport Beach City Employees Association (CEA) and Professional and Newport Beach Technical Employees Association (ProfTech) are exclusively recognized bargaining units. The CEA represents 94 budgeted, miscellaneous positions in administrative support, finance, library services and recreational services occupations. The ProfTech represents 78 budgeted, miscellaneous positions in engineering, planning, and information technology occupations. Both units are affiliated with the Laborers' International Union of North America, Local 777 (LIUNA). After meeting and conferring with both associations over the terms and conditions of their employment, the City Council approved successor Memoranda of Understanding (MOUs) on November 16, 2021, each with a term of January 1, 2022 through December 31, 2025. The attached Side Letters of Agreement with CEA and ProfTech provide for a one-time bonus in the amount of $2,000 for all bargaining unit members in paid status for the entirety of the first full pay period following City Council adoption of the side letters. This will be a lump sum payment that is non -pensionable and will not be reported to CalPERS. All other provisions, terms and covenants set forth in the existing MOUs will remain unchanged. Over the past year, the City has experienced an increase in retirements and separations of non -probationary employees who have worked for the City for at least five years. The bonus is intended to recognize and retain existing unit members whose knowledge, experience and training elevate the level of public service received by the City's residents and visitors on a daily basis. Their institutional knowledge is invaluable and warrants recognition. Further, the bonus is consistent with Council's approval of other City employee MOUs which provide for one-time bonuses of $2,000 for covered association members. If the City Council approves adoption of the Side Letter Agreements, City staff will work to implement the provisions as soon as practicable. FISCAL IMPACT: A total of $344,000 will be required to implement the terms of the Side Letter Agreements. To the extent that positions are vacant at the time of City Council approval, there will be some budget savings associated with the vacancies, estimated to be approximately $16,000 of the $344,000 requested appropriation. 14-2 Approval of Side Letters of Agreement with the Newport Beach City Employees Association and Newport Beach Professional and Technical Employees Association January 11, 2022 Page 3 ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Side Letter of Agreement to the Memorandum of Understanding between the City of Newport Beach and the Newport Beach City Employees Association Attachment B — Side Letter of Agreement to the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Professional and Technical Employees Association Attachment C — Budget Amendment No. 22-036 14-3 ATTACHMENT A SIDE LETTER OF AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND THE NEWPORT BEACH CITY EMPLOYEES ASSOCIATION This Side Letter of Agreement ("Agreement") is made and entered into this _ day of December 2021 by and between the City of Newport Beach ("City") and the Newport Beach City Employees Association ("Association") (collectively "Parties") with respect to the following: WHEREAS, on November 16, 2021, the City Council adopted Resolution No. 2021-109 approving a Memorandum of Understanding ("MOU") between the Parties with a term of January 1, 2022 through December 31, 2025; and WHEREAS, to aid in the recognition and retention of valuable employees, the Parties wish to modify the MOU; and WHEREAS, the effective date of the change below is the first day of the pay period following City Council approval of this Agreement; WHEREAS, this side letter of agreement will not have the effect of an agreement, and will not be binding on either party, until it is ratified by the affecting bargaining unit and approved by the City Council; and NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. Section 2, Compensation, of the MOU is amended to add Subsection L which shall read as follows: L. Lump Sum Bonus (FY 2021-22). All Bargaining Unit Employees in paid status for the entirety of the first full pay period following City Council adoption of this side letter in Fiscal Year 2021-22 will receive a one- time bonus in the amount of $2,000. The parties intend and understand that this lump sum payment is non -pensionable and will not be reported to CalPERS. The parties also agree that this payment is intended to be specific to the pay period in which it is paid and is to be considered part of the regular rate for this pay period only. 2. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in full force and effect. Signatures are on the next page. City Employees Association Side Letter Agreement Page 1 of 2 14-4 Executed this day of )2022. CITY OF NEWPORT BEACH: NEWPORT BEACH CITY EMPLOYEES ASSOCIATION: Grace K. Leung, City Manager A ne oughty, P sident APPROVED AS TO FORM: ATTEST: Charles Sakai, Special Counsel Leilani Brown, City Clerk City Employees Association Side Letter Agreement Page 2 of 2 14-5 ATTACHMENT B SIDE LETTER OF AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND THE NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION This Side Letter of Agreement ("Agreement") is made and entered into this _ day of December 2021 by and between the City of Newport Beach ("City") and the Newport Beach Professional and Technical Employees Association ("Association") (collectively "Parties") with respect to the following: WHEREAS, on November 16, 2021, the City Council adopted Resolution No. 2021-109 approving a Memorandum of Understanding ("MOU") between the Parties with a term of January 1, 2022 through December 31, 2025; and WHEREAS, to aid in the recognition and retention of valuable employees, the Parties wish to modify the MOU; and WHEREAS, the effective date of the change below is the first day of the pay period following City Council approval of this Agreement; WHEREAS, this side letter of agreement will not have the effect of an agreement, and will not be binding on either party, until it is ratified by the affecting bargaining unit and approved by the City Council; and NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. Section 2, Compensation, of the MOU is amended to add Subsection M which shall read as follows: M. Lump Sum Bonus (FY 2021-22). All Bargaining Unit Employees in paid status for the entirety of the first full pay period following City Council adoption of this side letter in Fiscal Year 2021-22 will receive a one- time bonus in the amount of $2,000. The parties intend and understand that this lump sum payment is non -pensionable and will not be reported to CalPERS. The parties also agree that this payment is intended to be specific to the pay period in which it is paid and is to be considered part of the regular rate for this pay period only. 2. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in full force and effect. Signatures are on the next page. Professional and Technical Employees Association Side Letter Agreement Page 1 of 2 14-6 Executed this day of CITY OF NEWPORT BEACH: Grace K. Leung, City Manager APPROVED AS TO FORM: Char es akai, Special Counsel 2022. NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION: R aaPuesident y ATTEST: Leilani Brown, City Clerk Professional and Technical Employees Association Side Letter Agreement Page 2 of 2 14-7 ATTACHMENT C �( City of Newport Beach K z BUDGET AMENDMENT 2021-22 BA#: 22-036 Department: Human Resources ONETIME: ❑ Yes ❑ No Requestor: Barbara Salvini Approvals ❑ CITY MANAGER'S APPROVAL ONLY Finance Director: e_77) Date D COUNCIL APPROVAL REQUIRED City Clerk: Date EXPLANATION FOR REQUEST: To increase expenditure appropriations for a lump sum payment to each member of CEA and Prof -Tech in accordance ❑ from existing budget appropriations with the Side Letter of Agreements. ❑ from additional estimated revenues ❑� from unappropriated fund balance Fund # Org Object Project Description Increase or (Decrease) $ Subtotal $ EXPENDITURES Fund # Org Object Project Description Increase or (Decrease) $ 010 01010005 714001 CITY CLERK ADMIN - LUMP SUM PAYMENT 6,000.00 010 01025005 714001 HUMAN RESOURCES - LUMP SUM PAYMENT 2,000.00 010 01030005 714001 FINANCE ADMIN - LUMP SUM PAYMENT 2,000.00 010 01030301 714001 FINANCIAL PLANNING - LUMP SUM PAYMENT 10,000.00 010 01030302 714001 FINANCIAL REPORTING - LUMP SUM PAYMENT 8,000.00 010 0103031 714001 REVENUE SERVICES - LUMP SUM PAYMENT 24,000.00 010 01040005 714001 FIRE ADMINISTRATION - LUMP SUM PAYMENT 3,000.00 010 01040401 714001 FIRE OPERATIONS - LUMP SUM PAYMENT 2,000.00 010 01040404 714001 EMERGENCY MEDICAL SERVICES - LUMP SUM PAYMENT 1,000.00 010 01040405 714001 JUNIOR LIFEGUARDS - LUMP SUM PAYMENT 500.00 010 01040406 714001 LIFEGUARD OPERATIONS - LUMP SUM PAYMENT 1,500.00 010 01050005 714001 CDD ADMIN - LUMP SUM PAYMENT 6,000.00 010 0105041 714001 INSPECTIONS - LUMP SUM PAYMENT 17,000.00 010 0105042 714001 PLAN CHECKS/PERMITS - LUMP SUM PAYMENT 31,000.00 010 01050501 714001 PLANNING - LUMP SUM PAYMENT 20,000.00 010 01050503 714001 CODE ENFORCEMENT - LUMP SUM PAYMENT 6,000.00 010 01050505 714001 REAL PROPERTY GEN FUND - LUMP SUM PAYMENT 2,000.00 010 01060005 714001 LIBRARY ADMIN - LUMP SUM PAYMENT 8,000.00 010 0106021 714001 CDM BRANCH LIBRARY - LUMP SUM PAYMENT 4,000.00 010 0106022 714001 MARINERS BRANCH LIBRARY - LUMP SUM PAYMENT 12,000.00 010 0106023 714001 CENTRAL LIBRARY - LUMP SUM PAYMENT 32,000.00 010 0106024 714001 BALBOA BRANCH LIBRARY - LUMP SUM PAYMENT 2,000.00 010 01060601 714001 TECHNICAL PROCESSING - LUMP SUM PAYMENT 6,000.00 010 01070005 714001 RECREATION ADMIN - LUMP SUM PAYMENT 4,000.00 010 0107010 714001 PROGRAM SUPPORT - LUMP SUM PAYMENT 18,000.00 010 0107012 714001 ADULT SPORTS - LUMP SUM PAYMENT 2,000.00 010 0107014 714001 YOUTH PROGRAMS - LUMP SUM PAYMENT 2,000.00 010 0107018 714001 PARK PATROL - LUMP SUM PAYMENT 4,000.00 010 0107020 714001 NEWPORT COAST COMMUNITY CENTER - LUMP SUM PAYME 2,000.00 010 0107021 714001 COMMUNITY YOUTH CENTER - LUMP SUM PAYMENT 2,000.00 010 0107023 714001 MARINA PARK - LUMP SUM PAYMENT 4,000.00 010 0107031 714001 OASIS - LUMP SUM PAYMENT 8,800.00 010 0107032 714001 OASIS FITNESS CENTER - LUMP SUM PAYMENT 2,400.00 010 0107033 714001 OASIS TRANSPORTATION - LUMP SUM PAYMENT 2,800.00 010 01080005 714001 PUBLIC WORKS ADMIN - LUMP SUM PAYMENT 10,000.00 14-8 Fund # Org Object Project Description Increase or (Decrease) $ 010 0108011 714001 WQ/CONSERVATION/ENVIRONMENTAL - LUMP SUM PAYME 2,000.00 010 0108012 714001 TRAFFIC & TRANSPORTATION - LUMP SUM PAYMENT 18,000.00 010 01080801 714001 ENGINEERING SERVICES - LUMP SUM PAYMENT 22,000.00 010 01080807 714001 MOD ADMIN - LUMP SUM PAYMENT 2,000.00 100 10045451 714001 HARBOR DEPARTMENT - LUMP SUM PAYMENT 2,000.00 701 7019052 714001 WATER SYSTEM SERVICE - LUMP SUM PAYMENT 5,000.00 764--.--76420203-..-714001-------- CITY MGR INFORMTN TECHNOLOGY - LUMP SUM PAYMENT 25,000.00 Subtotal $ 344,000.00 BALANCE Fund # Object Description Increase or (Decrease) $ 010 300000 GENERAL FUND - FUND BALANCE CONTROL (312,000.00) 100 300000 TIDE & SUBMERGED LANDS FUND - FUND BALANCE CONTROL (2,000.00) 701 300000 WATER ENTERPRISE FUND - FUND BALANCE CONTROL (5,000.00) 764 300000 IT ISF - FUND BALANCE CONTROL (25,000.00) Subtotal) $ (344,000.00) Fund Balance Change Required 14-9