HomeMy WebLinkAbout2024-70 - Approving Side Letter Agreements with Labor Groups Representing City EmployeesRESOLUTION NO. 2024-70
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, APPROVING
SIDE LETTER AGREEMENTS WITH LABOR GROUPS
REPRESENTING CITY EMPLOYEES
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 authority contained in the Meyers-Milias-Brown Act, Government
Code 3500, et seq.;
WHEREAS, the City of Newport Beach ("City") promotes effective communication
and collaborative working relationships with its employees to foster improved relations
while balancing good management practices;
WHEREAS, the City previously entered into a Memorandum of Understanding
with Newport Beach City Employees Association ("NBCEA"), a recognized organization,
for the term of January 1, 2022, through December 31, 2025;
WHEREAS, the City previously entered into a Memorandum of Understanding
with the Newport Beach Professional and Technical Employees Association ("NBPTEA"),
a recognized organization, for the term of January 1, 2022, through December 31, 2025;
WHEREAS, the City previously entered into a Memorandum of Understanding
with the Newport Beach Employees League ("League"), a recognized organization, for
the term of January 1, 2022, through December 31, 2025;
WHEREAS, the country has continued to experience inflation and healthcare cost
increases since the approval of the Memoranda of Understanding and amendments
thereto;
WHEREAS, the City Council desires to amend the Memoranda of Understanding
between the City and certain recognized organizations by approving Side Letters of
Agreement, which provide for an extension of a temporary reduction in the employee
retirement percentage contributions, as set forth in Exhibits A through C; and
WHEREAS, by adopting this resolution, the City Council also desires to replace
certain language contained in the existing Associations' Memoranda of Understanding by
adopting the Side Letters of Agreement attached hereto as Exhibits A through C to serve
as the controlling language for the remaining term of the respective Memoranda of
Understanding.
Resolution No. 2024-70
Page 2 of 3
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 2: The City Council hereby approves, and authorizes the Mayor to
execute, all the Side Letters of Agreement attached hereto as set forth in Exhibits A
through C, which are incorporated herein by this reference. The employee retirement
percentage contributions referenced in the attached Side Letters of Agreement shall
prevail over any previously adopted employee retirement percentage contributions that
conflict herewith.
Section 3: 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 4: 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.
Resolution No. 2024-70
Page 3 of 3
Section 5: 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, 2024.
-�49
Will O'Neill
Mayor
ATTEST:
FLeilani 1. M
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFI E
.*_.1
Aaron C. Harp
City Attorney
Attachments: Exhibit A:
Side Letter of Agreement between the City and NBCEA
Exhibit B:
Side Letter of Agreement between the City and NBPTEA
Exhibit C:
Side Letter of Agreement between the City and League
SIDE LETTER OF AGREEMENT
BETWEEN
CITY OF NEWPORT BEACH
AND
THE NEWPORT BEACH CITY EMPLOY A-S'S`OCrAT
This Side Letter of Agreement ("Agreement") is made and entered into this 24th day of
September 2024, 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;
WHEREAS, given existing inflationary pressures and to aid in the recruitment and
retention of valuable employees, the Parties wish to modify the MOU; and
WHEREAS, this Agreement will not have the effect of an agreement, and will not
be binding on either party, until it is ratified by the affected bargaining unit and approved
by the City Council.
NOW, THEREFORE, it is mutually agreed between the Parties as follows:
1. The following language in Section 4, Fringe Benefits, Subsection D,
Retirement Benefit, Subsection 2, Employee Contributions, of the MOU, which was
previously amended pursuant to the Side Letter Agreement dated November 29, 2022, is
hereby amended and shall read as follows:
"2. Employee Contributions
The Association has agreed to share in the rising cost of pension
obligations. Under the terms of this MOU, unit members will contribute additional
amounts toward the Ca1PERS retirement benefit, to the extent permissible by law.
Should any provision be deemed invalid, the City and Association agree to meet for
the purpose of renegotiating employee retirement contributions.
Employee retirement contributions that are in addition to the normal
Ca1PERS Member Contribution (of 7% or 8%) shall be calculated on base pay, special
pays, and other pays normally reported as "PERSable" compensation and will be made
on a pre-tax basis through payroll deduction, to the extent allowable by law. It is
recognized that these payments will not be reported to Ca1PERS as contributions
toward either the Member or Employer rate, as provided under Government Code
Section 20516(f).
NBCEA Side Letter Agreement Page I of 4
Under a separate agreement and ratified via a contract amendment with
CalPERS in 2008, Tier I employees shall contribute 2.42% compensation earnable (as
cost sharing) per Government Code section 20516(a).
Tier mp oyee�� con i u�fotaemployee con u ion o —
13% as follows: Tier I — Eight percent (8%) member contribution, 2.42% of
compensation earnable as cost sharing per Government Code section 20516(a) and
2.58% of compensation eamable as cost sharing per Government Code section
20516(f).
Temporary Reduction. Effective the pay period that includes January
1, 2023, Tier I Employees shall contribute a total employee contribution of 11.5% as
follows: Tier I — Eight percent (8%) member contributions, 2.42% of compensation
earnable as cost sharing per Government Code section 20516(a) and 1.08% of
compensation earnable as cost sharing per Government Code section 20516(f). This
reduction in the employee contribution rate sunsets at the end of the last full pay period
in December 2025. Accordingly, effective the pay period that includes January 1,
2026, Tier I Employees shall contribute a total employee contribution of 13% as
follows: Tier I — Eight percent (8%) member contribution, 2.42% of compensation
earnable as cost sharing per Government Code section 20516(a) and 2.58% of
compensation earnable as cost sharing per Government Code section 20516(f).
Tier II Employees - shall contribute a total employee contribution of
13% as follows: seven percent (7%) (compensation earnable) member contribution
and six percent (6%) of compensation earnable as cost sharing per Government Code
section 20516(f).
Temporary Reduction. Effective the pay period that includes January
1, 2023, Tier II Employees shall contribute a total employee contribution of 11.5% as
follows: seven percent (7%) (compensation eamable) member contribution and four
and one-half percent (4.5%) of compensation eamable as cost sharing per Government
Code section 20516(f). This reduction in the employee contribution rate sunsets at the
end of the last full pay period in December 2025. Accordingly, effective the pay
period that includes January 1, 2026, Tier II employees shall contribute a total
employee contribution of 13% as follows: seven percent (7%) (compensation
earnable) member contribution and six percent (6%) of compensation earnable as cost
sharing per Government Code section 20516(f).
Tier III Employees - The minimum statutory employee contribution for
employees in Tier III is subject to the provisions of PEPRA and equals 50% of the
"total normal cost". Tier III employees shall make an additional contribution of
pensionable compensation toward retirement pursuant to Government Code section
20516(f), such that the total employee contribution equals 13% of pensionable
compensation.
Temporary Reduction. Effective the pay period that includes January
1, 2023, the minimum statutory employee contribution for employees in Tier III is
NBCEA Side Letter Agreement Page 2 of 4
subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier
III employees shall make an additional contribution of pensionable compensation
toward retirement pursuant to Government Code section 20516(f), such that the total
-- - - - _ - �mpa-e-e contribution equals -no -less than 11.5% of pensionables�mpensatiosL(Le, -- ------
the greater of 11.5% or 50% of the "total normal cost"). This reduction in the employee
contribution rate sunsets at the end of the last full pay period in December 2025.
Accordingly, effective the pay period that includes January 1, 2026, the minimum
statutory employee contribution for employees in Tier III is subject to the provisions
of PEPRA and equals 50% of the "total normal cost". Tier III employees shall make
an additional contribution of pensionable compensation toward retirement pursuant to
Government Code section 20516(f), such that the total employee contribution equals
no less than 13% of pensionable compensation (i.e., the greater of 13% or 50% of the
"total normal cost").
The City contracts with Ca1PERS for the 41h Level 1959 Survivors
Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military
Service Credit, 2% Cost of Living Adjustment and the pre -retirement option
settlement 2 death benefit (Government Code Section 21548)."
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 on the next page
NBCEA Side Letter Agreement Page 3 of 4
Executed this 14�Iday of S c «t,K 1p,4f, 2024
By: ULIt., (/ '�—
Mariah Stinson, President
FOR THE CITY OF NEWPORT BEACH:
By: �.
Will O'Neill, Mayor
CITY OF NEWPORT BEACH
APPROVED AS TO FORM:
By:
Aaron C. Harp, City Attorney
ATTEST:
go
e
NBCEA Side Letter Agreement Page 4 of 4
SIDE LETTER OF AGREEMENT
BETWEEN
CITY OF NEWPORT BEACH
THE NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES
ASSOCIATION
This Side Letter of Agreement ("Agreement") is made and entered into this 24th day of
September 2024, 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;
WHEREAS, given existing inflationary pressures and to aid in the recruitment and
retention of valuable employees, the Parties wish to modify the MOU; and
WHEREAS, this Agreement will not have the effect of an agreement, and will not
be binding on either party, until it is ratified by the affected bargaining unit and approved
by the City Council.
NOW, THEREFORE, it is mutually agreed between the Parties as follows:
1. The following language in Section 4, Fringe Benefits, Subsection D,
Retirement Benefit, Subsection 2, Employee Contributions, of the MOU, which was
previously amended pursuant to the Side Letter Agreement dated November 29, 2022, is
hereby amended and shall read as follows:
"2. Employee Contributions
The Association has agreed to share in the rising cost of pension
obligations. Under the terms of this MOU, unit members will contribute additional
amounts toward the Ca1PERS retirement benefit, to the extent permissible by law.
Should any provision be deemed invalid, the City and Association agree to meet for
the purpose of renegotiating employee retirement contributions.
Employee retirement contributions that are in addition to the nonnal
Ca1PERS Member Contribution (of 7% or 8%) shall be calculated on base pay, special
pays, and other pays normally reported as "PERSable" compensation (known either
as compensation earnable or pensionable compensation) and will be made on a pre-
tax basis through payroll deduction, to the extent allowable by law. It is recognized
that these payments will not be reported to CalPERS as contributions toward either
the Member or Employer rate, as provided under Government Code Section 20516(f).
NBPTEA Side Letter Agreement Page 1 of 4
Under a separate agreement and ratified via a contract amendment with
CalPERS in 2008, Tier I employees shall contribute 2.42% compensation earnable (as
cost sharing)_per Government Code section 20516(a .
Tier I Employees - shall contribute a total employee contribution of
13% as follows: Tier I — Eight percent (8%) member contribution, 2.42% of
compensation earnable as cost sharing per Government Code section 20516(a) and
2.58% of compensation earnable as cost sharing per Government Code section
20516(f).
Temporary Reduction. Effective the pay period that includes January
1, 2023, Tier I Employees shall contribute a total employee contribution of 11.5% as
follows: Tier I — Eight percent (8%) member contributions, 2.42% of compensation
earnable as cost sharing per Government Code section 20516(a) and 1.08% of
compensation earnable as cost sharing per Government Code section 20516(f). This
reduction in the employee contribution rate sunsets at the end of the last full pay period
in December 2025. Accordingly, effective the pay period that includes January 1,
2026, Tier I Employees shall contribute a total employee contribution of 13% as
follows: Tier I — Eight percent (8%) member contribution, 2.42% of compensation
earnable as cost sharing per Government Code section 20516(a) and 2.58% of
compensation earnable as cost sharing per Government Code section 20516(f).
Tier II Employees - shall contribute a total employee contribution of
13% as follows: seven percent (7%) (compensation earnable) member contribution
and six percent (6%) of compensation earnable as cost sharing per Government Code
section 20516(f).
Temporary Reduction. Effective the pay period that includes January
1, 2023, Tier II Employees shall contribute a total employee contribution of 11.5% as
follows: seven percent (7%) (compensation earnable) member contribution and four
and one-half percent (4.5 %) of compensation earnable as cost sharing per Government
Code section 20516(f). This reduction in the employee contribution rate sunsets at the
end of the last full pay period in December 2025. Accordingly, effective the pay
period that includes January 1, 2026, Tier II employees shall contribute a total
employee contribution of 13% as follows: seven percent (7%) (compensation
earnable) member contribution and six percent (6%) of compensation earnable as cost
sharing per Government Code section 20516(f).
Tier III Employees - The minimum statutory employee contribution for
employees in Tier III is subject to the provisions of PEPRA and equals 50% of the
"total normal cost". Tier III employees shall make an additional contribution of
pensionable compensation toward retirement pursuant to Government Code section
20516(f), such that the total employee contribution equals 13% of pensionable
compensation.
Temporary Reduction. Effective the pay period that includes January
1, 2023, the minimum statutory employee contribution for employees in Tier III is
NBPTEA Side Letter Agreement Page 2 of 4
subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier
III employees shall make an additional contribution of pensionable compensation
toward retirement pursuant to Government Code section 20516(f), such that the total
employee contribution equals no less than 11.5% of pensionable compensation i.e.,
the greater of 11.5% or 50% of the "total normal cost"). This reduction in the employee
contribution rate sunsets at the end of the last full pay period in December 2025.
Accordingly, effective the pay period that includes January 1, 2026, the minimum
statutory employee contribution for employees in Tier III is subject to the provisions
of PEPRA and equals 50% of the "total normal cost". Tier III employees shall make
an additional contribution of pensionable compensation toward retirement pursuant to
Government Code section 20516(f), such that the total employee contribution equals
no less than 13% of pensionable compensation (i.e., the greater of 13% or 50% of the
"total normal cost").
The City contracts with CalPERS for the 4ch Level 1959 Survivors
Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military
Service Credit, 2% Cost of Living Adjustment and the pre -retirement option
settlement 2 death benefit (Government Code Section 21548)."
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 on the next page
NBPTEA Side Letter Agreement Page 3 of 4
Executed this day ofA' u -- , 2024
FOR THE NEWPORT BEACH PROFESSIONAL AND TECHNICAL
EMPLOYEES ASSOCIATION:
Moni ue Navarrete, President
FOR THE CITY OF NEWPORT BEACH:
By:
Will O'Neill, Mayor
CITY OF NEWPORT BEACH
APPROVED AS TO FORM:
By:
C-
XarliC. Harp, City Attorney
ATTEST:
< < O� 1-4EVri�
By: :
Leilani Brown, ity Clerk U
T4' J 1.
'COR NtP
NBPTEA Side Letter Agreement Page 4 of 4
SIDE LETTER OF AGREEMENT
BETWEEN
CITY OF NEWPORT BEACH
AND
H 1�EWPO-RT-BE-A-eH-EMPL-OYRESQLEAGU
This Side Letter of Agreement ("Agreement") is made and entered into this 24th day of
September 2024, by and between the City of Newport Beach ("City") and the Newport
Beach Employees League ("Association") (collectively "Parties") with respect to the
following:
WHEREAS, on January 25, 2022, the City Council adopted Resolution No. 2022-
08 approving a Memorandum of Understanding ("MOU") between the Parties with a term
of January 1, 2022, through December 31, 2025;
WHEREAS, given existing inflationary pressures and to aid in the recruitment and
retention of valuable employees, the Parties wish to modify the MOU; and
WHEREAS, this Agreement will not have the effect of an agreement, and will not
be binding on either party, until it is ratified by the affected bargaining unit and approved
by the City Council.
NOW, THEREFORE, it is mutually agreed between the Parties as follows:
1. The following language in Section 4, Fringe Benefits, Subsection D,
Retirement Benefit, Subsection 2, Employee Contributions, of the MOU, which was
previously amended pursuant to the Side Letter Agreement dated November 29, 2022, is
hereby amended and shall read as follows:
"2. Employee Contributions
The Association has agreed to share in the rising cost of pension
obligations. Under the terms of this MOU, unit members will contribute additional
amounts toward the CalPERS retirement benefit, to the extent permissible by law.
Should any provision be deemed invalid, the City and Association agree to meet for
the purpose of renegotiating employee retirement contributions.
Employee retirement contributions that are in addition to the normal
CalPERS Member Contribution (of 7% or 8%) shall be calculated on base pay, special
pays, and other pays normally reported as "PERSable" compensation and will be made
on a pre-tax basis through payroll deduction, to the extent allowable by law. It is
recognized that these payments will not be reported to CalPERS as contributions
toward either the Member or Employer rate, as provided under Government Code
Section 20516(f).
Under a separate agreement and ratified via a contract amendment with
CalPERS in 2008, Tier I employees shall contribute 2.42% compensation earnable (as
cost sharing) per Government Code section 20516(a).
NBEL Side Letter Agreement Page 1 of 4
Tier I Employees - shall contribute a total employee contribution of
13% as follows: Tier I - Eight percent (8%) member contribution, 2.42% of
compensation earnable-as-cost sharing per Government Code section 20516(a) and
°�f compensation earna be as cost sharing per overnmen Code sec ion
20516(f).
Temporary Reduction. Effective the pay period that includes January
1, 2023, Tier I Employees shall contribute a total employee contribution of 11.5% as
follows: Tier I - Eight percent (8%) member contributions, 2.42% of compensation
earnable as cost sharing per Government Code section 20516(a) and 1.08% of
compensation earnable as cost sharing per Government Code section 20516(f). This
reduction in the employee contribution rate sunsets at the end of the last full pay period
in December 2025. Accordingly, effective the pay period that includes January 1,
2026, Tier I Employees shall contribute a total employee contribution of 13% as
follows: Tier I - Eight percent (8%) member contribution, 2.42% of compensation
earnable as cost sharing per Government Code section 20516(a) and 2.58% of
compensation earnable as cost sharing per Government Code section 20516(f).
Tier II Employees - shall contribute a total employee contribution of
13% as follows: seven percent (7%) (compensation earnable) member contribution
and six percent (6%) of compensation earnable as cost sharing per Government Code
section 20516(f).
Temporary Reduction. Effective the pay period that includes January
1, 2023, Tier II Employees shall contribute a total employee contribution of 11.5% as
follows: seven percent (7%) (compensation earnable) member contribution and four
and one-half percent (4.5%) of compensation earnable as cost sharing per Government
Code section 20516(f). This reduction in the employee contribution rate sunsets at the
end of the last full pay period in December 2025. Accordingly, effective the pay
period that includes January 1, 2026, Tier II employees shall contribute a total
employee contribution of 13% as follows: seven percent (7%) (compensation
earnable) member contribution and six percent (6%) of compensation earnable as cost
sharing per Government Code section 20516(f).
Tier III Employees - The minimum statutory employee contribution for
employees in Tier III is subject to the provisions of PEPRA and equals 50% of the
"total normal cost". Tier III employees shall make an additional contribution of
pensionable compensation toward retirement pursuant to Government Code section
20516(f), such that the total employee contribution equals 13% of pensionable
compensation.
Temporary Reduction. Effective the pay period that includes January
1, 2023, the minimum statutory employee contribution for employees in Tier III is
subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier
III employees shall make an additional contribution of pensionable compensation
toward retirement pursuant to Government Code section 20516(f), such that the total
employee contribution equals no less than 11.5% of pensionable compensation (i.e.,
LABEL Side Letter Agreement Page 2 of 4
the greater of 11.5% or 50% of the "total normal cost"). This reduction in the employee
contribution rate sunsets at the end of the last full pay period in December 2025.
Accordingly, effective the pay period that includes January 1, 2026, the minimum
statutory employee contribution for employees in Tier III is subje�to the provisions
of PEPRA and equals 50% of the "total normal cost". Tier III employees shall make
an additional contribution of pensionable compensation toward retirement pursuant to
Government Code section 20516(f), such that the total employee contribution equals
no less than 13% of pensionable compensation (i.e., the greater of 13% or 50% of the
"total normal cost").
The City contracts with CalPERS for the 4t" Level 1959 Survivors
Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military
Service Credit, 2% Cost of Living Adjustment and the pre -retirement option
settlement 2 death benefit (Government Code Section 21548)."
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 on the next page
NBEL Side Letter Agreement Page 3 of 4
Executed this day of AAUS US i— , 2024
FOR THE NEWPORT BEACH EMPLOYEES LEAGUE:
By:
Patrick Piersall, President
FOR THE CITY OF NEWPORT BEACH:
By:
Will O'Neill, Mayor
CITY OF NEWPORT BEACH
APPROVED AS TO FORM:
By. �� dw
Aaron C. Harp, City Attorney
ATTEST:
NBEL Side Letter Agreement Page 4 of 4
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; the foregoing resolution, being Resolution
No. 2024-70 was duly introduced before and adopted by the City Council of said City at a regular meeting
of said Council held on the 24th day of September, 2024; and the same was so passed and adopted by the
following vote, to wit:
AYES: Mayor Will O'Neill, Mayor Pro Tern Joe Stapleton, Councilmember Noah Blom,
Councilmember Robyn Grant, Councilmember Lauren Kleiman, Councilmember
Erik Weigand
NAYS: None
ABSENT: Councilmember Brad Avery
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said
City this 25th day of September, 2024.
!M �
Leilani I. Brown
City Clerk V 1"
Newport Beach, California�—
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