HomeMy WebLinkAbout18 - Tentative Agreement with Newport Beach Police Management Association (NBPMA)Q �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
June 24, 2025
Agenda Item No. 18
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 - 949-644-3259,
bsalvini@newportbeachca.gov
TITLE: Tentative Agreement with Newport Beach Police Management
Association (NBPMA)
ABSTRACT:
The Memorandum of Understanding (MOU) between the City of Newport Beach and the
Newport Beach Police Management Association (NBPMA, or Association) expires
June 30, 2026. At the City Council's direction, the parties began negotiating the terms
and conditions of a new agreement well in advance of the expiration date, with the goal
of implementing a successor agreement with enhanced benefits as soon as possible. A
Tentative Agreement (Agreement) has been reached. The Agreement addresses wages,
benefits and other terms and conditions of employment for NBPMA members and was
negotiated as required under the Meyers-Milias-Brown Act, California Government
Code §3500.
To promote greater transparency in the negotiations process, including the costs
associated with the labor contract, the Agreement with NBPMA is being presented at this
time for public review and comment. The complete Agreement, which spans the period
June 28, 2025, through June 30, 2028, will be presented for City Council adoption at the
July 8, 2025 regular meeting.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and,
b) Receive and consider the Tentative Agreement between the City of Newport Beach
and the Newport Beach Police Management Association.
DISCUSSION:
The NBPMA is an exclusively recognized bargaining unit representing the full-time police
lieutenant and police sergeant management classifications, for a total of 33 budgeted
positions.
18-1
Tentative Agreement with Newport Beach Police Management Association (NBPMA)
June 24, 2025
Page 2
During negotiations, City staff members, NBPMA members, and respective legal
representatives discussed wage adjustments, the medical cafeteria allowance and
structure, assignment pays, certificate pays, and other non -economic matters.
Key provisions of the Tentative Agreement between the City and NBPMA include:
• Term: July 1, 2025 through June 30, 2028.
• Salary Adjustments:
o Year One — 4%
o Year Two — 4%
o Year Three — 4%
• Equity Adjustments:
o Sergeants — 9%
o Lieutenants — 11 %
• Flex Leave: Amend the MOU to match the flex leave accrual rate received by
members of the Newport Beach Police Association.
• Holiday Time: All holiday time will be paid out in cash.
• Medical Insurance: The City will contribute $1,924 per month (plus the minimum
CalPERS participating employee contribution) to each member's cafeteria plan.
• Employee Retirement Contributions: Effective June 14, 2025, employee retirement
contributions will adjust as follows:
o Tiers I & II — 13.6% of compensation earnable
o Tier III — 13.6% of pensionable compensation or half the normal cost,
whichever is higher
• Addition / Modification of Certain Certification Pays
• Addition of Special Assignment Pays (S.W.A.T., Detectives, Crises Negotiator)
A draft version of the Tentative Agreement between the City and the NBPMA is provided
as Attachment A. Changes to the current agreement are noted in redline. Costing
information is included in Attachment B. The total cost of the contract is approximately
$6.8 million.
The NBPMA's members have voted in favor of the Agreement. Following City Council
review of the Tentative Agreement with the NBPMA, a final version of the successor MOU
18-2
Tentative Agreement with Newport Beach Police Management Association (NBPMA)
June 24, 2025
Page 3
will be presented to the City Council on July 8, 2025. In the interim, the costing information
and proposed MOU revisions will be posted for public review on the City's website.
The Agreement will not become effective until the City Council formally adopts it. If
approved at the July 8, 2025 City Council meeting, City staff will implement the provisions
accordingly.
FISCAL IMPACT:
Detailed cost information is provided in Attachment B. Since the MOU covers the period
from June 28, 2025, through June 30, 2028, it will result in the following annual fiscal
impacts to implement the terms of the agreement, totaling $6,769,022:
The costs shown reflect additional annual expenses for the corresponding fiscal years.
Because the contract is expected to take effect on June 28, 2025, the additional expense
for FY 2024-25 is considered negligible. Sufficient projected unassigned General Fund
balance reserves are available to support the required appropriations. Following the City
Council's consideration of the Tentative Agreement, staff will return with a budget
amendment to appropriate the funds needed to cover the cost of the contract for Fiscal
Year 2025-26. Adequate funding will be included in the annual budgets for subsequent
years.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A — Tentative Agreement and Proposed MOU Between the City and the
NBPMA (Redline)
Attachment B — Estimated Cost of Contract with the NBPMA
18-3
ATTACHMENT A
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF NEWPORT BEACH
W11XV
THE NEWPORT BEACH
POLICE MANAGEMENT ASSOCIATION
June 28, �y4 20252- through June 30, 20286
Page 11
MEMORANDUM OF UNDERSTANDING BETWEEN
THE CITY OF NEWPORT BEACH AND NEWPORT BEACH POLICE
MANAGEMENT ASSOCIATION
This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is entered
into with reference to the following:
PREAMBLE
The Newport Beach Police Management Association ("NBPMA" or "Association"), a
recognized employee organization, and the City of Newport Beach ("City"), a municipal
corporation and charter city, have been meeting and conferring, in good faith, with
respect to wages, hours, fringe benefits and other terms and conditions of employment.
This MOU, upon approval by NBPMA and the Newport Beach City Council, represents
the total and complete understanding and agreement between the parties regarding all
matters set forth herein.
SECTION 1. - General Provisions
A. RECOGNITION
In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers-
Milias-Brown Act of the State of California and the provisions of the Employer's/Employee
Labor Relations Resolution No.2001-50, the City acknowledges that NBPMA is the
majority representative forthe purpose of meeting and conferring regarding wages, hours
and other terms and conditions of employment for all employees in the classification of
Police Sergeant and Police Lieutenant
B. TERM
Except as specifically provided otherwise, any ordinance, resolution or action of the City
Council necessary to implement this MOU shall be considered effective as of Junes 284,
20252. This MOU shall remain in full force and effect until June 30, 20286, and the
provisions of this MOU shall continue after the date of expiration of this MOU in the event
the parties are meeting and conferring on a successor MOU.
C. RELEASE TIME
1. NBPMA members shall be allowed to participate in the following activities during
scheduled working hours without loss of pay ("Release Time"):
a. Attendance at meetings, conferences, seminars or workshops related to
matters within the scope of representation.
b. To prepare for, travel to, and attend scheduled meetings between the City
NBPMA MOU 20252-20289
Page 12
and NBPMA during the meet and confer process.
c. To travel to and attend scheduled grievance and disciplinary hearings.
d. To meet, for up to one (1) hour, with their representative prior to a hearing
described in (c) above.
2. City grants NBPMA one hundred (100) hours of Release Time per calendar year
to engage in the activities described in subsection 1 (a). NBPMA may accumulate
up to three hundred (300) hours of City -provided Release Time.
3. City grants NBPMA members the right to engage in the activities described in
subsections 1 (b), (c), and (d) at any time without reduction to the Release Time
granted in subsection 2.
4. NBPMA shall designate certain members as those members entitled to Release
Time. In no event shall any one designate be entitled to use more than one
hundred (100) hours of Release Time (exclusive of actual time spent meeting
with City representatives on matters relating to the scope of representation),
within any calendar year. Designates must give reasonable advance notice to,
and obtain permission from, their supervisor prior to use of Release Time, or,
prior to adjusting work hours per subsection 4(a). Requests for Release Time
shall be granted by the supervisor unless there are specific circumstances that
require the designate to remain on duty. Designates shall, to the maximum extent
feasible, receive shift assignments compatible with participation in the meet and
confer process.
a. Any NBPMA negotiating team member may request and shall (subject
to the approval process above) be granted flex work hours on any
scheduled workday during which the negotiating team member is to
attend a meet and confer session. Employees may flex start/finish time
up to two (2) hours.
D. SCOPE
The terms and conditions of this MOU shall prevail over conflicting provisions of
the Newport Beach City Charter, the ordinances, resolutions, af�d-policies of the
City of Newport Beach, afd-federal and state statutes, rules and regulations,
which either specifically provide that agreements such as this prevail, confer
rights which may be waived by any collective bargaining agreement, or are,
pursuant to decisional or statutory law, superseded by the provisions of an
agreement similar to this MOU.
2. All present written rules and current established practices and employees'
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.
NBPMA MOU 20252-20286
Page 13
3. 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. Management
Rights include, but are not limited to, the following:
a. The determination of the purposes and functions of the Police
Department;
b. The establishment of standards of service;
c. To assign work to employees as deemed appropriate;
d. The direction and supervision of its employees;
e. The discipline of employees;
f. The power to relieve employees from duty for lack of work or other
legitimate reasons;
g. To maintain the efficiency of operations;
h. To determine the methods, means and personnel by which Police
Department operations are to be conducted;
i. The right to take all necessary actions to fulfill the Police Department's
responsibilities in the event of an emergency;
j. The exercise of complete control and discretion over the manner of
organization, and the appropriate technology, best suited to the
performance of departmental functions.
The practical consequences of a Management Rights decision on wages,
hours, and other terms and conditions of employment shall be subject to the
grievance procedures.
E. CONCLUSIVENESS
This MOU contains all of the covenants, stipulations, and provisions agreed upon by the
parties. Therefore, for the term of this MOU, neither party shall be compelled, and each
party expressly waives its rights to request the other to meet and confer concerning any
issue relating primarily to matters within the scope of representation except as expressly
provided herein or by mutual agreement of the parties. No representative of either party
has the authority to make, and none of the parties shall be bound by, any statement,
representation or agreement reached prior to the execution of this MOU and not set forth
herein.
NBPMA MOU 20252-2028ra
Page 14
F. MODIFICATIONS
Any agreement, alteration, understanding, variation, or waiver or modification of any of
the terms or provisions of this MOU shall not be binding upon the parties unless contained
in a written document executed by authorized representatives of the parties.
G. BULLETIN BOARDS
Space shall be provided on bulletin boards within the Police Department at their present
location for the posting of notices and bulletins relating to NBPMA business, meetings, or
events. All materials posted on bulletin boards by the NBPMA shall indicate that the
NBPMA posted it. Material posted shall not contain personal attacks on any City official
or employee, any material which constitutes harassment, discrimination or retaliation on
the basis of any protected class under the law or other statutorily or constitutionally
impermissible basis, or any pornographic or obscene material.
H. NO STRIKE
The parties recognize their mutual responsibility to provide the citizens of Newport Beach
with uninterrupted municipal services and, therefore, for the term of this MOU, the parties
agree not to conduct concerted strike, work slowdown, sick out, withholding of services,
or lockout activities.
I. SAVINGS
If any provision of this MOU shall be held invalid by any court of competent jurisdiction,
or if compliance with or enforcement of any provision shall be restrained by court action,
or other established governmental administrative tribunal, the remainder of this MOU
shall not be affected, and the parties shall enter into negotiations for the sole purpose of
arriving at a mutually satisfactory replacement for such provision or provisions.
J. IMPASSE
In the event of an impasse (the failure to agree on a new MOU after the express term of
the existing MOU has expired), the parties may agree on mediation pursuant to the
procedure outlined in Section 16 of Resolution No. 2001-50 or a successor resolution.
SECTION 2. -Compensation
A. SALARY ADJUSTMENTS - THIS MOU PERIOD
Base salary increases for all NBPMA represented classifications shall be as follows and
as specified in Exhibit A:
1. Effective the beninnine of the first day of pal neriedd net mere than `20 days
1.�.T �-crag-vrth-e�a��zcrrvcTrrvrrrror�riTcrn o o cra,p�
June 28, 2025, there
NBPMA MOU 20252-20286
Page 15
shall be a base salary increase of tw-e four percent (24.0%) for all classifications
in the bargaining unit.- This salary increase includes the three percent (3%) increase
originally scheduled for the beginning of the pay period following July 1, 2025 boat -was
provided pursuant to the tamer preceding MOU and an additional non -compounding one
percent (1%) salary increase.).!ndOvid ials must he emnleyed by the City on the first
payment of the COLA.
2. Effective the beginning of the first full day -of -spay period following July 1,
20263, there shall be a base salary increase of fouyhree percent (43.0%) for all
classifications in the bargaining unit.
3. Effective the beginning of the first full d%o-pay period following July 1,
20274, there shall be a base salary increase of fourt#ree percent (43.0%) for all
classifications in the bargaining unit.
4. E#eGtive thefirst day ofthe pay p•eried following li ily 1 2025_teFe shall be a
wnInr1Rrease of tnhTppFpeFGont (3. 19 ) for all GlassifiGatiens on the
bargaining unit
Equity Adjustments
a. Effective June 28, 2025, 2heginninq of the not more than 30 days after this MOU io
77<iT l' TOO CtCf'p�J Ctr[GT-CfT�TGTO �T7
approved by the GIt„ Geu moil, there shall be an additional base salary increase of
nine percent (9.0%) for all Police Sergeants in the bargaining unit. This increase
shall not compound with the simultaneous base salary increases provided above in
Section 2.A. 1 E)r the iRGrease provided On the ormef MOU en juiv 1, 2025
b. Effective beginning of the June 2842, 2025, there shall be a base salary increase of
eleven percent (11.0%) for all Police Lieutenants in the bargaining unit. This
increase shall not compound with the simultaneous base salary increases provided
above in Section 2.A. 1orthe in re e�nrey'ded in the nrinr MOU on li iy 1 2025
NBPMA MOU 20252-20286
Page 16
B. CODE SEVEN/DUTY INCENTIVE TIME
Employees in the Unit receive a paid meal period (aka "Code Seven" time). By being
paid for a meal period, each employee in the unit must be available to respond to any
work -related request, emergency or call for service during his/her meal period.
C. ADVANCED POST CERTIFICATION
4fe�e�. Effective June 28, 2025, the nay permed I'leQARr1anq RGt mere than 30 GalenrJ�r rloic
after Geundl adoption of this MQU, employees shall receive five and one quarter percent
(5.25%) of base salary paid in each pay period upon earning an Advanced POST Certificate
-Supervisory P.O.S.T. and/or Management P.O.S.T. These certificate pays are not stackable..
When an emolovee aualifies for and has aoolied for anv of the above ann AdvanePOST
Certificates for the first time, the employee shall provide the City's Human Resources
Department with proof of the applicable a44 °d� Danced -POST Certification application
submittal. Emglovee will then be eliaible for this pav on the first day of the next pav period
after submission to HR.
If POST correctly denies the application for the Certification. the emplovee will be
responsible for reimbursing the City for anv payments previously received (over the
same period the payments were made). The parties agree that to the extent permitted
by law, the education pay in this section is special compensation and shall be reported
to CalPERS as such pursuant to Title 2 CCR. Section 571(a)(2) Peace Officer Standards
and Training (POST) Certificate Pa
GD. OVERTIME
All employees in both classifications in the unit shall earn overtime. For
Lieutenants, overtime is earned per this MOU, and paid at the MOU overtime
rate. €e�Sergeants who qualify for FLSA overtime #%y-shall rye be eligible
to receive both bets -FLSA overtime
the nnl'c-able F=I=SA-thfe-`vrhoW (as specifically provided by the FLSA) and MOU
fer �M_' I eve a ei alwNunn work hey rrs that T ed t� the FLSA
overtime. exGe
thre�cheW The overtime compensation provided to all employees in the unit shall
be at the rate of time and one half (1.5) at the applicable (FLSA or MOU) rate of
pay for hours worked in excess of their regularly scheduled shift. Paid time off
shall be considered time worked for MOU overtime calculation purposes. No
individual rights under the FLSA are waived by this provision.
2. The rate at which Contract (i.e., MOU) Overtime is calculated shall not include
the City's Cafeteria Plan Allowance, the opt -out Cafeteria Plan Allowance, or any
cash back an employee may receive from the Cafeteria Plan Allowance as set
forth in Section 4, by choosing benefits which cost less than the Allowance.
NBPMA MOU 20252-20286
Page 17
3. Overtime compensation shall be in the form of compensatory time off or pay at
the election of the employee. Maximum compensatory time accrual shall be one
hundred twenty (120) hours. All overtime worked for employees at the CTO
maximum shall be paid.
a. If the IRS or a court of competent jurisdiction provides guidance
concerning recognition of constructive receipt based on the earning of
CTO, this MOU will reopen on the issue of CTO and the parties will meet
and confer over elimination of constructive receipt. The parties
understand that, if the IRS determines there is additional tax liability, that
liability will be the responsibility of the individual taxpayers (employees).
b. EffeEtive the first full pay pe ried following Gity Ge innil adeptien in CV
2021 22,-CTO will be maintained ini two banks (one for FLSA Overtime and
one for MOU Overtime). When paid out, CTO earned on MOU overtime
will be paid out at the MOU overtime rate and CTO earned on FLSA
overtime will be paid out at the regular rate.
4. An employee wishing to use his/her accrued compensatory time off shall provide
the City with reasonable notice. Reasonable notice is defined as at least two (2)
weeks. If reasonable notice is provided, the employee's request may not be
denied unless it is unduly disruptive to the department to grant the request. A
request to use compensatory time off without reasonable notice may still be
granted within the discretion of the supervisor or manager responsible for
considering the request.
5. Overtime Compensation - Court
a. Compensation -Employees shall receive either compensatory time (subject
to the maximum accrual of 120 hours addressed in subsection C2 above)
or paid time at their discretion.
b. On -Call - Off -duty employees on call for court who have not been cancelled
prior to the scheduled standby time shall, whether extended or not, be
compensated at a rate equal to the actual standby time, with a minimum
of one (1) hour paid at time and one-half (1.5) at the MOU overtime rate
of pay.
c. Appearance - Off -duty employees who are required to appear in court
shall be compensated for the actual time involved with a minimum of
four (4) hours paid at time and one-half the FLSA rate of pay. This
minimum four (4) hour payment assumes that the time the employee who
is required to appear in court is outside his/her regular work hours. If the
time the employee is in court overlaps any part of the employee's regular
work hours, the employee will receive his/her regular pay plus any
additional overtime compensation (at time and one half) for hours which
NBPMA MOU 20252-2028ra
Page 18
fell outside regular work hours. Employees appearing in court after being
on call the same day shall be compensated from the time listed on the
subpoena until released by the court.
Compensation for hours worked begins when the employee starts driving
to court. However, when the employee is called on the same day and
directed to leave his/her location to come to court, compensation for hours
worked begins when the employee receives the call. Compensation for
hours worked ends when the employee has completed the time in court.
d. Cancellation - Off -duty employees whose court appearance is cancelled
with less than twelve (12) hours notice shall receive a payment for one (1)
hour of straight time at the MOU overtime rate of pay.
6. With the approval of the Division Commander, NBPMA members assigned to
non- shift assignments may work certain holidays if they occur on regularly
scheduled work days.
7. Employees in the unit must affirmatively account for their time by specifically
accounting for each days' work with the specific number of hours worked,
including the use of appropriate payroll codes for leave, overtime and other
purposes.
9-.E. UNIFORM ALLOWANCE
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 biweeklythe value of provided uniforms at One Thousand Three Hundred
Fifty Dollars ($1,350) per year, in accordance with Cal/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.
Cal/PERS Reporting of Uniform Allowance - To the extent permitted by law, the City shall
report to CalPERS the uniform allowance for each classification as special compensation
in accordance with Title 2, California Code of Regulation, Section 571 (a)(5).
Notwithstanding the previous sentence, for "new members" as defined by the Public
Employees' Pension Reform Act of 2013, the uniform allowance will not be reported as
pensionable compensation to CalPERS.
&F. SCHOLASTIC ACHIEVEMENT PAY
Sworn NBPMA members are entitled to additional compensation contingent upon scholastic
achievement ("Scholastic Achievement Pay").
Sworn NBPMA members may apply for increases pursuant to this Section when eligible and
NBPMA MOU 20252-20286
Page 19
scholastic achievement pay shall be included in the member's paycheck for the pay period
immediately after approval by the Chief of Police. It is the responsibility of the NBPMA
member to apply for Scholastic Achievement Pay. Approval of the member's application shall
not be unreasonably withheld or delayed, and the member shall not be entitled to receive
Scholastic Achievement Pay prior to the date the application is approved even though the
member may have been eligible prior to approval.
NBPMA members shall receive Scholastic Achievement Pay regardless of years of
service and in accordance with the City's evaluation and approval process. The number
of units and/or degrees received from an accredited college or other approved institution
will be paid biweekly as follows:
60 Units 90 Units BA/BS MA/MS/J
D
2% 3% 7% 8.5%
The pays are not cumulative. For example, if a member is receiving seven percent (7%)
Scholastic Pay for a bachelor's degree and earns a master's degree, said member shall earn
a total of eight- and one-half percent (8.5%) for the higher -level master's degree, not a
total of fifteen and one-half percent (15.5%).
Any unit members hired by the City on and after September 12, 2012 shall be ineligible for
any Scholastic Achievement Pay based upon having obtained units only.
Police Sergeants hired by the City before September 12, 2012 can qualify for the pay above
for having obtained either 60 or 90 units. Police Lieutenants hired by the City before
September 12, 2012 can qualify for the pay above for having obtained 90 units (but not 60
units).
The parties agree that to the extent permitted by law, the Scholastic Achievement Pay
in this section is special compensation and shall be reported to Cal/PERS as such
pursuant to Title 2 CCR, Section 571(a)(2) and 571.1(b)(2), Educational Incentive Pay.
F�7G. SPECIAL LEADERSHIP COMPENSATION (SLQ
Effective -the firspay t Teri Individuals who have completed the
California Post Supervisory Leadership Institute ("SLI"), Post Command College, the FBI
National Academy or Executive Leadership Institute will receive biweekly payments of an
additional four o percent ( 2%) of base pay. ErFrecti-b e the first pay period Wowing du
0
0
74) ef base pay.
The parties agree that to the extent permitted by law, the Special Leadership Compensation
in this section is special compensation and shall be reported to Cal/PERS as such pursuant
to Title 2 CCR, Section 571(a)(2) and 571.1(b)(2) Educational Incentive Pay.
NBPMA MOU 20252-20286
Page 110
G-.H. LONGEVITY PAY
NBPMA members shall earn longevity pay based on the greater of their total continuous
years of full-time service with the City of Newport Beach, or their total full-time
employment as a sworn law enforcement officer, including up to a maximum of six (6)
months' time employed as a police recruit or similar classification in a police training
academy as follows and paid biweekly:
At least 12 years of service but less than 16 years of service 0.75%
At least 16 years of service but less than 20 years of service 1.50%
At least 20 years of service but less than 25 years of service 2.25%
At least 25 years of service and more 3.00%
The parties agree that to the extent permitted by law, the longevity pay in this section is
special compensation and shall be reported to Cal/PERS as such pursuant to Title 2 CCR,
Section 571(a)(1) and Section 571.1(b)(1) Longevity Pay.
# I . J U LY 4TH
The Police Department has the discretion to schedule any of its employees to work a regular
work day on July 4th, regardless of the day of the week or job assignment. This may include
modifying work schedules and/or days off according to deployment needs. All unit members
who actually work July 4th will be compensated at the FLSA rate, plus premium pay equal
to half (1/2) of the hours actually worked on that day. Employees will be provided their regular
number of days off for the month of July (unless otherwise scheduled on an overtime basis),
which will be selected/assigned according to the normal practices of their particular work
unit. Therefore, if an employee is required to work on July 4 and it is not his/her regular work
day, the employee will be scheduled to be off on another day within the work period.
4-.J. BILINGUAL PAY
Employees certified as bilingual (Spanish) shall be eligible to receive Two Hundred Dollars
($200) per month (paid each pay period) in bilingual pay. The existing certification process
will confirm that employees are fluent at the street conversational level in speaking, reading
and writing Spanish. Employees certified shall receive bilingual pay the first full pay period
following certification.
Additional languages may be certified for compensation pursuant to this section by the Chief
of Police.
The parties agree that to the extent permitted by law, the Bilingual pay in this section is
NBPMA MOU 20252-20286
Page Ill
special compensation and shall be reported to CalPERS as such pursuant to Title 2 CCR,
Section 571(a)(4) and 571.1(b)(3) Bilingual Premium.
J-.K. MOTORCYCLE ASSIGNMENT
Employees assigned to work as motor officers are entitled to compensation for the
off -duty maintenance and servicing of their motorcycles. The Parties acknowledge
that the Fair Labor Standards Act (FLSA), which governs the entitlement to
compensation for off -duty motorcycle duties, entitles the Parties to agree to a
reasonable number of hours per month for such duties. The FLSA also allows the
Parties to agree on appropriate compensation for the performance of such off -duty
motorcycle duties. It is the intent of the Parties through this Subsection (J) to fully
comply with the requirements of the FLSA and that such provisions do comply with
the FLSA.
2. The Chief of Police, at his or her sole discretion, shall determine the number of unit
positions assigned to motor officer duties. At any time this number may decrease or
increase depending on the decision of the Chief of Police.
3_Employees assigned as motor officers shall receive an additional six (6) hours of
straight time compensation per month, paid at one and one-half (1.5) times their
FLSA rate of pay. This pay is compensation for the off -duty maintenance and
servicing of the motorcycle. The Parties agree the additional compensation is for
the performance of off -duty work and does not meet the definition of compensation
earnable under Government Code Section 20636, and will therefore not be reported
to Cal/PERS.
L. SPECIAL ASSIGNMENT PAY
1. Detective Pay for D IOGe Sef-ge „+s:
Effective June 281�14, 2025, Police Sergeants and Police Lieutenants assigned to
the Detective Division shall receive a special assignment pay equal to 3% of base
salary. The parties agree that to the extent permitted by law, the assignment pay in
this section is special compensation and shall be reported to CalPERS as such
pursuant to Title 2 CCR, Section 571 and 571.1 Detective Division Premium.
2. SWAT Pay:
Effective June 281y4, 2025, Police Sergeants and Police Lieutenants assigned to the
SWAT Team shall receive a special assignment pay equal to 2% of base salary. The
parties agree that to the extent permitted by law, the assignment pay in this section
is provided because assigned employees routinely and consistently perform
hazardous activities using special weapons and tactics to implement health/safety
procedures. The parties agree that to the extent permitted by law, the compensation
shall be reported to CalPERS as such pursuant to Title 2 CCR, Sections 571 and
571.1 Hazard Premium.
NBPMA MOU 20252-20286
Page 112
3. Crises Negotiation Team (CNT) Pam
Effective June 281-y4, 2025, Police Sergeants and Police Lieutenants assigned to the
CNT Team shall receive a special assignment pay equal to 1 % of base salary The
parties agree to seek an opinion from CalPERS as to whether this form of special
compensation may be reported to CalPERS as pensionable compensation. If PERS
concludes that it may be reported as pensionable compensation, from that time
forward, the city will report it as such.
The three premiums identified above will not stack. Members assigned to more than
one of these special assignments will receive only the premium for the special
assignment with the highest pay.
oil 11111110110
.. ■. ...
.. . r
.. .. .. ... M.. 'IT.
SECTION 3. - Leaves
A. FLEX LEAVE
NBPMA members shall accrue (prospectively) flex leave based on the greater
NBPMA MOU 20252-20286
Page 113
of their total continuous years of full-time service with the City of Newport Beach,
or their total full-time employment as a sworn law enforcement officer, including
up to a maximum of six (6) months of time employed as a police recruit or similar
classification in a police training academy. Flex time is accrued while an
employee is in paid status, including paid leave time.
Effective June 281s,�4, 2025, tThe Flex Leave accrual rate and caps shall be:
Years of Continuous
Service
Accrual Per Pay
Period
Maximum Accrual
Less than 5
5.69
443.82
5 but less than 9
6.31
492.18
9 but less than 12
6.92
539.76
12 but less than 162-5
8.16
636.48
16 but less than 20
8.77
646.69
20 but less than 25
9.38
656.90
25 and over
10.00
700.00
2. The Flex leave program shall be administered as follows:
a. NBPMA members shall accrue three (3) months (i.e. 36.99 hours) of flex
leave (as provided in the chart in paragraph A.1t above) upon completion
of three (3) months continuous employment with the Newport Beach
Police Department, provided however, this amount shall be reduced by
any flex leave time advanced during the first three (3) months of
employment.
b. Members employed by the City prior to initiation of the flex leave program
have had then current accrued vacation time converted to flex leave on an
hour for hour basis with then current sick leave placed in a bank to be used
as provided in the City of Newport Beach Employee Policy Manual.
Members entitled to use sick leave pursuant to the Employee Policy
Manual must notify appropriate department personnel of their intention to
access the sick leave bank and, in the absence of notification, absences
will be charged to the member's flex leave account. Members who wish to
convert an absence from flex leave to sick leave must submit a written
request to the Chief of Police within twenty (20) days after the absence
(20 days from the last absence in the event the member was continuously
absent for more than one day) specifying the nature of the illness and the
person notified of the intent to use sick leave, or the reasons for the failure
to notify appropriate department personnel. The Chief of Police shall grant
the request for conversion if the member submits a written statement
signed by his or her attending physician confirming the illness and the
Police Chief determines that the member's failure to notify appropriate
NBPMA MOU 20252-20286
Page 114
departmental personnel was reasonable under the circumstances.
c. NBPMA members first hired by the City prior to July 1, 1996, shall be paid
for all flex leave that accrues in excess of the flex leave accrual threshold
(Flex Leave Spillover Pay). Flex Leave Spillover Pay will be paid at the
member's base hourly rate of pay. Effective during the first pay period of
January 1998, NBPMA members who have not utilized at least eighty (80)
hours of flex leave during the prior calendar year shall not accrue flex leave
in excess of the Flex Leave Accrual Threshold and shall not be entitled to
Flex Leave Spillover Pay.
NBPMA members first hired, or rehired by the City subsequent to July 1,
1996, shall not be eligible for Flex Leave Spillover Pay and shall not be
entitled to accrue flex leave in excess of the Flex Leave Accrual Threshold.
d. All requests for scheduled flex leave shall be submitted to appropriate
department personnel. Flex leave may be granted on an hourly basis. In
no event shall a member take or request flex leave in excess of the
amount accrued.
e. Members shall be paid for all accrued flex leave at their then current hourly
rate of pay upon termination of the employment relationship.
B. HOLIDAY TIME
Employees who work in positions that require scheduled staffing without regard to
holidays, as designated by the Department, will receive holiday pay in lieu of time off at
the rate of 96 hours per fiscal year (July 1 through June 30), and at the rate of 3.7 hours
Per pay period.
The parties agree, to the extent permitted by law, the compensation in this section is
special compensation for those employees who are normally required to work on an
approved holiday because they work in positions that require scheduled staffing without
regard to holidays and shall be reported to CaIPERS as such pursuant to Title 2 CCR,
Section 571(a)(5) Holiday Pay.
- - 1
NN
lm--
..WAmtie eme
NBPMA MOU 20252-20286
Page 115
11110 NOR
C. 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. NBPMA
members shall be entitled to forty (40) hours of bereavement leave per incident (terminal
illness followed by death is considered one (1) incident). Leave hours need not be used
consecutively, but should occur in proximate time to the occurrence. Immediate family
shall mean an employee's father, mother, stepfather, stepmother, brother, sister,
spouse/domestic partner, child, stepchild,—er--_grand parent, or grandchild, and the
employee's spouse/domestic partner's father, mother, brother, sister, child or
grandparent. An employee requesting bereavement leave shall notify his/her supervisor
as soon as possible of the need to take leave.
D. LEAVE SELLBACK
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/or 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.
E. SCHEDULING OF MEDICAL TREATMENT FOR INDUSTRIAL INJURIES
Time spent by an employee receiving medical attention during the employee's
normal working hours is considered hours worked and compensable, when the
City or its representative schedules the appointment.
2. When an employee is temporarily disabled due to an industrial injury and is
unable to perform even limited duty in the workplace, all appointments, whether
arranged by the City or the employees, shall be considered as occurring during
normal working hours. The employee shall not be entitled to any additional
NBPMA MOU 20252-20286
Page 116
compensation, regardless of the employee's regular work schedule or the type of
compensation currently received, except as otherwise required by law.
3. When an employee has been released to either full or limited duty and has
returned to the workplace, time spent receiving ongoing medical treatment, such
as physical therapy or follow-up visits that are not scheduled by the City, is not
considered hours worked and therefore, is not compensable. To avoid disruption
in the workplace, an employee shall schedule such appointments to occur during
off duty hours whenever possible. In the event such scheduling is not available,
employee may be allowed to attend an appointment during their regularly
scheduled duty shift with prior supervisory approval. Regular recurring
appointments (i.e., weekly physical therapy) must be scheduled off duty.
F. NON -ACCRUING LEAVE BANK
Effective on July 1 of each year, employees in the unit shall receive a bank of thirty-three
(33) hours of non -accruing leave to use within that fiscal year. The hours have no cash value
and cannot be transferred to any other leave bank. Hours used are subject to supervisory
approval and must be used within that fiscal year or be forfeited. Non- accruing leave
cannot be carried into the next fiscal year.
Section 4. - Fringe Benefits
A. HEALTH INSURANCE
1. Benefits Information Committee
City has established a Benefits Information Committee ("BIC") composed of one
representative from each employee association group and up to three City
representatives. The BIC 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 programs. The purpose of the BIC is to provide
each employee association with information about health insurance/programs
and to receive timely input from associations regarding preferred coverage
options and levels of coverage.
2. Medical Insurance
a. The City has implemented an IRS qualified Cafeteria Plan. In addition to
the amounts listed below, the City shall contribute the minimum CaIPERS
participating employer's contribution towards medical insurance.
Employees shall have the option of allocating Cafeteria Plan contributions
towards the City's existing medical, dental and vision insurance/programs.
b. City Contribution
NBPMA MOU 20252-2028ra
Page 117
■■
I
Mme-, imimism -
■■
+ Effective June 28 2025
januz025, the City's monthly contribution towards the Cafeteria
Plan Qec-teases increases +s to fe—$1,924.004-
,5224.00 (plus the
minimum CalPERS participating employer's contribution as outlined in
Government Code §22892).
- ..
■■
..
■
,
c. Cash Back
Subject to the terms and conditions below, for members employed
in either this unit or the Newport Beach Police Association unit prior
to December 18, 2021, 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.
NBPMA MOU 20252-20286
Page 118
Unit members whose actual start state in either this unit or the Newport
Beach Police Association unit occurred prior to December 18, 2021,
and who elect to opt out of medical coverage offered by the City
because they have proof of minimum essential coverage ("MEG")
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 paid bi—weekly. For these same
employees, if they elect medical coverage and spend less than
$1,624.00 monthly (plus the minimum CalPERS participatinq
employer's contribution), the difference the Gity enntrib Linn nrevii- Gd
above, these unused cafeteria plan funds shall be paid to the employee
as taxable cash biweekly.
iii. Newly appointed unit members whose actual start date in either this
unit or the Newport Beach Police Association unit occurred on or after
December 18, 2021, and who elect to opt out of medical coverage
offered by the City because they have provided proof of MEC through
another source (other an 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. This paragraph shall not apply
to an employee who received a condition offer letter prior to adoption
of this MOU which referenced the pre-existing "opt out" and cafeteria
cash provisions.
NBPMA members who do not want to enroll in any medical plan offered by the
City must provide evidence of group medical insurance coverage, and execute
an "opt- out" agreement releasing the City from any responsibility or liability to
provide medical insurance coverage on an annual basis.
The preceding language as applied to the following scenarios:
Part-time employee hired by the City prior to MOU adoption but not
appointed as a full-time employee into the NBPA or NBPMA until on or
after December 18, 2021 - this employee is subject to the $500 opt -out
amount and does not receive cash back if the medical coverage elected
is less than the City contribution.
2. Full-time employee hired by the City prior to December 18, 2021 who later
drops down to part-time and then is reappointed to the unit as a full-time
employee - this employee is subject to the $500 opt -out amount and does
not receive cash back if the medical coverage elected is less than the City
contribution.
3. Full-time employee hired by the City prior to December 18, 2021 who later
NBPMA MOU 20252-20289
Page 119
transfers into the unit from another unit - if the employee was not subject to
the $500 opt -out amount and/or no cash back in the unit from which they are
transferring, they will receive the benefit of $1,000 opt -out and/or cash back
if the medical coverage elected is less than the City contribution.
3. Dental Insurance
The existing or comparable dental plans shall be maintained as part of the City's
health plan offerings as agreed upon by the BIC.
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 BIC.
B. ADDITIONAL INSURANCE/PROGRAMS
1. 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
an 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.
The City's obligation to establish a reimbursable account program is contingent upon
the City incurring no cost or potential liability relative to the plan or its administration.
City shall cooperate to the fullest extent of the law, provided, however, City may
require the plan to contain provisions that authorize the administrator to pay
allowable expenses only upon submittal of a demand from the City. Any "reduction"
in salary pursuant to this Section and/or the Section 125 Plan established by the
City, shall not affect any other provision of this MOU.
2. Disability Insurance
The City shall provide Short-term (STD) and Long-term (LTD) disability insurance to
all regular full-time employees with the following provisions:
NBPMA MOU 20252-2028Ca
Page 120
Short -Term Disability
Long -Term Disability
Benefit Amount
66.67% of covered wages
66.67% of covered wages
Maximum Benefit
$1,846 weekly
$15,000 monthly
Waiting Period
30 calendar days
180 calendar days
T9M. W.7
.
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.
3. Life Insurance
The City shall provide life insurance for all regular 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. This amount remains in effect until the employee retires from City
employment.
C. EMPLOYEE ASSISTANCE PROGRAM
City shall provide an Employee Assistance Program ("EAP") through a properly licensed
provider. NBPMA members and their family members may access the EAP at no cost subject
to provider guidelines.
D. RETIREMENT BENEFITS
1. Retirement Formula
The City contracts with the California Public Employees Retirement System
("CalPERS" or "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 as follows:
NBPMA MOU 20252-20286
Page 121
Tier I ("Legacy"): For employees hired by the City on or before November 23, 2012,
the retirement formula for safety members shall be 3%@50, calculated on the basis
of the highest consecutive 12-month period.
Tier II ("Classic"): For employees first hired by the City between November 24 and
December 31, 2012, or hired on or after January 1, 2013 and who are current
members of the retirement system or a reciprocal retirement system, as defined in
Public Employees Pension Reform Act (PEPRA), the retirement formula for safety
members shall be 3%@55, calculated on the basis of the highest consecutive 36
month period.
Tier III ("PEPRA"): For employees first hired by the City on or after January 1, 2013,
and who do not meet the Tier II criteria, the safety retirement formula shall be
2.7%@57, calculated on the basis of the highest consecutive 36-month period.
2. Other Contract Provisions
The City's contract with Cal/PERS shall also provide for:
a. The military buy-back provisions pursuant to Section 20930.3 of the
California Government Code and the highest year benefit pursuant to
California Government Code Section 20042.
b. The Level 4 1959 Survivors Benefits.
c. The CalPERS pre -retirement option settlement 2 death benefit (Section
21548) for miscellaneous and safety members.
3. Employee Contributions
Unit members shall contribute additional amounts toward the Cal/PERS retirement
benefit, to the extent permissible by law, as set forth below. Employee retirement
contributions that are in addition to the normal Ca_I/PERS Member Contribution shall
be calculated on base pay, special pays, and other pays normally reported as
pensionable compensation, and will be made on a pre-tax basis through payroll
deduction provided under 414(h)(2).
Tiers I and II:
Effective June 28, 2025, NBPMA Tier I and II members will contribute the full
statutory member contribution, equal to 9% of pensionable compensation, plus an
additional 4_65-.-6% of pensionable compensation toward retirement costs as
permitted under Government Code §20516(f), for a total contribution of 13.644-6%.
Tier III:
NBPMA MOU 20252-20286
Page 122
Effective June 28, 2025, tin addition to the statutorily required 50% contribution of
total normal costs ("member contribution rate"), Tier III members shall contribute an
additional amount of pensionable compensation toward retirement costs pursuant
to Government Code § 20516(f), so that their contribution equals a total contribution
of 13.644-.-6% of pensionable compensation.
If in future fiscal years the member contribution rate for employees in Tier III shall
become greater or less, as determined by CalIPERS valuations, the additional
contribution made by the employee under 20516(f) will be increased or decreased
accordingly so that the total employee contribution equals 13.644�% of
pensionable compensation. Provided however, that the employee contribution shall
never fall below the statutorily required contribution.
E. RETIREE MEDICAL BENEFIT
This is an Integral Part Trust (LIPT) RHS Retiree Health Savings (RHS) plan (formerly
the Medical Expense Reimbursement Program - WERP"). Each member has an
individual RHS account ("Account"), which accumulates based on the category they fall
under. Funds from the Account may be used for eligible health care expenses after
separation, retirement or a change in personnel status to a position that does not receive
the RHS benefit. These changes in personnel status will activate the Account and allow
funds to be withdrawn until the Account balance is depleted. Since the plan restricts all
distributions to be spent for health insurance premiums and health care expenses, as
defined by the Internal Revenue Code Publication 502, § 213(d) and the Plan document
the contributions, fund investment earnings and benefit payments (when withdrawn from
the Account) are not taxable when posted. Additionally, certain contributions may only be
deposited upon retirement from the City. The categories are provided below.
1. Background
In 2005, the City and NBPMA 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 is ongoing for an extended period. During the
transition, employees and (then) existing retirees were administratively classified
into different categories. The benefit is structured differently for each of the
categories. The categories are as follows:
a. Category 1 - Employees who become eligible for the benefit after January
1, 2006. This may include new hires, rehires and part-time employees
appointing to full-time status.
b. Category 2 - Employees who were active and enrolled in the previous
defined benefit as of December 31, 2005, eligible for the new defined
contribution program as of January 1, 2006 and whose age plus years of
service as of January 1, 2006 was less than 46 for public safety
employees.
NBPMA MOU 20252-2028ra
Page 123
c. Category - Employees who were active and enrolled in the previous
defined benefit as of December 31, 2005, eligible for the new defined
contribution program as of January 1, 2006 and whose age plus years of
service as of January 1, 2006 was 46 or greater for public safety
employees.
d. Category 4 - Employees who had already retired from the City prior to
January 1, 2006, and were participating in the previous medical program.
2. Eligibility
All NBPMA members are eligible for the RHS benefit. However, if a member
separates or changes positions to a bargaining unit which does not offer this
benefit, the member is no longer eligible for any contributions to the plan and their
Account will be activated for use and withdrawal of funds by the employee (or
former employee). This means if a unit member subsequently reappoints to a
position which offers the RHS benefit, they will be enrolled in "Category 1" and
must revest in the program. Any remaining balance deposited during prior
eligibility will remain in the Account.
Employees who become ineligible (no longer covered by a City employee
association, union or plan offering the RHS benefit) before vesting forfeit the
City's Part B contribution. Said employee will only receive Part A and Part C
contributions. The only exception is an active employee who separates before
vesting due to an approved industrial disability. In such case, 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 Account at the time of separation.
3. Account Contributions
Account contributions are categorized as Part A, Part B and Part C.
Part A contributions are a mandatory, automatic 1 % employee contribution
deducted each pay period and deposited into the Account through payroll.
Deductions begin the pay period in which the employee becomes eligible and
are reported to Cal/PERS as pensionable.
Part B contributions require a five-year vesting period which begins when the
employee becomes eligible for the RHS benefit. At the conclusion of the vesting
period, the City will credit the first five years' worth of Part B contributions into
the Account (interest does not accrue during that period and the contributions
are calculated at $2.50 per month for each year of the employee's full-time
service plus age) and begin to contribute $2.50 per month for each year of the
employee's full-time service plus age (e.g. 30 years old and five years of service
NBPMA MOU 20252-20286
Page 124
would be a factor of 35.
$2.50 x 35 = $87.50 per month). This factor is updated annually in the pay period
including January 1. Part B contributions are not reported to Cal/PERS as
pensionable.
The parties agree that the City's Part B contributions during active employment
constitute the minimum Cal/PERS participating employer's contribution (i.e., the
Cal/PERS statutory minimum amount) towards medical insurance after
retirement. The parties also agree that, for retirees selecting a Cal/PERS
medical plan, or any other plan with a similar employer contribution requirement,
the required employer contribution will be deducted from the employer's
contribution to the retiree's account.
Part C contributions are determined by NBPMA election and deposited into the
Account when flex leave hours are converted to taxable cash through leave
cash -out or at the time of separation or status change. Spillover pay does not
qualify for Part C contributions. Part C contributions are not reported to
Cal/PERS as pensionable.
The Association determines the level of contribution for all unit members,
subject to the following constraints. All employees within the Association must
participate at the same level. The participation level shall be specified as a
percentage of the flex leave balance available in each employee's leave bank at
the time of separation from the City, or status change, or as a percentage of the
flex leave balance being cashed out.
For example, if the Association wishes to elect 30% Part C contributions, then
each member leaving the City, or cashing out eligible leave at any other time,
would have the cash equivalent of 30% of the amount that is cashed out
deposited to their RHS Account on a pre-tax basis. The remaining 70% would
be paid in cash as taxable income. Individual employees do not have the option
to deviate from this breakout.
The Association may change the Part C contribution amount as part of a meet
and confer process. 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.
The Association has decided to participate in Part C contributions at the level of zero
percent (0%) flex leave.
Nothing in this section restricts taking leave for time off purposes.
NBPMA MOU 20252-20286
Page 125
4. Benefit
Category 1: Employees in this category make Part A and receive Part B
contributions (subject to vesting) automatically each pay period through payroll
deductions. Part C contributions are received through cash outs. No contributions
are made to Category 1 participants after separation.
Category 2: Employees in this category make Part A and receive Part B
contributions (subject to vesting) automatically each pay period through payroll
deductions. Part C contributions are received through cash outs. No contributions
are made to Category 2 participants after separation.
If a Category 2 participant retires from the City with a minimum of 5 consecutive years of
full-time service, the City will contribute to the participant's Account a one-time
contribution equal to $100 per month for every month the participant contributed to the
previous "defined benefit" plan up to a maximum of 15 years (180 months). This
contribution is deposited into the Account at the time of retirement, and only if the
employee retires from the City and becomes a Cal/PERS annuitant of the City of
Newport Beach. No interest will be earned in the interim.
Category 2 participants with less than five years of continuous contributions into the
prior defined benefit plan as of January 1, 2006: only the years of service after January 1,
2006 count towards Part B contributions upon vesting. Contributions in years before
2006 will be paid out as stated in the above paragraph.
Category 3: Employees in this category make Part A contributions automatically
each pay period through payroll deductions. Category 3 participants do not
receive any Part B contributions. Part C contributions are received through cash
outs.
If an eligible Category 3 participant retires from the City of Newport Beach, the City
will deposit $400 per month into the Account upon retirement, up to a maximum of
$4,800 per year, less the Cal/PERS minimum required employer contribution as
determined by Cal/PERS annually, which shall continue as long as the employee or
surviving spouse/qualified dependent is still living. To offset this expense to the City,
active Category 3 participants will contribute an additional $100 per month to the plan
until retirement. There is no cash out option for these funds and they cannot be spent in
advance of receipt.
Category 3 participants 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 is deposited into the Account
at the time of retirement, and only if the employee retires from the City. No interest will
be earned in the interim. Contributions are contingent upon remaining a Cal/PERS
annuitant of the City.
Category 4: For employees (retirees) in this category, there is no cost share
requirement. The monthly City contribution of $450 after retirement can be used
NBPMA MOU 20252-20286
Page 126
for any IRS authorized purpose, not just City insurance premiums. The City will
contribute Four Hundred and Fifty Dollars ($450) per month to each account as
long as the retiree or spouse remain living. For each retiree in this category, the
NBPMA shall reimburse the City $25 per month. Each quarter, the City will
provide an invoice to the NBPMA for each retiree for the previous three months,
for a total of Seventy -Five Dollars ($75.00).
5. 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. DEFERRED COMPENSATION
Each employee shall have a deferred compensation account set up by the City and subject
to the rules of IRS Code section 457 to which they may make contributions. The City shall
contribute to each employee's deferred compensation account each pay period as follows:
The City shall contribute a total of two percent (2%) of base salary to each
employee's deferred compensation account.
Under federal law, there is an annual maximum contribution which may be made to an
employee's IRS Code section 457 account. Although the City will be making contributions to
employees' accounts each pay period, it is the employees' responsibility to track their total
contribution amount. If an employee's account contributions reach the annual 457 maximum,
the City will stop making contributions for the remainder of the calendar year and will not
owe the employee any additional compensation related to this section.
G. TUITION REIMBURSEMENT
NBPMA members attending accredited community colleges, colleges, trade schools 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. The
maximum tuition reimbursement for all employees in the Unit shall be One Thousand Four
Hundred Dollars ($1,400) per fiscal year.
H. PHYSICAL FITNESS QUALIFIER
The Physical Fitness Qualifier (PFQ) is offered to police officers twice annually. Fitness
NBPMA MOU 20252-20289
Page 127
benchmarks have been established and are outlined in Exhibit B. Officers who rank 1st
Class, 2nd Class or 3rd Class as set forth in Exhibit B are awarded leave time depending
upon achieved rank. Within two weeks of PFQ completion, the department will create a
personnel action form indicating the rank and number of leave time hours awarded for each
sworn police officer. The awarded hours will be placed in the police officer's individual Comp
Time bank (at the straight time rate), which is subject to a 120-hour maximum balance. If the
employee later chooses to have the leave time "paid out," payment will be at the employee's
MOU overtime rate.
SECTION 5. - Miscellaneous Provisions
A. REDUCTIONS IN FORCE/LAYOFFS
The provisions of this section shall apply 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.
1. Definitions
a. "Layoffs" or "Laid off shall meant 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 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 two
classifications represented by the Association - Police Sergeant, and
NBPMA MOU 20252-20286
Page 128
Police Lieutenant.
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.
2. 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 (1) Classification shall have the right
to Bump a less senior employee in a lower ranking Classification within the
Series within the bargaining unit. An employee who has Bumping Rights
shall notify the Department Director within three (3) working days after
notice of layoff of his/her intention to exercise Bumping Rights.
c. In the event two (2) 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 (1) of the employees was
not appointed from an eligibility list, the Department Director shall
determine the employee(s) to be laid off.
3. Notice
Employees subject to layoff 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 and holiday leave (if any).
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
NBPMA MOU 20252-20286
Page 129
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 layoff, receive one (1)
week severance pay for each year of continuous service with the City of Newport
Beach, but in no case to exceed ten (10) weeks of severance compensation.
B. SCHEDULE
Nothing contained herein is intended to abridge management's right to schedule work to
meet the Police Department's needs of providing services in an efficient and safe manner.
Management recognizes its obligations to meet and confer before making any substantive
changes to work schedules that impact an employee's conditions of employment.
1. Employees currently work either the 3/11.42 or 4/10 work schedules. The Chief
of Police shall have the right to alter the work schedule of any NBPMA member
assigned to any multi -agency or regional task force.
If the City wants to utilize a work schedule other than the 4/10 or 3/11.42 for this
unit, it will notify the NBPMA and the parties shall promptly meet and confer, in
good faith, regarding the appropriate work schedule(s) for NBPMA members.
2. The employees in the unit are subject to the twenty-eight (28) day FLSA work
period pursuant to Section 29 U.S.C. 207(k) ("7?k Exemption"), provided,
however, the 7k Exemption shall not affect the City's obligation to pay MOU
overtime pursuant to provisions of this MOU.
3. Patrol Supervisor Pre -Briefing Time: The parties agree that the following
procedures are consistent with good police practices, provide each NBPMA
member with ample time to perform all required duties, and comply with the Fair
Labor Standards Act:
a. All Patrol Supervisors are required to report to work fifteen (15) minutes
early to prepare for briefing;
b. The fifteen (15) minutes per shift which is paid to prepare for briefing will
be paid as compensatory time off and credited to each employee's
compensatory time off bank. The pre -briefing time worked shall be
considered as hours worked for purposes of calculating FLSA overtime for
Police Sergeants. For Police Lieutenants it is also considered hours worked.
C. GRIEVANCE PROCEDURE
1. Definition
NBPMA MOU 20252-20286
Page 130
The term "grievance" means a dispute between NBPMA or any member and the
City regarding the interpretation or application of rules or regulations governing the
terms and conditions of employment, any provision of the Employee Policy Manual,
any provision of Resolution No. 2001-50, or this MOU.
2. Guidelines
Any NBPMA member may file a grievance without fear of retaliation or any adverse
impact on any term or condition of employment.
a. A grievance shall not be filed to establish new rules or regulations, change
prevailing ordinances or resolutions, nor circumvent existing avenues of
relief where appeal procedures have been prescribed.
b. An employee may be self -represented or represented by one (1) other
person.
c. An employee and any representative shall be given notice of the time and
place of any grievance proceeding, the opportunity to be present at such
proceedings, a copy of any written decision or communication to the
employee concerning the proceedings, and any document directly
relevant to the proceedings.
d. All parties shall engage in good faith efforts to promptly resolve the
grievance in an amicable manner. The time limit specified may be extended
upon mutual agreement expressed in writing.
e. The procedures in this MOU represent the sole and exclusive method of
resolving grievances.
3. Procedure
a. Steps
Step 1 - An employee who files a grievance shall present it in writing to an
Assistant Chief of Police within ten (10) working days after the employee knew,
or in the exercise of reasonable diligence should have known, the act or events
upon which the grievance is based. The written grievance must contain a
complete statement of the matters at issue, the facts upon which the grievance
is based, and the remedy requested by the employee. The Assistant Chief of
Police will confer with the Human Resources Director regarding the grievance.
The Assistant Chief of Police shall meet with the employee and any
representative in an effort to resolve the grievance. The Assistant Chief of Police
shall provide the employee with a written decision on the appeal within fifteen
(15) calendar days after the meeting. Upon receipt of a decision from an Assistant
Chief of Police Any employee not satisfied with the decision of his or her
NBPMA MOU 20252-2028ra
Page 131
immediate supervisor may proceed to Step 2.
Step 2 -Appeal to Chief of Police. Any employee dissatisfied with the decision of
an Assistant Chief of Police may proceed to Step 2 by submitting a written appeal
to the Chief of Police. The written appeal must be filed with the Chief of Police
within seven (7) calendar days following receipt of the Assistant Chief of Police's
decision. The written appeal must contain a complete statement of the matters at
issue, the facts upon which a grievance is based, and the remedy requested by
the employee. The Chief of Police shall meet with the employee and any
representative in an effort to resolve the grievance. The meeting shall be informal
and the discussion should focus on the issues raised by the grievance. The
meeting shall be scheduled no more than fifteen (15) calendar days following
receipt of the appeal unless deferred by the consent of both parties. The Chief of
Police shall provide the employee with a written decision on the appeal within
fifteen (15) calendar days after the meeting.
Step 3 -Appeal to City Manager. In the event the employee is dissatisfied with
the decision of the Chief of Police, the employee may proceed to Step 3 by
submitting a written appeal of the decision to the City Manager. The written
appeal must be filed within seven (7) calendar days following receipt of the Police
Chiefs decision. The written appeal shall contain a complete statement of the
matters at issue, the facts upon which the grievance is based, the decisions of
the supervising captain and Chief of Police, and the remedy requested by the
employee. The City Manager shall meet with the employee and his or her
representative in an effort to resolve the grievance and to receive any additional
information the employee or department may have relative to the matter. The
meeting shall be scheduled no more than fifteen (15) calendar days following
receipt of the appeal unless deferred by the consent of both parties. The City
Manager shall provide the employee with a written decision within fifteen (15)
calendar days after the meeting. The decision of the City Manager shall be final.
The City and the grievant may agree to extend any of the timelines in the
grievance procedure. Absent a mutual agreement between the City and the
grievant to extend the timelines, if the City representative does not respond within
the +n,,,e li„oetimelines set forth for a response at Steps 1 and 2 of the above
grievance procedure, the grievant can move the grievance to the next step.
4. General Grievance
A grievance affecting more than one (1) NBPMA member may be filed by NBPMA
on behalf of the affected employees with the Chief of Police. The Association must
present the grievance to the Chief of Police within ten (10) working days after an
Association Board member knew, or in the exercise of reasonable diligence should
have known, the act or events upon which the grievance is based. This provision is
the sole and exclusive method by which the Association may challenge a provision
of this MOU The grievance shall contain a complete statement of the matters at
NBPMA MOU 20252-20286
Page 132
issue, the facts upon which the grievance is based, and the remedy requested by
NBPMA. The Chief of Police shall meet with NBPMA representatives within fifteen
(15) calendar days following receipt of the grievance and provide a written decision
on the grievance within fifteen (15) calendar days after the meeting. In the event
NBPMA is dissatisfied with the decision of the Chief of Police, it may appeal to the
City Manager by following the procedures outlined in Step 3 of the procedure
applicable to individual employees set forth above.
In the event NBPMA is dissatisfied with the decision of the City Manager, it may
appeal the decision to the Civil Service Board by filing a written notice of appeal
within fifteen (15) calendar days after receipt of the decision.
D. DIRECT DEPOSIT
All Unit employees shall participate in the City's Direct Deposit Program.
E. CONTRACT NEGOTIATIONS
The parties agree that either side requests to meet and confer in good faith for a successor
MOU within 120 days of the expiration of the MOU, the parties agree to begin negotiations
with the mutual objective of reaching an agreement prior to the expiration of the term of the
MOU.
F. RECOUPMENT OF OVERPAYMENTS
Employees will be notified by Payroll or Human Resources prior to the recovery of
overpayments on paychecks. Recovery of more than 15% of net pay will be subject to a
repayment schedule established by the appointing authority under guidelines issued by
the Finance Department or Human Resources. Such recovery shall not exceed 15% per
month of disposable earnings, as defined by State law, except a mutually agreed upon
accelerated payment plan for faster recovery.
Recoupments under this section shall be limited to forty-eight (48) months. However,
nothing in this section is intended to preclude the City from seeking recoupment of
overpayments due to fraud or other knowing concealment through any available legal
forum.
G. FUNERAL EXPENSES
Consistent with California Labor Code Section 4701, if an employee covered by the MOU
is killed in the line of duty, the City will reimburse the employee's designated beneficiary
up to $10,000 to offset reasonable burial expenses.
Signatures are on the next page
NBPMA MOU 20252-20286
For NBPMA:
e elver (Jun 19, 202516:26 PDT)
Elizabeth Silver
Chief Negotiator
Date: 06/19/2025
NBPMA MOU 20252-20286
For the City:
a=01--
Joi han V. Holtzman (Jun 19, 2025 16:27 PDT)
Jonathan V. Holtzman
Co -Chief Negotiator
Date: 06/19/2025
Luke Jensen
Co -Chief Negotiator
Date: 06/19/2025
Page 133
Final Redline NBPMA MOU 06.19.2025
Final Audit Report 2025-06-19
Created: 2025-06-19
By: Emma Wilcox (ewilcox@publiclawgroup.com)
Status: Signed
Transaction ID: CBJCHBCAABAAE7hzcz4oNfacK4LoVnt9J4QkhcwjsQmA
"Final Redline NBPMA MOU 06.19.2025" History
j Document created by Emma Wilcox (ewilcox@publiclawgroup.com)
2025-06-19 - 11:24:11 PM GMT
C� Document emailed to Elizabeth Silver (esilver@rlslawyers.com) for signature
2025-06-19 - 11:24:16 PM GMT
C> Document emailed to Jonathan V. Holtzman (JHOLTZMAN@PUBLICLAWGROUP.COM) for signature
2025-06-19 - 11:24:16 PM GMT
G Document emailed to Luke Jensen (Ijensen@publiclawgroup.com) for signature
2025-06-19 - 11:24:16 PM GMT
Email viewed by Luke Jensen (Ijensen@publiclawgroup.com)
2025-06-19 - 11:25:14 PM GMT
"j Email viewed by Elizabeth Silver (esilver@rlslawyers.com)
2025-06-19 - 11:26:21 PM GMT
I Email viewed by Jonathan V. Holtzman (JHOLTZMAN@PUBLICLAWGROUP.COM)
2025-06-19 - 11:26:41 PM GMT
LSa Document e-signed by Elizabeth Silver (esilver@rlslawyers.com)
Signature Date: 2025-06-19 - 11:26:49 PM GMT - Time Source: server
6o Document e-signed by Luke Jensen (Ijensen@publiclawgroup.com)
Signature Date: 2025-06-19 - 11:27:15 PM GMT - Time Source: server
6o Document e-signed by Jonathan V. Holtzman (JHOLTZMAN@PUBLICLAWGROUP.COM)
Signature Date: 2025-06-19 - 11:27:45 PM GMT - Time Source: server
® Agreement completed.
2025-06-19 - 11:27:45 PM GMT
Q Adobe Acrobat Sign
ATTACHMENT B
Estimated Cost of Contract with the NBPMA
18-5
City of Newport Beach
NBPMA MOU
June 24, 2025
Key Contract Terms
COLA
4.00% 4.00% 4.00%
Equity Adjustment for Sergeants
9.00% - -
Equity Adjustment for Lieutenants
11.00%
Medical Insurance'
7/1/25 Additional $300/month (No Cash Back)
13.6%for Tiers I and II
Reduce PERS Contribution
14.60%
1/2 normal cost or 13.6%, whichever is greater
Advanced POST
5.25%
Increase Flex Leave Accruals
Align accruals with the NBPOA
3% for Detectives; 2% for SWAT;
Special Assignment Pay
1%for Crisis Negotiator
Summary of Proposal Cost Z
Baseline Compensation
Base Pay
$6,046,887
$822,377 $1,073,927 $1,335,540
Supplemental Pays
754,241
509,422 555,746 603,923
Overtime
564,758
67,771 93,072 119,385
Pension Contribution
1,138,421
308,333 365,314 424,574
Cafeteria Plan
647,658
68,463 68,463 68,463
Other City Paid Benefits 3
576,617
78,713 94,538 110,997
Total
$9,728,583
$1,855,079 $2,251,061 $2,662,882
Cumulative Impact on Employee Compensation
Base Salary Increase 4
13.60%
17.76%
22.09%
Total Compensation Increase 5
19.07%
23.14%
27.37%
Key Contract Terms
COLA
619,947
994,290
1,383,606
Equity Adjustment for Sworn
625,682
625,682
625,682
Medical Insurance'
68,463
68,463
68,463
Reduce PERS Contribution
74,465
77,443
80,541
Advanced POST
360,636
375,062
390,064
Flex Leave Accruals
58,371
60,706
63,135
Special Assignment Pay
47,515
49,415
51,392
Total
$1,855,079
$2,251,061
$2,662,882
Notes
' Assumes maintaining the current level of funding, plus an additional $300 per month in health insurance benefits.
Z Costs shown in years two and three reflect the cumulative budget impact in each year as compared to the current budget.
3 Includes Medicare, Compensated Absences, Retiree Health Savings, Life Insurance, and EAP.
4 Percentage shown in each year is as compared to current base salary, not the prior year.
5 Measured based on the total of all pay and benefits. Percentage is as compared to current total compensation, not the prior year.
6The costs shown reflect additional annual expenses for the corresponding fiscal years. Because the contract takes effect on June 28, 2025,
the additional expense for FY 2024/25 is considered negligible.
18-6