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Home My WebLink About05 - Adopting a MOU with the Newport Beach Police Management Association (NBPMA) and Associated Salary ScheduleQ �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report July 8, 2025 Agenda Item No. 5 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: Resolution No. 2025-42: Adopting a Memorandum of Understanding with the Newport Beach Police Management Association (NBPMA) and Associated Salary Schedule ABSTRACT: The Tentative Agreement regarding a Memorandum of Understanding (MOU) between the City of Newport Beach and the Newport Beach Police Management Association (NBPMA or Association) was presented at the City Council's June 24, 2025, regular meeting to provide the City Council and the community an opportunity to consider the terms and costs of the agreement. The proposed MOU is now presented for the City Council's adoption (or rejection) and is the final step in the meet and confer process with the NBPMA. The associated salary schedules are included along with the recommendation for approval of the MOU. The attached budget amendment, Budget Amendment No. 26-005, appropriates $1,693,275 in funding to implement the costs associated with the agreement for the upcoming fiscal year. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Adopt Resolution No. 2025-42, A Resolution of the City Council of the City of Newport Beach, California, Adopting a Memorandum of Understanding Between the City of Newport Beach and the City of Newport Beach Police Management Association and Amending the Salary Schedule for the Association Unit Members, Police Chief, and Assistant Police Chief, and c) Approve Budget Amendment No. 26-005 appropriating $1,693,275 in increased expenditures in various City division salary and benefit accounts from unappropriated General Fund balance. 5-1 Resolution No. 2025-**: Adopting a Memorandum of Understanding with the Newport Beach Police Management Association and Associated Salary Schedule July 8, 2025 Page 2 DISCUSSION: The following discussion was provided, in part, with the June 24, 2025, staff report and is included here for reference: 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. 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 proposed MOU 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) The City Council reviewed the Tentative Agreement and proposed MOU with the NBPMA at its regular meeting on June 24, 2025, after which the costing information and proposed revisions to the MOU were posted for public review on the City's website. A final version of the successor MOU is being presented in accordance with Government Code §3505.1. The total cost of the NBPMA MOU is estimated to be $6,769,022. 5-2 Resolution No. 2025-**: Adopting a Memorandum of Understanding with the Newport Beach Police Management Association and Associated Salary Schedule July 8, 2025 Page 3 Although the Police Chief has an employment agreement with the city, certain salary range adjustments are outlined in the Key and Management Compensation Plan ("Plan"). The assistant police chief classification is also included in the Plan as an Administrative Management — Safety position. According to the Plan, salary adjustments for the police chief and safety assistant police chief classifications are tied to the salary adjustments received by Police Management Association Lieutenants. The proposed salary adjustments to the police chief and safety assistant police chief salary ranges are shown in Attachments D and E and recommended for adoption in Resolution No. 2025-42. FISCAL IMPACT: Detailed cost information is provided in Attachment F. Since the MOU covers the period from July 1, 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: 2025126 1,855,079 2026/27 2,251,061 2027/28 2,662,882 A budget amendment is required to appropriate $1,693,275 from unappropriated fund balances to implement the agreement for Fiscal Year 2025-26. The MOU for the PMA is funded by the General Fund. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Resolution No. 2025-42 Attachment B — Exhibit A to Attachment A (NBPMA MOU) Attachment C — Exhibit B to Attachment A (Salary Schedule) Attachment D — Exhibit C to Attachment A (Police Chief Salary Schedule) Attachment E — Exhibit D to Attachment A (Assistant Police Chief Salary Schedule) Attachment F — Estimated Cost of Contract with NBPMA Attachment G — Budget Amendment No. 26-005 5-3 ATTACHMENT A RESOLUTION 2025- 42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, ADOPTING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION AND AMENDING THE SALARY SCHEDULE FOR THE ASSOCIATION UNIT MEMBERS, POLICE CHIEF, AND ASSISTANT POLICE CHIEF 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 employee associations to foster improved relations while balancing good management practices; WHEREAS, the City previously entered into a Memorandum of Understanding ("MOU") with the Newport Beach Police Management Association ("NBPMA") a recognized organization, for the term of July 1, 2022 through June 30, 2026; WHEREAS, representatives from the City and NBPMA met and conferred in good faith and reached a tentative agreement on wages, benefits and other terms and conditions of employment, which are memorialized in the Memorandum of Understanding between the City and NBPMA ("Memorandum of Understanding") attached hereto as Exhibit A and incorporated herein by this reference; WHEREAS, NBPMA has voted to approve the Memorandum of Understanding; WHEREAS, City of Newport Beach Charter Section 601 requires the City Council to provide the number, titles, qualifications, powers, duties and compensation of all officers and employees of the City; WHEREAS, Newport Beach Municipal Code Section 2.28.010 (Establishment of Classification and Salary Ranges) provides, upon recommendation of the City Manager, the City Council may establish by resolution the salary range or rate for each position; 5-4 Resolution No. 2025- Page 2 of 3 WHEREAS, by adopting this resolution, the City Council intends to amend the salary schedule for NBPMA unit members so as to be in conformance with the Memorandum of Understanding; WHEREAS, the City Manager has reviewed the changes to the salary schedule for NBPMA, the Police Chief and Assistant Police Chief and recommends approval; WHEREAS, the City Council received and considered the Memorandum of Understanding at its regular meeting on June 24, 2025; WHEREAS, by adopting this resolution, the City Council intends to amend the salary schedule for NBPMA unit members to be in conformance with the Memorandum of Understanding and to amend the salary schedule for the Police Chief and Assistant Police Chief classification to be in conformance with the Key & Management Plan and the Police Chief's Employment Agreement; and, WHEREAS, by adopting this resolution, the City Council also desires to replace the 2022-2026 MOU between the City and NBPMA by adopting the Memorandum of Understanding attached hereto as Exhibit A to serve as the successor agreement between the City and NBPMA for the period June 28, 2025 through June 30, 2028. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council hereby approves, and authorizes the Mayor to execute the Memorandum of Understanding attached hereto as Exhibit A. The wages, hours, fringe benefits, and other terms and conditions of employment for employees represented by NBPMA shall be provided in accordance with the provisions of the Memorandum of Understanding, which shall serve as the successor agreement between the City and NBPMA for the period June 28, 2025 through June 30, 2028. Section 2: The City's salary schedule shall be modified to be consistent with this resolution, the Memorandum of Understanding, Exhibit A, the Memorandum of Understanding - Salary Schedule, Exhibit B, the salary schedule for the Police Chief, Exhibit C, and the salary schedule for the Assistant Police Chief, Exhibit D, all of which shall be effective as of June 28, 2025, and are incorporated herein by this reference. Any resolution, or part thereof, in conflict with this resolution shall be of no effect. Section 3: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. 5-5 Resolution No. 2025- Page 3 of 3 Section 4: 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 5: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 6: 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 8th day of July, 2025. Joe Stapleton Mayor ATTEST: Molly Perry Interim City Clerk APPR VED AS TO FORM: CITY TTORNEY' OFFI - Aaron C. Harp City Attorney Exhibit A - Memorandum of Understanding Exhibit B - Memorandum of Understanding Salary Schedule Exhibit C - Police Chief Salary Schedule Exhibit D - Assistant Police Chief Salary Schedule 5-6 Exhibit A (NBPMA MOU) The attachment will be available for viewing prior to the meeting. 5-7 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION H r \0~% June 28, 2025 through June 30, 2028 5-7 Table of Contents SECTION 1. - GENERAL PROVISIONS............................................................. RECOGNITION TERM ................ RELEASE TIME SCOPE ............. CONCLUSIVENESS......................................................................................... MODIFICATIONS.............................................................................................. BULLETINBOARDS........................................................................................ NOSTRIKE....................................................................................................... SAVINGS........................................................................................................... IMPASSE........................................................................................................... SECTION 2. -COMPENSATION .......................................................................... SALARY ADJUSTMENTS - THIS MOU PERIOD ........................................... CODE SEVEN/DUTY INCENTIVE TIME ........................................................ ADVANCED POST CERTIFICATION............................................................ OVERTIME....................................................................................................... UNIFORMALLOWANCE.................................................................................. SCHOLASTIC ACHIEVEMENT PAY............................................................... SPECIAL LEADERSHIP COMPENSATION(SLC)....................................... LONGEVITYPAY.............................................................................................. JULY4TH........................................................................................................... BILINGUALPAY................................................................................................ MOTORCYCLE ASSIGNMENT....................................................................... SPECIAL ASSIGNMENT PAY.......................................................................... SECTION3. - LEAVES......................................................................................... FLEXLEAVE..................................................................................................... HOLIDAYTIME.................................................................................................. BEREAVEMENT LEAVE................................................................................. LEAVESELLBACK.......................................................................................... SCHEDULING OF MEDICAL TREATMENT FOR INDUSTRIAL INJURIES NON -ACCRUING LEAVE BANK...................................................................... SECTION 4. - FRINGE BENEFITS...................................................................... HEALTHINSURANCE..................................................................................... ADDITIONAL INSURANCE/PROGRAMS......................................................... EMPLOYEE ASSISTANCE PROGRAM.......................................................... RETIREMENT BENEFITS............................................................................... RETIREE MEDICAL BENEFIT........................................................................ DEFERRED COMPENSATION...................................................................... TUITION REIMBURSEMENT......................................................................... PHYSICAL FITNESS QUALIFIER.................................................................. SECTION 5. - MISCELLANEOUS PROVISIONS ................................................ REDUCTIONS IN FORCE/LAYOFFS............................................................. SCHEDULE....................................................................................................... GRIEVANCE PROCEDURE........................................................................... NBPMA MOU 2025-2028 Page 11 3 3 3 3 4 5 5 5 5 6 6 6 6 7 7 7 9 9 .... 10 .... 10 .... 10 ...........................12 ........................... 12 ........................... 13 ........................... 14 ........................... 14 ........................... 14 ........................... 14 ...........................15 ........................ 15 ........................ 16 ........................ 17 ........................ 17 ........................ 19 ........................ 22 ........................ 23 ........................ 23 ........................ 23 ........................ 23 ........................ 25 ........................ 25 WA DIRECT DEPOSIT ................................ CONTRACT NEGOTIATIONS ............. RECOUPMENT OF OVERPAYMENTS FUNERAL EXPENSES ......................... NBPMA MOU 2025-2028 Page 12 27 27 28 28 5-9 Page 13 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. 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 for the 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 June 28, 2025. This MOU shall remain in full force and effect until June 30, 2028, 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. To prepare for, travel to, and attend scheduled meetings between the City and NBPMA during the meet and confer process. c. To travel to and attend scheduled grievance and disciplinary hearings. NBPMA MOU 2025-2028 5-10 Page 14 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. The terms and conditions of this MOU shall prevail over conflicting provisions of the Newport Beach City Charter, the ordinances, resolutions, policies of the City of Newport Beach, 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. 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. 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; NBPMA MOU 2025-2028 5-11 Page 15 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. 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 NBPMA MOU 2025-2028 5-12 Page 16 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. 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 ofthis 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. 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 June 28, 2025, there shall be a base salary increase of four percent (4.0%) 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 pursuant to the preceding MOU and an addibbnal non -compounding one percent (1 %) salary increase. 2. Effective the beginning of the first full pay period following July 1, 2026, there shall be a base salary increase of four percent (4.0%) for all classifications in the bargaining unit. 3. Effective the beginning of the first full pay period following July 1, 2027, there shall be a base salary increase of four percent (4.0%) for all classifications in the bargaining unit. 4. Equity Adjustments a. Effective June 28, 2025, 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. b. Effective June 28, 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.1. NBPMA MOU 2025-2028 5-13 Page 17 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 Effective June 28, 2025, 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 POST and/or Management POST. These certificate pays are not stackable. When an employee qualifies for and has applied for any of the above POST Certificates for the first time, the employee shall provide the City's Human Resources Department with proof of the applicable POST Certification application submittal. The employee will then be eligible for this pay on the first day of the next pay period after submission to HR. If POST correctly denies the application for the Certification, the employee will be responsible for reimbursing the City for any 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 Pay. D. OVERTIME 1. 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. Sergeants who qualify for FLSA overtime shall be eligible to receive both FLSA overtime (as specifically provided by the FLSA) and MOU overtime. 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. 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 NBPMA MOU 2025-2028 5-14 Page 18 taxpayers (employees). b. CTO will be maintained in 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 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 NBPMA MOU 2025-2028 5-15 Page 19 for each days' work with the specific number of hours worked, including the use of appropriate payroll codes for leave, overtime and other purposes. 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 biweekly the value of provided uniforms at One Thousand Three Hundred Fifty Dollars ($1,350) per year, in accordance with CalPERS 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. CalPERS Reporting of Uniform Allowance - To the extent permitted by law, the City shall report to CalPERS the uniform allowance foreach 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 CaIPERS. 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 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/JD 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 NBPMA MOU 2025-2028 5-16 Page 110 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 CalPERS as such pursuant to Title 2 CCR, Section 571(a)(2) and 571.1(b)(2), Educational Incentive Pay. G. SPECIAL LEADERSHIP COMPENSATION (SLQ 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 percent (4%) of 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 CalPERS as such pursuant to Title 2 CCR, Section 571(a)(2) and 571.1(b)(2) Educational Incentive Pay. 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 CaIPERS as such pursuant to Title 2 CCR, Section 571(a)(1) and Section 571.1(b)(1) Longevity Pay. I. JULY 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. NBPMA MOU 2025-2028 5-17 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 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. 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. 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 CaIPERS. L. SPECIAL ASSIGNMENT PAY 1. Detective Pay: Effective June 28, 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 CaIPERS as such pursuant to Title 2 CCR, Section 571 and 571.1 Detective Division Premium. 2. S WA T Pay. - Effective June 28, 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 NBPMA MOU 2025-2028 5-18 - 112 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. 3. Crises Negotiation Team (CNT) Pay. Effective June 28, 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. A. FLEX LEAVE NBPMA members shall accrue (prospectively) flex leave 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 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 28, 2025, the 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 16 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.1 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 NBPMA MOU 2025-2028 5-19 113 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 departmental personnel was reasonable under the circumstances. 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 CalPERS as such pursuant to Title 2 CCR, Section 571(a)(5) Holiday Pay. NBPMA MOU 2025-2028 5-20 1 14 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, grandparent, 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 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 NBPMA MOU 2025-2028 5-21 I15 be used within that fiscal year or be forfeited. Non- accruing leave cannot be carried into the next fiscal year. 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 The City has implemented an IRS qualified Cafeteria Plan. In addition to the amounts listed below, the City shall contribute the minimum CalPERS 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 Effective June 28, 2025, the City's monthly contribution towards the Cafeteria Plan increases to $1,924.00 (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. 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 ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California) will receive $1,000 per month in taxable cash paid bi-weekly. For these same employees, if they elect medical coverage and spend less than $1,624.00 monthly (plus the minimum Ca1PERS participating employer's contribution), the difference shall be paid to the employee as taxable cash biweekly. NBPMA MOU 2025-2028 5-22 Page 116 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: 1. 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 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 NBPMA MOU 2025-2028 5-23 Page 117 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: Short -Term Disability Long -Term Disability BenefitAmount 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 The City will pay the full premium for this benefit. 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 NBPMA MOU 2025-2028 5-24 Page 118 The City contracts with the California Public Employees Retirement System ("CaIPERS" 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: 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 CaIPERS 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 CaIPERS 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 CaIPERS retirement benefit, to the extent permissible by law, as set forth below. Employee retirement contributions that are in addition to the normal CaIPERS 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 4.6% of pensionable compensation toward retirement costs as permitted under Government Code §20516{0, for a total contribution of 13.6%. Tier III: Effective June 28, 2025, in addition to the statutorily required 50% contribution of total NBPMA MOU 2025-2028 5-25 Page 119 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 13.6% 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 CalPERS valuations, the additional contribution made by the employee under 20516(f) will be increased or decreased accordingly so that the total employee contribution equals 13.6% 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 (IPT) RHS Retiree Health Savings (RHS) plan (formerly the Medical Expense Reimbursement Program - "MERP"). 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. c. Category 3 - 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. NBPMA MOU 2025-2028 5-26 120 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 CalPERS 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 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 CaIPERS as pensionable. The parties agree that the City's Part B contributions during active employment constitute the minimum CalPERS participating employer's contribution (i.e., the CalPERS statutory minimum amount) towards medical insurance after retirement. The parties also agree that, for retirees selecting a CalPERS medical plan, or any other plan with a similar employer contribution requirement, the required 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 CalPERS as pensionable. NBPMA MOU 2025-2028 5-2 7 Page 121 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 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 CalPERS 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 NBPMA MOU 2025-2028 5-28 Page 122 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 CalPERS minimum required employer contribution as determined by CalPERS 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 CalPERS 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 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 NBPMA MOU 2025-2028 5-29 Page 123 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 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. NBPMA MOU 2025-2028 5-30 Page 124 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). In this bargaining unit, there is one "Series" made up of the two classifications represented by the Association - Police Sergeant, and 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 2025-2028 5-31 Page 125 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 eitherthe 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) ("7k 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 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. NBPMA MOU 2025-2028 5-32 126 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 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. 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 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 NBPMA MOU 2025-2028 5-33 127 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 timelines 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 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 NBPMA MOU 2025-2028 5-34 Page 128 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.RE000PMENT OF OVERPAYMENTS Employees will be notified by Payroll or Human Resources prior to the recovery of overpayments on paychecks. Pecovery 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 2025-2028 5-35 For NBPMA: aiMbe,M ,give` Sl wWh Sgm(Nl 1, 2075 U:IS PDTI Elizabeth Silver Chief Negotiator Date: 07/01/2025 t &XAM)w MQ44M AllnrdP, Maslen (lul 2, 202519-22 PDT) Alexander Maslin NBPMA President Date: 07/02/2025 NBPMA MOU 2025-2028 For the City: JOAThanV Holtzman (Jul 1, 202518:40 PDT) Jonathan V. Holtzman Co -Chief Negotiator Date: 07/01/2025 Z-11/ C�.�.T. LukeJensen Co-Chief Negotiator CITY OF NEWPORT BEACH, Date: By: Joe Stapleton Mayor ATTEST: Date: By: Molly Perry Interim City Clerk Page 129 5-36 Final 2025-2028 NBPMA MOU Final Audit Report 2025-07-03 Created: 2025-07-02 By: Emma Wilcox (ewilcox@publiclawgroup.com) Status: Signed Transaction ID: CBJCHBCAABAASPEzoepaSlxnQ9SChO2xjio64rok_PCR "Final 2025-2028 NBPMA MOU" History Document created by Emma Wilcox (ewilcox@publiclawgroup.com) 2025-07-02 - 0:53:19 AM GMT Document emailed to Elizabeth Silver (esilver@rlslawyers.com) for signature 2025-07-02 - 0:53:25 AM GMT Email viewed by Elizabeth Silver (esilver@rlslawyers.com) 2025-07-02 - 1:15:11 AM GMT Cfo Document e-signed by Elizabeth Silver (esilver@rlslawyers.com) Signature Date: 2025-07-02 - 1:15:44 AM GMT - Time Source: server Document emailed to Jonathan V. Holtzman (JHOLTZMAN@PUBLICLAWGROUP.COM) for signature 2025-07-02 - 1:15:46 AM GMT Email viewed by Jonathan V. Holtzman (JHOLTZMAN@PUBLICLAWGROUP.COM) 2025-07-02 - 1:26:24 AM GMT t3o Document e-signed by Jonathan V. Holtzman (JHOLTZMAN@PUBLICLAWGROUP.COM) Signature Date: 2025-07-02 - 1:40:04 AM GMT - Time Source server Document emailed to Luke Jensen (Ijensen@publiclawgroup.com) for signature 2025-07-02 - 1:40:05 AM GMT Email viewed by Luke Jensen (Ijensen@publiclawgroup.com) 2025-07-02 - 1:41:16 AM GMT Document e-signed by Luke Jensen (Ijensen@publiclawgroup.com) Signature Date: 2025-07-02 - 2:07:12 AM GMT - Time Source: server Document emailed to Alexander Maslin (maslinalex@yahoo.com) for signature 2025-07-02 - 2:07:14 AM GMT Q Adobe Acrobat Sign 5-37 i Email viewed by Alexander Maslin (maslinalex@yahoo.com) 2025-07-03 - 2:15:46 AM GMT Document e-signed by Alexander Maslin (maslinalex@yahoo.com) Signature Date: 2025-07-03 - 2:22:39 AM GMT - Time Source: server Document emailed to Joe Stapleton 0stapleton@newportbeachca.gov) for signature 2025-07-03 - 2:22:40 AM GMT Email viewed by Joe Stapleton Qstapleton@newportbeachca.gov) 2025-07-03 - 3:55:25 AM GMT C% Document e-signed by Joe Stapleton Ostapleton@newportbeachca.gov) Signature Date: 2025-07-03 - 3:56:00 AM GMT - Time Source: server Agreement completed. 2025-07-03 - 3:56:00 AM GMT Q Adobe Acrobat Sign 5-38 ATTACHMENT C Exhibit B The Newport Beach Police Management Association MOU Term: June 28, 2025 - June 30, 2028 Effective June 28, 2025: 4% Cost -of -Living Adjustment (COLA) Sergeants: Additional 9% Equity Adjustment Lieutenants: Additional 11% Equity Adjustment Police Lieutenant 65 1 $ 73.25 $ 12,697 $ 152,367 Police Lieutenant 65 2 $ 76.93 $ 13,334 $ 160,014 Police Lieutenant 65 3 $ 80.76 $ 13,999 $ 167,989 Police Lieutenant 65 4 $ 84.78 $ 14,696 $ 176,352 Police Lieutenant 65 5 $ 89.04 $ 15,433 $ 185,194 Police Lieutenant 65 6 $ 93.49 $ 16,204 $ 194,453 Police Lieutenant 65 7 $ 98.17 $ 17,016 $ 204,191 Police Lieutenant 65 8 $ 103.08 $ 17,867 $ 214,407 Police Lieutenant 65 9 $ 108.23 $ 18,761 $ 225,127 Police Sergeant 40 1 $ 61.24 $ 10,615 $ 127,381 Police Sergeant 40 2 $ 64.32 $ 11,148 $ 133,779 Police Sergeant 40 3 $ 67.55 $ 11,708 $ 140,501 Police Sergeant 40 4 $ 70.91 $ 12,291 $ 147,486 Police Sergeant 40 5 $ 74.45 $ 12,904 $ 154,853 Police Sergeant 40 6 $ 78.16 $ 13,548 $ 162,572 Police Sergeant 40 7 $ 82.08 $ 14,228 $ 170,732 Police Sergeant 40 8 $ 86.16 $ 14,934 $ 179,214 Police Sergeant 40 9 $ 90.47 $ 15,681 $ 188,175 Hourly rates are rounded to the nearest hundredth. Monthly and annual salaries are rounded to the nearest whole dollar. Actual rates may vary slightly due to rounding. 5-39 Exhibit B The Newport Beach Police Management Association MOU Term: June 28, 2025 - June 30, 2028 Effective July 11, 2026: 4% Cost -of -Living Adjustment (COLA) Police Lieutenant 65 1 $ 76.18 $ 13,205 $ 158,461 Police Lieutenant 65 2 $ 80.01 $ 13,868 $ 166,414 Police Lieutenant 65 3 $ 83.99 $ 14,559 $ 174,708 Police Lieutenant 65 4 $ 88.18 $ 15,284 $ 183,406 Police Lieutenant 65 5 $ 92.60 $ 16,050 $ 192,601 Police Lieutenant 65 6 $ 97.23 $ 16,853 $ 202,232 Police Lieutenant 65 7 $ 102.10 $ 17,697 $ 212,358 Police Lieutenant 65 8 $ 107.20 $ 18,582 $ 222,983 Police Lieutenant 65 9 $ 112.56 $ 19,511 $ 234,132 Police Sergeant 40 1 $ 63.69 $ 11,040 $ 132,477 Police Sergeant 40 2 $ 66.89 $ 11,594 $ 139,131 Police Sergeant 40 3 $ 70.25 $ 12,177 $ 146,121 Police Sergeant 40 4 $ 73.74 $ 12,782 $ 153,386 Police Sergeant 40 5 $ 77.43 $ 13,421 $ 161,047 Police Sergeant 40 6 $ 81.29 $ 14,090 $ 169,075 Police Sergeant 40 7 $ 85.37 $ 14,797 $ 177,561 Police Sergeant 40 8 $ 89.61 $ 15,532 $ 186,382 Police Sergeant 40 9 $ 94.09 $ 16,308 $ 195,701 Hourly rates are rounded to the nearest hundredth. Monthly and annual salaries are rounded to the nearest whole dollar. Actual rates may vary slightly due to rounding. 5-40 Exhibit B The Newport Beach Police Management Association MOU Term: June 28, 2025 - June 30, 2028 Effective July 10, 2027: 4% Cost -of -Living Adjustment (COLA) Police Lieutenant 65 1 $ 79.23 $ 13,733 $ 164,800 Police Lieutenant 65 2 $ 83.21 $ 14,423 $ 173,071 Police Lieutenant 65 3 $ 87.35 $ 15,141 $ 181,696 Police Lieutenant 65 4 $ 91.70 $ 15,895 $ 190,743 Police Lieutenant 65 5 $ 96.30 $ 16,692 $ 200,306 Police Lieutenant 65 6 $ 101.12 $ 17,527 $ 210,321 Police Lieutenant 65 7 $ 106.18 $ 18,404 $ 220,853 Police Lieutenant 65 8 $ 111.49 $ 19,325 $ 231,902 Police Lieutenant 65 9 $ 117.07 $ 20,291 $ 243,498 Police Sergeant 40 1 $ 66.24 $ 11,481 $ 137,776 Police Sergeant 40 2 $ 69.57 $ 12,058 $ 144,696 Police Sergeant 40 3 $ 73.06 $ 12,664 $ 151,966 Police Sergeant 40 4 $ 76.69 $ 13,293 $ 159,521 Police Sergeant 40 5 $ 80.52 $ 13,957 $ 167,489 Police Sergeant 40 6 $ 84.54 $ 14,653 $ 175,838 Police Sergeant 40 7 $ 88.78 $ 15,389 $ 184,663 Police Sergeant 40 8 $ 93.19 $ 16,153 $ 193,838 Police Sergeant 40 9 $ 97.85 $ 16,961 $ 203,530 Hourly rates are rounded to the nearest hundredth. Monthly and annual salaries are rounded to the nearest whole dollar. Actual rates may vary slightly due to rounding. 5-41 ATTACHMENT D Exhibit C Police Chief Salary Schedule Adjustment The City of Newport Beach Key & Management Position - Executive Management, Safety Effective June 28, 2025: 4% Cost -of -Living Adjustment (COLA) + Additional 11% Equity Adjustment' Police Chief 02B Low $ 102.11 $ 17,699 $ 212,386 Police Chief 02B Mid $ 131.45 $ 22,785 $ 273,425 Police Chief 02B High $ 160.80 $ 27,872 $ 334,463 Effective July 11, 2026: 4% Cost -of -Living Adjustment (COLA)' Police Chief 02B Low $ 106.19 $ 18,407 $ 220,881 Police Chief 02B Mid $ 136.71 $ 23,697 $ 284,361 Police Chief 02B High $ 167.23 $ 28,987 $ 347,841 Effective July 10, 2027: 4% Cost -of -Living Adjustment (COLA)' Police Chief 02B Low $ 110.44 $ 19,143 $ 229,717 Police Chief 02B Mid $ 142.18 $ 24,645 $ 295,736 Police Chief 02B High $ 173.92 $ 30,146 $ 361,755 1 Salary adjustments for the Police Chief classification shall occur at the same time and be the same percentage as the salary adjustments received by the Police Management Association employees during the term of the Key & Management Compensation Plan. Hourly rates are rounded to the nearest hundredth. Monthly and annual salaries are rounded to the nearest whole dollar. Actual rates may vary slightly due to rounding. 5-42 ATTACHMENT E Exhibit D Assistant Police Chief Salary Schedule Adjustment The City of Newport Beach Key & Management Position - Administrative Management, Safety Effective June 28, 2025: 4% Cost -of -Living Adjustment (COLA) + Additional 11% Equity Adjustment' Police Chief, Assistant 03A 1 $ 112.44 $ 19,489 $ 233,874 Police Chief, Assistant 03A 2 $ 118.07 $ 20,466 $ 245,587 Police Chief, Assistant 03A 3 $ 123.98 $ 21,489 $ 257,870 Police Chief, Assistant 03A 4 $ 130.18 $ 22,565 $ 270,781 Police Chief, Assistant 03A 5 $ 136.68 $ 23,691 $ 284,292 Police Chief, Assistant 03A 6 $ 143.51 $ 24,876 $ 298,506 Effective July 11, 2026: 4% Cost -of -Living Adjustment (COLA)' Police Chief, Assistant 03A 1 $ 116.94 $ 20,269 $ 243,229 Police Chief, Assistant 03A 2 $ 122.79 $ 21,284 $ 255,410 Police Chief, Assistant 03A 3 $ 128.93 $ 22,349 $ 268,184 Police Chief, Assistant 03A 4 $ 135.39 $ 23,468 $ 281,612 Police Chief, Assistant 03A 5 $ 142.15 $ 24,639 $ 295,663 Police Chief, Assistant 03A 6 $ 149.25 $ 25,871 $ 310,446 Effective July 10, 2027: 4% Cost -of -Living Adjustment (COLA)' Police Chief, Assistant 03A 1 $ 121.61 $ 21,080 $ 252,958 Police Chief, Assistant 03A 2 $ 127.71 $ 22,136 $ 265,627 Police Chief, Assistant 03A 3 $ 134.09 $ 23,243 $ 278,912 Police Chief, Assistant 03A 4 $ 140.81 $ 24,406 $ 292,876 Police Chief, Assistant 03A 5 $ 147.83 $ 25,624 $ 307,490 Police Chief, Assistant 03A 6 $ 155.22 $ 26,905 $ 322,864 1 Salary adjustments for the Assistant Police Chief classification shall occur at the same time and be the same percentage as the salary adjustments received by the Police Management Association employees during the term of the Key & Management Compensation Plan. Hourly rates are rounded to the nearest hundredth. Monthly and annual salaries are rounded to the nearest whole dollar. Actual rates may vary slightly due to rounding. 5-43 Estimated Cost of Contract with NBPMA 5-44 City of Newport Beach NBPMA MOU 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) Reduce PERS Contribution 14.60% 13.6%for Tiers I and II 1/2 normal cost or 13.6%, whichever is greater Advanced POST 5.25% Increase Flex Leave Accruals Align accruals with the NBPMA Special Assignment Pa 3%for Detectives; 2%for SWAT; p g y 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 ° 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. ° Percentage shown in each year is as compared to current base salary, not the prior year. 6 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. 5-45 ATTACHMENT G Budget Amendment No. 26-005 5-46 City of Newport Beach BUDGET AMENDMENT 2025-26 Department: Human Resources Requestor: Barbara Salvini ❑ CITY MANAGER'S APPROVAL ONLY 0 COUNCIL APPROVAL REQUIRED ONETIME: ❑ Yes ❑ No Finance Director: Clerk: Approvals BA#: 26-005 Date 6/27/25 Date EXPLANATION FOR REQUEST: To increase expenditure appropriations to fund the agreement with The Newport Beach Police Management Association. ❑ from existing budget appropriations ❑ from additional estimated revenues ❑ from unappropriated fund balance REVENUES Fund # EXPENDITURES Project Description Subtotal Increase or (Decrease) $ Fund # Org Object Project Description Increase or (Decrease) $ 010 01035351 711002 POLICE CHIEF - SALARIES SAFETY 106,450.00 010 01035352 711002 POLICE SUPPORT SERVICES - SALARIES SAFETY 24,129.00 010 01035353 711002 PATROL - SALARIES SAFETY 380,755.00 010 01035354 711002 TRAFFIC - SALARIES SAFETY 63,850.00 010 01035355 711002 DETECTIVES - SALARIES SAFETY 126,255.00 010 01035351 712013 POLICE CHIEF - PMA LEADERSHIP COMPENSATION 3,167.00 010 01035352 712013 POLICE SUPPORT SERVICES - PMA LEADERSHIP COMPENSATI 726.00 010 01035353 712013 PATROL - PMA LEADERSHIP COMPENSATION 5,888.00 010 01035354 712013 TRAFFIC- PMA LEADERSHIP COMPENSATION 691.00 010 01035355 712013 DETECTIVES - PMA LEADERSHIP COMPENSATION 2,579.00 010 01035354 712016 TRAFFIC - MOTOR OFFICER PAY 1,406.00 010 01035351 712009 POLICE CHIEF - SCHOLASTIC ACHIEVEMENT 7,685.00 010 01035352 712009 POLICE SUPPORT SERVICES - SCHOLASTIC ACHIEVEMENT 2,084.00 010 01035353 712009 PATROL -SCHOLASTIC ACHIEVEMENT 24,465.00 010 01035354 712009 TRAFFIC -SCHOLASTIC ACHIEVEMENT 3,243.00 010 01035355 712009 DETECTIVES - SCHOLASTIC ACHIEVEMENT 8,181.00 010 01035351 712007 POLICE CHIEF - LONGEVITY PAY SAFETY 1,958.00 010 01035352 712007 POLICE SUPPORT SERVICES - LONGEVITY PAY SAFETY 369.00 010 01035353 712007 PATROL - LONGEVITY PAY SAFETY 7,226.00 010 01035354 712007 TRAFFIC -LONGEVITY PAY SAFETY 527.00 010 01035355 712007 DETECTIVES - LONGEVITY PAY SAFETY 1,781.00 010 01035351 712012 POLICE CHIEF - HOLIDAY PAY SAFETY 5,298.00 010 01035353 712012 PATROL - HOLIDAY PAY SAFETY 16,553.00 010 01035354 712012 TRAFFIC - HOLIDAY PAY SAFETY 2,094.00 010 01035355 712012 DETECTIVES - HOLIDAY PAY SAFETY 5,347.00 010 01035351 712019 POLICE CHIEF - SAFETY CERTIFICATION PAY 54,730.00 010 01035352 712019 POLICE SUPPORT SERVICES - SAFETY CERTIFICATION PAY 12,405.00 010 01035353 712019 PATROL - SAFETY CERTIFICATION PAY 195,761.00 010 01035354 712019 TRAFFIC - SAFETY CERTIFICATION PAY 32,828.00 010 01035355 712019 DETECTIVES -SAFETY CERTIFICATION PAY 64,912.00 5-4 7 Fund # Org Object Project Description Increase or (Decrease) $ 010 01035355 712021 DETECTIVES - DETECTIVE PAY 30,852.00 010 01035353 712022 PATROL - SWAT PAY 3,022.00 010 01035355 712022 DETECTIVES - SWAT PAY 3,331.00 010 01035351 712022 POLICE CHIEF - SWAT PAY 3,331.00 010 01035354 712022 TRAFFIC - SWAT PAY 3,729.00 010 01035351 712023 POLICE CHIEF - CRISIS NEGOTIATION TEAM PAY 1,665.00 010 01035353 712023 PATROL- CRISIS NEGOTIATION TEAM PAY 1,586.00 010 01035351 722002 POLICE CHIEF - PENSION EE NORMAL COST SAFETY 32,063.00 010 01035352 722002 POLICE SUPPORT SERVICES - PENSION EE NORMAL COST SAF 7,350.00 010 01035353 722002 PATROL - PENSION EE NORMAL COST SAFETY 59,614.00 010 01035354 722002 TRAFFIC - PENSION EE NORMAL COST SAFETY 7,000.00 010 01035355 722002 DETECTIVES - PENSION EE NORMAL COST SAFETY 26,108.00 010 01035351 723003 POLICE CHIEF - PENSION ER NORMAL COST SAFETY 64,222.00 010 01035352 723003 POLICE SUPPORT SERVICES - PENSION ER NORMAL COST SAF 14,723.00 010 01035353 723003 PATROL - PENSION ER NORMAL COST SAFETY 119,407.00 010 01035354 723003 TRAFFIC - PENSION ER NORMAL COST SAFETY 14,022.00 010 01035355 723003 DETECTIVES - PENSION ER NORMAL COST SAFETY 52,294.00 010 01035351 724002 POLICE CHIEF - PENSION EE CONTRIB SAFETY (27,150.00) 010 01035352 724002 POLICE SUPPORT SERVICES - PENSION EE CONTRIB SAFETY (6,224.00) 010 01035353 724002 PATROL - PENSION EE CONTRIB SAFETY (50,480.00) 010 01035354 724002 TRAFFIC - PENSION EE CONTRIB SAFETY (5,928.00) 010 01035355 724002 DETECTIVES - PENSION EE CONTRIB SAFETY (22,108.00) 010 01035351 727016 POLICE CHIEF - MEDICARE FRINGES 2,417.00 010 01035352 727016 POLICE SUPPORT SERVICES - MEDICARE FRINGES 554.00 010 01035353 727016 PATROL- MEDICARE FRINGES 4,493.00 010 01035354 727016 TRAFFIC- MEDICARE FRINGES 528.00 010 01035355 727016 DETECTIVES - MEDICARE FRINGES 1,968.00 010 01035351 721001 POLICE CHIEF - CAFETERIA ALLOWANCE FT 7,200.00 010 01035352 721001 POLICE SUPPORT SERVICES - CAFETERIA ALLOWANCE FT 18,000.00 010 01035353 721001 PATROL - CAFETERIA ALLOWANCE FT 39,663.00 010 01035355 721001 DETECTIVES - CAFETERIA ALLOWANCE FT 3,600.00 010 01035351 713002 POLICE CHIEF - OVERTIME SAFETY & 1/2 TIME 2,361.00 010 01035352 713002 POLICE SUPPORT SERVICES - OVERTIME SAFETY & 1/2 TIME 1,701.00 010 01035353 713002 PATROL - OVERTIME SAFETY & 1/2 TIME 25,001.00 010 01035354 713002 TRAFFIC - OVERTIME SAFETY & 1/2 TIME 13,008.00 010 01035355 713002 DETECTIVES - OVERTIME SAFETY & 1/2 TIME 14,404.00 010 01035351 728003 POLICE CHIEF - COMPENSATED ABSENCES 9,501.00 010 01035352 728003 POLICE SUPPORT SERVICES - COMPENSATED ABSENCES 2,154.00 010 01035353 728003 PATROL - COMPENSATED ABSENCES 33,983.00 010 01035354 728003 TRAFFIC - COMPENSATED ABSENCES 5,699.00 010 01035355 728003 DETECTIVES - COMPENSATED ABSENCES 11,268.00 FUND BALANCE Fund # Object 010 300000 Description GENERAL FUND- FUND BALANCE CONTROL Subtotal) $ 1,693,275.00 Subtotal Increase or (Decrease) $ (1,693,275.00) Fund Balance Change Required 5-48