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HomeMy WebLinkAbout09 - Tentative MOU with Newport Beach Lifeguard Management AssociationQ �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report July 8, 2025 Agenda Item No. 9 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Grace K. Leung, City Manager - 949-644-3001, gleung@newportbeachca.gov PREPARED BY: Barbara J. Salvini, Human Resources Director - 949-644-3259, bsalvini@newportbeachca.gov TITLE: Tentative Memorandum of Understanding with Newport Beach Lifeguard Management Association /_1 16"t I:7_T91 6 The Memorandum of Understanding (MOU) between the City of Newport Beach and the Newport Beach Lifeguard Management Association (NBLMA or Association) expires December 31, 2025. At the City Council's direction, the parties began negotiating the terms and conditions of a new agreement well in advance of the expiration date, with the goal of implementing a successor agreement with enhanced benefits as soon as possible. A Tentative Agreement (Agreement) has been reached. The Agreement addresses wages, benefits and other terms and conditions of employment for employees represented by NBLMA and was negotiated as required under the Meyers-Milias-Brown Act, California Government Code §3500. To promote greater transparency in the negotiations process, including the costs associated with the labor contract, the Agreement with NBLMA is being presented at this time for public review and comment. The complete Agreement, which spans the period July 1, 2025, through June 30, 2028, will be presented for City Council adoption at the July 8, 2025, regular meeting. RECOMMENDATIONS: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Receive and consider the Tentative Agreement between the City of Newport Beach and the Newport Beach Lifeguard Management Association. DISCUSSION: The NBLMA is an exclusively recognized bargaining unit representing the full-time lifeguard battalion chief, lifeguard captain and lifeguard officer classifications. The group is budgeted for 14 full-time positions. 9-1 Tentative Agreement with Newport Beach Lifeguard Management Association July 8, 2025 Page 2 Key provisions of the Tentative Agreement between the City and LMA include: • Term: July 12, 2025, through June 30, 2028. • Salary Adjustments: o July 12, 2025 — 4% o July 2026 — 4% o July 2027 — 4% • Equity Adjustments: 2% equity adjustment for all unit members. • Salary schedule adjustments for the full-time lifeguard officer positions. • Clarifying language regarding compensatory time off. • Enhanced scholastic achievement pay. • A 4.5% increase in pay for employees temporarily working in higher level classifications (for a total of 9.5%). • An additional 10% in base pay for the training lifeguard captain classification. • An additional 48 hours annually of leave (referred to as non -accrued leave) • Medical Insurance: The City will contribute $2,045 per month (plus the minimum CalPERS participating employee contribution) to each member's cafeteria plan. A draft version of the Tentative Agreement between the City and the NBLMA is provided as Attachment A. Changes to the current agreement are noted in redline. Costing information is included as Attachment B. The total cost of the contract is approximately $1.1 million. The NBLMA's members have voted in favor of the Agreement. Following City Council review of the Tentative Agreement with the NBLMA, a final version of the successor MOU will be presented to the City Council on July 22, 2025. In the interim, the costing 9-2 Tentative Agreement with Newport Beach Lifeguard Management Association July 8, 2025 Page 3 information and proposed MOU revisions will be posted for public review on the City's website. The Agreement will not become effective until the City Council formally adopts it. If approved at the July 22, 2025, City Council meeting, City staff will implement the provisions accordingly. FISCAL IMPACT: Detailed cost information is provided in Attachment B. Since the MOU covers the period from July 12, 2025, through June 30, 2028, it will result in the following annual fiscal impacts to implement the terms of the agreement, totaling $1,103,863: The costs shown reflect additional annual expenses for the corresponding fiscal years. Sufficient projected unassigned General Fund balance reserves are available to support the required appropriations. Following the City Council's consideration of the Tentative Agreement, staff will return with a budget amendment to appropriate the funds needed to cover the cost of the contract for Fiscal Year 2025-26. Adequate funding will be included in the annual budget for subsequent years. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Tentative Agreement and Proposed MOU Between the City and the NBLMA (Redline) Attachment B — Estimated Cost of Contract with the NBLMA 9-3 ATTACHMENT A Tentative Agreement and Proposed MOU Between the City and NBLMA (Redline) The attachment will be available for viewing prior to the meeting. Received After Agenda Printed July 8, 2025 Agenda Item No. 9 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION J,anwar)�-July 1, 20252- through DeGember 31 June 30, 20285 Page11 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION This Memorandum of Understanding (hereinafter referred to as "MOU") is entered into with reference to the following: PREAMBLE Authorized representatives of the CITY OF NEWPORT BEACH (hereinafter referred to as "CITY") and authorized representatives of the NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION (hereinafter referred to as "NBLMA") a recognized employee organization, met and conferred, exchanging various proposals concerning wages, hours, fringe benefits and other terms and conditions of employment of employees represented by NBLMA (hereinafter referred to as "EMPLOYEES") for the period of January July 1-20252 through JuneDeGernbe304-, 20285. However, unless specified otherwise any changes to compensation pursuant to this MOU will be effective July 12, 2025. SECTION 1. GENERAL PROVISIONS A. DURATION OF MEMORANDUM The terms of this MOU are to remain in full force and effect from July 1, 2025 through June 30, 2028ja nary 1 2022 thro gh Denim 311 , 2025. B. SCOPE All present written rules and currently established practices and employee 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, or in the case of the Department's Standard Operating Procedures (SOPS) falling within the scope of representation, the City has given notice to the Association and, upon request, met and conferred on any proposed changes which fall within the scope of representation. When the Department proposes to change any SOP departmental rule or regulation, it will provide a copy of such change to the Association no less than seven (7) days prior to implementation of the proposed change. If such proposed change materially impacts any matter within the scope of representation, then the parties agree to meet and confer over such impact. 2. Pursuant to this MOU, the City reserves and retains all its inherent exclusive and non-exclusive managerial rights, powers, functions and authorities ("Management Rights") as set forth in Resolution No. 2001-50. C. CONCLUSIVENESS NBLMA MOU 20252-20285 Page 12 Except as provided for in this agreement, this MOU contains all the covenants, stipulations and provisions agreed upon by the parties. D. SAVINGS Should any part of this MOU or any provision herein contained be rendered or declared invalid, by reason of any existing or subsequently enacted Legislation, or by decree of a Court of competent jurisdiction, such invalidation of such part or portion of this MOU shall not invalidate the remaining portion hereto, and same shall remain in full force and effect. E. OTHER TERMS AND CONDITIONS Except as to those matters expressly covered by this MOU, all terms and conditions of employment may be changed or amended after meeting and conferring, in good faith. Unless specifically provided in this MOU, Part-time members shall only receive those benefits in this MOU which are specifically set forth as applicable to Part- time members. F. UNIT CLASSIFICATION TITLES Unit classifications are listed in Exhibit A. For all compensation comparison purposes, actual job duties, and not classification titles, will be utilized. It is understood that the City is considering converting one Officer to an additional Lifeguard Captain position and converting the position of Lifeguard Training Captain to an additional Battalion Chief position. This conversion will be considered through the budgetary process by the Department and, if proposed by the Department, by the City. Should the City decide to move forward with this conversion, the parties agree to meet and confer over matters within the scope of representation as that term is defined by law. SECTION 2. COMPENSATION A. SALARY ADJUSTMENTS Base salary increases for all NBLMA represented classifications shall be as follows and as specified in Exhibit A: Effective the first day of the pay period following Ian ary 1, 2022T July 12, 2025 base salaries will be increased by four twe percent (2.n� °� 4f 0°/6 for all members of the bargaining unit. lnrliyid „Is must be employed by the City en the fire day of the pay porinrl fellowing City GE)URG11 adeption to qualify for retrE)aGtffiVe payment of the GE)St of living adj stmopt (GOLA). Effective the first full pay period hnninninn a#e4ollowing day Of the pay peF*Gd f0l!Gwing lane ary 1, 2023, July 1, 2026, base salaries will be increased by four percent three noroont {0 °X} 4.0% for all members of the bargaining unit. NBLMA MOU 20252-20285 Page 13 Effective the first full Day period 4,024;following July 1, 2027, base salaries will be increased by four percent throe norGon+ {30 4 4.00/ofor all members of the bargaining unit. RGFeased by three peFGent EffeGtive the first day of the pay peried fe'!GW!Rg january 1, 2025, base salaries will be Equity Adiustment for Safety Classifications: Effective July 12 2025 base salary of represented Safety Classifications shall be increased by an additional two percent (2%). This will not be compounded with the salary adjustments set forth above. Salary Schedule Adiustment Effective July 12 2025 or when Lifeguard Officers are moved to full-time positions, whichever occurs later, the City will eliminate the bottom two steps of the salary schedule for the Lifeguard Officer position. Employees at the first step and second step at the time of the adjustment will move up to Step 3. All other Lifeguard Officers at Step 3 and above will move up one step at that time as well. Thereafter, Lifeguard Officers hired prior to the effective date of this salary schedule adjustment will be eligible for subsequent step increases annually relative to the effective date of the salary schedule adjustment. However, if an Officer at Step 3 or above has an original anniversary date that falls within one month after the date of the salary schedule adjustment, that Officer may receive the step increase originally scheduled for the original anniversary date in addition to the salary step adjustment. Thereafter, that Officer will be eligible for subsequent step increases annually relative to the date of the salary schedule adiustment. Lifeguard Officers hired after the effective date of this salary schedule adjustment will be eligible for step increases on their anniversary dates. o „CLJFFeRt Top „ ). The Parties aGknc)wledge and agree -that the first step fer all represeRted nncitinnc r1rrently in e#ont not beiRg elimi d the addition of the New Ton Sten- FAY es who have been Gurrent Tnn Step for longer than_12month�0 june ^ 2nn23 , B. LUMP SUM BONUSES 'I LUMP SUM Ren, is (FV 2021 7022) All bargaining Unit members in paid status for the entirety of the first full nay neried following the adoption of the 202' 202F N41Q' I NBLMA MOU 20252-20286 Page 14 MINI PRIOR 01,111M., ~10 IMMUNE - I, .. B. Hazardous Equipment Pay NBLMA MOU 20252-20285 Page 15 Recognizing the hazardous nature of their work and the additional skill required, up to two (2) Rescue Vessel Lifeguard Captains who are certified for and regularly assigned to boat operations shall receive additional compensation of 2.5% of base salary. Assignment to Rescue Vessel Lifeguard Captain is for one year unless extended by the Assistant Chief, Lifeguard Operations. The parties agree that the City will seek an opinion from CalPERS as to whether this form of special compensation may be reported to CalPERS as pensionable compensation. If CalPERS concludes that it may be reported as pensionable compensation, the City will report it as such starting the first full pay period after notice from CaIPERS. Acting Rescue Vessel Lifeguard Pay: Certified Lifeguard Captains temporarily assigned to boat operations shall receive additional compensation of 2.5% of base salary when assigned for a full shift or longer. Assignment to boat operations is at the discretion of the Assistant Chief, Lifeguard Operations. This pay will not be reported as pensionable compensation to CalPERS. B.C. OVERTIME Unit employees shall receive overtime compensation for all hours worked in excess of forty (40) in any work week. Time worked shall be rounded to the nearest quarter of an hour (seven (7) minutes or less round down; eight (8) minutes or more round up). Paid time off shall be considered time worked for the purposes of calculating MOU overtime. The rate at which MOU overtime rate (overtime which is in addition to that which is required by the FLSA for non-exempt employees) ispaiddoes not include any contributions to the City's Cafeteria Plan as set forth in Section 4 - Fringe Benefits of the MOU. Unit employees shall have the option of requesting to earn compensatory time off (CTO) for all overtime, including training time, in lieu of overtime compensation. All use of compensatory time off shall be subject to the policy in the Employee Policy Manual and/or departmental standard operating procedures. The parties agree to meet and confer on the manual and/ors--procedures, including limitations on the amount and use of compensatory time. . employeer:nayonly aGnrii o i p te eighty (80) hours of GTO perrGaTendar yeurCTO banks shall not exceed eighty (80) hours at any time. E-.D. UNIFORMS The City shall pay the entire cost of providing full-time and part-time NBLMA members with NBLMA MOU 20252-20285 Page 16 each component of the required NBLMA uniforms. The required NBLMA uniform includes uniform pants, uniform shirts, safety shoes, badges and insignias, uniform jackets and liners, belts, dive equipment, foul weather gear, personal floatation device and helmet. The City shall not be responsible for providing employees with socks, underwear, cap, workout shoes, or other clothing. 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 the value of provided uniforms to Tier I and Tier II employees at $838 per year ($32.23 per pay period) in accordance with PERS requirements. The parties agree the reported value of uniforms is intended to reflect clothing such as pants, shirts, jackets, and related attire and excludes health and safety related equipment. F—.E. CALL OUT Call out compensation shall be in accordance with the following provisions: 1. All emergency call out time shall be calculated to the nearest one quarter (1/4) hour of time worked. A minimum of two (2) hours (including travel time). If the two hours causes the employee to exceed forty (40) hours in the week, the rate of pay shall be at one and one half (1 1/2) times the employee's rate of pay. Employees will be considered "on duty" at the beginning of each emergency call out for a minimum of two (2) hours or until completed. Employees will not be compensated for additional call outs that occur during the initial two (2) hour response period, or during normal working hours. G-.F. SCHOLASTIC ACHIEVEMENT PAY Employees in the classification of Lifeguard Captain and Lifeguard Officer shall receive t-we three and a half 3.5% percent of base salary_424-�if they receive a Bachelor's Degree. Employees in the classification of Lifeguard Captain and Lifeguard Battalion Chief shall receive one percent (1 %) of base salary if they receive a Master's Degree. For Lifeguard Captains who have received both a Bachelor's Degree and a Master's Degree, Scholastic Achievement Pay is stackable (i.e., Lifeguard Captains may receive four and a half percent of base salary (4.5%)) if eligible. A "degree" shall be awarded by an institution accredited by the State of California, the United States Department of Education, the Council for Higher Education, or the Distance Education Training Council. The parties agree that to the extent permitted by law, the Scholastic Achievement Pay in this section is special compensation and shall be reported to Cal/PERS as such pursuant to Title 2 CCR, Section 571(a)(2) and 571.1(b)(2) Educational Incentive Pay. H-.G. NIGHT STANDBY A full-time or part-time employee assigned to standby duty (as defined by Department Policy) for purposes of being on call to handle emergency situations arising at times other NBLMA MOU 20252-20285 Page 17 than during normal working hours shall be guaranteed two and a half (2.5) hours of pay at the employee's base rate of pay for each calendar day of such standby duty. Employees shall have the option of receiving compensatory time off at straight time in lieu of pay for night standby. This compensatory time off is part of same bank which is subject to the mnvimim aGGF� col of compensatory time off bank set forth in Section 2D above. -1-.H. MOVE -UP PAY Temporary upgrading shall be defined as the temporary assignment of an employee to work in a job classification, which is assigned to a salary schedule higher than their regular job classification. Employees temporarily upgraded to the following job classifications and equivalent positions shall receive a nine and a half (9.5%) five perGent (51 ` pay differential over their rate of pay for all time worked in the higher job classification if they are assigned to work in the higher job classification for a period of one (1) working hour or longer. Lifeguard Captain Lifeguard Battalion Chief All holiday, flex leave, and other paid leave shall be paid at the employee's rate of pay. Assignments to higher rated classifications shall be made at the sole discretion of the City. J-.I. MOVE -DOWN PAY Employees who work down — a temporary assignment of an employee to work in a job classification, which is assigned to a salary schedule lower than their regular job classification (i.e., a Battalion Chief who moves down as a Lifeguard Captain or a Lifeguard Captain who moves down as a Lifeguard Officer) shall be paid at the top step of the classification to which the employee moved down unless the top step of the moved down classification is higher than their current rate of pay. In that case, they will be paid at the regular pay rate. ICJ. COURT STANDBY PAY All NBLMA members who, pursuant to subpoena compelling attendance to testify to acts, observations, or omissions occurring in the course and scope of employment or at the direction of their supervisor, are required, while off- duty, to remain within a certain response time from court, shall be on "court standby time" and shall receive four hours of pay for each eight hours of court standby time. NBLMA members shall, when required to appear in court pursuant to a subpoena or the direction of their supervisor to testify at to matters relating to their employment with the City, be on duty and shall be paid accordingly. Members shall remit all witness fees received for testifying or appearing on any matter for which the member is eligible to receive court standby time. 1= K. LONGEVITY PAY NBLMA MOU 20252-20285 Page 18 Employees in the Unit shall receive Longevity Pay as follows: Years of Service in the Unit Longevity Pay 16 but less than 20 1.0% 20 but less than 25 1.5% 25 and over 2.5% The parties agree that to the extent permitted by law, the Longevity Pay in this section is special compensation and shall be reported to Cal/PERS as such pursuant to Title 2 CCR, Section 571(a)(1) and 571.1(b)(1) Longevity Pay. M L. SALARY DIFFERENTIAL The Training Lifeguard Captain shall be assigned to routinely and consistently train employees and oversee the Junior Lifeguard Program. Training Lifeguard Captains shall receive an additional ten percent (10%) 7.5%-of base pay. Assignment as a Training Lifeguard Captain is for one year unless extended by the Assistant Chief, Lifeguard Operations. SECTION 3. LEAVES A. FLEX LEAVE 1. Basis for Accrual Full -Time Members: Regular full-time employees enrolled in the Flex Leave program will earn leave in accordance with the following schedule: Years of Continuous Accrual per pay Service in the Unit period/hrs 1 but less than 5 5.54 5 but less than 9 6.15 9 but less than 12 6.77 12 and over 7.69 Part -Time Members: Maximum Hours Annual Accrual 288.08 319.80 352.04 399.98 Regular part-time employees shall be enrolled in the Flex Leave program and accrue leave time at the rate of .04 hours for each hour worked. NBLMA MOU 20252-20285 Page 19 2. Limit on Accumulation and Cash Out of Flex Leave Employees shall be entitled to accrue flex leave up to a maximum of fifty- two (52) times the member's bi-weekly accrual rate. This limit on accumulation shall apply to both full- time and part-time members. Earned flex leave in excess of the maximum permitted is currently paid bi-weekly at the member's hourly rate of pay ("spillover pay"). Members shall be eligible for flex leave spillover pay only if they have utilized at least eighty (80) hours of flex leave the previous calendar year. Employees who have not utilized eighty (80) hours of leave for full time and sixty (60) hours for part-time the prior calendar year shall not be eligible for "spillover pay". Once an employee accrues the maximum accrual limit, they will not accrue additional flex leave until they use leave and reduce their accrual below the accrual limit. Employees shall have the option of converting accrued Flex Leave to cash on an hour - to -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 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 on hundred and sixty (160) hours. 3. Method of Use Flex leave may not be taken in excess of that actually accrued. The Department Director or designee shall approve all requests for flex leave taking into consideration the needs of the Department, and whenever possible the seniority and wishes of the employee. Flex leave may be granted on an hourly basis. B. USE OF FLEX LEAVE Limits on the use of FLEX leave during Level A staffing shall be as set forth in departmental policies and SOPs, which shall be established through meet and confer. shall run fr.,m Duringjun�� � gh Labor aysring ��p�rl nof time full time and part-time NB MD ^fl PeFSGRRel Fnay be limited te a total of feFty (40) hours usage of flex le baGkfoll. Additional flex leave during this peried may be appreved e On the opi , adequate staffing levels Gan be maintaiRed. See department peliey and meet and GE)Rfe C. FAMILY SICK LEAVE Unit employees shall be entitled to use an amount of time equal to one-half (1/2) of their annual leave accrual for an illness of a family member as defined below which requires the presence of the employee. Such time may be taken from the employee's annual leave accrual or leave bank, at the employee's choice. Leave shall be administered in accordance with the provisions of the Employee Policy Manual (EPM) For purposes of family sick leave, family member shall mean spouse, parent, (parent shall NBLMA MOU 20252-20285 Page110 mean biological, foster, or adoptive), child (child shall mean biological, adopted, or foster child; a stepchild; a legal ward; or a child of an employee standing in local parentis), grandchild, grandparent, sibling or as modified by State or Federal law. D. HOLIDAY TIME As described in the following paragraph, employees shall receive leave or pay for the following holidays: New Year's Day January 1 Martin Luther King Day January- 3rd Monday Washington's Birthday February- 3rd Monday Memorial Day May- Last Monday Floating Holiday* July 1 Independence Day July 4 Labor Day September- 1st Monday Veterans Day November 11 Thanksgiving Day November- 4th Thursday Friday After Thanksgiving November - 4th Friday Christmas Eve December 24 (last% of workday) Christmas Day December 25 New Year's Eve December 31 (last% of workday) Full-time employees receive 96 hours of holiday time per year,1/26t4-h (3.69 hours) per pay period which will be paid er�Ued each pay period. Part-time employees receive 72 hours of holiday time per year, 1/4-26th (2.77 hours) per pay period which will be paid er a^�d-each pay period. ` ;"er,-- ernpieyebernmoc •-n WRI n�e�'1'ITerb, „ shall GT When a paFt time empleyee in the unit is appeinted te a full time GlassifiGatieR, they shall Sel8Gt tG Feeeive either pay, leave er a Gembinatien of both pay and leave for the additieRal twenty feur (2 ) heirs-. To the extent permitted by law, this holiday compensation shall be reported to PERS as 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 the holidays and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(5) and 571.1(b)(4) Holiday Pay. E. BEREAVEMENT LEAVE Bereavement Leave shall be defined as the necessary absence from duty by an employee because of the death or terminal illness in their immediate family. NBLMA full-time members shall be entitled to 40 hours bereavement leave per incident (terminal illness followed by death is considered one incident) and 32 hours bereavement leave for part- time members. Leave hours need not be used consecutively, but should occur in proximate NBLMA MOU 20252-20285 Page111 time to the occurrence, but no more than 90 days from the date of the death of the family member. Immediate family shall mean an employee's father, stepfather, mother, stepmother, brother, sister, spouse/domestic partner, child, stepchild, grandchild and grandparent, and the employee's spouse/domestic partner's father, mother, brother, sister, child, grandchild and grandparent. An employee requesting bereavement leave shall notify their supervisor as soon as possible of the need to take leave. Probationary Employees. An employee serving their initial probationary period who takes leave under this section who for any reason terminates their employment prior to the completion of such probationary period shall have theirfinal paycheck reduced by the value of the leave taken. F. NON -ACCRUING LEAVE BANK FOR SAFETY EMPLOYEES Safety employees shall receive forty-eight (48) hours annually of paid leave effective July 12, 2025, and in subsequent years, in the pay period which includes July 1. The hours do not accrue, have no cash value, cannot be transferred to any other leave bank and must be used by the pay period before the pay period which includes July 1, at which time any remaining hours will be forfeited. Use of NAL is subject to supervisory approval and is to be used in the same manner as prescribed for flex time in MOU Section 3.A.3 and subject to any limitations on use during A level staffing established in Departmental policies or SOPs through meet and confer. G. REPRODUCTIVE LOSS LEAVE Eligible employees are entitled to five unpaid days for each reproductive loss event. Multiple reproductive loss events are covered, up to a maximum of 20 days of reproductive loss leave within a twelve-month period. Section 4. FRINGE BENEFITS A. INSURANCE 1. Benefits Information Committee The City has established a Benefits Information Committee composed of one representative from each employee association and up to three City representatives. The Benefits Information Committee 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 care issues. The purpose of this Committee is to provide each employee association with information about health care issues and to receive timely input from associations regarding preferred coverage options and levels of coverage. 2. City Contribution NBLMA MOU 20252-20285 Page112 The City has implemented an IRS qualified Cafeteria Plan. The City contribution toward the Cafeteria Plan shall be as set forth below. Employees shall have the option of allocating Cafeteria Plan contributions towards the City's existing medical, dental and vision insurance/programs, provided that any cash -out option complies with IRS Section 125 requirements. The City and NBLMA will cooperate in pursuing additional optional benefits to be available through the Cafeteria Plan. 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. a. Full -Time Members: The , GaIPERS participating , , City'sthe Cafeteria Plan ORGreases te $1,745.00 (plus the minimurn CAPERS partiGipatiRg the minim, rn GaIPERS nnr+inipatinn emnleyer's nnn}rih„4inn\. Effective July 12, 2025, the City's m o n t h I v contribution towards the Cafeteria Plan is $2,045 (plus the minimum CaIPERS participating employer's contribution). Full time NBLMA members who do not want to enroll in any medical plan offered by the City must provide proof of minimum essential coverage ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California) and execute an opt -out agreement releasing the City from any responsibility or liability to provide medical insurance coverage on an annual basis. Employees hired prior to September 28, 2019, who elect to opt out of medical coverage offered by the City because they have provided 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. For these same employees, if they elect medical coverage and spend less than $1,745.00 monthly (plus the minimum CaIPERS Participating emplover's contribution), the difference the City Gentribution preVided above, unused ea#eteria plan funds shall be paid to the employee as taxable cash. Employees hired on or after September 28, 2019, who elect to opt out of medical coverage offered by the City because they have provided proof of minimum essential coverage ("MEC") through another source (other than 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. NBLMA MOU 20252-20285 Page113 DeGernber 31, 2025, GR 0 Rien determines that the Gity's Gafeteria benefit plaR is a beRa fide plaR the City's GentributieRs towards mediGal premiums well net be iRGI • ■■ ev the remaining term ef the agreeMeRt. The ■■ will be prerated annually ever thi RUM■■ ■■ ■■ will be spread eveRly eveF the rernaiRing three years ef the agreernentef at $6 te DeGember 31, 2025, ■■ will cease OR ■- 31,2025. •- time employees enrolled in medical plans, the cafeteria amount is inclusive of th PIERS designated minimum medical insurance contribution. Temporary lnGreas Part-time NBLMA members receive a monthly cafeteria benefit of $601. For pa ■ For employees who do not enroll in a medical plan there shall be no optout cafeteria benefit. Part-time time NBLMA members who do not want to enroll in any medical plan offered by the City must provide proof of minimum essential coverage ("MEC") through another source (other than coverage in the individual market, whether or not obtained through Covered California). 3. Dental Insurance The existing or comparable dental plans shall be maintained as part of the City's health plan offerings for full-time employees as agreed upon by the Benefits Information Committee. 4. Vision Insurance NBLMA MOU 20252-20285 Page 114 The existing or a comparable vision plan shall be maintained as part of the City's health plan offerings as agreed upon by the Benefits Information Committee for full-time employees. B. ADDITIONAL HEALTH INSURANCE PROGRAMS 1. IRS Section 125 Flexible Spending Account Section 125 of the Internal Revenue Code authorizes an employee to reduce taxable income for payment of allowable expenses such as childcare 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 a full-time Association member may request that medical, childcare, 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. 2. Disability Insurance The City shall provide Short -Term (STD) and Long -Term (LTD) disability insurance to regular full-time employees with the following provisions: Short -Term Disability Long -Term Disability Benefit Amount 66.67% of covered 66.67% of covered Maximum Benefit $1,846 weekly $15,000 month) Waiting Period 30 calendar days 180 calendar days 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. The City shall pay the entire cost of the disability insurance. EMp!E)yees hall nazi ^^e peFGent (I 0 ) of base salaFy as a pest tax dedUGtien for this benefit. E#eGtgve the ) of base salary fer this benefit. 3. Life Insurance The City shall provide life insurance for 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 (i.e., a maximum of $25,000). This amount remains in effect until the employee retires from City employment. Employees may also purchase supplemental life insurance at their own cost. C. EMPLOYEE ASSISTANCE PROGRAM The City shall provide an Employee Assistance Program (EAP) for Association members NBLMA MOU 20252-20285 Page 115 through a properly licensed provider. Association members and their family members may access the EAP subject to provider guidelines. D. THE RETIREMENT BENEFIT 1. Retirement Benefit Formula The City contracts with 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: Tier 1: For employees enrolled by the City of Newport Beach as Safety members on or before November 23, 2012, the retirement formula shall be 3%@50 calculated on the basis of the single highest year. Tier 2: For classic member (as defined in the Public Employees' Pension Reform Act) employees enrolled in CalPERS by the City of Newport Beach as Safety members on or after November 24, 2012, the retirement formula is 2%@50. For these same employees, final compensation will be based on the highest annual average compensation earnable during the three consecutive years of employment immediately preceding the effective date of their retirement or any other three consecutive year period chosen by the employee as set forth in Government Code section 20037. Tier 3: For employees enrolled by the City of Newport Beach as Safety members on or after January 1, 2013, who are new members as defined in the Public Employees' Pension Reform Act), the retirement formula shall be 2.7%@57 provided for by the Public Employees' Retirement Law at Government Code section 7522.25(d). For these same employees, final compensation will be based on the highest annual average compensation earnable during the three consecutive years of employment immediately preceding the effective date of their retirement or any other three consecutive year period chosen by the employee as set forth in Government Code section 7522.32(a). The City's contract with PERS also provides for: a. The military buy-back provision pursuant to Section 20930.3 of the California Government Code and the highest year benefit pursuant to Section 20042. b. The Level 4 1959 Survivor Benefits c. The pre -retirement option settlement 2 death benefit (Section 21548) 2. Employee Contributions Tier 1 and 2 Employees: All unit members in Tiers 1 and 2 will pay the full 9% "safety member" contribution of PERS reportable earnings. This payment will be made on a NBLMA MOU 20252-20285 pre-tax basis through payroll deduction contribution will not be considered as under Government Code section 20636. Page116 pursuant to IRS Code Section 414(h)(2). This part of employee's "compensation earnable" Unit members will, in addition to the 9% normal member contribution, contribute 4.6% of pensionable compensation toward retirement costs as permitted under Government Code §20516(f), for a total contribution of 13.6%. Tier 3 Employees: The minimum statutory employee contribution for employees in Tier 3 is subject to the provisions of the Public Employees' Pension Reform Act (PEPRA) and equals 50% of the "total normal cost" as determined by PERS. The employee Safety rate is subject to change based on annual PERS actuarial valuations. In addition to the statutorily required 50% contribution of total normal costs, Tier III employees shall contribute an additional percentage of pensionable compensation toward retirement costs pursuant to Government Code § 20516((), for a total contribution of 13.6%. If future fiscal year member contribution rates for employees in Tier III change, 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%, provided however, that the employee contribution shall never fall below the statutory required contribution. In the event PERS pension provisions for new or existing employees are modified by State or Federal legislation resulting in changes to previously negotiated terms, the parties agree to meet and confer to discuss appropriate changes to the MOU. E. RETIREE HEALTH BENEFITS PROGRAM (FULL-TIME CLASSIFICATIONS ONLY) 1. Background In 2005, the City and all Employee Associations 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 will be ongoing for an extended period. During the transition, employees and (then) existing retirees have been administratively classified into one of three categories. The benefit is structured differently for each of the categories. The categories are as follows: a. Category 1 - Employees newly hired after January 1, 2006. Category 2 - Active employees hired prior to January 1, 2006, whose age plus years of service as of January 1, 2006, was less than 50 (46 for public safety employees). c. Category 3 - Active employees hired prior to January 1, 2006, whose age plus years of service was 50 or greater (46 for public safety employees) as of January 1, 2006. 2. Program Structure NBLMA MOU 20252-20285 Page117 This is an Integral Part Trust (IPT) Retiree Health Savings (RHS) Plan (formerly the Medical Expense Reimbursement Program "MERP'? and applies only to regular full- time NBLMA employees. a. For employees in Category 1, the program is structured as follows: Each employee will have an individual RHS account for bookkeeping purposes, called "Employee Account." This account will accumulate contributions to be used for health care expenses after separation. All contributions to the plan are either mandatory employee contributions or City paid employer contributions, so they are not taxable to employees at the time of deposit. Earnings from investment of funds in the account are not taxable when posted to the account. Benefit payments are not taxable when withdrawn, because the plan requires that all distributions be spent for specified health care purposes. Contributions will be in three parts. Part A contributions (mandatory employee contributions): 1 % of salary. Part B contributions (employer contributions): $2.50 per month for each year of service plus year of age (updated every January 1st based on status as of December 31st of the prior year). Part C contributions (leave settlement as determined by Association): The Association will determine the level of contribution for all employees it represents, subject to the following constraints. All employees within the Association must participate at the same level. The participation level should be specified as a percentage of the leave balance on hand in each employee's leave bank at the time of separation from the City. For example, if the Association wishes to specify 50% of the leave balance as the participation level, then each member leaving the City or cashing out leave at any other time, would have the cash equivalent of 50% of the amount that is cashed out added to the RHS, on a pre-tax basis. The remaining 50% would be paid in cash as taxable income. Individual employees would not have the option to deviate from this breakout. The Association has decided to participate in Part C contribution, at the level of zero percent (0%). This amount may be changed, on a going forward basis, as part of the future meet and confer process. However, the participation level must be the same for all employees within the Association. Additionally, 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. Spillover pay is not eligible for Part C contributions. NBLMA MOU 20252-20285 Page 118 Nothing in this section restricts taking leave for time off purposes. Part A contributions may be included in PERS compensation. Part Band Part C contributions will not be included in PERS compensation. Part A contributions begin upon enrolment in the program and are credited to each RHS Employee Account each pay period. Eligibility for Part B contributions is set at five years of vested City employment (i.e., five years at full time status). At that time, the City will credit the first five years' worth of Part B contributions into the Employee Account (interest does not accrue during that period). Thereafter, contributions are made bi-weekly. Part C deposits, if any, will be made at the time of employment separation. Each Employee has a right to reimbursement of medical expenses (as defined below) from the Plan until the Employee Account balance is zero. This right is triggered upon separation. If an employee leaves the City prior to five years employment, only the Part A contributions and Part C leave settlement contributions, if any, will be in the RHS Employee Account. Such an employee will not be entitled to any Part B contributions. The exception to this is a full-time employee, participating in the program, who leaves the City due to industrial disability during the first five years of employment. In such cases, 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 RHS account at the time of separation. Distributions from RHS Employee Accounts are restricted to use for health insurance and medical care expenses after separation, as defined by the Internal Revenue Code Section 213(d) (as explained in IRS Publication 502) and specified in the Plan Document. In accordance with current IRS regulations and practices, this generally includes premiums for medical insurance, dental insurance, vision insurance, supplemental medical insurance, long term care insurance, and miscellaneous medical expenses not covered by insurance for the employee and their spouse and legal dependents - again only as permitted by IRS Publication 502. Qualification for dependency status will be determined by guidelines in IRC 152. If used for these purposes, distributions from the RHS accounts will not be taxable. Cash withdrawal for any other purpose is prohibited. Under recent IRS Revenue Ruling 2005-24, any balance remaining in the Employee Account after the death of the employee and their spouse and/or other authorized dependents (if any) must be forfeited. That particular RHS Employee Account will be closed, and any remaining funds will become general assets of the plan. The parties agree that the City's Part B contributions during active employment constitute the minimum CaIPERS participating employer's contribution (i.e., the CaIPERS statutory minimum amount) towards medical insurance after NBLMA MOU 20252-20285 Page119 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 City contribution will be withdrawn from the retiree's RHS account. b. For employees in Category 2, the program is the same as for those in Category 1, with the following exception: In addition to the new plan contributions listed above, current employees who fully convert to the new plan will also receive a one- time City contribution to their individual RHS accounts that equates to $100 per month for every month they contributed to the previous "defined benefit" plan, to a maximum of 15 years (180 months). This contribution will be made only if the employee retires from the City and at the time of retirement. No interest will be earned in the interim. Employees in Category 2 who had less than five years' service with the City prior to implementation of the new program will only receive Part B contributions back to January 1, 2006, when they reach five years total service. c. For employees in Category 3, the program is the same as for those in Category 2, with the following exception: For employees in this category, the City will make no Part B contributions while the employees are still in the active work force. Instead, the City will contribute $400 per month into each of their RHS accounts after they retire from the City, to continue as long as the employee or spouse is still living. Each employee will contribute a flat $100 per month to the plan for the duration of their employment to partially offset part of this expense to the City. The maximum benefit provided by the City after retirement is $4,800 per year, accruing at the rate of $400 per month. There is no cash out option for these funds, and they may not be spent in advance of receipt. Employees in this category will 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 will be made to the RHS account at the time of retirement, and only if the employee retires from the City. No interest will be earned in the interim. 3. 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. NBLMA MOU 20252-20285 Page 120 F. TUITION REIMBURSEMENT Full-time and part-time NBLMA members attending accredited community colleges, colleges 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. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of "C" or better for undergraduate courses and a grade of "B" or better for graduate courses. All claims for tuition reimbursement require the approval of the Human Resources Director. NBLMA members attending pre -approved, directly job -related classes, courses and seminars given by recognized agencies, organizations, or individuals other than accredited college institutions may apply for reimbursement of actual cost of tuition, books, fees, or other student expenses. Reimbursement is contingent upon the successful completion of the course. Successful completion means a document or certificate showing successful completion of the course or seminar. All claims for reimbursement require the approval of Fire Chief or designee before submittal to Human Resources. Maximum tuition reimbursement for full-time employees shall be $1,500 per fiscal year and the maximum reimbursement for part-time employees shall be $1,125 per fiscal year. SECTION 5. MISCELLANEOUS PROVISIONS A. REDUCTIONS IN FORCE/LAYOFFS The provisions of this section shall apply to full-time and part-time members 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, based on seniority within a particular Classification or Series and this Section should be interpreted accordingly. 1. Definitions a. "Layoffs" or "Laid Off shall mean the non -disciplinary termination of employment. "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 NBLMA MOU 20252-20285 Page 121 authorized or unauthorized leave of absence. c. "Classification" shall mean one or more full-time positions identical or similar in duties and embraced by a single job title authorized in the City budget and shall not include part-time, seasonal, or temporary positions. Classifications within a Series shall be ranked according to pay (lowest ranking, lowest pay). d. In this bargaining unit, there is one Series made up of three classifications represented by the Association - Lifeguard Officer, Lifeguard Captain and Lifeguard Battalion Chief. 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. Procedure 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 Classification shall have the right to Bump a less senior employee in a lower ranking Classification within a Series within the bargaining unit, provided, however, that the determination of the employee to be terminated from the position shall be based on seniority within the Series. An employee who has Bumping Rights shall notify the Department Director within seven (7) working days after the notice of layoff of their intention to exercise Bumping Rights. In the event two 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 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 of thirty (30) days' pay in lieu of notice. In addition, employees laid off will be paid for all accumulated paid leave, 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 NBLMA MOU 20252-20285 Page 122 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 their last known address. Any employee shall have the right to refuse to be placed on the re-employment list or the right to remove their 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 week severance pay for each year of continuous service with the City of Newport Beach, to a maximum of ten (10) weeks of severance pay. B. DISCIPLINE Any discipline shall be in accordance with the Department SOP and the Employee Policy Manual. C. HEALTH AND FITNESS EVALUATIONS All NBLMA members shall participate in the Department Fitness Program. D. PROVISION FOR SUN PROTECTION 1. The first full pay period of each fiscal year the City will provide $500 to each full-time unit member and $300 to each part-time unit member for sunglasses and other sun protection materials (not restricted to use at Lifeguard Store). 2. Each unit employee shall receive an annual skin cancer screening, which will be conducted either on or off duty at the Department's discretion. Employees directed to receive this screening off duty shall receive one (1) hour of compensatory time off as compensation. E. FITNESS EQUIPMENT AND EXERCISE TIME The City will provide up to $3,000 per year towards the purchase of fitness equipment to be used on duty for the intended benefit of NBLMA. The actual equipment to be purchased shall be recommended by NBLMA and shall require the final approval of the Fire Chief. Unit employees shall be allowed up to three (3) hours per week for on duty physical fitness training. F. EMPLOYEE POLICY MANUAL/Standard Operating Procedures The City and NBLMA have agreed on implementation of the City's revised 2010 Employee Policy Manual. Should additional revisions to the Manual be proposed, the City will meet and confer on applicable policy manual provisions and/or standard operating procedures NBLMA MOU 20252-20285 Page 123 which are within the scope of bargaining. The parties agree to meet and confer over a Policy regarding contract switches and/or leave. G. DIRECT DEPOSIT All Unit employees shall participate in the City's Direct Deposit Program. 5. RECOUPMENT OF OVERPAYMENTS Employees will be notified by Payroll or Human Resources prior to the recovery of overpayments on paychecks. Recovery of more than 15% of net pay will be subject to a repayment schedule established by the appointing authority under guidelines issued by the Finance Department or Human Resources. Such recovery shall not exceed 15% per month of disposable earnings, as defined by State law, except a mutually agreed upon accelerated payment plan for faster recovery. Recoupments under this section shall be limited to forty-eight (48) months. However, nothing in this section is intended to preclude the City from seeking recoupment of overpayments due to fraud or other knowing concealment through any available legal forum. Signatures on the following page NBLMA MOU 20252-20285 Page 124 For NBLMA: Z7/-/, 4PO EWVf i lver J u 13, 2025 17:24 PDT) Elizabeth Silver Chief Negotiator Date: 07/03/2025 NBLMA MOU 20252-20285 For the City: Jon an V. Holtzman (Jul3, 2025 16:26 PDT) Jonathan V. Holtzman Co -Chief Negotiator Date: 07/03/2025 Z-,� �a� Luke Jensen Co -Chief Negotiator Date: 07/03/2025 2025-2028-NBLMA MOU Final Redline - 07.03.25 Final Audit Report 2025-07-04 Created: 2025-07-03 By: Luke Jensen (Ijensen@publiclawgroup.com) Status: Signed Transaction ID: CBJCHBCAABAA2npynJoK-vlzAxzxzuQcxHewKIV2ThMo "2025-2028-NBLMA_MOU Final Redline - 07.03.25" History i Document created by Luke Jensen (Ijensen@publiclawgroup.com) 2025-07-03 - 11:20:08 PM GMT C� Document emailed to Elizabeth Silver (esilver@rlslawyers.com) for signature 2025-07-03 - 11:20:13 PM GMT C Document emailed to Luke Jensen (Ijensen@publiclawgroup.com) for signature 2025-07-03 - 11:20:13 PM GMT Document emailed to Jonathan V. Holtzman (JHOLTZMAN@PUBLICLAWGROUP.COM) for signature 2025-07-03 - 11:20:13 PM GMT E, Email viewed by Luke Jensen (Ijensen@publiclawgroup.com) 2025-07-03 - 11:21:24 PM GMT 6S6 Document e-signed by Luke Jensen (Ijensen@publiclawgroup.com) Signature Date: 2025-07-03 - 11:21:42 PM GMT - Time Source: server Email viewed by Jonathan V. Holtzman (JHOLTZMAN@PUBLICLAWGROUP.COM) 2025-07-03 - 11:26:33 PM GMT 6© Document e-signed by Jonathan V. Holtzman (JHOLTZMAN@PUBLICLAWGROUP.COM) Signature Date: 2025-07-03 - 11:26:50 PM GMT - Time Source: server Email viewed by Elizabeth Silver (esilver@rlslawyers.com) 2025-07-04 - 0:24:00 AM GMT 6© Document e-signed by Elizabeth Silver (esilver@rlslawyers.com) Signature Date: 2025-07-04 - 0:24:24 AM GMT - Time Source: server Adobe Acrobat Sign Q Agreement completed. 2025-07-04 - 0:24:24 AM GMT a Adobe Acrobat Sign ATTACHMENT B Estimated Cost of Contract with NBLMA 9-5 City of Newport Beach NBLMA MOU Key Contract Terms COLA 4.00% 4.00% 4.00% Equity Adjustment 2.00% Remove Bottom Two Steps for Lifeguard Officer 10% for Training Salary Differential 7.50% 2.5%for Rescue Vessel Captains Holiday Time All taken as cash Medical Insurance' 7/1/25 Additional $300/month (No Cash Back) 3.5% of Base Salary for BA/BS Scholastic Achievement 2%for BA/BS 1% for MA for Lifeguard Captains6 Move -Up Pay 5% 9.50% NAL Bank 48 Hours Summary of Proposal Cost Z Baseline Compensation Base Pay $1,540,232 $94,636 $160,031 $228,042 Supplemental Pays 99,273 60,065 66,706 73,613 Overtime 221,412 13,285 22,673 32,436 Pension Contribution 283,307 22,552 36,158 50,308 Cafeteria Plan 288,660 18,222 18,222 18,222 Other City Paid Benefits 3 128,392 59,185 62,849 66,660 Total $2,561,277 $267,945 $366,638 $469,279 Cumulative Impact on Employee Compensation Base Salary Increase 6.14% 10.39% 14.81% Total Compensation Increase 5 10.46% 14.31% 18.32% Key Contract Terms COLA 107,181 203,011 302,675 Equity Adjustment 30,805 30,805 30,805 Remove Bottom Two Steps for Lifeguard Officer 2,222 2,222 2,222 Salary Differential 16,037 16,679 17,346 Holiday Time 22,782 23,693 24,641 Medical Insurance' 18,222 18,222 18,222 Scholastic Achievement 12,638 13,817 15,044 Move -Up Pay 3,261 3,391 3,527 NAL Bank 54,797 54,797 54,797 $267,945 $366,638 $469,279 Notes ' Assumes maintaining the current level of funding, plus an additional $300 per month in health insurance benefits, effective May 2025. Z Costs shown in years two and three reflect the cumulative budget impact in each year as compared to the current budgeted amounts. 3 Includes Medicare, Compensated Absences, Retiree Health Savings, Life Insurance, and EAP. 4 Percentage shown in each year is as compared to current base salary, not the prior year. 5 Measured based on the total of all pay and benefits. Percentage is as compared to current total compensation, not the prior year. 6This is considered a no cost item, as no Lifeguard Captains currently hold a Master's degree. 'The costs shown reflect additional annual expenses for the corresponding fiscal years.