HomeMy WebLinkAbout10 - Tentative MOU with the Newport Beach Fire Management AssociationQ �EwPpRT
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TO:
FROM:
CITY OF
NEWPORT BEACH
City Council Staff Report
July 8, 2025
Agenda Item No. 10
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
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 the Newport Beach
Fire Management Association
ABSTRACT:
The Memorandum of Understanding (MOU) between the City of Newport Beach and the
Newport Beach Fire Management Association (NBFMA) expires on December 31, 2025.
At the direction of the City Council, City and NBFMA representatives began meeting and
conferring in good faith on wages, benefits and other terms and conditions of employment
in order to implement a successor agreement with enhanced benefits prior to the current
MOU's December 31 expiration date.
A Tentative Agreement on the terms of a successor MOU has been reached. In
furtherance of the City Council's goal to provide transparency in the negotiations process,
the Tentative Agreement and its associated costs are being presented for public review
and comment. The final MOU, which spans the time period of July 1, 2025, through
June 30, 2028, will be presented for City Council action at its May July 22, 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 Fire Management Association.
DISCUSSION:
The NBFMA is a recognized employee association which currently represents four fire
battalion chiefs. The proposed successor MOU provides for the addition of two non -safety
positions to the unit, the fire marshal and the EMS division chief, as well as the conversion
of one of the battalion chief positions to an administrative division chief.
10-1
Tentative Memorandum of Understanding with the Newport Beach Fire Management
Association
July 8, 2025
Page 2
The City and NBFMA representatives met several times to discuss the terms of a
successor agreement. Topics discussed during negotiations included wage and equity
adjustments, leaves, certification pay, longevity pay, medical insurance and other,
non -economic matters. Clarifying language to existing provisions was added where
necessary.
Key provisions of the Tentative Agreement between the City and NBFMA include:
• Term - Approximately three years, expiring June 30, 2028.
• Wage Adjustments — Safety Classifications:
July 12, 2025 7%,
July 2026 4%
July 2027 4%.
Equity Adjustment July 12, 2025 2%
• Wage Adjustments — Non -Safety
July 12, 2025 4%
July 2026 4%
July 2027 4%
• Longevity Pay Adjustments for Safety Classifications - Adjustments to existing
longevity pay for safety classifications will provide an additional 5% for those with at
least 15 years of service but less than 20 years of service. Safety members with
20 or more years of service will receive an additional 10%.
• Medical Insurance — The City will increase its cafeteria contribution to $2,224 per
month (plus the minimum CalPERS participating employee contribution) to each
member's cafeteria plan.
• Holidays — Because safety members are expected to work without regard to
City -recognized holidays, all holidays will be provided as cash with no option to take
holidays as time off.
• Non -Accruing Leave Bank — Safety employees will receive 48 hours annually of paid
leave. The hours do not accrue, have no cash value, and are nontransferable.
• Administrative Leave — Non -Safety Classifications may be granted up to 80 hours of
administrative leave.
10-2
Tentative Memorandum of Understanding with the Newport Beach Fire Management
Association
July 8, 2025
Page 3
• Retirement Contributions — Non -Safety Classifications will contribute 11.5% of
compensation earnable or pensionable compensation towards their CalPERS
retirement benefit.
• Expansion of City -paid deferred compensation benefit to all unit members.
A draft version of the Tentative Agreement between the City and NBFMA is included as
Attachment A with changes from the current agreement in redline. Costing information is
included as Attachment B. The total cost of the contract is approximately $930,000.
NBFMA has informed the City that its members have voted to approve the agreement.
Following City Council review of the Tentative Agreement and proposed MOU with
NBFMA, a final version of the successor MOU will be presented at the July 22, 2025,
regular City Council meeting. The costing information and proposed revisions to the MOU
will be posted for public review on the City's website.
The agreement will not become effective, per Government Code §3505.1, until the
governing body, i.e., the City Council, takes action to adopt it. If the City Council approves
adoption of the Tentative Agreement with NBFMA at the July 22, 2025, meeting, City staff
will work to implement the provisions as soon as practicable.
FISCAL IMPACT:
Detailed cost information is provided in Attachment B. The MOU will result in the following
annual fiscal impacts to implement the terms of the agreement, totaling $930,067.
Fiscal Year Amount
2025/26 230,058
2026/27 308,970
2027/28 391,038
ffrly,T�,
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)
10-3
Tentative Memorandum of Understanding with the Newport Beach Fire Management
Association
July 8, 2025
Page 4
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 NBFMA
(Redline)
Attachment B — Estimated Cost of Contract with NBFMA
10-4
ATTACHMENT A
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF NEWPORT BEACH
AND
THE NEWPORT BEACH FIRE MANAGEMENT
ASSOCIATION
July 1, 2022 thfough june 30,2 July 1, 2025
through June 30, 2028
10-5
MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY
OF NEWPORT BEACH AND NEWPORT BEACH FIRE MANAGEMENT
ASSOCIATION
This MEMORANDUM OF UNDERSTANDING (hereinafter referred to as "MOU") is
entered into with reference to the following :
1. The Newport Beach Fire Management Association ("NBFMA" 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.
2. This MOU, upon approval by NBFMA and the Newport Beach City Council,
represents the total and complete understanding and agreement between the
parties regarding all matters within the scope of representation.
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 NBFMA 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 those classifications specified in Exhibit "A" or as appropriately modified
in accordance with the Employer/Employee Resolution. All other classifications and
positions not specifically included within Exhibit "A" are excluded from representation
by NBFMA.
3
B. Term
1. 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 July 1, 2025. This MOU shall remain in full force and effect through 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.
2. The provisions of this MOU shall prevail over any conflicting provisions of the
Newport Beach City Charter, the ordinances , resolutions and policies of the City
of Newport Beach, and 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 such as,
or similar to, this MOU.
NBFMA MOU 20252-20286
10-6
C. Scope
1. 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 SOP's
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.
The parties agree to meet and confer changes to department SOP, rule, or
regulation if such proposed changes materially impact any matter within the
scope of representation.
2. 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.
D. Bulletin Boards
1. Space shall be provided on bulletin boards within the Fire Department at their
present location for the posting of notices and bulletins relating to NBFMA
business, meetings, or events. All materials posted on bulletins boards by the
NBFMA shall indicate that the NBFMA 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, as well as any pornographic or obscene material.
2. Material posted and messages sent through work E-Mail} 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, as well as any pornographic or obscene material. Work
E-Mail may be used for Association business on a limited basis and consistent
with Department Policy.
E. Conclusiveness
This MOU contains all of the covenants, stipulations, and provisions agreed upon by
the parties. Therefore, for the life of this MOU, neither party shall be compelled to meet
and confer concerning any issue 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
M
NBFMA MOU 20252-20286
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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. Savinas
Should any part of this MOU be rendered or declared illegal or invalid by legislation,
decree of court of competent jurisdiction or other established governmental
administrative tribunal, such invalidation shall not affect the remaining portions of this
MOU provided, however, should the provisions of this MOU relating to salary
increases, fringe benefits, or the compensation policy be declared invalid the City shall
provide alternative forms of compensation such that NBFMA members suffer no
financial detriment by virtue of the decision or ruling with the manner and form of the
compensation to be determined by the parties after meeting and conferring in good
faith.
H. 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.
Upon request by the Association the parties will engage in non -binding fact finding pursuant
to State law.
5
I. Definitions
For the purposes of this MOU these terms shall have the following meanings:
1. The term "member" or "NBFMA member" shall mean all persons within
classifications represented by NBFMA.
2. The term "staff employee" shall mean any NBFMA member who is assigned to
work a 40-hour work week.
3. The term "line employee" shall mean any NBFMA member assigned to work
an average 56-hour workweek in 24-hour shift increments.
4. The term "Municipal Fire Departments in Orange County" or "Municipal Fire
Departments" shall mean all City operated Fire Departments and the Orange
County Fire Authority.
5. The term "safety members" shall refer to employees represented by the NBFMA
members in the Battalion Chiefs and the Administrative Division Chief
classifications pesitkms.
6. The term "non -safety
members" shall
refer to employees
represented by the
NBFMAmenibe-r:-in
the Fire Marshal
and EMS Division
Chief classifications
positions.
NBFMA MOU 20252-2028-6
10-8
A Salary
1. Guaranteed Salary
The salary for the position of Fire Battalion Chief shall maintain at least a 9.50% 12.5%
salary differential between the top step of Fire Captain and the bottom step of the Fire
Battalion Chief. Adjustments to the salary of Battalion Chief shall be reflected in
corresponding adjustments to other positions represented by NBFMA necessary to
maintain the salary differentials listed in Exhibit A
2. Salary Adjustments - this MOU Period
Base salary increases for all NBFMA represented classifications shall be as follows and
as specified in Exhibit A:
0
1) Safety Classifications:
a) Effective July 12, 2025 the first day of the fell a y lo,i pried fnllew ng the
_, there shall be a base salary increase
of seven percent (7.0%)—€ u weperent(42.09�) for all Safety
classifications in the bargaining unit. This salary increase includes the 3.0 %
salary increase scheduled for the beginning of the pay period following July
1, 2025 in the preceding MOU and an additional non -compounding four
percent (4.0%) salary increase. lndiWduals must be employed by the City on
the first day of the pay . 1 following City GeunGi/ adoption to quafify fe
etr-eantive na)imont of fhr� mill/1,
b) Effective the first day of the pay period following July 1, 2026-3, there shall
be a base salary increase of fourt" percent (42.0%) for all Safety
classifications in the bargaining unit.
c) Effective the first day of the pay period following July 1, 20274, there shall
be a base salary increase of fourtwe percent (42.0%) for all Safety
classifications in the bargaining unit.
d) Equity Adjustment:
Effective July 12, 2025, the, first first full payday -Period follGW'nn fho -qrlontien
of this MQ I I„ly 1, 7025, all Safety classifications niembe in the bargaining
unit shall receive a two percent (2.0%) equity adjustment to base salary. This
increase shall not compound with the simultaneous base salary increase
provided above in Section 2.1.a.2-.A4.
2) Non -Safety Classifications:
a) Effective July 12, 2025, there shall be a base salary increase of four percent
(4.0%) for all Non-Safetv classifications in the bargaining unit.
b) Effective the first day of the pay period following July 1, 2026, there shall be
NBFMA MOU 20252-20286
10-9
a base salary increase of four percent (4.0%) for all Non -Safety
classifications in the bargaining unit.
Nc)Effective the first day of the pay period following July 1, 2027, there shall be
a base salary increase of four percent (4.0%) for all Non -Safety
classifications in the bargaining unit.
B. Salary Differential
The Battalion Chief assigned as the Staff Q^ttafion ChietDivision Chief of Administrative
Services shall receive an additional 7. 5% of base pay over Battalion Chiefs while assigned to
that position. Assignment as a Staff att., an �Staff Division Chief of Administrative
Services -is typically for 2 years , unless extended altered by the Fire Chief_ Designation as
n^nsirvnmont to t"o Staff Division Chief of Administrative Services does
not trigger a property interest in the position and removal from the position does not trigger any
right of appeal. Line Battalion Chiefs who are assigned to modified or light duty assignments are
not eligible for this pay.
7
C. Overtime - Hours Worked
The City and Association agree that all unit classifications are properly
exempted from the overtime provisions of the Fair Labor Standards Act.
However, NBFMA members may be required to work additional floor shifts in
excess of their regular work schedule . Off -duty employees in Safe in the
Battalion Chief er rliVir,4GR Chief of AdmoRmstratove Services classifications who
are assigned by the Fire Chief or designee to additional fire suppression work
shifts for an emergency assignment, or to replace another Battalion Chief who
is on an approved leave, will receive overtime pay equal to one -and -one-half
times' the covering employee's base rate ofpay.
Use of Flex Leave, Comp Time, or other paid leaves are not considered hours
worked for the purpose of determining overtime eligibility. Regular staff
meetings or other assignments will not be eligible for overtime at the 1'/2 rate
and shift exchanges between employees in Safety classifications two BattalioR
Ghiefs-do not qualify for overtime compensation.
Non -Safety Members represented by this bargaining unit are not eligible for overtime
compensation.
2. Strike Team Actions. In the event that a Unit Safety employee is assigned to
provide fire suppression services as part of a regional, state, or federal strike team
organized by State or Federal officials and when all of the below Sconditions exist,
that Unit employee shall be paid at the time and one-half (1'/2) 56-hour rate. The
conditions are:
A. The Unit employee is working outside of his or her regularly scheduled hours;
B. The Strike Team is operating outside of the city limits;
C. The Unit employee is on duty on the Strike Team for more than eight (8)
hours;
D. A disaster declaration has been approved by the State or Federal
NBFMA MOU 20252-20286
10-10
government for the fire suppression action; and
E. The costs for these overtime hours are specifically authorized for
reimbursement by the state or federal government.
3_Compensatory Time. In lieu of overtime, Safety members may elect to accrue
compensatory time off. Compensatory time off is provided per this MOU, and not
pursuant to the Fair Labor Standards Act. Staff personnel may accrue a maximum
of 120 hours. Line personnel may accrue a maximum of 196 hours. The provisions
for accrual and use of compensatory time shall be provided in the Fire Department
Standard Operating Procedure.-
3-A. Non -Safety members are not eligible to accrue comp time.
45.All other overtime not specified above will be at the straight time rate.
D. Reauired Uniform
City shall pay the entire cost of providing NBFMA member with each component of the
required NBFD uniform. The required NBFD uniform includes shoes, badges and
insignias, uniform pants, uniform shirts, uniform jackets and liner, belts, sweatshirt, and
turnout safety clothing. City shall not be responsible for providing employee with socks,
underwear, cap or workout shoes, or other clothing.
PERS Reporting of Uniform Allowance - To the extent permitted by law, the City shall
report to the California Public Employees' Retirement System (CaIPERS) the uniform
allowance of $1,519 annually, paid biweekly, for each SafetvswoFR 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 PE( PRA) of 2013, the uniform
allowance will not be reported as pensionable compensation to CaIPERS .
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,
including safety boots and turnout gear.
E. Scholastic Achievement/Certificate Pay
NBFMA members are entitled to additional compensation contingent upon
scholastic/certificate achievement ("Scholastic/Certificate Achievement Pay").
NBFMA members may apply for increases pursuant to this Section when eligible and
scholastic/certificate achievement pay shall be included in the member's paycheck for
the pay period immediately after approval by the Fire Chief. It is the responsibility of
the NBFMA member to apply for Scholastic/Certificate 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/certificate achievement pay prior to
the date the application is approved even though the member may have been eligible
prior to approval.
NBFMA members shall receive scholastic achievement/certificate pay in accordance with
the City's evaluation and approval process for degrees and/or coursework awarded by
0
NBFMA MOU 20252-2028-6
10-11
accredited community colleges, state colleges , universities or other approved institutions
as follows:
1. Scholastic Achievement
Dearee
BA/BS
MAIMS/JD
Scholastic Pay Percentaae
5.5% of base pay
7.0% of base pay
Scholastic Achievement pays are not cumulative (e.g., employees with a BA and MA will
receive a total of 7.0% of base pay).
2. Certificate Pay
Coursework
Certified Chief Fire Officer
Certified Strike Team Leader
(61
Compensation
3.0% of base pay
$100 per month
NBFMA MOU 20252-20286
10-12
The parties agree that to the extent permitted by law, the Scholastic
Achievement/Certificate 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.
F. Bilinaual Pay
Employees certified as bilingual (Spanish) shall be eligible to receive one hundred fifty
($150 .00) dollars per month ($69.23 per pay period) in bilingual pay. The certification
process will confirm that employees are fluent at the street conversational level in
speaking, reading and writing Spanish. Employees shall receive bilingual pay the first
full pay period following certification.
Additional languages may be certified for compensation pursuant to this section by the
Fire Chief.
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.
G. Court Standby Pay
NBFMA 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 considered to be on "court standby time" and shall
receive four hours of pay for each eight hours of court standby time. NBFMA 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 considered
to 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 .
H. Longevity Pay for Safety Members
Effective July 12, 2025, qualified Safety Members shall receive Longevity Pay for years
of service with the City of Newport Beach as follows:
Completed Years of Service Longevity Pay
16 years but less than 20 5% of base salary
20 years and over 10% of base salary
These pays are not cumulative (e.g. at 20 years, total longevity pay shall be 10%). The
parties agree that to the extent permitted by law, Longevity Pay is special compensation
and shall be reported to CalPERS as such pursuant to Title 2 CCR, Section 571(a)(1) and
571.1(b)(1).
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10 NBFMA MOU 20252-20286
10-13
•k
A. Flex Leave- Safety Members
NBFMA Safety members shall accrue flex leave as follows.
LINE EMPLOYEES
STAFF EMPLOYEES
Years
Accrual
Maximum
Accrual
Maximum
of Continuous
Hours/Pay Period
Accrual
Hours/Pay Period
Accrual
Service
Less than 5
9.77
508.04
6.97
362.44
5 but less than 9
1 10.69
555.88
7.63
396.76
9 but less than 12
11.62
604.24
8.33
433.16
12 and over
12.54
65208
8.95
465.40
11
1. The Flex leave program shall be administered as follows:
a. Newly hired NBFMA members shall not accrue flex leave until continuously
employed by the Newport Beach Fire Department for a period of three (3)
months provided, however, if a member in the flex leave program becomes sick
during the first three months of employment, the City will advance up to three
(3) months of accrual for line employees (63.50 hours) / staff employees (45.30
hours) for use by the member to recover from illness.
In the event the City advances paid leave time and the employee is
terminated or resigns before completing three months of continuous
employment, the member's final check shall be reduced by an amount equal
to the number of flex leave hours advanced multiplied by the member's
hourly rate of pay.
b. Newly hired NBFMA members shall accrue three (3) months of flex leave [line
employees (63.50 hours)/ staff employees (45.30 hours)] immediately upon
completing three (3) months continuous employment with the Newport Beach
Fire Department , provided however, this amount shall be reduced by any flex
leave time advanced during the first three months of employment.
c. Earned flex leave in excess of the maximum permitted will be paid bi-weekly at
the member's hourly rate of pay ("Spillover Pay"). NBFMA members may not
elect to buy down accrued Flex Leave below the current threshold for payment
unless, during the twelve months preceding the election, the member has taken
at least ninety-six (96) hours of paid leave if a line employee and eighty (80)
hours of paid leave if a staff employee.
Employees shall have the option of converting accrued Flex Leave tocash
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 the pay period
NBFMA MOU 20252-2028-6
10-14
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 what each employee can accrue for fifty-two pay
periods. However, in no event shall the flex leave balance be reduced below
what each employee can accrue for fifty-two pay periods.
All requests for scheduled flex leave shall be submitted to appropriate
department personnel. 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 current hourly rate
of pay upon termination.
:Pmnz�.Tar�ev
dLV
B. Flex Leave — Non -Safety mMembers
Regular full-time Non -Safety employees in the AdministFataye Managernent ndr inistratiye
Division Management category+es enrolled in the
flex leave Droaram will accrue leave accordina to the below.
Years of Continuous
Service
Hours Accrued
per Pay Period
Annual
Hours
Maximum
Allowable
Balance
1 but less than 5
6.00
156.00
468.00
5 but less than 9
6.61
171.86
515.58
9 but less than 12
7.23
189.98
563.94
12 but less than 16
8.15
211.90
635.70
16 but less than 20
8.77
228.02
684.06
20 but less than 25
9.38
243.88
731.64
25 and over
10.00
260.00
780.00
12
1. Limit on Accumulation and Spillover:
a. �ni"��Employees hired prior to July 1, 1996 shall be paid for accrued Flex
leave in excess of the employee's maximum accrual rate (spillover) provided that
they utilized at least 80 hours Flex leave the previous calendar year. Employees
with 16 or more vears of continuous service are reauired to use 120 hours of Flex
leave the previous calendar year.
b Limit on nGG vaha i n Employees first hired, or rehired by the City subsequent to
NBFMA MOU 20252-2028-6
10-15
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.
Holiday Time
2. Holiday In Lieu Pay^ —Safety Members
The provisions of this subsection shall apply to all NBFMA Safety members on a
pro-rata basis. All NBFMA Safety members work in positions that must work
without regard for holidays. Thus in lieu of the holidays identified below, effective
July 12, 2025, Safety Line employees shall receive holiday in lieu pay equal to the
value of 7.38 hours per pay period and Safety Staff , thus who are line employees
shall aeeFue heliday time at the rate ef 7.38 hours per pay peried. NBFMA whe
staff employees shall receive holiday in lieu pay equal to the value aGGrue he!*
tome at the ,--,+o of 3,96 5.26 hours per pay period.
All employees inGludiRg Staff Employees shall reGeive their holiday tome in pay. -
Holiday pay shall be paid bi-weekly with the regular check. 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 as such pursuant to Title 2 CCR,
Section 571(a)(5) and 571.1(b)(4) Holiday Pay.
WAMULOAMMAZaM .;.:.
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3. Accrual — Non -Safety Members
The following days shall be observed as paid holidays (i.e., employees shall have the day
off with pay). With the exception of the "floating holiday" (where the employee chooses the
day off), employees who are required to work on the holiday will receive their pa for
holiday and either pay or flex leave for the number of hours worked on the holiday.
New Year's Day
Januaryl
Martin Luther King DaY
January — 3rd Monday
Washington's Birthday
February— 3rd Monday
Memorial Dav
May— Last Monday
Floating Holiday*
July 1
Independence Day
July 4
Labor Dav
September— 1st Monday
Veterans Day
November 11
Thanksgiving Dav
November— 4rh Thursday
Friday After Thanksgiving
November— 4rh Friday
Christmas Eve
December 24 (last % of workday)
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NBFMA MOU 20252-2028-6
10-16
Christmas Dav
December 25
New Year's Eve
December 31 (last % of workday
*The floating holiday (eight (8) hours of holiday leave) is awarded on July 1. The
hours are added to the employees' Flex Leave account.
Holidays are paid based on the employee's regular workday schedule. For
example, if an employee is on a 9180 schedule and the holiday is observed on a
day that the employee is regularly scheduled to work nine hours, the employee
is entitled to receive nine hours of holiday. However, if an employee is on a
9180 schedule and the holiday is observed on a day that the employee is regularly
scheduled to work eight hours, the employee is eligible to receive eight hours of
holiday pad
Holidays listed above (except the floating holiday) occurring on a Saturday shall
be observed the preceding Friday. Holidays occurrinq on a Sunday shall be
observed the following Monday.(Half day holidays shall be observed prior to the
observed holiday).
Holiday pay will be paid only to employees who are in paid status on the
scheduled day before and scheduled day after a holiday or are on authorized
paid leave (e.g. paid leave that has been reviewed and approved by the
Department Director).
B. Bereavement Leave
Bereavement leave shall be defined as "the necessary absence from duty by an
employee because of a death or terminal illness in his/her immediate family ." Staff
employees shall be entitled to-) forty (40) hours of Bereavement Leave per event while
Line Employees shall be entitled to ninety (90) hours of Bereavement Leave per event
(terminal illness followed by death is considered one event). Leave hours need not be
used consecutively, but should occur in proximate time to the occurrence but no more
than 90 days from the date of the death of the family member. Exceptions to the 90
day requirement may be made at the sole discretion of the Fire Chief. Bereavement
leave shall be administered in accordance with the provisions of the Employee Policy
Manual. For the purpose of this section immediate family shall mean an employee's
father, stepfather , mother, stepmother, brother , sister, wife, husband, registered
domestic partner, child, step -child, grandchild, or grandparent, and the employee 's
spouse/domestic partner's mother, father, brother , sister , child, -grandchild, or
grandparent. An employee requesting bereavement leave shall notify his/her
supervisor as soon as possible of the need to take leave.
C. 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.
14
NBFMA MOU 20252-2028-6
10-17
G-.D. Jury Duty
Employees who are summoned to perform jury service shall be entitled to their regular
compensation while serving; provided the fees, except mileage and subsistence
allowance, if any, which they receive as jurors, are remitted to the City.
If an employee calls in at night and finds out that he/she must report to jury duty the next
day (and is scheduled to be working that day as part of a regular shift or on an
overtime basis) he/she must contact his/her supervisor as soon as possible so that
coverage can be arranged for his/her shift.
9-.E. Family Sick Leave
Unit employees shall be entitled to use their annual leave accrual as set forth in Labor
Code section 233.
&.F. Workers' Compensation Leave
The City will comply with the provisions of Labor Code section 4850 for workers'
compensation claims.
F—.G. Reassianment —Safety Members
In the event a Safety line employee is reassigned to a Safety staff position, or a Safety
staff employee is reassigned to a Safety line position, the City shall automatically
convert the Flex Leave, Bereavement Leave and other benefits from the position
previously held to the newly assigned position provided. With the ,,.,Geot;en „f HQfi4gy
T'�Tthe ratio for conversion of Safety staff employee benefits to Safety line employee
benefits shall be 7/5 and the ratio for converting line employee benefits to staff
employee benefits shall be 5/7.
6 H. Early Relief
The parties acknowledge Department of Labor regulation, 29 CFR section 553.225
that provides:
15
"It is a common practice among employees engaged in fire
protection activities to relieve employees on the previous shift
prior to (between the hours of0600 and 0800) the scheduled
starting time. Such early relief time may occur pursuant to
employee agreement, either expressed or implied. This
practice will not have the effect of increasing the number of
compensable hours of work for employees employed under
section 7(k) where it is voluntary on the part of the employees
and does not result, over a period of time, in their failure to
receive proper compensation for all hours actually worked. On
the other hand, if the practice is required by the employer, the
time involved must be added to the employee's tour of duty
and treated as compensable hours of work."
NBFMA MOU 20252-20286
10-18
The parties acknowledge that if there is early relief, the City does not require it. The
Association agrees that it will advise the Human Resources Director in writing if at any
time in the future it learns or believes that the City is requiring early relief. If that occurs,
early relief will immediately end.
I. Non -Accruing Leave Bank for Safety Line Employees
Vie -Safety Line employees shall receive forty-eight (48) hours annually of paid leave
in the pay period beginning July 12, 2025 On the fffiFSt Ul pay period following
of this MOU, 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 Abe f6rf,� depleted. Use of NAL is
subiect to supervisory approval.
J. ADMINISTRATIVE LEAVE — Non -Safety Employees
Non -Safety employees who are exempt from overtime, Administrative Leave may be
granted, for a minimum of 8 hours and a maximum of 80 hours, as recommended by
the Department Director with the approval of the City Manager. The determination as
to how much Administrative Leave will be granted will be based upon the number of
overtime hours normally worked each year by the individual exempt employee.
Administrative Leave does not accrue and therefore has no cash value. As such, it
cannot be carried over from year to year.
A Insurance
16
1. Benefits Information Committee
The City has established a Benefits Information Committee (BIC) 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 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. City Contribution
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, provided that any cash -out option
complies with IRS Section 125 requirements-. The City and NBFMA will cooperate
in pursuing additional optional benefits to be available through the Cafeteria Plan.
Employees shall be allowed to change coverages in accordance with plan rules
and during regular open enrollment periods.
NBFMA MOU 20252-20286
10-19
17
Effective July 12, 2025, Iu 1. 2025, -the City's contribution towards the Cafeteria
Plan is $1,924.-9 9 $2,224 (plus the minimum Ca/PERS participating employee 's
contribution).
Unit members who do not enroll in any health care 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 health care insurance coverage, on an annual
basis.
Employees hired as full-time City employees prior to June 22, 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 $1,000.00 per month in taxable cash. Per these sa ,e
emplepees y eienGt rn i I erage and less than the �y
, ed � c-aT�-a 7�T a,-,��
above,
these unused Gafeteria plan funds shall be paid
ate - employ taxable oash. For such employees, if they elect
medical coverage and spend less than $1924.00 (plus the minimum CalPERS
participating employer's contribution) of the City contribution provided above,
the difference shall be paid bi-weekly to the employee as taxable cash.
Employees hired as full-time City employees on or after June 22, 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 $500.00 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.
MW
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PAN -1
NBFMA MOU 20252-2028-6
10-20
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 Benefits Information Committee.
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 Benefits Information Committee .
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 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.
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
Benefit Amount
66.67% of covered wages
66.67% of covered wages
Maximum Benefit
$1,846 weekly
$15,000 monthly
Waiting Period
30 calendar days
180 calendar days
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.
r .
3. Life Insurance
The City shall provide life insurance for all full-time employees in $1 ,000 increments
NBFMA MOU 20252-20286
10-21
equal to one times the employee's annual salary up to a maximum benefit 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. Employees may also purchase supplemental life insurance at their
own cost.
City shall provide an Employee Assistance Prog ram (EAP) for Association members
through a properly licensed provider. Association members and their family members
may access the EAP subject to provider guidelines.
D. PERS Retirement Benefits
Retirement Formula
The City contracts with the California Public Employees' Retirement System
("CalPERS" or "PERS") to provide retirement benefits for its employees. Pursuant to
prior agreements and state mandated reform , the City has implemented first, second
and third tier retirement benefits as follows:
Tier I: For e€mployees hired by the City on or before November 23, 2012, the
retirement formula for safety members shall be 3%@50 and the retirement formula
for non -safety members shall be 2.5%((D-55, calculated on the basis of the highest
consecutive 12 month period selected by the employee.
Tier II: For classic members (as defined in the Public Employees' Pension Reform
Act) employees first hired by the City on or after November 24, 2012, and who are
not new members as defined in Government Code Section 7522.04(f), the
retirement formula for safety members is 2%@50 and the retirement formula for
non -safety members shall be 2%(a)60. 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 his or her retirement or any other three consecutive
year period chosen by the employee as set forth in Government Code section
20037.
Tier III ("PEPRAI: For employees first hired by the City on or after January 1, 2013,
who are new members as defined in the Public Employees' Pension Reform Act,
the retirement formula for safety members shall be 2.7%@57 and the retirement
formula for non -safety members shall be 2%6d�62 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 pensionable compensation during the three consecutive years of
employment immediately preceding the effective date of his or her retirement or
any other three consecutive year period chosen by the employee as set forth in
Government Code section 7522.32(a).
2. Employee Contributions
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NBFMA MOU 20252-2028-6
10-22
Unit members shall contribute amounts toward the PERS retirement benefit, to the
extent permissible by law, as set forth below. Should any such provision be
deemed invalid, the City and Association agree to meet for the purpose of
renegotiating employee retirement contributions or other equivalent economic
adjustments.
Employee retirement contributions that are in addition to the normal PERS Member
Contribution shall be made in accordance with Government Code §20516(f) and
calculated on base pay, special pays , and other pays eer-maly reported as
pensionable compensation or compensation earnable, and will be made on a pre-
tax basis through payroll deduction, to the extent allow able by the Internal
Revenue Code.
a. Safety Members
Tiers I and II:
All members in Tier I and II shall contribute the full statutory member contribution
equal to 9% of compensation earnable plus an additional 4.5% of compensation
earnable of the Employer rate for a total contribution of 13.5% of
compensation earnable.
Tier III:
The normal member contribution rate for Tier III members is 50% of the total
normal cost and is calculated annually for possible adjustments, as provided
in the PERS valuations.
Tier III unit members will contribute the full statutory member contribution. If
that rate is less than 13.5% of pensionable compensation these employees
will contribute an additional percentage of pensionable compensation of the
Employer rate to achieve a total contribution of 13.5% of pensionable
compensation.
b. Non -Safety Members
Tier I:
nn+iin the rind nermod perrwad beqiRnORCI at ;RnIi „des jaRuaw 1 2023--Tier
Employees shall contribute 11.5% of compensation earnable as follows: 8% as
the statutory member contribution. 2.42% as cost sharing per Government
Code section 20516(a) and 1.08% of compensation earnable as cost sharing
per Government Code section 20516(f).
Tier II:
E#eGtOve the pay period that inGludes ianuap�-��, Tier II Employees shall
contribute 11.5% of compensation earnable as follows: 7% as the statutory
member contribution and 4.5% of compensation earnable as cost sharing per
Government Code section 20516(f).
0
20
NBFMA MOU 20252-2028-6
10-23
The minimum statutory
employee contribution for employees in Tier III is subject to the provisions of
PEPRA and equals 50% of the "total normal cost". Tier III employees shall
make an additional contribution of pensionable compensation toward
retirement pursuant to Government Code section 20516(f), for a total employee
contribution that is no less than 11.5% of pensionable compensation (i.e., Tier
III employees pay the greater of 11.5% or 50% of the "total normal cost").
3. The City's contract with PERS shall also provide for:
a. The military buy-back provisions pursuant to Section 20930.3 of the
California Government Code and the highest year benefit
pursuant to Section 20042.
b. The Level 4 1959 Survivors Benefits.
c. The pre -retirement option settlement 2 death benefit
(Section 21548).
E. Defined Contribution Plan
To the extent allowed by PERS, the IRS and other applicable regulatory agencies and
laws, unit members who shall be enrolled in the 2%@ 50 retirement formula or 2.7%
@ 57 formula, shall be eligible to participate in a defined contribution plan to be
administered by the City or its designee in accord with said regulatory agency
regulations and laws. The defined contribution plan shall be funded by allowing each
affected employee to contribute a percentage of base salary each payroll period. The
City shall match any such employee contributions up to a maximum of 1.5% of base
salary. The employee only contributions shall be deemed fully vested at the time of its
deposit. The employer only matching contribution shall vest upon a PERS retirement
being implemented as follows: 100% - age 55+; 80% - age 54; 60% - age 53, 40% -
age 52; 20% - age 51.
F. Retiree Medical Benefit
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:
21
a. Category 1 - Employees newly hired on or after January 1, 2006.
b. 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).
NBFMA MOU 20252-20286
10-24
22
c. Category 3 - Active employees hired prior to January 1, 2006, whose age
plus years of service was 50 orgreater (46 for public safety employees) as
of January 1, 2006.
2. Program Structure
This is an Integral Part Trust (IPT) Retiree Health Savings Plan ("RHS", formerly
the MERP plan):
a. For employees in Category 1, the program is structured as follows:
Each employee will have an individual RHS account for bookkeeping purposes,
called his or her "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 31 st 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 contributions at the level of
zero percent (0%) Flex. This amount may be changed, on a go forward basis, as
part of a 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
NBFMA MOU 20252-20286
10-25
23
desires of a group of imminent retirees.
Spillover pay and Compensatory Time are not eligible for Part C contributions.
Nothing in this section restricts taking leave for time off purposes.
Part A contributions may be included in PERS compensation . Part B and Part C
contributions will not be included in PERS compensation .
Part A contributions begin upon enrollment 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 of
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
his or her spouse and legal dependents - aga in 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 his or her 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 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 City
contribution will be withdrawn from the retiree's RHS account.
NBFMA MOU 20252-20286
10-26
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 whofully
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.
G. Deferred Compensation
In the preceding MOU, the following provisions applied only to Safety employees
represented by NBFMA. Effective July 12, 2025, the following provisions shall also
24
NBFMA MOU 20252-20286
10-27
apply to Non -Safety employees represented by NBFMA.
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 s/he may make contributions.
The City shall contribute to each employee's deferred compensation account each
pay period as follows:
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,
�. .22
3-.1.Effectiye the fire day of the pay period which innlu des li dy 'Ie 2021 the -The City
shall contribute an addot,nnal twenty ene dollars and sixty seven none ($21.67) per
sixty-
five dollars and two cents ($65.02) per pay period to each employee's deferred
compensation account.
Under federal law, there is an annual maximum contribution which may be made to
an employee's IRS Code section 457 account. Although the City will be making
contributions to employees' accounts each pay period, it is the employees'
responsibility to track their total contribution amount. If an employee's account
contributions reach the annual 457 maximum, the City will stop making contributions
for the remainder of the calendar year and will not owe the employee any additional
compensation related to this section.
H. Tuition Reimbursement
Maximum tuition reimbursement for NBFMA members shall be $1,500 per fiscal year.
25
1. College Courses
Subject to the limitation above, NBFMA 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. 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
NBFMA MOU 20252-20286
10-28
for tuition reimbursement require the approval of the Human Resources Director.
2. Non -College Courses
Subject to the limitation above, NBFMA members attending job -related classes,
courses, and seminars given by recognized agencies, organizations or individuals
other than accredited college institutions may apply for reimbursement of one
hundred percent (100%) of the actual cost of tuition, parking fees, travel and lodging
expenses. Unit members who must stay in lodging to attend such classes, courses
or seminars because of their location are required to seek single occupancy
governmental rates (at GSA rates) when booking lodging for the class, course or
seminar. Reimbursement for more than single occupancy governmental rates will be
provided only if such rates are not available and if approved by the Fire Chief.
Job -related courses and seminars will be considered pre -authorized in the
following areas: management and supervision, oral and written communications,
conflict resolution, fire ground operations, rescue systems, legal issues, media
relations , risk management, EMS, health and safety, apparatus operator , auto
extrication, fire prevention, arson investigation, and critical incident stress
management.
Reimbursement is contingent upon the successful completion of the course.
Successful completion means a document or certificate showing successful
completion of the class or seminar. All claims for tuition reimbursement require the
approval of the Fire Training Chief before submittal to Human Resources.
I. Annual Physical Examinations
All NBFMA members shall participate in the Department Fitness Program as outlined
in Department SOP.
J. Physical Conditionina Eauipment/Angarel
City shall provide workout apparel for each NBFMA member, to be replaced on an "as
needed" basis. NBFMA members shall wear City provided workout apparel when working
out on duty.
aw**&0Is] �"►il►Iaaoi /6-1mZ�'�
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, tothe
extent feasible, on the basis of seniority within a particular Classification or Series and this
Section should be interpreted accordingly.
26
NBFMA MOU 20252-20285
10-29
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 specific
Classification within a Series calculated from the date on which the
employee was first granted regular status, subject to the following:
i. 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;
11. 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 .
iii. For purposes of determining layoffs within any Classification, seniority
shall mean the time an employee has worked within any
Classification within the Series.
c. "Classification" shall mean one full time position 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. Series" shall mean two or more Classifications within a Department which
require the performance of similar duties with the higher -ranking
Classification(s) characterized by the need for less supervision by superiors,
more difficult assignments, more supervisory responsibilities for
subordinates.IR thus bargaining „Ri+ there is ene "Series" made „p of nno
r.lassifisa+ion represented by the Associa+inn Cirri Ba++alieR Chief
e. "Bumping Rights", "Bumping" or "Bump" shall mean the right of an employee in
a higher Classification who is subject to layoff to displace a less senior
ernDlovee in a lower Classification within the Series.ln this haroaininn unit,
"Bumping Rights" , "Burnping" er "Bump" shall rneaR the right of a Battalion
yhief who is s„bjeGt to Ia ye# to rdisnlaGe a less cnninr omnleyee in a lewe
Glassifica+inn which he/she has held in the Departmen+ No employee shall
have the right to Bump into a Classification for which the employee does not
possess the minimum qualifications such as specialized education, training
or experience, provided, however, the City shall allow an employee to
become re -certified as an EMT or a paramedic in the event the employee's
certification has expired due to promotion to another position. An employee
has the right to "Bump" into only those positions the employee has previously
held with the Department.
2. Procedures
27
NBFMA MOU 20252-20286
10-30
m
In the event the City Manager determines to reduce the number of employees within a
Classification BattaliGR G , the following procedures are applicable:
Battalion ChimefsEmployees shall be laid off in inverse order of seniority;
a. An employee subiect to a layoff Battalion G shall have the right to Bump
a less senior employee in a lower ranking Classification which he/she has
held within the Department if he/she has more seniority ` hioh OnGl des t
ime
De;t. An employee who has Bumping Rights shall notify the
Department Director within seven (7) working days after notice of layoff of
his/her intention to exercise Bumping Rights.
In the event two or more Qa+�ie„--Ghiefsemployees in the same
Classification are subject to layoff and have the same seniority, they 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 Fire Chief Department n,reGtGF shall
determine the employee(s) to be laid off.
3. Notice
Employees subject to lay-off 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, holiday leave (if any) .
4. Re -Employment
Regular employees who are laid off shall be placed on a Department re-
employment list in reverse order of layoff. Re-employment lists will be valid for two
(2) years. 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
past known address . Any employee shall have the right to refuse to be placed on
the re-employment list or the right to remove his or her name from the re-
employment list by sending written confirmation to the Human Resources Director.
5. Demotion
Regular employees who are demoted because of reduced staffing levels shall be
placed on a Department promotional list in reverse order of demotion. This promotional
list shall remain in effect until exhausted by removal of all names on the list.
6. Severance Pay
Regular employees who are laid off shall, as of the date of lay-off, receive one week
NBFMA MOU 20252-2028-6
10-31
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.
Fire Suooression Staffing Levels
Move -up and move -down coverage shall be used to staff the fire suppression battalion
chief position in the absence of available battalion chiefs.
B. Staff Assianment Schedule
NBFMA members assigned to staff positions shall have the option to work a 5/40, 4/10
or 9/80 schedule ; the staff member and the Fire Chief must mutually agree to the
schedule selected prior to it becoming effective. The Fire Chief retains the right to
assign the staff member to a different schedule, or deny the member's request for a
change of schedule, if the Fire Chief determines that the member is not able to perform
their job duties or the operational needs of the department are not being met.
Employees will be given 2 weeks' notice if the Fire Chief determines a change in
schedule is needed in order to minimize disruption of the member's
personal/professional obligations. In addition, occasionally and at the discretion and
approval of the Fire Chief, unit employees (who are all FLSA exempt) working a 4/10
or 9/80 schedule may adjust their regularly scheduled day off if such change does not
disrupt departmental operations .
C. Consecutive Shifts
Members shall be limited to working four (4) 24-hour shifts in a row, after which time
the employee shall not work during the next consecutive 24-hour shift. Additional
consecutive shifts may be permitted with Fire Chief or designee approval, based upon
exigent circumstances .
D. Reauirement to Live Within 150 Miles of City Limits
Employees hired as full-time unit members on or after July 1, 2019 are required to
live within 150 miles of the City limits.
E. OVERPAYMENT
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
29
NBFMA MOU 20252-20286
10-32
For NBFMA:
E z S er (Jun 18, 2025 21:24 PDT)
Elizabeth Silver
Chief Negotiator
Date: 18/06/2025
For the City:
Jonathan V. Holtzman (Jun 18, 202515:09 PDT)
Jonathan V. Holtzman
Co -Chief Negotiator
Date: 18/06/2025
Z_a� 9444ait,
Luke Jensen
Co -Chief Negotiator
Date: 06/18/2025
30 NBFMA MOU 2025-2028
22026 10-33
Final Redline NBFMA MOU 06.18.2025 - 153pm
Final Audit Report 2025-06-19
Created: 2025-06-18
By: Luke Jensen (Ijensen@publiclawgroup.com)
Status: Signed
Transaction ID: CBJCHBCAABAAQp5RXT13CEnCwsTtPuagE1ZAxg2WNxm4
"Final Redline NBFMA MOU 06.18.2025 - 153pm" History
Document created by Luke Jensen (Ijensen@publiclawgroup.com)
2025-06-18 - 9:10:06 PM GMT
C' Document emailed to Luke Jensen (Ijensen@publiclawgroup.com) for signature
2025-06-18 - 9:10:13 PM GMT
C# Document emailed to Elizabeth Silver (esilver@rlslawyers.com) for signature
2025-06-18 - 9:10:13 PM GMT
EK, Document emailed to Jonathan V. Holtzman (JHOLTZMAN@PUBLICLAWGROUP.COM) for signature
2025-06-18 - 9:10:13 PM GMT
Email viewed by Luke Jensen (Ijensen@publiclawgroup.com)
2025-06-18 - 9:11:28 PM GMT
Email viewed by Jonathan V. Holtzman (JHOLTZMAN@PUBLICLAWGROUP.COM)
2025-06-18 - 9:11:47 PM GMT
a Document e-signed by Luke Jensen (Ijensen@publiclawgroup.com)
Signature Date: 2025-06-18 - 9:14:53 PM GMT - Time Source: server
6a Document e-signed by Jonathan V. Holtzman (JHOLTZMAN@PUBLICLAWGROUP.COM)
Signature Date: 2025-06-18 - 10:09:13 PM GMT - Time Source: server
Email viewed by Elizabeth Silver (esilver@rlslawyers.com)
2025-06-19 - 4:23:11 AM GMT
&G Document e-signed by Elizabeth Silver (esilver@rlslawyers.com)
Signature Date: 2025-06-19 - 4:24:12 AM GMT - Time Source: server
Agreement completed.
2025-06-19 - 4:24:12 AM GMT
0 Adobe Acrobat Sign 10-34
ATTACHMENT B
Estimated Cost of Contract with NBFMA
10-35
City of Newport Beach
NBFMA MOU
Key Contract Terms
Adds Fire Marshall and the EMS Division Chief positions to the group
COLA
4.00%
4.00%
4.00%
Equity Adjustment for Sworn
2.00%
-
-
5.0% @ 15 Years
Longevity Pay
10% @ 20 Years
Holiday Time Accrual
5.26 Hours/PP
7.38 hrs. for line
safety; 5.26 hrs. for
sworn staff
Medical Insurance'
7/1/25 Additional
$300/month (No
Cash Back)
NAL Bank for Line Safety
48 Hours
Summary of Proposal Cost Z
Baseline Compensation
Base Pay
$1,181,523
$63,879
$113,030
$164,147
Supplemental Pays
82,211
89,243
96,101
103,233
Overtime
223,448
8,938
18,233
27,901
Pension Contribution
161,042
27,312
37,329
47,747
Cafeteria Plan
145,056
3,280
3,280
3,280
Other City Paid Benefits 3
74,467
37,407
40,997
44,729
Total
$1,867,748
$230,058
$308,970
$391,038
Cumulative Impact on Employee Compensation
Base Salary Increase
5.41%
9.57%
13.89%
Total Compensation Increase 5
12.32%
16.54%
20.94%
Key Contract Terms
COLA
90,138
164,249
241,324
Equity Adjustment for Sworn
16,618
16,618
16,618
Longevity Pay
72,303
75,195
78,203
Holiday Time Accrual
13,651
14,197
14,765
Medical Insurance'
3,280
3,280
3,280
NAL Bank
34,068
35,431
36,848
Total
230,058
308,970
391,038
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 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.
6The costs shown reflect additional annual expenses for the corresponding fiscal years.
'The 3% COLA scheduled for the start of the pay period following July 1, 2025, under the prior MOU will carry over into the new
MOU. However, this cost is not included in the current costing because it is already reflected in the FY 2025/26 budget as part of the
prior MOU.
10-36