HomeMy WebLinkAbout07 - Adopting a MOU with the Newport Beach Fire Management Association and Associated Salary SchedulesQ �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
July 22, 2025
Agenda Item No. 7
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Grace K. Leung, City Manager - 949-644-3001,
gleung@newportbeachca.gov
PREPARED BY: Barbara J. Salvini, Human Resources Director - 949-644-3259,
bsalvini@newportbeachca.gov
TITLE: Resolution No. 2025-46: Adopting a Memorandum of Understanding
with the Newport Beach Fire Management Association and
Associated Salary Schedules
ABSTRACT:
The Tentative Agreement (Agreement) regarding a Memorandum of Understanding
(MOU) between the City of Newport Beach and the Newport Beach Fire Management
Association (NBFMA or Association) was submitted at the City Council's regular meeting
on July 8, 2025, to provide the Council and the community an opportunity to consider the
terms and costs of the Agreement.
The proposed MOU is now presented for the City Council's approval (or rejection). This
is the final step in the meet and confer process with the NBFMA. Included in the
recommendation for approval of the MOU are the associated salary schedules, including
the schedules for the fire chief and assistant fire chief, whose salary adjustments are tied
to those provided to the Newport Beach Fire Management Association members. The
attached budget amendment appropriates the required funding to implement the costs
associated with the agreement for the current fiscal year.
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;
b) Adopt Resolution 2025-46, A Resolution of the City Council of the City of Newport
Beach, California, Adopting a Memorandum of Understanding between the City of
Newport Beach and the Newport Beach Fire Management Association and Amending
the Salary Schedule for the Association Unit Members, Fire Chief, and Assistant Fire
Chief;
c) Approve Budget Amendment No. 26-011, appropriating $230,058 in increased
expenditures in various City division salary and benefits accounts from unappropriated
General Fund balance; and
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Resolution No. 2025-46: Adopting a Memorandum of Understanding with the
Newport Beach Fire Management Association and Associated Salary Schedules
July 22, 2025
Page 2
d) Approve and Adopt the revisions to the Citywide salary schedule for those
Key and Management safety employees who tie to the Newport Beach
Fire Management Association for cost -of -living and/or salary adjustments.
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.
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.
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Resolution No. 2025-46: Adopting a Memorandum of Understanding with the
Newport Beach Fire Management Association and Associated Salary Schedules
July 22, 2025
Page 3
• 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.
• Retirement Contributions — Non -Safety Classifications will contribute 11.5% of
compensation earnable or pensionable compensation toward their CalPERS
retirement benefit.
• Expansion of City -paid deferred compensation benefit to all unit members.
The City Council reviewed the Tentative Agreement and proposed MOU with NBFMA at
its regular meeting on July 8, 2025, after which the costing information and proposed
revisions to the MOU were posted for public review on the City's website. A final version
of the successor MOU is being presented in accordance with Government Code §3505.1.
The total cost of the NBFMA MOU is approximately $0.93 million. If the Council approves
adoption of the MOU, City staff will work to implement the terms as soon as practicable.
FISCAL IMPACT:
Detailed cost information is provided in Attachment B. Since the MOU covers the period
from July 1, 2025, through June 30, 2028, it will result in the following annual fiscal impact
to implement the terms of the agreement, totaling $930,066:
Fiscal Year Amount
2025/26 $230,058
2026/27 1 $308,970
2027/28 1 $391,038
A budget amendment is required to appropriate $230,058 from the General Fund
unappropriated surplus fund balance to implement the agreement for Fiscal Year 2025-
26.
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
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Resolution No. 2025-46: Adopting a Memorandum of Understanding with the
Newport Beach Fire Management Association and Associated Salary Schedules
July 22, 2025
Page 4
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A — Resolution No. 2025-46
Attachment B — Estimated Cost of Contract with NBFMA
Attachment C — Budget Amendment
7-4
ATTACHMENT A
RESOLUTION 2025-46
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, ADOPTING A
MEMORANDUM OF UNDERSTANDING BETWEEN THE
CITY OF NEWPORT BEACH AND THE NEWPORT BEACH
FIRE MANAGEMENT ASSOCIATION AND AMENDING
THE SALARY SCHEDULE FOR THE ASSOCIATION UNIT
MEMBERS, FIRE CHIEF, AND ASSISTANT FIRE CHIEF
WHEREAS, the City Council of the City of Newport Beach ("City Council")
previously adopted Resolution No. 2001-50, the "Employer -Employee Relations
Resolution," pursuant to authority contained in the Meyers-Milias-Brown Act, Government
Code 3500, et seq.;
WHEREAS, the City of Newport Beach ("City") promotes effective communication
and collaborative working relationships with its employee associations to foster improved
relations while balancing good management practices;
WHEREAS, the City previously entered into a Memorandum of Understanding
("MOU") with the Newport Beach Fire Management Association ("NBFMA") a recognized
organization, for the term of July 1, 2022 through June 30, 2026;
WHEREAS, representatives from the City and NBFMA met and conferred in good
faith and reached a tentative agreement on wages, benefits and other terms and
conditions of employment, which are memorialized in the Memorandum of Understanding
between the City and NBFMA ("Memorandum of Understanding") attached hereto as
Exhibit A and incorporated herein by this reference;
WHEREAS, NBFMA has ratified the Memorandum of Understanding;
WHEREAS, City of Newport Beach Charter Section 601 requires the City Council
to provide the number, titles, qualifications, powers, duties and compensation of all
officers and employees of the City;
WHEREAS, Newport Beach Municipal Code Section 2.28.010 (Establishment of
Classification and Salary Ranges) provides, upon recommendation of the City Manager,
the City Council may establish by resolution the salary range or rate for each position;
WHEREAS, by adopting this resolution, the City Council intends to amend the
salary schedule for NBFMA unit members so as to be in conformance with the
Memorandum of Understanding;
7-5
Resolution No. 2025-
Page 2 of 3
WHEREAS, the City Manager has reviewed the changes to the salary schedule
for NBFMA unit members, Fire Chief and Assistant Fire Chief as provided in this
resolution and recommends approval;
WHEREAS, the City Council received and considered the Memorandum of
Understanding at its regular meeting on July 8, 2025; and
WHEREAS, by adopting this resolution, the City Council desires to replace the
2022-2025 MOU between the City and NBFMA by adopting the Memorandum of
Understanding attached hereto as Exhibit A to serve as the successor agreement
between the City and NBFMA for the period July 1, 2025 through June 30, 2028.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows..
Section 1: The City Council hereby approves, and authorizes the Mayor to
execute the Memorandum of Understanding attached hereto as Exhibit A. The wages,
hours, fringe benefits, and other terms and conditions of employment for employees
represented by NBFMA shall be provided in accordance with the provisions of the
Memorandum of Understanding, which shall serve as the successor agreement
between the City and NBFMA for the period July 1, 2025, through June 30, 2028.
Section 2: The City's salary schedule shall be modified to be consistent with
this resolution, the Memorandum of Understanding, Exhibit A, the salary schedule for
NBFMA unit members, Exhibit B, the salary schedule for the Fire Chief, Exhibit C, and
the salary schedule for the Assistant Fire Chief, all of which shall be effective as of July
12, 2025, and are incorporated herein by this reference. Any resolution, or part thereof,
in conflict with this resolution shall be of no effect.
Section 3: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 4: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall
not affect the validity or constitutionality of the remaining portions of this resolution. The
City Council hereby declares that it would have passed this resolution, and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
7-6
Resolution No. 2025-46
Page 3 of 3
Section 5: The City Council finds the adoption of this resolution is not subject
to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2)
(the activity will not result in a direct or reasonably foreseeable indirect physical change
in the environment) and 15060(c)(3) (the activity is not a project as defined in Section
15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6,
Chapter 3, because it has no potential for resulting in physical change to the
environment, directly or indirectly.
Section 6: This resolution shall take effect immediately upon its adoption by
the City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 22nd day of July 2025.
Joe Stapleton
Mayor
ATTEST:
Molly Perry
Interim City Clerk
APPROVED AS TO FORM:
CITY TTORNEY'S OFFIC
Aaro C. Harp
City Attorney
Exhibit A
- Memorandum of Understanding
Exhibit B -
Salary Schedule for Fire Management Association
Exhibit C
- Salary Schedule for Fire Chief
Exhibit D
- Salary Schedule for the Assistant Fire Chief
7-7
EXHIBIT A
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF NEWPORT BEACH
THE NEWPORT BEACH FIRE MANAGEMENT
ASSOCIATION
July 1, 2025 through June 30, 2028
7-8
Table of Contents
SECTION 1. GENERAL PROVISIONS................................................................................................................ 1
RECOGNITION............................................................................................................................................................. 1
TERM..........................................................................................................................................................................
1
SCOPE.........................................................................................................................................................................
2
BULLETINBOARDS......................................................................................................................................................
2
CONCLUSIVENESS.......................................................................................................................................................
2
MODIFICATIONS.........................................................................................................................................................
3
SAVINGS.....................................................................................................................................................................
3
IMPASSE.....................................................................................................................................................................
3
DEFINITIONS...............................................................................................................................................................
3
SECTION2. COMPENSATION............................................................................................................................. 4
SALARY.......................................................................................................................................................................
4
SALARYDIFFERENTIAL................................................................................................................................................
5
OVERTIME-HOURS WORKED.....................................................................................................................................
5
REQUIREDUNIFORM..................................................................................................................................................6
SCHOLASTIC ACHIEVEMENT/CERTIFICATE PAY........................................................................................................7
BILINGUALPAY...........................................................................................................................................................7
COURTSTANDBY PAY................................................................................................................................................8
LONGEVITYPAY FOR SAFETY MEMBERS.....................................................................................................................
8
SECTION3. LEAVES.......................................................................................................................................... 8
FLEXLEAVE -SAFETY MEMBERS................................................................................................................................
8
FLEXLEAVE- NON -SAFETY MEMBERS.....................................................................................................................
10
HOLIDAYTIME..........................................................................................................................................................
11
BEREAVEMENTLEAVE..............................................................................................................................................
12
REPRODUCTIVELOSS LEAVE.....................................................................................................................................
12
JURYDUTY................................................................................................................................................................
12
FAMILYSICK LEAVE..................................................................................................................................................
13
WORKERS' COMPENSATION LEAVE.........................................................................................................................
13
REASSIGNM ENT- SAFETY MEMBERS........................................................................................................................
13
EARLYRELIEF.............................................................................................................................................................
13
NON -ACCRUING LEAVE BANK FOR SAFETY LINE EMPLOYEES..................................................................................
14
ADMINISTRATIVE LEAVE -NON-SAFETY EMPLOYEES..............................................................................................
14
SECTION4. FRINGE BENEFITS........................................................................................................................
14
INSURANCE...............................................................................................................................................................
14
ADDITIONAL HEALTH INSURANCE/PROGRAMS.......................................................................................................15
EMPLOYEEASSISTANCE PROGRAM.........................................................................................................................16
PERS RETIREMENT BENEFITS....................................................................................................................................
16
DEFINED CONTRIBUTION PLAN................................................................................................................................
18
RETIREEMEDICAL BENEFIT.......................................................................................................................................19
DEFERREDCOMPENSATION.....................................................................................................................................
22
TUITIONREIMBURSEMENT......................................................................................................................................
23
ANNUAL PHYSICAL EXAMINATIONS..........................................................................................................................
24
PHYSICALCONDITIONING EQUIPMENT/APPAREL....................................................................................................
24
SECTION S. MISCELLANEOUS PROVISIONS..................................................................................................
24
REDUCTIONSIN FORCE/LAYOFFS.............................................................................................................................
24
FIRE SUPPRESSION STAFFING LEVELS......................................................................................................................
26
STAFFASSIGNMENTSCHEDULE...............................................................................................................................
26
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CONSECUTIVESHIFTS............................................................................................................................................... 27
REQUIREMENT TO LIVE WITHIN 150 MILES OF CITY LIMITS.................................................................................. 27
OVERPAYMENT......................................................................................................................................................... 27
7-10
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.
SECTION 1. GENERAL PROVISIONS
A. RECOGNITION
In accordance with the provisions of the Charter of the City of Newport Beach, the Meyers
Milias Brown Act of the State of California and the provisions of the Employer's/Employee
Labor Relations Resolution No. 2001-50, the City acknowledges that 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.
:u
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 2025-2028
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r. or.npF
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 change materially impacts 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
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.
NBFMA MOU 2025-2028
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Pace 13
F. MODIFICATIONS
Any agreement, alteration, understanding, variation, or waiver or modification of any of the
terms or provisions of this MOU shall not be binding upon the parties unless contained in
a written document executed by authorized representatives of the parties.
SAVINr;.q
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.
I. DEFINITIONS
For the purposes of this MOU these terms shall have the following meanings:
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 workweek.
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 in the Battalion Chiefs and the Administrative Division Chief
classifications.
NBFMA MOU 2025-2028
7-13
Pag- 14
6. The term "non -safety members" shall refer to employees represented by
the NBFMA in the Fire Marshal and EMS Division Chief classifications.
SECTION 2. COMPENSATION
A. SALARY
1. Guaranteed Salary
The salary for the position of Fire Battalion Chief shall maintain at least a 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:
1. Safety Classifications. -
a) Effective July 12, 2025, there shall be a base salary increase
of seven percent (7.0%) 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.
b) Effective the first day of the pay period following July 1, 2026,
there shall be a base salary increase of four percent (4.0%)
for all Safety classifications in the bargaining unit.
c) 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 Safety classifications in the bargaining unit.
d) Equity Adjustment:
Effective July 12, 2025, all Safety classifications 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.
NBFMA MOU 2025-2028
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Page 15
2. Non -Safety Classifications:
a) Effective July 12, 2025, there shall be a base salary increase
of four percent (4.0%) for all Non -Safety classifications in the
bargaining unit.
b) Effective the first day of the pay period following July 1, 2026,
there shall be a base salary increase of four percent (4.0%)
for all Non -Safety classifications in the bargaining unit.
c) 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 Division 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 Division Chief of Administrative Services is typically for
2 years, unless altered by the Fire Chief. Designation as a 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.
C. OVERTIME - HOURS WORKED
1. 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 Safety 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 of pay.
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 Y2 rate and shift exchanges
between employees in Safety classifications do not qualify for overtime
compensation.
Non -Safety Members represented by this bargaining unit are not eligible for
overtime compensation.
7-15
16
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 conditions exist,
that Unit employee shall be paid at the time and one-half (11/2) 56-hour rate. The
conditions are:
• The Unit employee is working outside of his or her regularly scheduled
hours;
• The Strike Team is operating outside of the city limits;
• The Unit employee is on duty on the Strike Team for more than eight (8)
hours;
• A disaster declaration has been approved by the State or Federal
government for the fire suppression action; and
• 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.
4. Non -Safety members are not eligible to accrue comp time.
5. All other overtime not specified above will be at the straight time rate.
D. REQUIRED 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 Safety 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 (PEPRA) of 2013, the uniform allowance will not be
reported as pensionable compensation to CaIPERS.
NBFMA MOU 2025-2028
7-16
Page 17
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 accredited community colleges, state colleges, universities or other
approved institutions as follows:
1. Scholastic Achievement
Deg ree
BA/BS
MA/MS/JD
Scholastic Pay Percentage
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 Compensation
Certified Chief Fire Officer 3.0% of base pay
Certified Strike Team Leader $100 per month
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. BILINGUAL 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
NBFMA MOU 2025-2028
7-17
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 Ca1PERS as such pursuant to Title 2 CCR,
Section 571(a)(1) and 571.1(b)(1).
SECTION 3. LEAVES
A. FLEX LEAVE — SAFETY MEMBERS
NBFMA Safety members shall accrue flex leave as follows.
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Years of
Continuous Service
LINE EMPLOYEES
STAFF EMPLOYEES
Accrual Hours/Pay
Period
Maximum
Accrual
Accrual Hours/Pay
Period
Maximum
Accrual
Less than 5
9.77
508.04
6.97
362.44
5 but less than 9
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
652.08
8.95
465.40
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 to cash on
an hour for hour basis subject to the following: On or before the pay period
which includes December 15 of each calendar year, an employee may make
an irrevocable election to cash out accrued flex leave which will be earned in
the following calendar year. The employee can elect to receive the cash out
in the pay period which includes June 30 and 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
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.
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d. 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.
B. FLEX LEAVE — NON -SAFETY MEMBERS
Regular full-time Non -Safety employees in the Division Management category enrolled in
the flex leave program will accrue leave according to the below.
Years of
Hours
Annual
Maximum
Continuous
Accrued per
Hours
Allowable
Service
Pay Period
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
7.23
189.98
563.94
12
12 but less than
8.15
211.90
635.70
16
16 but less than
8.77
228.02
684.06
20
20 but less than
9.38
243.88
731.64
25
25 and over
10.00
260.00
780.00
Limit on Accumulation and Spillover.
a. 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 years of continuous
service are required to use 120 hours of Flex leave the previous
calendar year.
b. Employees first hired, or rehired by the City subsequent to July 1,
1996, shall not be eligible for Flex leave spillover pay and shall not
be entitled to accrue Flex leave in excess of the Flex leave accrual
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threshold.
C. HOLIDAY TIME
1. 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 employees shall receive holiday in
lieu pay equal to the value of 5.26 hours per pay period.
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.
2. 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 oft), employees who are required to work on the holiday will receive
their pay for the holiday and either pay or flex leave for the number of hours worked
on the holiday.
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— 15rMonday
Veterans Day
November 11
Thanksgiving Day
November— 41h Thursday
Friday After Thanksgiving
November— 4rh Friday
Christmas Eve
December 24 (last % of workday)
Christmas Day
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
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entitled to receive nine hours of holiday pay. 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 pay.
Holidays listed above (except the floating holiday) occurring on a Saturday shall
be observed the preceding Friday. Holidays occurring 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 holiday or are on authorized paid leave (e.g.
paid leave that has been reviewed and approved by the Department Director).
D. 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, stepchild, 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.
E. 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.
F. 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
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can be arranged for his/her shift.
G. FAMILY SICK LEAVE
Unit employees shall be entitled to use their annual leave accrual as set forth in Labor
Code section 233.
H. WORKERS' COMPENSATION LEAVE
The City will comply with the provisions of Labor Code section 4850 for workers'
compensation claims.
I. REASSIGNMENT- 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. The 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.
J. EARLY RELIEF
The parties acknowledge Department of Labor regulation, 29 CFR section 553.225
that provides:
"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."
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.
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K. NON -ACCRUING LEAVE BANK FOR SAFETY LINE EMPLOYEES
Safety Line employees shall receive forty-eight (48) hours annually of paid leave in
the pay period beginning 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 depleted.
Use of NAL is subject to supervisory approval.
L. ADMINISTRATIVE LEAVE — NON -SAFETY EMPLOYEES
For 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.
SECTION 4. FRINGE BENEFITS
A. INSURANCE
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 CaIPERS participating
employer's contribution towards medical insurance. Employees shall have the
option of allocating Cafeteria Plan contributions towards the City's existing medical,
dental and vision insurance/programs, 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
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and during regular open enrollment periods.
Effective July 12, 2025, the City's monthly contribution towards the Cafeteria Plan is
$2,224.00 (plus the minimum CalPERS participating employer's contribution as
outlined in Government Code section 22892).
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. For such employees,
if they elect medical coverage and spend less than $1924.00 (plus the minimum
CaIPERS 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.
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 Spendinq 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
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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 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.
3. Life Insurance
The City shall provide life insurance for all full-time employees in $1,000 increments
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.
C. EMPLOYEE ASSISTANCE PROGRAM
City shall provide an Employee Assistance Program (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
1. Retirement Formula
The City contracts with the California Public Employees' Retirement System
("CalPERS" or "PERS") to provide retirement benefits for its employees. Pursuant
to prior agreements and state mandated reform, the City has implemented first,
second and third tier retirement benefits as follows:
Tier L For employees hired by the City on or before November 23, 2012, the
retirement formula for safety members shall be 3%@50, and the retirement formula
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for non -safety members shall be 2.5%@55, calculated on the basis of the highest
consecutive 12 month period selected by the employee.
Tier It: 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%@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 ("PEPRA'l: 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%@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
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 reported as pensionable
compensation or compensation earnable, and will be made on a pre- tax basis through
payroll deduction, to the extent allowable 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.
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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 1:
Tier 1 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(1).
Tier 11:
Tier 11 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(t).
The minimum statutory employee contribution for employees in Tier 111 is
subject to the provisions of PEPRA and equals 50% of the "total normal cost".
Tier 111 employees shall make an additional contribution of pensionable
compensation toward retirement pursuant to Government Code section
20516(0, for a total employee contribution that is no less than 11.5% of
pensionable compensation (i.e., Tierlll 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
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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:
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).
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
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
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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 1 sc based on status as of
December 315t 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 to^ward 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 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
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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 - 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 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
CaIPERS statutory minimum amount) towards medical insurance after
retirement. The parties also agree that, for retirees selecting a CaIPERS
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
NBFMA MOU 2025-2028
7-31
Page 122
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
apply to Non -Safety employees represented by NBFMA.
Each employee shall have a deferred compensation account set up by the City and
NBFMA MOU 2025-2028
7-32
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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:
1. The City shall contribute 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.
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 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,
NBFMA MOU 2025-2028
7-33
124
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 CONDITIONING EQUIPMENT/APPAREL
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.
SECTION 5. MISCELLANEOUS PROVISIONS
A. REDUCTIONS IN FORCE/LAYOFFS
The provisions of this section shall apply when the City Manager determines that a
reduction in the work force is warranted because of actual or anticipated reductions in
revenue, reorganization of the work force, a reduction in municipal services, a
reduction in the demand for service or other reasons unrelated to the performance of
duties by any specific employee. Reductions in force are to be accomplished, to the
extent feasible, on the basis of seniority within a particular Classification or Series and this
Section should be interpreted accordingly.
1. Definitions
a. "Layoffs" or "Laid off shall mean the non -disciplinary termination of
employment.
b. "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:
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;
NBFMA MOU 2025-2028
7-34
Page 125
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 ofsimilarduties with the higher -ranking Classification(s)
characterized by the need for less supervision by superiors, more difficult
assignments, more supervisory responsibilities for subordinates.
e. "Bumping Rights", 'Bumping" or "Bump" shall mean the rightofan employee in a
higher Classification who is subject to layoff to displace a less senior employee
in a lower Classification within the Series. 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
In the event the City Manager determines to reduce the number of employees within
a Classification, the following procedures are applicable:
Employees shall be laid off in inverse order of seniority;
a. An employee subject to a layoff 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. 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.
b. In the event two or more employees 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 shall determine the employee(s) to be laid off.
NBFMA MOU 2025-2028
7-35
Page 126
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
severance pay for each year of continuous service with the City of Newport Beach,
but in no case to exceed ten (10) weeks of severance compensation.
B. FIRE SUPPRESSION 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.
C. STAFF ASSIGNMENT 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
NBFMA MOU 2025-2028
7-36
Page 127
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.
D. 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.
E. REQUIREMENT 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.
F. 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
NBFMA MOU 2025-2028
7-37
- i 28
For NBFMA:
E(i abeth �MleY
Elizabeth Silver
Chief Negotiator
Date: 07/14/2025
Brian McDonough
NBFMA President
Date. 07/15/2025
For the City:
4L_A
JorpfhanV. I loltzman {1ui 14. 1)2515:53 PDT)
Jonathan V. Holtzman
Co -Chief Negotiator
Date: 07/14/2025
Luke Jensen
Co -Chief Negotiator
CITY OF NEWPORT BEACH,
Date:
Bv:
Joe Stapleton
Mayor
ATTEST:
Date:
Bv:
Molly Perry
Interim City Clerk
NBFMA MOU 2025-2028
7-38
Exhibit B
The Newport Beach Fire Management Association
MOU Term: June 28, 2025 - June 30, 2028
Effective July 12, 2025:
All FMA Classifications: 4% Cost -of -Living Adjustment (COLA)
Safety Classifications: Additional 5% Equity Adjustment
Fire EMS Division Chief
08
1
$
74.52
$
12,917
$
155,007
Fire EMS Division Chief
08
2
$
78.25
$
13,563
$
162,756
Fire EMS Division Chief
08
3
$
82.15
$
14,239
$
170,865
Fire EMS Division Chief
08
4
$
86.27
$
14,954
$
179,444
Fire EMS Division Chief
08
5
$
90.58
$
15,701
$
188,410
Fire EMS Division Chief
08
6
$
95.11
$
16,486
$
197,831
Fire Administrative Services Division Chief
04
1
$
93.70
$
16,242
$
194,900
Fire Administrative Services Division Chief
04
2
$
98.39
$
17,055
$
204,660
Fire Administrative Services Division Chief
04
3
$
103.31
$
17,908
$
214,892
Fire Administrative Services Division Chief
04
4
$
108.47
$
18,802
$
225,625
Fire Administrative Services Division Chief
04
5
$
113.91
$
19,744
$
236,923
Fire Battalion Chief 112
01
1
$
62.26
$
15,108
$
181,292
Fire Battalion Chief 112
01
2
$
65.37
$
15,862
$
190,343
Fire Battalion Chief 112
01
3
$
68.62
$
16,653
$
199,833
Fire Battalion Chief 112
01
4
$
72.06
$
17,488
$
209,850
Fire Battalion Chief 112
01
5
$
75.67
$
18,363
$
220,352
Fire Battalion Chief 80
05
1
$
87.16
$
15,108
$
181,291
Fire Battalion Chief 80
05
2
$
91.51
$
15,862
$
190,342
Fire Battalion Chief 80
05
3
$
96.07
$
16,653
$
199,833
Fire Battalion Chief 80
05
4
$
100.89
$
17,488
$
209,851
Fire Battalion Chief 80
05
5
$
105.94
$
18,363
$
220,352
Fire Marshal
07
1
$
74.52
$
12,917
$
155,007
Fire Marshal
07
2
$
78.25
$
13,563
$
162,756
Fire Marshal
07
3
$
82.15
$
14,239
$
170,865
Fire Marshal
07
4
$
86.27
$
14,954
$
179,444
Fire Marshal
07
5
$
90.58
$
15,701
$
188,410
Fire Marshal
07
6
$
95.11
$
16,486
$
197,831
Hourly rates are rounded to the nearest hundredth. Monthly and annual salaries are rounded to the nearest whole dollar.
Actual rates may vary slightly due to rounding.
7-39
Exhibit B
The Newport Beach Fire Management Association
MOU Term: June 28, 2025 - June 30, 2028
Effective July 11, 2026:
4% Cost -of -Living Adjustment (COLA)
Fire EMS Division Chief
08
1
$
77.50
$
13,434
$
161,208
Fire EMS Division Chief
08
2
$
81.38
$
14,106
$
169,267
Fire EMS Division Chief
08
3
$
85.43
$
14,808
$
177,700
Fire EMS Division Chief
08
4
$
89.72
$
15,552
$
186,622
Fire EMS Division Chief
08
5
$
94.21
$
16,329
$
195,947
Fire EMS Division Chief
08
6
$
98.92
$
17,145
$
205,744
Fire Administrative Services Division Chief
04
1
$
97.45
$
16,891
$
202,695
Fire Administrative Services Division Chief
04
2
$
102.33
$
17,737
$
212,847
Fire Administrative Services Division Chief
04
3
$
107.45
$
18,624
$
223,487
Fire Administrative Services Division Chief
04
4
$
112.81
$
19,554
$
234,650
Fire Administrative Services Division Chief
04
5
$
118.46
$
20,533
$
246,400
Fire Battalion Chief 112
01
1
$
64.75
$
15,712
$
188,544
Fire Battalion Chief 112
01
2
$
67.98
$
16,496
$
197,957
Fire Battalion Chief 112
01
3
$
71.37
$
17,319
$
207,827
Fire Battalion Chief 112
01
4
$
74.95
$
18,187
$
218,245
Fire Battalion Chief 112
01
5
$
78.70
$
19,097
$
229,166
Fire Battalion Chief 80
05
1
$
90.65
$
15,712
$
188,543
Fire Battalion Chief 80
05
2
$
95.17
$
16,496
$
197,956
Fire Battalion Chief 80
05
3
$
99.92
$
17,319
$
207,826
Fire Battalion Chief 80
05
4
$
104.93
$
18,187
$
218,246
Fire Battalion Chief 80
05
5
$
110.18
$
19,097
$
229,166
Fire Marshal
07
1
$
77.50
$
13,434
$
161,208
Fire Marshal
07
2
$
81.38
$
14,106
$
169,267
Fire Marshal
07
3
$
85.43
$
14,808
$
177,700
Fire Marshal
07
4
$
89.72
$
15,552
$
186,622
Fire Marshal
07
5
$
94.21
$
16,329
$
195,947
Fire Marshal
07
6
$
98.92
$
17,145
$
205,744
Hourly rates are rounded to the nearest hundredth. Monthly and annual salaries are rounded to the nearest whole dollar.
Actual rates may vary slightly due to rounding.
7-40
Exhibit B
The Newport Beach Fire Management Association
MOU Term: June 28, 2025 - June 30, 2028
Effective July 10, 2027:
4% Cost -of -Living Adjustment (COLA)
Fire EMS Division Chief
08
1
$
80.60
$
13,971
$
167,656
Fire EMS Division Chief
08
2
$
84.63
$
14,670
$
176,037
Fire EMS Division Chief
08
3
$
88.85
$
15,401
$
184,807
Fire EMS Division Chief
08
4
$
93.31
$
16,174
$
194,086
Fire EMS Division Chief
08
5
$
97.97
$
16,982
$
203,784
Fire EMS Division Chief
08
6
$
102.87
$
17,831
$
213,974
Fire Administrative Services Division Chief
04
1
$
101.35
$
17,567
$
210,803
Fire Administrative Services Division Chief
04
2
$
106.42
$
18,447
$
221,360
Fire Administrative Services Division Chief
04
3
$
111.74
$
19,369
$
232,427
Fire Administrative Services Division Chief
04
4
$
117.33
$
20,336
$
244,036
Fire Administrative Services Division Chief
04
5
$
123.20
$
21,355
$
256,257
Fire Battalion Chief 112
01
1
$
67.34
$
16,340
$
196,085
Fire Battalion Chief 112
01
2
$
70.70
$
17,156
$
205,875
Fire Battalion Chief 112
01
3
$
74.22
$
18,012
$
216,140
Fire Battalion Chief 112
01
4
$
77.94
$
18,915
$
226,974
Fire Battalion Chief 112
01
5
$
81.85
$
19,861
$
238,333
Fire Battalion Chief 80
05
1
$
94.27
$
16,340
$
196,084
Fire Battalion Chief 80
05
2
$
98.98
$
17,156
$
205,874
Fire Battalion Chief 80
05
3
$
103.91
$
18,012
$
216,139
Fire Battalion Chief 80
05
4
$
109.12
$
18,915
$
226,975
Fire Battalion Chief 80
05
5
$
114.58
$
19,861
$
238,333
Fire Marshal
07
1
$
80.60
$
13,971
$
167,656
Fire Marshal
07
2
$
84.63
$
14,670
$
176,037
Fire Marshal
07
3
$
88.85
$
15,401
$
184,807
Fire Marshal
07
4
$
93.31
$
16,174
$
194,086
Fire Marshal
07
5
$
97.97
$
16,982
$
203,784
Fire Marshal
07
6
$
102.87
$
17,831
$
213,974
Hourly rates are rounded to the nearest hundredth. Monthly and annual salaries are rounded to the nearest whole dollar.
Actual rates may vary slightly due to rounding.
7-41
Exhibit C
Fire Chief Salary Schedule Adjustment
The City of Newport Beach
Key & Management Position - Executive Management, Safety
Effective July 12, 2025:
4% Cost -of -Living Adjustment (COLA) + Additional 5% Equity Adjustment'
Fire Chief
01C
Low
$
94.03
$
16,298
$
195,580
Fire Chief
01C
Mid
$
121.05
$
20,982
$
251,785
Fire Chief
01C
High
$
148.07
$
25,666
$
307,989
Effective July 11, 2026: 4% Cost -of -Living Adjustment (COLA)'
Fire Chief
01C
Low
$
97.79
$
16,950
$
203,403
Fire Chief
01C
Mid
$
125.89
$
21,821
$
261,856
Fire Chief
01C
High
$
153.99
$
26,692
$
320,309
Effective July 10, 2027: 4% Cost -of -Living Adjustment (COLA)'
Fire Chief
01C
Low
$
101.70
$
17,628
$
211,539
Fire Chief
01C
Mid
$
130.93
$
22,694
$
272,330
Fire Chief
01C
High
$
160.15
$
27,760
$
333,121
1 Salary adjustments for the Fire Chief classification shall occur at the same time and be the same percentage as the salary adjustments received by the Fire Management
Association employees during the term of the Key & Management Compensation Plan.
Hourly rates are rounded to the nearest hundredth. Monthly and annual salaries are rounded to the nearest whole dollar.
Actual rates may vary slightly due to rounding.
7-42
Exhibit D
Assistant Fire Chief Salary Schedule Adjustment
The City of Newport Beach
Key & Management Position - Administrative Management, Safety
Effective July 12, 2025:
4% Cost -of -Living Adjustment (COLA) + Additional 5% Equity Adjustment'
Fire Chief, Assistant
01B
1
$
106.47
$
18,454
$
221,450
Fire Chief, Assistant
01B
2
$
111.79
$
19,377
$
232,521
Fire Chief, Assistant
01B
3
$
117.38
$
20,346
$
244,151
Fire Chief, Assistant
01B
4
$
123.24
$
21,362
$
256,341
Fire Chief, Assistant
01B
5
$
129.38
$
22,427
$
269,120
Fire Chief, Assistant
01B
6
$
135.85
$
23,548
$
282,576
Effective July 11, 2026: 4% Cost -of -Living Adjustment (COLA)'
Fire Chief, Assistant
01B
1
$
110.72
$
19,192
$
230,307
Fire Chief, Assistant
01B
2
$
116.26
$
20,152
$
241,821
Fire Chief, Assistant
01B
3
$
122.08
$
21,160
$
253,917
Fire Chief, Assistant
01B
4
$
128.17
$
22,216
$
266,595
Fire Chief, Assistant
01B
5
$
134.56
$
23,324
$
279,884
Fire Chief, Assistant
01B
6
$
141.29
$
24,490
$
293,879
Effective July 10, 2027: 4% Cost -of -Living Adjustment (COLA)'
Fire Chief, Assistant
01B
1
$
115.15
$
19,960
$
239,520
Fire Chief, Assistant
01B
2
$
120.91
$
20,958
$
251,494
Fire Chief, Assistant
01B
3
$
126.96
$
22,006
$
264,074
Fire Chief, Assistant
01B
4
$
133.30
$
23,105
$
277,258
Fire Chief, Assistant
01B
5
$
139.94
$
24,257
$
291,080
Fire Chief, Assistant
01B
6
$
146.94
$
25,470
$
305,634
1 Salary adjustments for the Assistant Fire Chief classification shall occur at the same time and be the same percentage as the salary adjustments received by the Fire
Management Association employees during the term of the Key & Management Compensation Plan.
Hourly rates are rounded to the nearest hundredth. Monthly and annual salaries are rounded to the nearest whole dollar.
Actual rates may vary slightly due to rounding.
7-43
ATTACHMENT B
Estimated Cost of Contract with NBFMA
7-44
City of Newport Beach
NBFMA MOU
Kev Contract Terms
Adds Fire Marshall and the EMS Division Chief positions to the group
COLA
Equity Adjustment for Sworn
Longevity Pay
Holiday Time Accrual 5.26 Hours/PP
Medical Insurance'
NAL Bank for Line Safety
Summary of Proposal Cost Z
Baseline Compensation
Base Pay
Supplemental Pays
Overtime
Pension Contribution
Cafeteria Plan
Other City Paid Benefits
Total
Cumulative Impact on Employee Compensation
Base Salary Increase
Total Compensation Increase 5
Key Contract Terms
COLA
Equity Adjustment for Sworn
Longevity Pay
Holiday Time Accrual
Medical Insurance'
NAL Bank
Total
Notes
4.00% 4.00% 4.00%
2.00% - -
5.0% @ 15 Years
10% @ 20 Years
7.38 hrs. for line safety; 5.26 hrs. for sworn staff
7/1/25 Additional $300/month (No Cash Back)
48 Hours
$1,181,523
$63,879
$113,030
$164,147
82,211
89,243
96,101
103,233
223,448
8,938
18,233
27,901
161,042
27,312
37,329
47,747
145,056
3,280
3,280
3,280
74,467
37,407
40,997
44,729
$1,867,748
$230,058
$308,970
$391,038
5.41% 9.57% 13.89%
12.32% 16.54% 20.94%
90,138
164,249
241,324
16,618
16,618
16,618
72,303
75,195
78,203
13,651
14,197
14,765
3,280
3,280
3,280
34,068
35,431
36,848
230,058
308,970
391,038
' 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.
7-45
ATTACHMENT C
City of Newport Beach
r n
x BUDGET AMENDMENT
c�crxon `° 2025-26 BA#: 26-011
Department: Human Resources
ONETIME: ❑ Yes ❑ No
Requestor: Barbara Salvini
Approvals
❑ CITY MANAGER'S APPROVAL ONLY
Finance Director: GX A■
;&'>x WL Date 7/11/25
0 COUNCIL APPROVAL REQUIRED City Clerk: Date
EXPLANATION FOR REQUEST:
To increase expenditure appropriations to fund the agreement with The Newport Beach Fire Management Association for ❑ from existing budget appropriations
FY 2025-26. ❑ from additional estimated revenues
❑✓ from unappropriated fund balance
Fund # Org Object Project Description Increase or (Decrease) $
Subtotall $
IDITURES
Fund #
Org
Object
Project Description
Increase or (Decrease) $
010
01040401
711002
FIRE OPERATIONS - SALARIES SAFETY
49,855.00
010
01040402
711001
FIRE PREVENTION - SALARIES MISCELLANEOUS
5,399.00
010
01040404
711001
EMERGENCY MEDICAL SERVICES - SALARIES MISCELLANEOU!
7,245.00
010
01050005
711001
CDD ADMIN - SALARIES MISCELLANEOUS
1,381.00
010
01040401
712012
FIRE OPERATIONS - HOLIDAY PAY SAFETY
14,825.00
010
01040401
712019
FIRE OPERATIONS - SAFETY CERTIFICATION PAY
808.00
010
01040401
712009
FIRE OPERATIONS - SCHOLASTIC ACHIEVEMENT
1,306.00
010
01040401
712007
FIRE OPERATIONS - LONGEVITY PAY SAFETY
72,303.00
010
01040402
722001
FIRE PREVENTION - PENSION EE NORMAL COST MISC
5,946.00
010
01040404
722001
EMERGENCY MEDICAL SERVICES - PENSION EE NORMAL COS
7,979.00
010
01050005
722001
CDD ADMIN - PENSION EE NORMAL COST MISC
1,520.00
010
01040402
723002
FIRE PREVENTION - PENSION ER NORMAL COST MISC
11,897.00
010
01040404
723002
EMERGENCY MEDICAL SERVICES - PENSION ER NORMAL COS
15,965.00
010
01050005
723002
CDD ADMIN - PENSION ER NORMAL COST MISC
3,042.00
010
01040402
724001
FIRE PREVENTION - PENSION EE CONTRIB MISC
(7,693.00)
010
01040404
724001
EMERGENCY MEDICAL SERVICES - PENSION EE CONTRIB MIS(
(10,324.00)
010
01050005
724001
CDD ADMIN - PENSION EE CONTRIB MISC
(1,967.00)
010
01040401
722002
FIRE OPERATIONS - PENSION EE NORMAL COST SAFETY
1,099.00
010
01040401
723003
FIRE OPERATIONS - PENSION ER NORMAL COST SAFETY
1,460.00
010
01040401
724002
FIRE OPERATIONS - PENSION EE CONTRIB SAFETY
(1,613.00)
010
01040401
727016
FIRE OPERATIONS - MEDICARE FRINGES
1,371.00
010
01040402
727016
FIRE PREVENTION - MEDICARE FRINGES
199.00
010
01040404
727016
EMERGENCY MEDICAL SERVICES - MEDICARE FRINGES
286.00
010
01050005
727016
CDD ADMIN - MEDICARE FRINGES
50.00
010
01040401
728003
FIRE OPERATIONS - COMPENSATED ABSENCES
808.00
010
01040402
728003
FIRE PREVENTION - COMPENSATED ABSENCES
133.00
010
01040404
728003
EMERGENCY MEDICAL SERVICES - COMPENSATED ABSENCES
189.00
010
01050005
728003
CDD ADMIN - COMPENSATED ABSENCES
33.00
010
01040401
721001
FIRE OPERATIONS - CAFETERIA ALLOWANCE FT
3,280.00
010
01040401
727020
FIRE OPERATIONS - DEFERRED COMP CITY CONTRIB
270.00
010
01040401
713004
FIRE OPERATIONS - OVERTIME VACATION RELIEF
34,068.00
7-46
Fund # Org Object Project Description Increase or (Decrease) $
010 01040401 713005 FIRE OPERATIONS - OVERTIME UNCONTROLLED 8,938.00
Fund # Object
010 300000
Description
GENERAL FUND - FUND BALANCE CONTROL
Subtotal
Subtotal
Increase or (Decrease) $
(230,058.00)
Fund Balance Change Required
7-47