12. Fiscal Analyses — Costa Mesa City Council, June 17, 2025

Fiscal Impact Analysis for Compliance with City Council Policy 300-8 - Transparency in Labor Negotiations Cost of Costa Mesa CMCEA Contract
Based on Fiscal Year 2025-26 Projected Costs
CMCEA to City Proposa) #2
Base Analysis 2025-26 Value of 1 % CMCEA I '/o
CMCEA
Value of Pay/ Projected Budget Value of 1 %FY25-26 FY 25-26 Benef"s Cost to City " Cost to City
BaseSalary 29,033,304 29,323,637
Incremental cost on Base Salary only
Pension / Retirement Benefits
PERS1T Misc.2.5@55 667,567 674,242
PERS2T Misc.2@60 152,369 453,892
PERS3T Misc.2@62 1,629,364 1,645,657
Cafeteria - Health- month per FTE: $50/Mo 4/1/26 $19,800 5,860,800 5,860,800 Benefits
BLY-BilingualPay-CMCEA-2.5o/o 2.5% 3,517 3,552
BLG - Bilingual Pay- CMCEA - 5o/o 5.0% 1 77,780 479,558 ShorthandPay 2.5%
HolidayAllowance 67;175 67,847
ClassA/BLicense-peryear $700 8,400 8,400
ShiftDifferentialPay 10.O% 94,159 95101
ShifkDifferentialPay 7.5% 115,565 116,720
ShiftDifferentialPay 5.0% 19,960 20,159
Shift Assignment Pay
StandbyPay 2.5% 2,102 2,123
Additional Standby Pay Hours
EmergencyMedicalDispatchPay 5.0% 63,350 63,984
Unifomi Pay- UNP $7.56 per pp $ I 97 10,614 10,614 Deferred Comp - City contribution of 1/2% 0.5% 144,130 145,571 Other Benefits
Medicare 1.45% 420,';383 425, 1 93
RetireeMedical"" 6.04% 1,753,612 1,753,612
Overtime 1,973,579 1,993,315
Excess Accrual Payoff/Cash outs (5)
Vacation Cap Increase (assumes FTE)
Total 42,198,329 42,543,978
Existing
unfunded
Liability

2.00% 2.00% 2.00%
July 1, 2025: 2% Jan 4, 2026: 2% April 1, 2026: 1 % FY 25-26 FY 25-26 FY 25-26
Cost to City Cost to City Cost to City
29,613,970 30,206,249 30,810,374
116,573,148
680,918 694,536
155,416 158,524
1,661,951 1,695,190
5,860,800 5,860,800
3,588
i 81,336
68,519
8 ,400
9 6,042
11 7,876
20,359
2,144
64,617
10,614
147,012
429,403
1 ,753,612
2 ,013,050
3,659
184,962
69,889
8 ,568
9 7,963
120,233
20,766
2,187
65,910
i O,827
149,953
437,991
1 ,753,612
2 ,053,311
708,427
161,695
I ,729,094
5,860,800
3,732
188,662
71 ,287
8,739
gg,g::
122,638
21,181
2,231
67,228
11 ,043
152,952
446,750
1 ,753,612
2 ,094,378
Estimated
Pro-Rated
FY 25/26 Year 2
Fiscal Full Annual
Impact Total
1,027,837 4,777,070
23,633 40,860
5,394 9,326
57,683 99,730
116,123 532,800
125 215
6,294 to,ss:
2 ,378
127
3 ,333
4 ,091
707
4 ,112
339
5 ,763
7,073
1 ,222
74 129
2,243
160
5,102
3 ,878
4 29
8,822
14,904 25,768
69,869 120,799
42,889,627 43,595,131 44,314,746 i,340,077 2,649,217 1,728,245.16 1 ,309,140
I ,382,596
Attachment 12
Fiscal Impact Analysis for Compliance with City Council Policy 300-8 - Transparency in Labor Negotiations Cost of Costa Mesa CMCEA Contract
Based on Fiscal Year 2025-26 Projected Costs
CMCEA to City Proposal #2
Total Number of Employees
CMCEA Employees
Vacant
296
25 2;71 Active Employees as of May 9, 2025
9% 1 ,750
474,250
CMCEA Employees FY 2022
Added positions
261
35 Notes:
(1 ) Cost of Contract per item based on FY 2025-26 Labor projection Proposed Budget and in some cases, prior year actuals' (2) Amounts from PERS Valuation for Miscellaneous Plan Employees letter dated July 2023. (3) Overtime is not explicit in the contrad, however is estimated based on the amount spent in prior years (4) Rate per employee is not explicit in the contract, however is calculated based on projeded employer contributions calculated by OPEB actuarial, an independent actuary with assumptions listed in the report that includes both explicit and implicit rate subsidy. (5) Excess Accrual Payoff/Cash Out is not explicit in the contract, however is estimated based on the amount spent in prior years (6) Assumes current active full time equivalent employees Council Member Acknowledgement:

Mike Buley, Council Member- i '1 X/
Manuel
Loren Council Member - District 2
Jeff District 6
Arlis Reynolds, Council Member - District 5
Transparency in Labor Negotiations (TIN) Analysis Certification City of Costa Mesa Policy 300-8 Section 2 of Practices and Procedures states:

Section 2 Economic Analysis
a. The Finance Director shall prepare an economic analysis on the fiscal impacts of each term and condition of employment made available to the members of all recognized employee organizations. The economic analysis must be verified by an independent auditor.
b. The economic analysis shall be updated with each proposal and counterproposal presented throughout the negotiation process and posted on the website along with all proposals and counter proposals.
c. The economic analysis shall be prepared in the format shown on Attachment A and shall include written council member acknowledgement that the analysis has been reviewed by the council member.

Certification:

In ac cordance with this s ection, LSL, LLP, an independent auditor, has reviewed the Costa Mesa City Employee Association Proposal #2 dated May 14, 2025 and the related study of supplemental data prepared by the City and believe that they accurately reflect the fiscal impacts.

Bryan Gruber, CPA
Partner, LSL, LLP
203 N. Brea Blvd., Suite 203
Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 Fiscal Impact Analysis for Compliance with City Council Policy 300-8 - Transparency in Labor Negotiations Cost of Costa Mesa CMCEA-CON Contract CONFIDENTIAL Based on Fiscal Year 2025-26 Projected Costs
CMCEA-CONF to City Proposal 2
Base Analysis 2025-26 Value of 1 %
CMCEA-CON Valueof
Pay/
Benefit
Base Salary
ncremental cost on Base Salary only
CMCEA-CON 1% 2.00% 2.00% 2.00%
Baseline Analysis Value of 1 % July 1, 2025: 2% Jan 1, 2026: 2% April 1, 2026: 1 % FY25/26 FY23-24 $ FY25-26 FY25-26 FY25-26
CosttoCity"' CosttoCity D:ff CosttoCity CosttoCity CosttoCity 4,110,693 4,151,800 % 4,192,907 4,276,765 4,362,300 Penston / Retirement Benefits
Misc. 2.5 @ 55
Misc. 2 @ 60
Misc. 2 @ 62
73 736
39 804
305 315
74,473 737
40,202 398
308 368 3,053
75,211
40,601
311,421
76,715
41 ,413
31 7,649
78,249
42,241
324,002
Employee ' Reduction
Cafeteria Health- month per FTE: $50 Jan '26
Benefits
BLY- Bili( gual Pay- CMCEA-2.5o/o
BLG - Bilingual Pay- CMCEA - 5%
Shortharid Pay
Holiday 411owance
Class NB License- per year
Shiff Diffmential Pay
Shift Differential Pay
Shift Differential Pay
Shift Assignment Pay
Standby Pay
Addition,41 Standby Pay Hours
Emergericy Medical Dispatch Pay
Tuition F'eimbursement-per FY per MOU
Uniform pay- UNP $7.56 per pp
Deferred qomp - (0.5% City contribution
Other Benefits
Medicare
Overtiripe ( assumes X hrs)
One-Time Employee Appreciation per active FTE (6) Excess Act.rual Payoff/ Cash outs (5)
Vacation dap Increase (assumes FTE)
$19,800 673,200 673,200
1 ,935
10,150
1 954
10,251
673,200
1,974
10,353
673,200
2,013
10 560
673,200
2,053
10,771
700
10%

7.5%

5.0%

5.0%
1 ,250

0.5%
k

1.45%

6.04%
42,500 42,500
21,266 21,479 213
60,252
248,286
291 ,864
60,854 603
248,286
294,783 2,919
42,500 42,500
21,691 22,125
61 457
248,286
297 702
62,686
248,286
303,656
42,500
22,568
63,940
248,286
309 729
Total
1% Pick Up
5,879,000 5,928150 49,150
49,150
49,150
41 ,228
5,977,301 6,077,567 6,179,839
s,gzz,aoi
pu,mulaQve.lmpaq%
Total
Pro-Rated
FY 25/26 Year 2
Fiscal Full Annual
Impact Est Impact
145,527 251,607
2,610 4,513
1,409 2,436
10,809 18,688
13,600 61,200
69 118
359 621
753
2,133

10.333
112,000
1 ,302
3,688
17,864
299,601 362,038
174,437
Existing
Llnfunded
Liability
797,751
Fiscal Impact Analysis for Compliance with City Council Policy 300-8 - Transparency in Labor Negotiations CostofCostaMesaCMCEA-CONContract CONFIDENTIAL
Based on Fiscal Year 2025-26 Projected Costs
CMCEA-CONF to City Proposal2
Total Number of Employees
CMCEA- Confidential Employees
Vaunt
34 32 Active
2 Notes:
(1 ) Cost of Contract per item based on FY 2023-24 Adopted Budget and in some cases, prior year actuals' (2) Amounts from PERS Valuation for Fire Saftey Employees dated July 2022. (3) Overtime is not explicit in the contract, however is estimated based on the amount spent in prior years (4) Rate per employee is not explicit in the contract, however is calculated based on projected employer contributions calculated by Nyhart, an independent actuary with assumptions listed in the report that includes both explicit and implicit rate subsidy. (5) Excess Accnial Payoff/Cash Out is not explicit in the contract, however is estimated based on the amount spent in prior years MGnue! Tem- District 4
Loren Council Member - District 2
4Lt,
Andrea Marr,Council Member - District 3 Arlis Reynolds, Council Member - District 5 Jeff Pettis, - District 6
Transparency in Labor Negotiations (TIN) Analysis Certification City of Costa Mesa Policy 300-8 Section 2 of Practices and Procedures states:

Certification:

In accordance with this section, LSL, LLP, an independent auditor, has reviewed the City of Costa Mesa's response to Costa Mesa Police Management Associatio
n Proposal #2 dated May 20, 2025 and the related study of supplemental data prepared by the City and believe that they accurately reflect the fis
cal impacts.

Bryan Gruber, CPA
Partner, LSL, LLP
203 N. Brea Blvd., Suite 203
Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 Cost of Costa Mesa CMPA Contract CONFIDENTIAL
Based on Fiscal Year 2025-26 Projected Costs 101.0%
CITY to CMPA Proposal #2
Dated: May 15, 2025
CMPA 1% Annualized
Value of Baseline Analysis Value of 1% Existing City to CMPA Year 2 (6) Year 3 (6) Pay/ FY25/26 FY 25-26 $ Unfunded Proposal 2 Longevity Longevity Benefit Cost to City (1)
Cost to City Diff Liability Total 2.5% Incr 2.5% Incr
Base Salary 15,710,580 15,867,686 157,106 16,339,003 16,339,003 16,339,003 Incremental cost on Base Salary only - - - - Pension / Retirement Benefits - - - - - 146,750,751 - - - S2PERS Sworn Police FT

2.7 @ 57 2,441,980 2,466,400 24,420 2,539,659 2,539,659 2,539,659 SWPERS Sworn Police FT
3 @ 50 993,151 1,003,083 9,932 1,032,877 1,032,877 1,032,877 Cafeteria - Health @ $2,119/month 25,428$ 3,356,496 3,356,496 - 3,356,496 3,356,496 3,356,496 Cafeteria - Additional contribution as of July 1, 2025 300$ 475,200 475,200 475,200 -
Benefits - - - - - BLZ-Bilingual Pay- CMPA/CMPA (2.5% of Senior Police Officer position Top Step) 2.5% 16,649 16,815 166 17,314 17,314 17,314 BLP-Bilingual Pay- (5% of Senior Police Officer position Top Step) 5% 239,738 242,136 2,397 249,328 249,328 249,328 Holiday Allowance Varies 244,562 247,007 2,446 254,344 254,344 254,344 Tuition Reimbursement-per FY per MOU 1,250$ 6,250 6,250 - 6,250 6,250 6,250 Uniform Pay- UNP $17 per pp $ 442 ( Article 22 Mou) 442$ 16,354 16,354 - 16,354 16,354 16,354 Uniform Assignment Pay 2.5%on base salary 2.5% 255,692 258,249 2,557 265,920 265,920 265,920 Canine Assignment Pay 11.31% on base salary 11.3% 28,697 28,984 287 29,845 29,845 29,845 CanineMaint- ($15 x 1.5 x 7 hrs per pay period) $157.50 per pay period 8,190 8,190 - 8,190 8,190 8,190 Motor Assignment Pay 5% of Base 5% 28,152 28,434 282 29,278 29,278 29,278 MotorMaint- Flat 3 hrs @ 1.5 Step 7 of Sr Pol Offr Flat 26,576 26,576 - 26,576 26,576 26,576 Motor Training Officer Assignment Pay 5% 6,343 6,407 63 6,597 6,597 6,597 POST- PMG 5 % of Base 5% - - - - - - POST- PAD 10% of Base 10% 1,013,463 1,023,598 10,135 1,054,002 1,054,002 1,054,002 Deferred Comp - City contribution 0.0% 50,555 51,060 506 52,577 52,577 52,577 Recruitment and Retention Pay -
10 years or more - currently at 2.5% 5.00% - - 85,101 106,272 130,418 15 years or more - currently at 5% 7.50% 68,254 68,936 683 102,913 93,912 89,202 20 Years or more - currently at 7.5% 10.00% 98,645 99,631 986 132,763 133,651 133,416 25 Years or more - currently at 10% 12.50% 128,706 129,993 1,287 170,749 178,862 183,807 Other Benefits - -
Medicare 1.45% 227,803 230,081 2,278 236,916 236,916 236,916 Retiree Medical (4)

6.04% 948,919 948,919 - 948,919 948,919 948,919 Overtime 3,183,635 3,215,471 31,836 3,310,980 3,310,980 3,310,980 Total 29,099,390 29,346,756 247,366 30,748,151 30,769,322 30,793,468 Total Annual Incremental Cost 247,366 1,648,762 21,171 24,146 Cumulative Impact 1,648,762 1,669,933 1,694,079 Annual % Increase 247,366
1% Pick Up 178,395
Cost of Costa Mesa CMPA Contract CONFIDENTIAL
Based on Fiscal Year 2025-26 Projected Costs 101.0%
CITY to CMPA Proposal #2
Dated: May 15, 2025
Total Number of Employees
CMPA- Employees 132
Notes:
(1) Cost of Contract per item based on FY 2023-24 Adopted Budget and in some cases, prior year actuals' (2) Amounts from PERS Valuation for Fire Saftey Employees dated July 2022. (3) Overtime is not explicit in the contract, however is estimated based on the amount spent in prior years (4) Rate per employee is not explicit in the contract, however is calculated based on projected employer contributions calculated by Nyhart, an independent actuary with assumptions listed in the report that includes both explicit and implicit rate subsidy.
(5) Excess Accrual Payoff / Cash Out is not explicit in the contract, however is estimated based on the amount spent in prior years (6) Outyears shows incremental estimated increase of longevity as CMPA members qualify for this benefit Council Member Acknowledgement:

John Stephens, Mayor Manuel Chavez, Mayor Pro Tem- District 4 Mike Buley, Council Member - District 1 Loren Gameros, Council Member - District 2 Andrea Marr,Council Member - District 3 Arlis Reynolds, Council Member - District 5 Jeff Pettis, Council Member - District 6
Transparency in Labor Negotiations (TIN) Analysis Certification City of Costa Mesa Policy 300-8 Section 2 of Practices and Procedures states:

Certification:

In accordance with this section, LSL, LLP, an independent auditor, has reviewed
the City of Costa Mesa's response to Costa Mesa Police Association Proposal #2 dated May 20, 2025 and the related study of supplemental data prepared by the City and believe that they accurately reflect the fiscal impacts.

UAL - - -
SWPERS Sworn Police FT 3 @ 50 79,890 80,689 799 113,198 113,198 113,198 SWPMA1 Sworn Police FT 3 @ 50 303,281 306,314 3,033 315,412 315,412 315,412 - - - - Employee Contribution Reduction - - - - - - - - Cafeteria - Health per month 25,428 228,852 228,852 - 228,852 228,852 228,852 Cafeteria - additional contribution July 1, 2025 300 32,400 32,400 32,400 Benefits - - - BLZ-Bilingual Pay- CMPA/CMPA -2.5% 2.5% 1,935 1,954 19 2,012 2,012 2,012 BLP-Bilingual Pay- CMPA/CMPMA - 5% 5% 10,150 10,251 101 10,556 10,556 10,556 Holiday Allowance Varies 73,577 74,313 736 - - - Uniform Pay- UNP $17 per pp $ 442 442 3,978 3,978 - 3,978 3,978 3,978 Uniform Assignment Pay 2.5% base salary 2.5% 19,017 19,207 19,778 19,778 19,778 POST- PMG 5 % of Base 5% 22,194 22,416 47,318 47,318 47,318 POST- PAD 10% of Base 10% 133,583 134,919 284,799 284,799 284,799 Executive Professional Development 1,000 9,000 - - 9,000 9,000 9,000 Technology Allowance 900 8,100 - - 8,100 8,100 8,100 Recruitment and Retention Pay Varies 158,507 160,092 1,585 211,120 216,398 221,808 - - -
Other Benefits - - - Medicare 1.45% 31,186 31,498 34,461 34,461 34,461 Retiree Medical (4)

6.04% 107,494 108,569 1,075 111,794 111,794 111,794 - - - - - Excess Accrual Payoff / Cash outs (5) - - - - - Deferred Comp - City contribution 0 - - - - - - Vacation Cap Increase (assumes FTE) - - - - Total 2,970,452 2,980,558 25,145 3,283,673 3,288,951 3,294,361 Total Annual Incremental Cost 10,105 313,221 5,278 5,410 Cumulative Impact 318,499 323,909
Annual % Increase 0.3% 25,145 11% 0.2% 0.2%
1% Pick Up 20,239
Annual % increase from base
Fiscal Impact Analysis for Compliance with City Council Policy 300-8 - Transparency in Labor Negotiations Cost of Costa Mesa CMPMA Contract
Based on Fiscal Year 2025-26 Projected Costs
CITY TO CMPMA Proposal #2
Total Number of Employees
CMPMA- Employees 9
Notes:
(1) Cost of Contract per item based on FY 2023-24 Adopted Budget and in some cases, prior year actuals' (2) Amounts from PERS Valuation for Fire Safety Employees dated July 2022. (3) Overtime is not explicit in the contract, however is estimated based on the amount spent in prior years (4) Rate per employee is not explicit in the contract, however is calculated based on projected employer contributions calculated by Nyhart, an independent actuary with assumptions listed in the report that includes both explicit and implicit rate subsidy.
(5) Excess Accrual Payoff / Cash Out is not explicit in the contract, however is estimated based on the amount spent in prior years (6) Outyears shows incremental increase of longevity as CMPA members qualify for this benefit Council Member Acknowledgement:

John Stephens, Mayor Manuel Chavez, Mayor Pro Tem- District 4 Mike Buley, Council Member - District 1 Loren Gameros, Council Member - District 2 Andrea Marr,Council Member - District 3
Arlis Reynolds, Council Member - District 5
Jeff Pettis, Councilmember - District 6
Transparency in Labor Negotiations (TIN) Analysis Certification City of Costa Mesa Policy 300-8 Section 2 of Practices and Procedures states:

Certification:

Bryan Gruber, CPA
Partner, LSL, LLP
203 N. Brea Blvd., Suite 203
Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022

Costa Mesa City CouncilJune 17, 2025

Costa Mesa City Council
June 17, 2025