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, [email protected] PREPARED BY:
Barbara J. Salvini, Human Resources Director - 949-644-3259, [email protected] 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:
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; 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; 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 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.
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
$308,970
2027/28
$391,038
Total
$930,066
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 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
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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
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