Attachment A - Resolution — Newport Beach City Council, September 8, 2026

Attachment A
Resolution
RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF NEWPORT BEACH, CALIFORNIA, MODIFYING THE

KEY & MANAGEMENT COMPENSATION PLAN AND

APPROVING SIDE LETTERS OF AGREEMENT

BETWEEN THE CITY OF NEWPORT BEACH AND THE

NEWPORT BEACH POLICE ASSOCIATION, NEWPORT

BEACH POLICE MANAGEMENT ASSOCIATION ,

NEWPORT BEACH FIRE MANAGEMENT

ASSOCIATION, AND NEWPORT BEACH LIFEGUARD

MANAGEMENT ASSOCIATION RELATING TO HOLIDAY

PAY, TEMPORARY UPGRADE PAY, AND SCHOLASTIC

ACHIEVEMENT PAY
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-Brow n Act, Government Code 3500, et seq ;
WHEREAS , the City of Newport Beach ("City") promotes effective communication and collaborative working relationships with its employees to foster improved relations while balancing good management practices;
WHEREAS , on January 25, 2022, the City Council adopted Resolution No. 2022- 10, approving the Key & Management Compensation Plan for the period of January 1, 2022, through December 31 , 2025, which established the wages , hours, fringe benefits and other terms of employment of Key & Management employees for that period, as subsequently amended ("2022 K&M Plan");
WHEREAS, on July 22, 2025, the City Council adopted Resolution No. 2025-45, approving the Key & Management Compensation Plan for the period of July 12, 2025, through June 30, 2028, which established the wages , hours, fringe benefits and other terms of employment of Key & Management employees for that period, as subsequently amended ("2025 K&M Plan");
WHEREAS, the City Council desires to retroactively amend both the 2022 K&M Plan and the 2025 K&M Plan with respect to scholastic achievement pay for police safety and fire safety employees, the temporary upgrading of employees, and holiday pay for administrative management safety employees ;
Resolution No. 2026-_

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WHEREAS , on December 14, 2021 , the City Council adopted Resolution No. 2021-129 approving the Memorandum of Understanding between the City of Newport Beach and Newport Beach Police Association , for the period of July 31 , 2021 , through November 30, 2025, as subsequently amended ("2021 NBPA MOU"); WHEREAS, on June 10, 2025, the City Council adopted Resolution No. 2025-30 approving the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Police Association, for the period of May 31, 2025, through June 30, 2028 ("2025 NBPA MOU");
WHEREAS, representatives from the City and the Newport Beach Police Association conferred in good faith and have reached a tentative Side Letter of Agreement to retroactively amend both the 2021 NBPA MOU and the 2025 NBPA MOU with regard to special compensation for the temporary upgrading of employees, and holiday in lieu pay ("NBPA Side Letter");
WHEREAS , on June 28, 2022, the City Council adopted Resolution No. 2022-44 approving the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Police Management Association, for the period of July 1, 2022, through June 30, 2026 ("2022 NBPMA MOU");
WHEREAS , on July 8, 2025, the City Council adopted Resolution No. 2025-42 approving the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Police Management Association, for the period of June 28, 2025, through June 30, 2028 ("2025 NBPMA MOU");
WHEREAS, representatives from the City and the Newport Beach Police Management Association conferred in good faith and have reached a tentative Side Letter of Agreement to retroactively amend both the 2022 NBPMA MOU and the 2025 NBPA MOU with regard to special compensation for the temporary upgrading of employees, and holiday pay ("NBPMA Side Letter");
WHEREAS , on June 14, 2022, the City Council adopted Resolution No. 2022-39 approving the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Fire Management Association , for the period of July 1, 2022, through June 30, 2026 ("2022 NBFMA MOU");
WHEREAS , on July 22, 2025, the City Council adopted Resolution No. 2025-46 approving the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Fire Management Association, for the period of July 1, 2025, through June 30, 2028 ("2025 NBFMA MOU");
Resolution No. 2026-_

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WHEREAS , representatives from the City and the Newport Beach Fire Management Associatio n conferred in good faith and have reached a tentat ive Side Letter of Agreement to retroactively amend both the 2022 NBFMA MOU and the 2025 NBFMA MOU regarding special compensation for temporary upgrading of employees ("NBFMA Side Letter");
WHEREAS , on May 10, 2022, the City Council adopted Resolution No. 2022-28 approving the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Lifeguard Management Association , for the period of January 1, 2022, through December 31 , 2025 ("2022 NBLMA MOU");
WHEREAS , on July 22, 2025, the City Council adopted Resolution No. 2025-47 approving the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Lifeguard Management Association , for the period of July 1, 2025, through June 30, 2028 ("2025 NBLMA MOU");
WHEREAS , representatives from the City and the Newport Beach Lifeguard Management Association conferred in good faith and have reached a tentative Side Letter of Agreement to retroactively amend both the 2022 NBLMA MOU and the 2025 NBLMA MOU regarding special compensation for temporary upgrade pay for move-ups and acting appointments;
WHEREAS , the amendments to the 2022 K&M Plan and the 2025 K&M Plan, the NBPA Side Letter, NBPMA Side Letter, NBFMA Side Letter, and NBLMA Side Letter (collectively , "Amendments ") are intended to clarify and memorialize the status quo and existing practices regarding, where applicable , scholastic achievement pay, temporary upgrade pay, and holiday pay, and is not intended to create new benefits; WHEREAS, the Amendments are intended to satisfy the California Public Employees' Retirement System ("CalPERS") compliance review standards , to clarify and authorize special compensation items for temporary upgrade pay pursuant to the California Code of Regulations Title 2, Section 571 (a)(3), holiday pay pursuant to California Code of Regulations Title 2, Section 571 (a)(5) and 571 .1 (b)(4), and scholastic achievement pay pursuant to California Code of Regulations Title 2, Section 571 (a)(2) and 571 .1 (b )(2), and to satisfy the written labor agreement and "condition of payment" regulations provided under California Code of Regulations Title 2, Section 571 (b ); WHEREAS , in accordance with the Public Employees ' Pension Reform Act ("PEPRA"), Government Code Section 7522.34, and California Code of Regulations Title 2, Section 571 .1, temporary upgrade pay is non-reportable for PEPRA members , but shall be reported as special compensation for qualifying "Classic" members ; Resolution No. 2026-_

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WHEREAS, in accordance with PEPRA, Government Code Section 7522.34, and California Code of Regulations Title 2, Section 571.1, holiday pay is non-reportable for PEPRA members if the holiday credit is eligible to be used as time off in lieu of compensation;
WHEREAS, in accordance with PEPRA, Government Code Section 7522.34, and California Code of Regulations Title 2, Section 571 (a)(2) and Section 571.1 (b)(2), to the extent permitted by law, scholastic achievement certificate pay is special compensation for Classic members, and pensionable compensation for PEPRA members; WHEREAS, employees in administrative safety may not elect to receive holiday pay in the form of time off in lieu of compensation, and holiday pay is reportable only when pursuant to a plan that identifies the observed holidays and for those employees in positions with work schedules that normally require working without regard to holidays, such as safety positions; and
WHEREAS, the City Council desires to adopt a resolution to formally approve the Amendments effective retroactively and applicable continuously throughout their respective active terms.

NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows:

Section 1: The City Council hereby approves the amendments to the 2022 K&M Plan and the 2025 K&M Plan attached hereto as Exhibit A, which are incorporated herein by this reference, effective retroactively to January 1, 2022.

Section 2: The City Council hereby approves, and authorizes the Mayor to execute, all Side Letters of Agreement attached hereto as Exhibits B through E, which are incorporated herein by this reference, effective retroactively as set forth therein. The terms referenced in the attached Side Letters of Agreement shall prevail over any previously adopted terms of memorandums of understanding or side letters of agreement that are in conflict therewith.

Section 3: The City Council authorizes the Mayor to execute any further documents or instruments as may be reasonably required by CalPERS to carry out the purpose and intent of this Resolution.

Section 4: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution.

Resolution No. 2026-

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Section 5: 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 .

Section 6: 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.

Resolution No. 2026-

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Section 7: 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 8th day of September, 2026.

ATTEST:

Lena Shumway
City Clerk
Lauren Kleiman
Mayor
APPROVED AS TO FORM:

CITY ATTORNEY'S OFFICE
A~C ff a_
Aaron C. Harp
City Attorney
Attachment( s ): Exhibit A: Amendments to the 2022 K&M Plan and 2025 K&M Plan Exhibit B: Side Letter of Agreement between the City and NBPA Exhibit C: Side Letter of Agreement between the City and NBPMA Exhibit D: Side Letter of Agreement between the City and NBFMA Exhibit E: Side Letter of Agreement between the City and NBLMA Exhibit A
Amendment to the Key & Management Compensation Plan

Subsection A.2 (SAFETY) of Section 2, (Compensation), of the K&M Compensation Plan, is hereby amended to read as follows:
“2. Salary-Safety:

Key and Management safety employees will receive the following adjustments, as provided in Appendix A:

Salary adjustments for the Police Chief classification shall occur at the same time and be the same as salary adjustments received by Police Lieutenants pursuant to the Police Management Association MOU during the term of this Plan. Salary adjustments for the Police Chief may be modified by the City Council through an individual employment agreement approved by the City Council, in a City Council approved Key & Management Compensation Plan, as amended, or in a Resolution adopted by the City Council.

Salary adjustments for the Assistant Police Chief classification shall be tied to the salary adjustments received by Police Lieutenants pursuant to the Police Management Association MOU during the term of this Plan.

a. Effective June 28, 2025, there shall be a base salary increase of four percent (4.0%) for all classifications in the bargaining unit This salary increase includes the three percent (3%) increase originally scheduled for the beginning of the pay period foll owing July 1, 2025 pursuant to the preceding MOU and an additional non-compounding one percent (1%) salary increase.

b. Effective the beginning of the first full pay period following July 1, 2026, there shall be a base salary increase of four percent (4.0%) for all classifications in the bargaining unit.

c. Effective the beginning of the first full pay period following July 1, 2027, there shall be a base salary increase of four percent (4.0%) for all classifications in the bargaining unit.

Salary adjustments for the Fire Chief classification shall occur at the same time and be the same percentage as the salary increases received by the Administrative Division Chief classification pursuant to the Fire Management Association MOU during the ter m of this Plan. Salary adjustments for the Fire Chief may be modified by the City Council through an individual employment agreement approved by the City Council, in a City Council approved Key & Management Compensation Plan, as amended, or in a Resolution adopted by the City Council.

Salary adjustments for the Assistant Fire Chief classification shall be tied to the salary adjustments received by the Administrative Division Chief classification pursuant to the Fire Management Association MOU during the term of this Plan.

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 Jul y 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.

Salary adjustments for the Assistant Chief, Lifeguard Operations classification shall be tied to the salary adjustments received by Lifeguard Management Association Battalion Chiefs during the term of this Plan.

a. Effective July 12, 2025, base salaries will be increased by four percent (4.0%) for all members of the bargaining unit.

b. Effective the first full pay period following July 1, 2026, base salaries will be increased by four percent (4.0%) for all members of the bargaining unit.

c. Effective the first full pay period following July 1, 2027, base salaries will be increased by four percent (4.0%) for all members of the bargaining unit.”

Subsection H (SCHOLASTIC ACHIEVEMENT PAY -SAFETY), of Section 2, (Compensation), of the K&M Compensation Plan, is hereby amended to read as follows:
“H. SCHOLASTIC ACHIEVEMENT PAY-SAFETY

1. Police Safety

Absent an Employment Agreement or Resolution to the contrary, Key and Management police safety employees are entitled to additional compensation in the form of Scholastic Achievement Pay as follows:

BA/BS – 7% MA/MS/JD – 8.5%

The pays are not cumulative. For example, if a member is receiving seven percent (7%) Scholastic Pay for a bachelor's degree and earns a master's degree, said member shall earn a total of eight-and one-half percent (8.5%) for the higher-level master's degree, not a total of fifteen and one-half percent (15 .5%).

The parties agree that to the extent permitted by law, the Scholastic Achievement Pay in this section is special compensation and shall be reported to CalPERS as such pursuant to Title 2 CCR, Section 571 (a)(2) and 571.1(b)(2}, Educational Incentive Pay.

2. Fire Safety

Absent an Employment Agreement or Resolution to the contrary, Key and Management fire safety employees are entitled to additional compensation in the form of Scholastic Achievement Pay under the same terms and conditions as members of the Newport Beach Fir e Management Association. If there are future changes to the Scholastic Achievement Pay Program as set forth in a council -approved MOU or side letter agreement with the Newport Beach Fire Management Association, the same program shall apply for Key and Management fire safety employees.

BA/BS-5.5% of base pay MA/MS/JD 7.0% of base pay

Scholastic Achievement pays are not cumulative (e.g. employees with BA and MA will receive a total of 7.0% of base pay).

3. Assistant Chief, Lifeguard Operations

Except as modified herein, the Assistant Chief of Lifeguard Operations shall be eligible for Scholastic Achievement Pay under the same terms and conditions as members of the Newport Beach Lifeguard Management Association. Scholastic Achievement Pay shall be included in the Assistant Chief of Lifeguard Operations paycheck for the pay period immediately following approval by the Fire Chief. It is the responsibility of the Assistant Chief of Lifeguard Operations to apply for Scholastic Achievement Pay. Approval of the application for Scholastic Achievement Pay shall not be unreasonably withheld or delayed, and the Assistant Chief of Lifeguard Operations shall not be entitled to receive Scholastic Achievement Pay prior to the date the application is approved eve n though the Assistant Chief of Lifeguard Operations may have been eligible prior to approval. If there are future changes to the Scholastic Achievement Pay Program as set forth in a council-approved MOU or side letter agreement with the Newport Beach Lifeguard Management Association, the same program shall apply to the Assistant Chief of Lifeguard Operations.

Employees in the classification shall receive three and a half (3.5%) percent of base salary if they receive a Bachelor's Degree and one percent (1%) of base salary if they receive a Master's Degree. Employees that received both a Bachelor 's Degree and a Master 's Degree, Scholastic Achievement Pay is stackable (i.e., may receive four and a half percent (4.5%) of base salary if eligible).

A "degree" shall be awarded by an institution accredited by the State of California, the United States Department of Education, the Council for Higher Education, or the Distance Education Training Council.

Section 2, (Compensation), of the K&M Compensation Plan, is hereby amended to add the new Subsection ( I), (TEMPORARY UPGRADING OF EMPLOYEES), which shall read as follows:
“I. TEMPORARY UPGRADING OF EMPLOYEES

1. The City Manager may authorize and approve a temporary appointment to fill either a temporary vacancy (such as maternity leave, long- term disability or military leave) or permanent vacancy (separation or retirement). All temporary appointees must satisfy the minimum qualifications for the position.

2. The formal and express assignment of an employee to perform the significant duties and responsibilities of a higher classification for more than one hundred sixty (160) consecutive working hours shall be deemed as an Acting Appointment. An Acting Appointment shall be limited to ninety (90) calendar days in any 12 month period unless extended to a maximum of an additional ninety (90) calendar days on written recommendation by the Police Chief and approval by the City Manager.

3. An employee assigned to an Acting Appointment will receive additional compensation (“temporary upgrade pay”) for the duration of the Acting Appointment. Temporary upgrade pay is separate from, and in addition to, the employee’s base pay as determined by the employee’s current Salary Step, which shall not change as a result of the Acting Appointment. Temporary upgrade pay is calculated as the difference in pay from the employee’s current Salary Step and the Step in the Salary Range for the Classification of the Acting Appointment that is at least five percent (5%), but not more than fifteen percent (15%), higher than the employee’s current Salary Step. If the Acting Appointment is to a Classification without a Salary range, the employee shall receive additional compensation equal to five percent (5%) of the employee’s current Salary Step. Temporary upgrade pay shall be paid biweekly as earned with the regular paycheck.

4. The parties agree, to the extent permitted by law, the City shall report temporary upgrade pay to CalPERS as special compensation pursuant to Title 2 CCR Section 571(a)(3) Temporary Upgrade Pay. In addition, the reportable compensation shall be limited to temporary upgrade pay received for time when the employee is performing 100% of the duties in the higher classification during normal hours of employment. For “new members,” as defined by the Public Employees’ Pension Reform Act of 2013, temporary upgrade pay will not be reported as pensionable compensation to CalPERS.”

Subsection C, (HOLIDAYS -SAFETY), of Section 3, ( Leaves), of the K&M Compensation Plan, is hereby amended to read as follows:

“C. HOLIDAYS –SAFETY

The provisions contained in this section apply to Administrative Management - Safety (Assistant Chiefs) who are required to work without regard to holiday based on assignment. Assistant Police Chiefs and Assistant Lifeguard Chiefs shall receive 3.7 hours per pay period of Holiday compensation as pay. Assistant Fire Chiefs shall receive

5.26 hours per pay period of Holiday compensation as pay. Holiday pay will be reported to CalPERS as compensation earnable as defined in Government Code Sec. 20636.

The holiday in-lieu pay provided under this subsection compensates eligible employees for the following eight holidays:
• New Year's Day;
• Martin Luther King Jr. Day;
• Memorial Day;
• Independence Day;
• Labor Day;
• Veterans Day;
• Thanksgiving Day; and
• Christmas Day
Effective July 12, 2025, the holiday benefit for the Key and Management safety employees shall be tied to the retirement contributions required by members of their respective safety
management associations. If there are future changes to the holiday benefit, as set forth in a council-approved MOU, or side letter agreement, the same changes shall be made for Key and Management safety employees.

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) or Section 571.1 (b)(4) Holiday Pay.”

Exhibit B
Side Letter of Agreement between the City and NBPA

SIDE LETTER AGREEMENT

BETWEEN THE CITY OF NEWPORT BEACH (CITY)

AND THE NEWPORT BEACH POLICE ASSOCIATION (NBPA)
RETROACTIVE AMENDMENT TO THE PRIOR MOU (2021-2025) AND THE CURRENT MOU (2025-2028)

TO CLARIFY COMPLIANCE WITH CALPERS REQUIREMENTS REGARDING

TEMPORARY UPGRADE PAY AND HOLIDAY PAY
This Side Letter Agreement (" Agreement") is entered into this 8th day of September by and between the City of Newport Beach ("City") and the Newport Beach Police Association ("PA" or "Association") (collectively referred to as the "Parties").

WHEREAS, the Parties previously executed a Memorandum of Understanding effective from July 1, 2021 through November 30, 2025 ("Prior MOU"). The Parties subsequently executed a successor Memorandum of Understanding currently in effect for the term of May 31, 2025 through June 30, 2028 ("Current MOU").

WHEREAS, the purpose of this Agreement is to concurrently and retroactively amend both the Prior MOU and the Current MOU.

WHEREAS, the Parties mutually agree that the Holiday Pay language and Temporary Upgrade Pay language established herein is fully retroactive to July 1, 2022, a date falling entirely within the term of the Prior MOU, and that this provision shall apply continuously through the remaining duration of the Prior MOU and carry forward seamlessly into the entire duration of the Current MOU.

WHEREAS, this dual amendment is intended to ensure the uninterrupted , lawful definition, eligibility criteria, and payment conditions for Holiday Pay and Temporary Upgrade Pay across both contract terms, satisfying California Public Employees' Retirement System (CalPERS) compliance review standards.

WHEREAS, this Agreement is intended to clarify and authorize the special compensation items of Temporary Upgrade Pay pursuant to the California Code of Regulations (CCR) Title 2, Section 571(a)(3) and Holiday Pay pursuant to 2 CCR§ 571(a)(5) and 571. l(b)(4).

WHEREAS, this Agreement is also intended to satisfy the written labor agreement and "condition of payment" regulations provided under 2 CCR § 571 (b ).

WHEREAS, in accordance with the Public Employees ' Pension Reform Act (PEPRA) and Government Code Section 7522.34 and 2 CCR§ 571.1, the Parties explicitly acknowledge that Temporary Upgrade Pay is non-reportable for PEPRA "New" members, and, therefore, this item shall only be reported as special compensation for qualifying "Classic" members.

WHEREAS, in accordance with the Public Employees' Pension Reform Act (PEPRA) and Government Code Section 7522.34 and 2 CCR§ 571.1, the Parties explicitly acknowledge that Holiday Pay is non-reportable for PEPRA "New" members if the holiday credit is eligible to be used as time off in lieu of compensation.

WHEREAS, employees represented by PA may not elect to receive holiday pay in the form of time off in lieu of compensation.

WHEREAS, the Parties mutually agree that the intent of this Agreement is to clarify and memorialize the status quo and existing practices regarding Temporary Upgrade Pay and Holiday Pay in effect across both contract terms and does not create new benefits.

WHEREAS, the Parties understand that Holiday Pay is reportable only when pursuant to an MOU that identifies the observed holidays associated with Holiday Pay and moreover only for employees in positions with work schedules that normally require working without regard to holidays.

WHEREAS, the Parties explicitly acknowledge that Holiday Pay will only be reported for those employees in positions with schedules that normally require working without regard to holidays.

WHEREAS, this Side Letter will not have the effect of an agreement, and will not be binding on either Party, until it is approved by the City Council.

NOW, THEREFORE , it is mutually agreed between the Parties as follows:

MOU 2021 - 2025 and MOU 2025 - 2028, Section 2
(COMPENSATION), are hereby amended to include the new Subsection (U) (TEMPORARY UPGRADING OF EMPLOYEES) to read as follows:

U. TEMPORARY UPGRADING OF EMPLOYEES

1. The City Manager may authorize and approve a temporary appointment to fill either a temporary vacancy (such as maternity leave, long-term disability or military leave) or permanent vacancy (separation or retirement). All temporary appointees must satisfy the minimum qualifications for the position.

2. The formal and express assignment of an employee to perform the significant duties and responsibilities of a higher classification for more than one hundred sixty (160) consecutive working hours shall be deemed as an Acting Appointment, as provided in the City of Newport Beach Employee Policy Manual. An Acting Appointment shall be limited to ninety (90) calendar days in any 12 month period unless extended to a maximum of an additional ninety (90) calendar days on written recommendation by the Police Chief and approval by the City Manager, as provided in the City of Newport Beach Civil Service System Rules & Regulations.

3. An employee assigned to an Acting Appointment will receive additional compensation ("temporary upgrade pay'') for the duration of the Acting Appointment. Temporary upgrade pay is separate from, and in addition to, the employee 's base pay as determined by the employee's current Salary Step, which shall not change as a result of the Acting Appointment. Temporary upgrade pay is calculated as the difference in pay from the employee's current Salary Step and the Step in the Salary Range for the Classification of the Acting Appointment that is at least five percent (5%), but not more than fifteen percent (15%), higher than the employee's current Salary Step. If the Acting Appointment is to a Classification without a Salary range, the employee shall receive additional compensation equal to five percent (5%) of the employee's current Salary Step. Temporary upgrade pay shall be paid biweekly as earned with the regular paycheck.

4. The parties agree, to the extent permitted by law, the City shall report temporary upgrade pay to Ca/PERS as special compensation pursuant to Title 2 CCR Section 571 (a)(3) Temporary Upgrade Pay. In addition , the reportable compensation shall be limited to temporary upgrade pay received for time when the employee is performing 100% of the duties in the higher classification during normal hours of employment. For "new members," as defined by the Public Employees ' Pension Reform Act of 2013, temporary upgrade pay will not be reported as pensionable compensation to Ca/PERS.

MOU 2021 - 2025 and MOU 2025 - 2028 , Section 3 (LEAVES), are hereby amended to revise Subsection (B) (HOLIDAY IN LIEU) to read as follows:

B. HOLIDAY IN LIEU
Sworn and Non-Sworn employees who work in positions that require scheduled staffing without regard to holidays, as designated by the Department, will receive holiday pay in lieu of observing the holiday identified below at the rate of 96 hours per fiscal year (July 1 through June 30), and at the rate of 3.7 hours per pay period.

The holiday in-lieu pay provided under this subsection compensates eligible employees for the following eight holidays:
• New Year's Day;
• Martin Luther King Jr. Day;
• Memorial Day;
• Independence Day;
• Labor Day;
• Veterans Day;
• Thanksgiving Day; and
• Christmas Day
The annual holiday benefit is based on eight (8) holidays at twelve (12) hours per holiday, for a total annual holiday-in-lieu pay equal to the value of ninety-six (96) hours. 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 to Cal PERS as such pursuant to Title 2 CCR, Section 571 (a)(5) Holiday Pay.

This provision does not apply to Academy recruits.
[Signatures on the next page]
Executed this 8th day of September 2026
ATTEST:

BY:

FOR THE NEWPORT BEACH POLICE ASSOCIATION:

BY: -----------------Joe De Julio, NBPA President
FOR THE CITY OF NEWPORT BEACH:

BY: -----------------Lauren Kleiman, Mayor of Newport Beach

CITY OF NEWPORT

BEACH APPROVED AS
TO FORM:

BY: A-- Cf-
A~ron C. Harp, City Attorney
------------Len a Shumway, City Clerk
Exhibit C
Side Letter of Agreement between the City and NBPMA

SIDE LETTER AGREEMENT

BETWEEN THE CITY OF NEWPORT BEACH (CITY)

AND THE NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION (NBPMA) RETROACTIVE AMENDMENT TO THE PRIOR MOU (2022-2026) AND THE CURRENT MOU (2025-2028)

TO CLARIFY COMPLIANCE WITH CALPERS REQUIREMENTS REGARDING

TEMPORARY UPGRADE PAY AND HOLIDAY PAY
This Side Letter Agreement ("Agreement") is entered into this 8th day of September by and between the City of Newport Beach ("City") and the Newport Beach Police Management Association ("PMA" or "Association") (collectively referred to as the "Parties").

WHEREAS, the Parties previously executed a Memorandum of Understanding effective from July 1, 2022 through June 30, 2026 ("Prior MOU"). The Parties subsequently executed a successor Memorandum of Understanding currently in effect for the term of June 28, 2025 through June 30, 2028 ("Current MOU").

WHEREAS, the purpose of this Agreement is to concurrently and retroactively amend both the Prior MOU and the Current MOU.

WHEREAS, this dual amendment is intended to ensure the uninterrupted, lawful definition, eligibility criteria, and payment conditions for Holiday Pay and Temporary Upgrade Pay across both contract terms, satisfying California Public Employees' Retirement System (CalPERS) compliance review standards.

WHEREAS, this Agreement is also intended to satisfy the written labor agreement and "condition of payment" regulations provided under 2 CCR§ 571(b).

WHEREAS, in accordance with the Public Employees' Pension Reform Act (PEPRA) and Government Code Section 7522.34 and 2 CCR § 571.1, the Parties explicitly acknowledge that Temporary Upgrade Pay is non-reportable for PEPRA "New" members, and, therefore , this item shall only be reported as special compensation for qualifying "Classic" members.

WHEREAS, employees represented by PMA may not elect to receive holiday pay in the form of time off in lieu of compensation.

WHEREAS, all positions represented by PMA (Police Sergeants and Police Lieutenants) maintain work schedules that normally require working without regard to holidays.

WHE REAS , this Side Letter will not have the effect of an agreement, and will not be binding on either Party, until it is approved by the City Council.

NOW, THEREFORE , it is mutually agreed between the Parties as follows :

MOU 2022 - 2026 and MOU 2025 - 2028 , Section 2
(COMP EN SATION), are hereby amende d to include the new Subsection (M) (TEMPORAR Y UPGRADING OF EMPLO YEE S) to read as follows:

M. TEMPORARY UPGRADING OF EMPLOYEES

1. The City Manager may authorize and approve a temporary appointment to fill either a temporary vacancy (such as maternity leave, long-term disability or military leave) or permanent vacancy (separation or retirement). All temporary appointees must satisfy the minimum qualifications for the position.

3. An employee assigned to an Acting Appointment will receive additional compensation ("temporary upgrade pay'? for the duration of the Acting Appointment. Temporary upgrade pay is separate from, and in addition to, the employee 's base pay as determined by the employee's current Salary Step, which shall not change as a result of the Acting Appointment . Temporary upgrade pay is calculated as the difference in pay from the employee's current Salary Step and the Step in the Salary Range for the Classification of the Acting Appointment that is at least five percent (5%), but not more than fifteen percent (15%), higher than the employee's current Salary Step. If the Acting Appointment is to a Classification without a Salary range, the employee shall receive additional compensation equal to five percent (5%) of the employee's current Salary Step. Temporary upgrade pay shall be paid biweekly as earned with the regular paycheck.

4. The parties agree, to the extent permitted by law, the City shall report temporary upgrade pay to Ca/PERS as special compensation pursuant to Title 2 CCR Section 571 (a)(3) Temporary Upgrade Pay. In addition, the reportable compensation shall be limited to temporary upgrade pay received for time when the employee is performing 100% of the duties in the higher classification during normal hours of employment. For "new members ," as defined by the Public Employees ' Pension Reform Act of 2013, temporary upgrade pay will not be reported as pensionable compensation to Ca/PERS.

MOU 2022 - 2026 and MOU 2025 - 2028 , Section 3 (LEAVES) , are hereby amended to revise Subsection (B) (HOLIDAY TIME) to read as follows :

B. HOLIDAY TIME
Employees who work in positions that require scheduled staffing without regard to holidays, as designated by the Department, will receive holiday pay in lieu of observing the holidays identified below at the rate of 96 hours per fiscal year (July 1 through June 30), and at the rate of 3.7 hours per pay period.

The holiday in-lieu pay provided under this subsection compensates eligible employees for the following eight holidays:
• New Year's Day;
• Martin Luther King Jr Day;
• Memorial Day;
• Independence Day;
• Labor Day;
• Veterans Day;
• Thanksgiving Day; and
• Christmas Day
The annual holiday benefit is based on eight (8) holidays at twelve (12) hours per holiday, for a total annual holiday-in-lieu pay equal to the value of ninety-six (96) hours. 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 to CalPERS as such pursuant to Title 2 CCR, Section 571 (a)(5) Holiday Pay. [Signatures on the next page]
Executed this 8th day of September 2026

FOR THE NEWPORT BEACH POLICE MANAGEMENT
ASSOCIATION :

BY: -----------------A I ex Maslin, NBPMA President
FOR THE CITY OF NEWPORT BEACH:

BY: ---- ---- ------- --Lauren Kleiman, Mayor of Newport Beach

CITY OF NEWPORT

BEACH APPROVED AS
TO FORM :

BY: ___ A _ ~ ______ C ~- (( ---
Aaron C. Harp, City Attorney
ATTEST:

BY: ------------Len a Shumway, City Clerk
Exhibit D
Side Letter of Agreement between the City and NBFMA

SIDE LETTER AGREEMENT

BETWEEN THE CITY OF NEWPORT BEACH (CITY)

AND THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION (NBFMA) RETROACTIVE AMENDMENT TO THE PRIOR MOU (2022-2026) AND THE CURRENT MOU (2025-2028)

REGARDING TEMPORARY UPGRADE PAY AND CALPERS COMPLIANCE
This Side Letter Agreement (" Agreement") is entered into this 8th day of September by and between the City of Newport Beach ("City") and the Newport Beach Fire Management Association ("FMA" or "Association") ( collectively referred to as the "Parties").

WHEREAS, the purpose of this Agreement is to concurrently and retroacti vely amend both the Prior MOU and the Current MOU.

WHEREAS, the Parties mutually agree that the Temporary Upgrade Pay language established herein is fully retroactive to July 1, 2022, a date falling entirely within the term of the Prior MOU, and that this provision shall apply continuously through the remaining duration of the Prior MOU and carry forward seamlessly into the entire duration of the Current MOU.

WHEREAS, this dual amendment is intended to ensure the uninterrupted , lawful definition , eligibility criteria, and payment conditions for Temporary Upgrade Pay across both contract terms, satisfying California Public Employees' Retirement System (CalPERS) compliance review standards.

WHEREAS, this Agreement is intended to clarify and authorize the special compensation item of Temporary Upgrade Pay pursuant to the California Code of Regulations (CCR) Title 2, Section 57l(a)(3).

WHEREAS, this Agreement is also intended to satisfy the written labor agreement and "condition of payment" regulations provided under 2 CCR§ 57l(b) .

WHEREAS, in accordance with the Public Employees' Pension Reform Act (PEPRA) and Government Code Section 7522.34 and 2 CCR § 571.1, the Parties explicitly acknowledge that Temporary Upgrade Pay is non-reportable for PEPRA "New" members, and, therefore, this item shall only be reported as special compensation for qualifying "Classic" members.

WHEREAS, the Parties acknowledge that this Agreement is intended to clarify and memorialize the status quo and existing practice regarding Temporary Upgrade Pay in effect across both contract terms, and is not intended to create a new benefit.

WHEREAS, this Side Letter will not have the effect of an agreement , and will not be binding on either Party , until it is approved by the City Council.

NOW, THEREFORE, it is mutually agreed between the Parties as follows:

MOU 2022 - 2026 and MOU 2025 - 2028 , Section 2
(COMPENSATION), are hereby amended to include the new Subsection (I) (TEMPORARY UPGRADING OF EMPLOYEES) to read as follows:

I. TEMPORARY UPGRADING OF EMPLOYEES

1. The City Manager may authorize and approve a temporary appointment to fill either a temporary vacancy (such as maternity leave, long-term disability or military leave) or permanent vacancy (separation or retirement). All temporary appointees must satisfy the minimum qualifications for the position.

2. The formal and express assignment of an employee to perform the significant duties and responsibilities of a higher classification for more than one hundred sixty (160) consecutive working hours shall be deemed as an Acting Appointment , as provided in the City of Newport Beach Employee Policy Manual. An Acting Appointment shall be limited to ninety (90) calendar days in any 12 month period unless extended to a maximum of an additional ninety (90) calendar days on written recommendation by the Fire Chief and approval by the City Manager, as provided in the City of Newport Beach Civil Service System Rules & Regulations.

3. An employee assigned to an Acting Appointment will receive additional compensation ("temporary upgrade pay'J for the duration of the Acting Appointment . Temporary upgrade pay is separate from, and in addition to, the employee's base pay as determined by the employee's current Salary Step, which shall not change as a result of the Acting Appointment. Temporary upgrade pay is calculated as the difference in pay from the employee's current Salary Step and the Step in the Salary Range for the Classification of the Acting Appointment that is at least five percent (5%), but not more than fifteen percent (15%), higher than the employee's current Salary Step. If the Acting Appointment is to a Classification without a Salary range, the employee shall receive additional compensation equal to five percent (5%) of the employee's current Salary Step. Temporary upgrade pay shall be paid biweekly as earned with the regular paycheck.

4. The parties agree, to the extent permitted by law, the City shall report temporary upgrade pay to Ca/PERS as special compensation pursuant to Title 2 CCR Section 571 (a)(3) Temporary Upgrade Pay. In addition, the reportable compensation shall be limited to temporary upgrade pay received for time when the employee is performing 100% of the duties in the higher classification during normal hours of employment. For "new members," as defined by the Public Employees' Pension Reform Act of 2013, temporary upgrade pay will not be reported as pensionable compensation to Ca/PERS .
[Signatures on the next page]
Executed this 8th day of September 2026
ATTEST :

BY:

FOR THE NEWPORT BEACH FIRE MANAGEMENT
ASSOCIATION :

BY: -----------------Brian McDonough, NBFMA President
FOR THE CITY OF NEWPORT BEACH:

BY: --------------- --Lauren Kleiman, Mayor of Newport Beach

CITY OF NEWPORT

BEACH APPROVED AS
TO FORM :

BY:---,#--A - ~ _ C-=-----1, t.--=---,( ----
Aaron C. Harp, City Attorney
------------Len a Shumway, City Clerk
Exhibit E
Side Letter of Agreement between the City and NBLMA

SIDE LETTER AGREEMENT

BETWEEN THE CITY OF NEWPORT BEACH (CITY)

AND THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION
(NBLMA)
RETROACTIVE AMENDMENT TO THE PRIOR MOU (2022-2025) AND THE CURRENT MOU (2025-2028)

REGARDING TEMPORARY UPGRADE PAY AND CALPERS COMPLIANCE
This Side Letter Agreement ("Agreement") is entered into this 8th day of September by and between the City ofNewport Beach ("City") and the Newport Beach Lifeguard Management Association ("LMA" or "Association") (collectively referred to as the "Parties") .

WHEREAS, the Parties previously executed a Memorandum of Understanding effective from January 1, 2022 through December 31 , 2025 ("Prior MOU"). The Parties subsequently executed a successor Memorandum of Understan ding currently in effect for the term of July 1, 2025 through June 30, 2028 ("Current MOU").

WHEREAS, the purpose of this Agreement is to concurrently and retroactively amend both the Prior MOU and the Current MOU.

WHEREAS, this Agreement is intended to clarify and authorize the special compensation item of Temporary Upgrade Pay pursuant to the California Code of Regulations (CCR) Title 2, Section 571(a)(3).

WHEREAS, this Agreement is also intended to satisfy the written labor agreement and "condition of payment" regulations provided under 2 CCR § 571 (b ).

WHEREAS, in accordance with the Public Employees' Pension Reform Act (PEPRA) and Government Code Section 7522.34 and 2 CCR§ 571.1, the Parties explicitly acknowledge that Temporary Upgrade Pay is non-reportable for PEPRA "New" members, and, therefore, this item shall only be reported as special compensation for qualifying "Classic" members.

WHEREAS, this Side Letter will not have the effect of an agreement , and will not be binding on either Party , until it is approved by the City Council.

NOW, THEREFORE, it is mutually agreed between the Partie s as follows :

MOU 2022 - 2025 and MOU 2025 - 2028 , Section 2
(COMPENSATION) , are hereby amended to include the revised Subsection (H) (MOVE-UP PAY) and new Subsection (M) (ACTING
APPOINTMENTS) to read as follows:

H. MOVE-UP PAY
Temporary upgrading shall be defined as the temporary assignment of an employee to work in a job classification , which is assigned to a salary schedule higher than their regular job classification .

Employees temporarily upgraded to the following job classifications and equivalent positions shall receive a nine and a half percent (9.5%) pay differential over their rate of pay for all time worked in the higher job classification if they are assigned to work in the higher job classification for a period of one (1) working hour or longer. The pay received during the temporary assignment ("move-up pay'') is separate from, and in addition to, the employee's base pay as determined by the employee's current Salary Step, which shall not change as a result of the assignment. Move-up pay shall be paid biweekly as earned with the regular paycheck. • Lifeguard Captain
• Lifeguard Battalion Chief
All holiday, flex leave, and other paid leave shall be paid at the employee 's rate of pay.

Assignments to higher rated classifications shall be made at the sole discretion of the City.

The parties agree, to the extent permitted by law, the City shall report move -up pay to Ca/PERS as special compensation pursuant to Title 2 CCR Section 571(a)(3) Temporary Upgrade Pay. In addition , the reportable compensation shall be limited to move-up pay received for time when the employee is performing 100% of the duties in the higher classification during normal hours of employment. For "new members ," as defined by the Public Employees ' Pension Reform Act of 2013, move-up pay will not be reported as pensionab le compensation to Ca/PERS.

M. ACTING APPOINTMENTS

1. The City Manager may authorize and approve a temporary appointment to fill either a temporary vacancy (such as maternity leave, long-term disability or military leave) or permanent vacancy (separation or retirement). All temporary appointees must satisfy the minimum qualifications for the position.

2. The formal and express assignment of an employee to perform the significant duties and responsibilities of a higher classification for more than one hundred sixty (160) consecutive working hours shall be deemed as an Acting Appointment, as provided in the City of Newport Beach Employee Policy Manual. An Acting Appointment shall be limited to ninety (90) calendar days in any 12 month period unless extended to a maximum of an additional ninety (90) calendar days on written recommendation by the Chief Lifeguard and approval by the City Manager, as provided in the City of Newport Beach Civil Service System Rules & Regulations.

3. An employee assigned to an Acting Appointment will receive additional compensation ("temporary upgrade pay'') for the duration of the Acting Appointment. Temporary upgrade pay is separate from, and in addition to, the employee's base pay as determined by the employee's current Salary Step, which shall not change as a result of the Acting Appointment. Temporary upgrade pay is calculated as the difference in pay from the employee's current Salary Step and the Step in the Salary Range for the Classification of the Acting Appointment that is at least five percent (5%), but not more than fifteen percent (15%), higher than the employee's current Salary Step. If the Acting Appointment is to a Classification without a Salary range, the employee shall receive additional compensation equal to five percent (5%) of the employee's current Salary Step. Temporary upgrade pay shall be paid biweekly as earned with the regular paycheck.

FOR THE NEWPORT BEACH LIFEGUARD MANAGEMENT
ASSOCIATION:

BY: -----------------Gary Conwell, NBLMA President
FOR THE CITY OF NEWPORT BEACH:

BY: -----------------Lauren Kleiman, Mayor of Newport Beach

CITY OF NEWPORT

BEACH APPROVED AS
TO FORM:

BY: Aa---c «
Aafon C. Harp, City Attorney
ATTEST:

BY: ------------Lena Shumway, City Clerk

Newport Beach City CouncilSeptember 8, 2026

Newport Beach City Council
September 8, 2026