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HomeMy WebLinkAbout2022-92 - Approving Side Letter Agreements with the Unions Representing City Employees and Approving Amendments to the Key and Management Compensation Plan, Appointee Employee Agreements and Police and Fire Chief AgreementsRESOLUTION NO. 2022-92 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING SIDE LETTER AGREEMENTS WITH THE LABOR GROUPS REPRESENTING CITY EMPLOYEES, APPROVING A SECOND AMENDMENT TO THE KEY AND MANAGEMENT COMPENSATION PLAN, AND APPROVING AMENDMENTS TO THE APPOINTEE EMPLOYEE AGREEMENTS AND POLICE AND FIRE CHIEF AGREEMENTS 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 employees to foster improved relations while balancing good management practices; WHEREAS, the City previously entered into a Memorandum of Understanding with Newport Beach City Employees Association ("NBCEA"), a recognized organization, for the term of January 1, 2022, through December 31, 2025; WHEREAS, the City previously entered into a Memorandum of Understanding with the Newport Beach Professional and Technical Employees Association ("NBPTEA") a recognized organization, for the term of January 1, 2022, through December 31, 2025; WHEREAS, the City previously entered into a Memorandum of Understanding with the Newport Beach Employees League ("League"), a recognized organization, for the term of January 1, 2022, through December 31, 2025; WHEREAS, the City previously entered into a Memorandum of Understanding with the Part Time Employees Association of Newport Beach ("PTEANB"), a recognized organization, for the term of January 1, 2022, through December 31, 2025; WHEREAS, the City previously entered into a Memorandum of Understanding with the Newport Beach Police Association ("NBPA"), a recognized organization, for the term of July 1, 2021, through November 30, 2025; WHEREAS, the City previously entered into a Memorandum of Understanding with the Newport Beach Police Management Association ("NBPMA"), a recognized organization, for the term of July 1, 2022, through June 30, 2026; Resolution No. 2022-92 Page 2 of 6 WHEREAS, the City previously entered into a Memorandum of Understanding with the Newport Beach Firefighters Association ("NBFA") a recognized organization, for the term of January 1, 2022, through December 31, 2025; WHEREAS, the City previously entered into a Memorandum of Understanding with the Newport Beach Fire Management Association ("NBFMA"), a recognized organization, for the term of July 1, 2022, through June 30, 20261 WHEREAS, the City previously entered into a Memorandum of Understanding with the Newport Beach Lifeguard Management Association ("NBLMA"), a recognized organization, for the term of January 1, 2022, through December 31, 2025; WHEREAS, the City previously entered into a Memorandum of Understanding with the Association of Newport Beach Ocean Lifeguards ("ANBOL"), a recognized organization, for the term of September 13, 2022 through June 30, 2025; WHEREAS, the City Council adopted Resolution No. 2022-10 adopting a Key and Management Compensation Plan ("Plan") establishing compensation and benefits terms for unrepresented employees, including Executive Management, Administrative Management, Division Management and Confidential employees for the period January 1, 2022, through December 31, 2025; WHEREAS, the Police Chief and Fire Chief employment agreements each provide that their employee retirement percentage contribution is the same as that applied to their respective safety management unit members as set forth in a Council -approved Memorandum of Understanding; WHEREAS, the Assistant Police Chief, Assistant Fire Chief and Assistant Chief, Lifeguard Operations employee retirement contributions are the same as that applied to their respective safety management unit members as set forth in a Council -approved Memorandum of Understanding; WHEREAS, the City Manager, City Attorney and City Clerk employment agreements each provide that their employee retirement percentage contributions shall be a minimum of thirteen percent (13%); WHEREAS, the country has experienced rising inflation and healthcare costs since the Memoranda of Understanding, Plan, and employment agreements were entered into; WHEREAS, the City Council of the City of Newport Beach desires to amend the Memoranda of Understanding between the City and the recognized organizations (hereinafter "Associations") by approving Side Letters of Agreement which provide for either a temporary reduction in the employee retirement percentage contributions, or, a temporary increase in the City's monthly contribution towards the Cafeteria Plan as set forth in Exhibits A through J; Resolution No. 2022-92 Page 3 of 6 WHEREAS, the City Council of the City of Newport Beach desires to amend the Plan to provide for a temporary reduction in the employee retirement percentage contributions for covered employees as set forth in Exhibit K; WHEREAS, the City Council of the City of Newport Beach wishes to amend the employee agreements for the City Manager, City Attorney and City Clerk to provide for a temporary reduction in the employee retirement percentage contributions as set forth in Exhibits L through N; WHEREAS, the City Council of the City of Newport Beach wishes to amend the employee agreements for the Police Chief and the Fire Chief to provide for a temporary reduction in the employee retirement percentage contributions as set forth in Exhibits O and P; WHEREAS, by adopting this resolution, the City Council of the City of Newport Beach intends to provide either a temporary reduction in the employee retirement percentage contributions, or, a temporary increase in the City's monthly contribution towards the Cafeteria Plan for employees as set forth in Exhibits A-P to be in conformance with the Memoranda of Understanding, Plan and Employment Agreements; and WHEREAS, by adopting this resolution, the City Council also desires to replace certain language contained in the existing Associations' Memoranda of Understanding, the Plan, Appointee Employment Agreements, and Police Chief and Fire Chief Agreements by adopting the Side Letters of Agreement, Amended Plan language, Amended Appointee Employment Agreements and Amended Police Chief and Fire Chief Agreements attached hereto as Exhibits A-P to serve as the controlling language for the remaining term of the respective Memoranda of Understanding, the Plan, Appointee Employment Agreements and Police and Fire Chief Agreements. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 2: The City Council hereby approves all the Side Letters of Agreement attached hereto as set forth in Exhibits A through J, which are incorporated herein by this reference. The employee retirement percentage contributions and/or cafeteria plan contributions referenced in the attached Side Letters of Agreement shall prevail over any previously adopted employee retirement percentage contributions and/or cafeteria plan contributions that conflict herewith. Section 3: The City Council hereby approves the second Amendment to the Key and Management Compensation Plan attached hereto as set forth in Exhibit K, which is incorporated herein by reference. The employee retirement percentage contributions referenced in Exhibit K shall prevail over any previously adopted employee retirement percentage contributions that conflict herewith. Resolution No. 2022-92 Page 4 of 6 Section 4: The City Council hereby approves the Amendment to the City Manager's Third Amended and Restated Employment Agreement as set forth in Exhibit L, which is attached hereto and incorporated herein by this reference. The employee retirement percentage contributions referenced in Exhibit L shall prevail over any previously adopted employee retirement percentage contributions for the City Manager that conflicts herewith. Section 5: The City Council hereby approves the Amendment to the City Attorney's Seventh Amended and Restated Employment Agreement as set forth in Exhibit M, which is attached hereto and incorporated herein by this reference. The employee retirement percentage contributions referenced in Exhibit M shall prevail over any previously adopted employee retirement percentage contributions for the City Attorney that conflicts herewith. Section 6: The City Council hereby approves the Amendment to the City Clerk's Seventh Amended and Restated Employment Agreement as set forth in Exhibit N, which is attached hereto and incorporated herein by this reference. The employee retirement percentage contributions referenced in Exhibit N shall prevail over any previously adopted employee retirement percentage contributions for the City Clerk that conflicts herewith. Section 7: The City Council hereby approves the Amendment to the Police Chief's Third Amended and Restated Employment Agreement as set forth in Exhibit O, which is attached hereto and incorporated herein by this reference. The employee retirement percentage contributions referenced in Exhibit O shall prevail over any previously adopted employee retirement percentage contributions for the Police Chief that conflicts herewith. Section 8: The City Council hereby approves the Amendment to the Fire Chief's First Amended and Restated Employment Agreement as set forth in Exhibit P, which is attached hereto and incorporated herein by this reference. The employee retirement percentage contributions referenced in Exhibit P shall prevail over any previously adopted employee retirement percentage contributions for the Fire Chief that conflicts herewith. Section 9: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 10: 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. Resolution No. 2022-92 Page 5 of 6 Section 11: 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. 2022-92 Page 6 of 6 Section 12: 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 29th day of November, 2022. Kevin Mu Mayor , ATTEST: Brown City Clerk %L'FOF O% APPROVED AS TO FORM: CITY TTORNEY'S OFFIC �, (f Aa*'roln C. Harp City Attorney Exhibit A: Side Letter of Agreement Between the City and NBCEA Exhibit B: Side Letter of Agreement Between the City and NBPTEA Exhibit C: Side Letter of Agreement Between the City and League Exhibit D: Side Letter of Agreement Between the City and PTEANB Exhibit E: Side Letter of Agreement Between the City and NBPA Exhibit F: Side Letter of Agreement Between the City and NBPMA Exhibit G: Side Letter of Agreement Between the City and NBFA Exhibit H: Side Letter of Agreement Between the City and NBFMA Exhibit I: Side Letter of Agreement Between the City and NBLMA Exhibit J: Side Letter of Agreement Between the City and ANBOL Exhibit K: Second Amendment to the City Key and Management Compensation Plan Exhibit L: Amendment to the Third Amended and Restated Employment Agreement between the City and the City Manager Exhibit M: Amendment to the Seventh Amended and Restated Employment Agreement between the City and the City Attorney Exhibit N: Amendment to the Seventh Amended and Restated Employment Agreement between the City and the City Clerk Exhibit O: Amendment to the Third Amended and Restated Employment Agreement between the City and the Police Chief Exhibit P: Amendment to the First Amended and Restated Employment Agreement between the City and the Fire Chief E_XHiBIT A SIDE LETTER OF AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND THE NEIYPORT BEACH CITY EMPLOYEES ASSOCIATION This Side Letter of Agreement ("Agreement") is made and entered into this _ day of 2022, by and between the City of Newport Beach ("City") and the Newport Beach City Employees Association ("Association") (collectively "Parties") with respect to the following: WHEREAS, on November 16, 2021, the City Council adopted Resolution No. 2021-109 approving a Memorandum of Understanding ("MOU") between the Parties with a term of January 1, 2022, through December 31, 2025; WHEREAS, given increases in the cost of medical insurance and to aid in the recruitment and retention of valuable employees, the Parties wish to modify the MOU; and WHEREAS, this Agreement will not have the effect of an agreement, and will not be binding on either party, until it is ratified by the affected bargaining unit and approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. The following language in Section 4.D.2. Fringe Benefits, Retirement Benefit, Employee Contributions, of the MOU is amended to read as follows: 2. Employee Contributions The Association has agreed to share in the rising cost of pension obligations. Under the terms of this MOU, unit members will contribute additional amounts toward the Ca1PERS retirement benefit, to the extent permissible by law. Should any provision be deemed invalid, the City and Association agree to meet for the purpose of renegotiating employee retirement contributions. Employee retirement contributions that are in addition to the normal CalPERS Member Contribution (of 7% or 8%) shall be calculated on base pay, special pays, and other pays normally reported as "PERSable" compensation and will be made on a pre-tax basis through payroll deduction, to the extent allowable by law. It is recognized that these payments will not be reported to CaIPERS as contributions toward either the Member or Employer rate, as provided under Government Code Section 20516(f). Under a separate agreement and ratified via a contract amendment with Ca1PERS in 2008, Tier I employees shall contribute 2.42% compensation earnable (as cost sharing) per Government Code section 20516(a). Tier I Employees - shall contribute a total employee contribution of 13% as follows: Tier 1 — Eight percent (8%) member contribution, 2.42% of Page 1 of 4 compensation earnable as cost sharing per Government Code section 20516(a) and 2.58% of compensation earnable as cost sharing per Government Code section 20516(f). Temporary Reduction. Effective the pay period that includes January 1, 2023, Tier I Employees shall contribute a total employee contribution of 11.5% as follows: Tier 1 — Eight percent (8%) member contributions, 2.42% of compensation earnable as cost sharing per Government Code section 20516(a) and 1.08% of compensation earnable as cost sharing per Government Code section 20516(f). This reduction in the employee contribution rate sunsets at the end of the last frill pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, Tier I Employees shall contribute a total employee contribution of 13% as follows: Tier 1 — Eight percent (8%) member contribution, 2.42% of compensation earnable as cost sharing per Government Code section 20516(a) and 2.58% of compensation earnable as cost sharing per Government Code section 20516(f). Tier II Employees - shall contribute a total employee contribution of 13% as follows: seven percent (7%) (compensation earnable) member contribution and six percent (6%) of compensation earnable as cost sharing per Government Code section 20516(f). Temporary Reduction. Effective the pay period that includes January 1, 2023, Tier II Employees shall contribute a total employee contribution of 11.5% as follows: seven percent (7%) (compensation earnable) member contribution and four and one-half percent (4.5%) of compensation earnable as cost sharing per Government Code section 20516(f). This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, Tier 11 employees shall contribute a total employee contribution of 13% as follows: seven percent (7%) (compensation earnable) member contribution and six percent (6%) of compensation earnable as cost sharing per Government Code section 20516(t). Tier III Employees - The minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f), such that the total employee contribution equals 13% of pensionable compensation. Temporary Reduction. Effective the pay period that includes January 1, 2023, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f), such that the total employee contribution equals no less than 11.5% of pensionable compensation (i.e., the greater of 11.5% or 50% of the "total normal cost"). This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Page 2 of 4 Accordingly, effective the pay period that includes January 1, 2025, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f), such that the total employee contribution equals no less than 13% of pensionable compensation (i.e., the greater of 13% or 50% of the "total normal cost"). The City contracts with CalPERS for the 41h Level 1959 Survivors Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military Service Credit, 2% Cost of Living Adjustment and the pre -retirement option settlement 2 death benefit (Government Code Section 21548) 3. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in full force and effect. Signatures on the next page Page 3 of 4 Executed this _ day of , 2022 FOR THE NEWPORT BEACH CITY EMPLOYEES ASSOCIATION: By: ' /�t Mariah Stinson, President FOR THE CITY OF NEWPORT BEACH: I'm Kevin Muldoon, Mayor CITY OF NEWPORT BEACH APPROVED AS TO FORM: By: I'W'...i- ff4., ar n C. Harp, City Attorney ATTEST: Leilani Brown, City Clerk CEA Side Letter Agreement Page 4 of 4 EXHIBIT B SIDE LETTER OF AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND THE NEWPORT BEACH PROFESSIONAL AND TEHCNICAL EMPLOYEES ASSOCIATION This Side Letter of Agreement ("Agreement") is made and entered into this day of 2022, by and between the City of Newport Beach ("City") and the Newport Beach Professional and Technical Employees Association ("Association") (collectively "Parties") with respect to the following: WHEREAS, on November 16, 2021, the City Council adopted Resolution No. 2021-109 approving a Memorandum of Understanding ("MOU") between the Parties with a term of January 1, 2022, through December 31, 2025; WHEREAS, given increases in the cost of medical insurance and to aid in the recruitment and retention of valuable employees, the Parties wish to modify the MOU; and WHEREAS, this Agreement will not have the effect of an agreement, and will not be binding on either parry, until it is ratified by the affected bargaining unit and approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. The following language in Section 4.13.2. Fringe Benefits, Retirement Benefit, Employee Contributions, of the MOU is amended to read as follows: 2. Employee Contributions The Association has agreed to share in the rising cost of pension obligations. Under the terms of this MOU, unit members will contribute additional amounts toward the CalPERS retirement benefit, to the extent permissible by law. Should any provision be deemed invalid, the City and Association agree to meet for the purpose of renegotiating employee retirement contributions. Employee retirement contributions that are in addition to the normal CalPERS Member Contribution (of 7% or 8%) shall be calculated on base pay, special pays, and other pays normally reported as "PERSable" compensation (known either as compensation earnable or pensionable compensation) and will be made on a pre- tax basis through payroll deduction, to the extent allowable by law. It is recognized that these payments will not be reported to CalPERS as contributions toward either the Member or Employer rate, as provided under Government Code Section 20516(o. Under a separate agreement and ratified via a contract amendment with CalPERS in 2008, Tier I employees shall contribute 2.42% compensation earnable (as cost sharing) per Government Code section 20516(a). NBPTEA Side Letter Agreement Page I of 4 Tier I Employees - shall contribute a total employee contribution of 13% as follows: Tier 1 — Eight percent (8%) member contribution, 2.42% of compensation earnable as cost sharing per Government Code section 20516(a) and 2.58% of compensation earnable as cost sharing per Government Code section 20516(f). Temporary Reduction. Effective the pay period that includes January 1, 2023, Tier I Employees shall contribute a total employee contribution of 11.5% as follows: Tier 1 — Eight percent (8%) member contributions, 2.42% of compensation earnable as cost sharing per Government Code section 20516(a) and 1.08% of compensation earnable as cost sharing per Government Code section 20516(f). This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, Tier I Employees shall contribute a total employee contribution of 13% as follows: Tier 1 — Eight percent (8%) member contribution, 2.42% of compensation earnable as cost sharing per Government Code section 20516(a) and 2.58% of compensation earnable as cost sharing per Government Code section 20516(f). Tier II Employees - shall contribute a total employee contribution of 13% as follows: seven percent (7%) (compensation earnable) member contribution and six percent (6%) of compensation earnable as cost sharing per Government Code section 20516(f). Temporary Reduction. Effective the pay period that includes January 1, 2023. Tier II Employees shall contribute a total employee contribution of 1 1.5% as follows: seven percent (7%) (compensation earnable) member contribution and four and one-half percent (4.5%) of compensation earnable as cost sharing per Government Code section 20516(f). This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, Tier II employees shall contribute a total employee contribution of 13% as follows: seven percent (7%) (compensation earnable) member contribution and six percent (6%) of compensation earnable as cost sharing per Government Code section 20516(t). Tier III Employees - The minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f), such that the total employee contribution equals 13% of pensionable compensation. Temporary Reduction. Effective the pay period that includes January 1, 2023, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f), such that the total employee contribution equals no less than 1 1.5% of pensionable compensation (i.e., NBPTEA Side Letter Agreement Page 2 of 4 the greater of 11.5% or 50% of the "total normal cost"). This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f), such that the total employee contribution equals no less than 13% of pensionable compensation (i.e., the greater of 13% or 50% of the "total normal cost'). The City contracts with Ca1PERS for the 41h Level 1959 Survivors Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military Service Credit, 2% Cost of Living Adjustment and the pre -retirement option settlement 2 death benefit (Government Code Section 21548) 3. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in full force and effect. Signatures on the next page NBPTEA Side Letter Agreement Page 3 of -1 Executed this a day of )V tM kI1,, 2022 ATTEST: LOW FOR THE NEWPORT BEACH PROFESSIONAL AND TECHNICAL EMPLOYEES ASSOCIATION: By: mLd- Moniqtk Navarrete, President FOR THE CITY OF NEWPORT BEACH: Kevin Muldoon, Mayor CITY OF NEWPORT BEACH APPROVED AS TO FORM: By: (./� -r--P Aaron C. Harp, City Attorney Leilani Brown, City Clerk NBPTEA Side Letter Agreement Page 4 of 4 EXHIBIT O SIDE LETTER OF AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND THE NEWPORT BEACH EIVIPLOYEES LEAGUE This Side Letter of Agreement ("Agreement") is made and entered into this day of 2022, by and between the City of Newport Beach ("City") and the Newport Beach Employees League ("League") (collectively "Parties") with respect to the following: WHEREAS, on January 25, 2022, the City Council adopted Resolution No. 2022- 08 approving a Memorandum of Understanding ("MOU") between the Parties with a term of January 1, 2022, through December 31, 2025; WHEREAS, given increases in the cost of medical insurance and to aid in the recruitment and retention of valuable employees, the Parties wish to modify the MOU; and WHEREAS, this Agreement will not have the effect of an agreement, and will not be binding on either party, until it is ratified by the affected bargaining unit and approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. The following language in Section 4.D.2. Fringe Benefits, Retirement Benefit, Employee Contributions, of the MOU is amended to read as follows: 2. Employee Contributions The LEAGUE has agreed to share in the rising cost of pension obligations. Under the terms of this MOU, unit members will contribute additional amounts toward the Ca1PERS retirement benefit, to the extent permissible by law. Should any provision be deemed invalid, the City and LEAGUE agree to meet for the purpose of renegotiating employee retirement contributions. Employee retirement contributions that are in addition to the normal Ca1PERS Member Contribution (of 7% or 8%) shall be calculated on base pay, special pays, and other pays normally reported as "PERSable" compensation and will be made on a pre-tax basis through payroll deduction, to the extent allowable by law. It is recognized that these payments will not be reported to Ca1PERS as contributions toward either the Member or Employer rate, as provided under Government Code Section 20516(f). Under a separate agreement and ratified via a contract amendment with CalPERS in 2008, Tier I employees shall contribute 2.42% compensation earnable (as cost sharing) per Government Code section 20516(a). League Side Letter Agreement Page I. of 4 Tier I Employees - shall contribute a total employee contribution of 13% as follows: Tier 1 — Eight percent (8%) member contribution, 2.42% of compensation earnable as cost sharing per Government Code section 20516(a) and 2.58% of compensation earnable as cost sharing per Government Code section 20516(f). Temporary Reduction. Effective the pay period that includes January 1, 2023, Tier I Employees shall contribute a total employee contribution of 1 1.5% as follows: Tier 1 — Eight percent (8%) member contributions, 2.42% of compensation earnable as cost sharing per Government Code section 20516(a) and 1.08% of compensation earnable as cost sharing per Government Code section 20516(f). This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, Tier I Employees shall contribute a total employee contribution of 13% as follows: Tier 1 — Eight percent (8%) member contribution, 2.42% of compensation earnable as cost sharing per Government Code section 20516(a) and 2.58% of compensation earnable as cost sharing per Government Code section 20516(f). Tier II Employees - shall contribute a total employee contribution of 13% as follows: seven percent (7%) (compensation earnable) member contribution and six percent (6%) of compensation earnable as cost sharing per Government Code section 20516(f). Temporary Reduction. Effective the pay period that includes January 1, 2023, Tier II Employees shall contribute a total employee contribution of 1 1.5% as follows: seven percent (7%) (compensation earnable) member contribution and four and one-half percent (4.5%) of compensation earnable as cost sharing per Government Code section 20516(f). This reduction in the employee contribution rate sunsets at the end of the last fill pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, Tier II employees shall contribute a total employee contribution of 13% as follows: seven percent (7%) (compensation earnable) member contribution and six percent (6%) of compensation earnable as cost sharing per Government Code section 20516(f). Tier III Employees - The minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f), such that the total employee contribution equals 13% of pensionable compensation. Temporary Reduction. Effective the pay period that includes January 1, 2023, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the 'total normal cost'. Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f), such that the total League Side Letter Agreement Page 2 of 4 employee contribution equals no less than 11.5% of pensionable compensation (i.e.. the greater of 11.5% or 50% of the "total normal cost"). This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f), such that the total employee contribution equals no less than 13% of pensionable compensation (i.e., the greater of 13% or 50% of the "total normal cost"). The City contracts with CalPERS for the 41h Level 1959 Survivors Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military Service Credit, 2% Cost of Living Adjustment and the pre -retirement option settlement 2 death benefit (Government Code Section 21548) 3. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in full force and effect. Signatures on the next page League Side Letter Agreement Page 3 of 4 Executed this _ day of , 2022 FOR THE NEWPORT BEACH CITY EMPLOYEES LEAGUE: FOR THE CITY OF NEWPORT BEACH: IN Kevin Muldoon, Mayor CITY OF NEWPORT BEACH APPROVED AS TO FORM: By: C 4'.'- Aaron C. Harp, City Attorney ATTEST: Leilani Brown, City Clerk League Side Letter Agreement Page 4 of 4 EXHIBIT D SIDE LETTER OF AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND THE NEWPORT BEACH PART TIME EMPLOYEES ASSOCIATION OF NEWPORT BEACH This Side Letter of Agreement ("Agreement") is made and entered into this _ day of 2022, by and between the City of Newport Beach ("City") and the Part Time Employees Association of Newport Beach ("Association") (collectively "Parties") with respect to the following: WHEREAS, on March 8, 2022, the City Council adopted Resolution No. 2022-17 approving a Memorandum of Understanding ("MOU") between the Parties with a term of January 1, 2022, through December 31, 2025; WHEREAS, given increases in the cost of medical insurance and to aid in the recruitment and retention of valuable employees, the Parties wish to modify the MOU; and WHEREAS, this Agreement will not have the effect of an agreement, and will not be binding on either party, until it is ratified by the affected bargaining unit and approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: L The following language in Section 3.F.2. Fringe Benefits, Retirement Benefit, Employee Contributions, of the MOU is amended to read as follows: 2. Employee Contributions The Association has agreed to share in the rising cost of pension obligations. Under the terms of this MOU, unit members will contribute additional amounts toward the CalPERS retirement benefit, to the extent permissible by law. Should any provision be deemed invalid, the City and Association agree to meet for the purpose of renegotiating employee retirement contributions. Employee retirement contributions that are in addition to the normal CalPERS Member Contribution (of 7% or 8%) shall be calculated on base pay, special pays, and other pays normally reported as "PERSable" compensation and will be made on a pre-tax basis through payroll deduction, to the extent allowable by law. It is recognized that these payments will not be reported to CalPERS as contributions toward either the Member or Employer rate, as provided under Government Code Section 20516(f). Under a separate agreement and ratified via a contract amendment with CalPERS in 2008, Tier I employees shall contribute 2.42% compensation earnable (as cost sharing) per Government Code section 20516(a). PTEANB Side Letter Agreement Page t of 4 Tier I Employees - shall contribute a total employee contribution of I3% as follows: Tier 1 — Eight percent (8%) member contribution, 2.42% of compensation earnable as cost sharing per Government Code section 20516(a) and 2.58% of compensation earnable as cost sharing per Government Code section 20516(f). Temporary Reduction. Effective the pay period that includes January 1, 2023, Tier I Employees shall contribute a total employee contribution of 11.5% as follows: Tier 1 — Eight percent (8%) member contributions, 2.42% of compensation earnable as cost sharing per Government Code section 20516(a) and 1.08% of compensation earnable as cost sharing per Government Code section 20516(f). This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, Tier I Employees shall contribute a total employee contribution of 13% as follows: Tier 1 — Eight percent (8%) member contribution, 2.42% of compensation earnable as cost sharing per Government Code section 20516(a) and 2.58% of compensation earnable as cost sharing per Government Code section 20516(f). Tier II Employees - shall contribute a total employee contribution of 13% as follows: seven percent (7%) (compensation earnable) member contribution and six percent (6%) of compensation earnable as cost sharing per Government Code section 20516(f). Temporary Reduction. Effective the pay period that includes January 1, 2023, Tier II Employees shall contribute a total employee contribution of 11.5% as follows: seven percent (7%) (compensation earnable) member contribution and four and one-half percent (4.5%) of compensation earnable as cost sharing per Government Code section 20516(f). This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, Tier II employees shall contribute a total employee contribution of 13% as follows: seven percent (7%) (compensation earnable) member contribution and six percent (6%) of compensation earnable as cost sharing per Government Code section 20516(f). Tier III Employees - The minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(t), such that the total employee contribution equals 13% of pensionable compensation. Temporary Reduction. Effective the pay period that includes January 1, 2023. the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f), such that the total employee contribution equals no less than 11.5% of pensionable compensation (i.e., the greater of 11.5% or 50% of the "total normal cost'). This reduction in the employee PTEANB Side Letter Agreement Page 2 of .I contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f), such that the total employee contribution equals no less than 13% of pensionable compensation (i.e., the greater of 13% or 50% of the "total normal cost"). The City contracts with Ca1PERS for the 41" Level 1959 Survivors Insurance Benefit, $500 Lump Sum Death Benefit, Sick Leave Credit, Military Service Credit, 2% Cost of Living Adjustment and the pre -retirement option settlement 2 death benefit (Government Code Section 21548) Employees in the classifications Police Cadet and Police Reserve Officer are excluded from membership in CalPERS, as provided in the contract between the City of Newport Beach and the Board of Administration of the Public Employees' Retirement System. 2. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in filll force and effect. Signatures on the next page P'[EANB Side Letter Agreement Page 3 of 4 Executed this 3 day of N bm m6-,,, 2022 FOR THE PART TIME EMPLOYEES ASSOCIATION OF NEWPORT BEACH: 1 s ent FOR THE CITY OF NEWPORT BEACH: Lo Kevin Muldoon, Mayor CITY OF NEWPORT BEACH APPROVED AS TO FORM: By: -.-� \ . /�.�►"--- A on C. Harp, City Attorney ATTEST: Leilani Brown, City Clerk PTEANB Side Letter Agreement Page 4 of 4 EXHIBIT E SIDE LETTER OF AGREEIVI:ENT BETWEEN CITY OF NEWPORT BEACH AND THE NEIVPORT BEACH POLICE ASSOCIATION This Side Letter of Agreement ("Agreement") is made and entered into this _ day of 2022, by and between the City of Newport Beach ("City") and the Newport Beach Police Association ("NBPA") (collectively "Parties") with respect to the following: WHEREAS, on December 14, 2021, the City Council adopted Resolution No. 2021-129 approving a Memorandum of Understanding ("MOU") between the Parties with a term of July 1, 2021, through November 30, 2025; WHEREAS, given increases in the cost of medical insurance and to aid in the recruitment and retention of valuable employees, the Parties wish to modify the MOU; and WHEREAS, this Agreement will not have the effect of an agreement, and will not be binding on either party, until it is ratified by the affected bargaining unit and approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. The following language in Section 4.A.2. Fringe Benefits, Insurance, Medical Insurance, of the MOU is amended to read as follows: 2. Medical Insurance b. City Contribution Current Language: i. The City's monthly contribution towards the Cafeteria Plan is $1,524.00 (plus the minimum CalPERS participating employer contribution as outlined in Government Code section 22892.) Amended Language: i. The City's monthly contribution towards the Cafeteria Plan is $1,524.00 (plus the minimum CalPERS participating employer's contribution as outlined in Government Code section 22892.) Temporary Increase. Effective the pay period that includes January 1, 2023, the City's monthly contribution towards the Cafeteria Plan increases to $1,624.00 (plus the minimum CalPERS participating employer's contribution as outlined in Government Code section 22892). Effective the pay period that includes January 1, 2025, the City's monthly contribution towards the Cafeteria Plan decreases to $1,524.00 (plus the minimum CalPERS participating employer's contribution as outlined in Government Code section 22892). NBPA Side Letter Agreement Page 1. of 3 2. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in frill force and effect. Signatures on the next page NBPA Side Letter Agreement Page 2 of 3 Executed this 8 day of kl(W e rbu kr2022 ATTEST: IIn FOR THE NEWPORT BEACH POLICE ASSOCIATION: Mark FasaAo, P es' ent FOR THE CITY OF NEWPORT BEACH: IN Kevin Muldoon, Mayor CITY OF NEWPORT BEACH APPROVED AS TO FORM: By: ...- Aaron C. Harp, City Attorney Leilani Brown, City Clerk NBPA Side Letter Agreement Page 3 of 3 EXHIBIT F SIDE LETTER OF AGREEIVIENT BETWEEN CtTV OF NEWPORT BEACH AND THE NEWPOIeT BEACH POLICE NIAiNAGENIENT ASSOCIATION This Side Letter of Agreement ("Agreement") is made and entered into this _ day of 2022, by and between the City of Newport Beach ("City") and the Newport Beach Police Management Association ("NBPMA") (collectively "Parties") with respect to the following: WHEREAS, on June 28, 2022, the City Council adopted Resolution No. 2022-44 approving a Memorandum of Understanding ("MOU") between the Parties with a term of July 1, 2022, through June 30, 2026; WHEREAS, given increases in the cost of medical insurance and to aid in the recruitment and retention of valuable employees, the Parties wish to modify the MOU; and WHEREAS, this Agreement will not have the effect of an agreement, and will not be binding on either party, until it is ratified by the affected bargaining unit and approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. The following language in Section 4.A.2. Fringe Benefits, Health Insurance, Medical Insurance, of the MOU is amended to read as follows: 2. Medical Insurance b. City Contribution Current Language: i. The City's monthly contribution towards the Cafeteria Plan is $1,524.00 (plus the minimum Ca1PERS participating employer contribution as outlined in Government Code §22892.) Amended Language: i. The City's monthly contribution towards the Cafeteria Plan is $1,524.00 (plus the minimum CaIPERS participating employer's contribution as outlined in Government Code §22892.) Temporary Increase. Effective the pay period that includes January 1, 2023, the City's monthly contribution towards the Cafeteria Plan increases to $1,624.00 (plus the minimum CAPERS participating employer's contribution as outlined in Government Code §22892). Effective the pay period that includes January 1, 2025, the City's monthly contribution towards the Cafeteria Plan decreases to $1,524.00 -(plus the minimum CaIPERS participating employer's contribution as outlined in Government Code §22892)• NBPMA Side Letter Agreement Page i of 3 2. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in frill force and effect. Signatures on the next page NBPMA Side Letter Agreement Page 2 of 3 Executed this ATTEST: day of 52022 FOR THE NEWPORT BEACH POLICE MANAGEMENT ASS OCIA T ION: By:1C.rC� rJ�uz�c� Eric Little, President FOR THE CITY OF NEWPORT BEACH: Kevin Muldoon, Mayor CITY OF NEWPORT BEACH APPROVED AS TO FORM: �r i By, z f Aaron C. Harp, City Attorney Leilani Brown, City Clerk NBPMA Side Letter Agreement Page 3 of 3 EXHIBIT G SIDE LETTER OF AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND THE NE' 1VPORT BEACH FIREFIGHTERS ASSOCIATION This Side Letter of Agreement ("Agreement") is made and entered into this day of 2022, by and between the City of Newport Beach ("City") and the Newport Beach Firefighters Association ("NBFA") (collectively "Parties") with respect to the following: WHEREAS, on December 14, 2021, the City Council adopted Resolution No. 2021-130 approving a Memorandum of Understanding ("MOU") between the Parties with a term of January 1, 2022, through December 31, 2025; WHEREAS, given increases in the cost of medical insurance and to aid in the recruitment and retention of valuable employees, the Parties wish to modify the MOU; and WHEREAS, this Agreement will not have the effect of an agreement, and will not be binding on either party, until it is ratified by the affected bargaining unit and approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. The following language in Section 4.A.2. Fringe Benefits, Insurance, Medical Insurance, of the MOU is amended to read as follows: 2. Medical Insurance Current Language: The City's monthly contribution towards the Cafeteria Plan is $1,824.00 (plus the minimum CalPERS participating employee's contribution). Amended Language: The City's monthly contribution towards the Cafeteria Plan is $1,824.00 (plus the minimum CalPERS participating employer's contribution). Temporary Increase. Effective the pay period that includes January 1, 2023, the City's monthly contribution towards the Cafeteria Plan increases to $1,924.00 (plus the minimum CalPERS participating employer's contribution). Effective the pay period that includes January 1, 2025, the City's monthly contribution towards the Cafeteria Plan decreases to $1,824.00 (plus the minimum CalPERS participating employer's contribution). 2. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in full force and effect. Signatures on the next page NBFA Side Letter Agreement Page 1 of 2 Executed this !Ef day of �) c1 V t' ws cf', 2022 FOR THE NEWPORT BEACH FIREFIGHTERS ASSOCIATION: By: �2 Bobby Salerno, President FOR THE CITY OF NEWPORT BEACH: L'I'm Kevin Muldoon, Mayor CITY OF NEWPORT BEACH APPROVED AS TO FORM: By: ,,,..•.�� Aaron C. Harp, City Attorney ATTEST: Leilani Brown, City Clerk NBFA Side Letter Agreement Page 2 of 2 EXHIBIT H SLUE LETTER OF AGREEMENT I3ETWE EN CITY OF NEWPOR"i' 13EAC.H AND THE NEWPORT BEACH FIRE MANACETMENT ASSOCIATION This Side Letter of Agreement ("Agreement") is made and entered into this _ day of 2022, by and between the City of Newport Beach ("City") and the Newport Beach Fire Management Association (`NBFMA") (collectively "Parties") with respect to the following: WHEREAS, on June 14, 2022, the City Council adopted Resolution No. 2022-39 approving a Memorandum of Understanding ("MOU") between the Parties with a term of July 1, 2022, through June 30, 2026; WHEREAS, given increases in the cost of medical insurance and to aid in the recruitment and retention of valuable employees, the Parties wish to modify the MOU; and WHEREAS, this Agreement will not have the effect of an agreement, and will not be binding on either party, until it is ratified by the affected bargaining unit and approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. The following language in Section 4.A2. Fringe Benefits, Insurance. City Contribution, of the MOU is amended to read as follows: 2. City Contribution Current Language: The City's contribution towards the Cafeteria Plan is $1,824.00 (plus the minimum CalPERS participating employee's contribution). Amended Language: The City's monthly contribution towards the Cafeteria Plan is $1,824.00 (Plus the minimum CalPERS participating employer's contribution). Temporary Increase. Effective the pay period that includes January 1, 2023, the City's monthly contribution towards the Cafeteria Plan increases to $1,924.00 (plus the minimum CalPERS participating employer's contribution). Effective the pay period that includes January 1, 2025, the City's monthly contribution towards the Cafeteria Plan decreases to $1,824.00 (plus the minimum CalPERS participating employer's contribution). 2. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in full force and effect. Signatures on the next page NBFMA Side Letter Agreement Page I of 2 Executed this _ day of 92022 ATTEST: am FOR THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION: Brian McDonough, �esident FOR THE CITY OF NEWPORT BEACH: Kevin Muldoon, Mayor CITY OF NEWPORT BEACH APPROVED AS TO FORM: By:�'�----- Aaron C. Harp, City Attorney Leilani Brown, City Clerk NBFMA Side Letter Agreement Page 2 of 2 EXHIBIT 1 SIDE LETTER OF AGREENIENT BETWEEN CITY OF NEWPORT BEACH AND TEIE NENVPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION This Side Letter of Agreement ("Agreement") is made and entered into this day of 2022, by and between the City of Newport Beach ("City") and the Newport Beach Lifeguard Management Association ("NBLMA") (collectively "Parties") with respect to the following: WHEREAS, on May 10, 2022, the City Council adopted Resolution No. 2022-28 approving a Memorandum of Understanding ("MOU") between the Parties with a term of January 1, 2022, through December 31, 2025; WHEREAS, given increases in the cost of medical insurance and to aid in the recruitment and retention of valuable employees, the Parties wish to modify the MOU; and WHEREAS, this Agreement will not have the effect of an agreement, and will not be binding on either party, until it is ratified by the affected bargaining unit and approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. The following language in Section 4.A.2. Fringe Benefits, Insurance, City Contribution, of the MOU is amended to read as follows: 2. City Contribution a. Full-time Members: Current Language: The City's contribution towards the Cafeteria Plan is $1,645 (plus the minimum CalPERS participating employer's contribution). Amended Language: The City's monthly contribution towards the Cafeteria Plan is $1,645.00 (plus the minimum CalPERS participating employee's contribution). Temporary Increase. Effective the pay period that includes January 1, 2023, the City's monthly contribution towards the Cafeteria Plan increases to $1,745.00 (plus the minimum CalPERS participating employer's contribution). Effective the pay period that includes January 1, 2025, the City's monthly contribution towards the Cafeteria Plan decreases to $1,645.00 (plus the minimum CalPERS participating employer's contribution). b. Part -Time Members: Current Language: Part-time NBLMA members receive a monthly cafeteria benefit of $601.00. For part-time employees enrolled in medical plans, the cafeteria amount is inclusive of the PERS designated minimum medical insurance contribution. Page 1 of 3 Amended Language: Part-time NBLMA members receive a monthly cafeteria benefit of $601.00. For part-time employees enrolled in medical plans, the cafeteria amount is inclusive of the PERS designated minimum medical insurance contribution. Temporary Increase. Effective the pay period that includes January 1, 2023, the City's monthly contribution towards the Cafeteria Plan increases to $637.53. For part- time employees enrolled in medical plans, the cafeteria amount is inclusive of the CalPERS designated minimum medical insurance contribution. Effective the pay period that includes January 1, 2025, the City's monthly contribution towards the Cafeteria Plan decreases to $601.00. For part-time employees enrolled in medical plans, the cafeteria amount is inclusive of the CalPERS designated minimum medical insurance contribution. 2. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in full force and effect. Signatures on the next page NBLIvIA Side Letter Agreement Page 2 of 3 Executed this 5 day of I JJIjf, ,A\- tt'0022 FOR THE NEWPORT BEACH LIFEGUARD MANAGEMENT ASSOCIATION: f/ .Gary C �ell, Pre • ent FOR THE CITY OF NEWPORT BEACH: Kevin Muldoon, Mayor CITY OF NEWPORT BEACH APPROVED AS TO FORM: BY �.,.►— Aaron C. Harp, City Attorney ATTEST: Leilani Brown, City Clerk NBLMA Side Letter Agreement Page 3 of 3 EXHIBIT J S11)E LETTER OF AGREENIENT BETWEEN CITY OF NEWPORT BEACH AND THE ASSOCIATION OF NEWPORT 13EACI-I OCEAN LIFEGUAj-N.11S This Side Letter of Agreement ("Agreement") is made and entered into this _ day of 2022, by and between the City of Newport Beach ("City") and the Association of Newport Beach Ocean Lifeguards ("ANBOL") (collectively "Parties") with respect to the following: WHEREAS, on September 13, 2022, the City Council adopted Resolution No. 2022-57 approving a Memorandum of Understanding ("MOU") between the Parties with a term of September 13, 2022, through June 30, 2025; WHEREAS, given increases in the cost of medical insurance and to aid in the recruitment and retention of valuable employees, the Parties wish to modify the MOU; and WHEREAS, this Agreement will not have the effect of an agreement, and will not be binding on either party, until it is ratified by the affected bargaining unit and approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. The following language in Section 4.H.2 Fringe Benefits, Retirement Benefit, California Public Employees' Retirement System (CalPERS), of the MOU is amended to read as follows: 2. California Public Employees' Retirement System (CaIPERS) It is the employees' responsibility to notify the Human Resources Department of outside employment. If the City is notified by Ca1PERS that an ANBOL member has become a CaIPERS member through working at another CaIPERS agency, said employee is responsible for reimbursing the City their portion of cost sharing as required by all members and outlined below, pursuant to Government Code §20516(f). CaIPERS will invoice their member for the employee rate only. For example, a PEPRA member may receive an invoice from PERS for 11.5% of pensionable compensation. - however, the ANBOL member will still need to reimburse the City 2.1% of pensionable compensation for a total of 13.6%. The City will remind employees of this obligation at the start of the season. The following provisions apply only to bargaining unit members enrolled in Ca1PERS as Safety members, consistent with the City's contract with CaIPERS: ANBOL Side Letter Agreement Page I of 4 Tier I: For employees hired by the City as safety members on or before November 23, 2012, the retirement formula shall be 3% laaD 50 calculated on the basis of the highest consecutive 12 months. Tier II: For employees first hired by the City as safety members between November 24, 2012 and December 31, 2012, or hired on or after January 1, 2013 and who are not new members as defined in Government Code Section 7522.04(f), the retirement formula is 2% n 50 calculated on the basis of the highest 36 month period selected by employee. Tier III: For employees first hired by the City as safety members on or after January 1, 2013, who are new members, as defined in Government Code Section 7522.04(f), the retirement formula shall be 2.7% !Z� 57 calculated on the basis of the highest consecutive 36-month period selected by employees. Employee Contributions Tier I & Tier II Safety Employees — ANBOL Tier I and Tier II safety employees will contribute the full statutory member contribution, equal to nine percent (9%) of pensionable compensation, plus an additional 4.6% of pensionable compensation toward retirement costs as permitted under Government Code section 20516(I), for a total contribution of 13.6%. Temporary Reduction. Effective the pay period that includes January 1, 2023, Tier I and Tier II safety employees shall contribute a total employee contribution as follows: Nine percent (9%) member contributions, and an additional contribution of 3.1 % compensation earnable as cost sharing pursuant to Government Code section 20516(f), such that the total employee contribution equals no less than 12.1 % of compensation earnable or 50% of the total normal cost for PEPRA safety employees, whichever is greater, but in no event shall total employee contribution exceed 13.6%. This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, Tier I and Tier II safety employees shall contribute a total employee contribution of 13.6% as follows: 9% member contribution and 4.6% of compensation earnable as cost sharing per Government Code section 20516(f). Tier III Safety Employees — In addition to the statutorily required 50% contribution of total normal costs ("member contribution rate"), Tier III safety employees shall contribute an additional amount of pensionable compensation toward retirement costs pursuant to Government Code section 20516(f) so that their contribution equals a total contribution of 13.6% of pensionable compensation. Temporary Reduction. Effective the pay period that includes January 1, 2023, the minimum statutory employee contribution for safety employees in Tier III is subject to the provisions of PEPRA and equals 50% of the total normal cost. Tier III safety employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f). such ANBOL Side Letter Agreement Page 2 of 4 that the total employee contribution equals no less than 12.1 % of pensionable compensation or 50% of the total normal cost for PEPRA safety employees (i.e., the greater of 12.1 % or 50% of the "total normal cost"). This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, the minimum statutory employee contribution for safety employees in Tier III is subject to the provisions of PEPRA and equals 50% of the total normal cost. Tier III safety employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f), such that the total employee contribution equals no less than 13.6% of pensionable compensation (i.e., the greater of 13.6% or 50% of the "total normal cost"). If in future fiscal years the member contribution rate for safety employees in Tier III shall become greater or less, as determined by CalPERS valuations, the additional contribution made by the employee under Government Code section 20516(f) will be increased or decreased accordingly so that the total employee contribution equals 13.6% of pensionable compensation. Provided however, that the employee contribution shall never fall below the statutorily required contribution. 2. Except as expressly modified herein, all other provisions, terms, and covenants set forth in the MOU shall remain unchanged and shall be in full force and effect. Signatures on the next page ANBOL Side Letter A-reement Page 3 of 4 Executed this j_ day of t�gv����hT , 2022 ATTEST: 5 FOR THE ASSOCIATION OF NEWPORT BEACH OCEAN LIFEGUARDS: FOR THE CITY OF NEWPORT BEACH: Kevin Muldoon, Mayor CITY OF NEWPORT BEACH APPROVED AS TO FORM: By:� r•--'---�- Aaron C. Harp, City Attorney Leilani Brown, City Clerk =ANBOL Side Letter Agreement Page 4 of 4 EXHIBIT K SECOND AMENDIV[ENT TO CITY OF NEWPORT BEACH KEY AND MANAGEMENT COMPENSATION PLAN WHEREAS, on January 25, 2022, the City Council adopted Resolution No. 2022-10 adopting a Key and Management Compensation Plan ("Plan") for the period of January 1, 2022, through December 31, 2025; WHEREAS, on August 23, 2022, the City Council adopted Resolution No. 2022-52 amending the Plan and modifying the cost -of -living adjustments for Key and Management Employees; WHEREAS, given increases in the cost of medical insurance and to aid in the recruitment and retention of valuable employees, the City Council wishes to amend the Plan; and WHEREAS, this amendment will not be binding until it is approved by the City Council. NOW, THEREFORE, the City Council of the City of Newport Beach wishes to amend the Plan as follows: 1. Section C.l.b., Retirement Benefits, PERS, Employee Contributions, Non Safety, of the Plan is amended to read as follows: Non Safety: Key and Management employees will contribute towards their CalPERS retirement benefit. Employee retirement contributions that are in addition to the normal CalPERS Member Contribution shall be calculated on base pay, special pays, and other pays normally reported as "PERSable" compensation (known either as compensation earnable or pensionable compensation) and will be made on a pre-tax basis through payroll deduction, to the extent allowed by law. Key and Management Compensation Plan Page 1 of 9 Under a separate agreement and ratified via a contract amendment with CalPERS in 2008, Tier I employees shall contribute 2.42% compensation earnable (as cost sharing) per Government Code section 20516(a). Tier I Employees shall contribute 13% of compensation earnable as follows: 8% as the statutory member contribution, 2.42% as cost sharing per Government Code section 20516(a) and 2.58% as cost sharing per Government Code section 20516(f). Temporary Reduction. Effective the pay period that includes January 1, 2023, Tier I Employees shall contribute 11.5% of compensation earnable as follows: 8% as the statutory member contribution, 2.42% as cost sharing per Government Code section 20516(a) and 1.08% of compensation earnable as cost sharing per Government Code section 20516(f). This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, Tier I Employees shall contribute 13% of compensation earnable as follows: 8% as the statutory member contribution, 2.42% as cost sharing per Government Code section 20516(a) and 2.58% of compensation earnable as cost sharing per Government Code section 20516(f). Tier II Employees shall contribute 13% of compensation earnable as follows: 7% as the statutory member contribution and 6% of compensation earnable as cost sharing per Government Code section 20516(f). Temporary Reduction. Effective the pay period that includes January 1, 2023, Tier II Employees shall contribute 11.5% of compensation earnable as follows: 7% as the statutory member contribution and 4.5% of compensation earnable as cost sharing per Government Code section 20516(f). This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, Tier Il employees shall contribute 13% of compensation earnable as follows: 7% as the statutory member contribution and 6% of compensation earnable as cost sharing per Government Code section 20516(f). Key and Management Compensation Plan Page 2 of 9 'Fier 1.1.1 Employees - The minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost'. Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f), for a total employee contribution of 13% of pensionable compensation. Temporary Reduction. Effective the pay period that includes January 1, 2023, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost'. Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f), for a total employee contribution that is no less than 11.5% of pensionable compensation (i.e., Tier III employees pay the greater of 11.5% or 50% of the "total normal cost'). This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost'. Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(0, for a total employee contribution that is no less than 13% of pensionable compensation (i.e., Tier III employees pay the greater of 13% or 50% of the "total normal cost'). If in future fiscal years the member contribution rate for safety employees in Tier III shall become greater or less, as determined by CalPERS valuations, the additional contribution made by the employee under Government Code section 20516(f) will be increased or decreased accordingly so that the total employee contribution equals 13% of pensionable compensation. Provided however, that the employee contribution shall never fall below the statutorily required contribution. Key and Management Compensation Plan Page 3 of 9 Safety: A. Assistant Police Chief An Assistant Police Chiefs employee contribution will depend on what Tier the employee is in as defined above. Tier 1 and II members will contribute the full statutory member contribution, equal to 9% of compensation earnable, plus an additional 5.6% of compensation earnable toward retirement costs as permitted under Government Code §20516(f), for a total contribution of 14.6%. Temporary Reduction. Effective the pay period that includes January 1, 2023, Tier I and Tier II employees shall contribute the full statutory member contribution, equal to 9%, plus an additional 4.1 % of compensation earnable toward retirement costs as permitted under Government Code section 20516(f), for a total contribution of 13.1 %. This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, Tier I and Tier II employees shall contribute the full statutory member contribution, equal to 9% of compensation earnable, plus an additional 5.6% of compensation earnable toward retirement costs as permitted under Government Code section 20516(f), for a total contribution of 14.6%. Tier 1II members: In addition to the statutorily required 50% contribution of total normal costs ("member contribution rate"), Tier 3 members shall contribute an additional percentage of pensionable compensation toward retirement costs as cost sharing pursuant to Government Code §20516(f), so that their total contribution is 14.6% Temporary Reduction. Effective the pay period that includes January 1, 2023, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f) for a total employee contribution that is no less than 13.1% of pensionable compensation (i.e., Key and Management Compensation Plan Page 4 of 9 Tier III employees pay the greater of 13.1 % or 50% of the "total normal cost"). This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f) for a total employee contribution that is no less than 14.6% of pensionable compensation (i.e., Tier III employees pay the greater of 14.6% or 50% of the "total normal cost"). If in future fiscal years the member contribution rate for safety employees in Tier III shall become greater or less, as determined by CalPERS valuations, the additional contribution made by the employee under Government Code section 20516(f) will be increased or decreased accordingly so that the total employee contribution equals 14.6% of pensionable compensation. Provided however, that the employee contribution shall never fall below the statutorily required contribution. Effective the pay period that includes January 1, 2023, the CalPERS retirement contributions for the Assistant Police Chief classification shall be as noted above and shall not be tied to the retirement contributions required by members of the Police Management Association. Effective the pay period that includes January 1, 2025, the CalPERS retirement contributions for the Assistant Police Chief classification shall be tied to the retirement contributions required by members of the Police Management Association. If there are future changes to those employee retirement contributions, as set forth in a council -approved MOU, the same changes shall be made for the Assistant Police Chief. B. Assistant Fire Chief An Assistant Fire Chief s employee contribution will depend on what Tier the employee is in as defined above. Tier I and 11 members will contribute the full statutory member contribution, equal to 9% of compensation earnable, plus an additional 4.5% of compensation earnable Key and Management Compensation Plan Page 5 of 9 toward retirement costs as permitted under Government Code §20516(f), for a total contribution of 13.5%. Temporary Reduction. Effective the pay period that includes January 1, 2023, Tier I and Tier II employees shall contribute the full statutory member contribution, equal to 9%, plus an additional 3% of compensation earnable toward retirement costs as permitted under Government Code section 20516(f), for a total contribution of 12%. This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, Tier I and Tier II employees shall contribute the full statutory member contribution, equal to 9% of compensation earnable, plus an additional 4.5% of compensation earnable toward retirement costs as permitted under Government Code section 20516(f), for a total contribution of 13.5%. Tier III members: In addition to the statutorily required 50% contribution of total normal costs ("member contribution rate"), Tier 3 members shall contribute an additional percentage of pensionable compensation toward retirement costs as cost sharing pursuant to Government Code §20516(f), so that their total contribution is 13.5%. Temporary Reduction. Effective the pay period that includes January 1, 2023, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f) for a total employee contribution that is no less than 12% of pensionable compensation (i.e., Tier III employees pay the greater of 12% or 50% of the "total normal cost"). This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f) for a total employee contribution that is no less than 13.5% of pensionable compensation (i.e., Tier III employees pay the greater of 13.5% or 50% of the "total normal cost"). Key and Management Compensation Plan Page 6 of 9 If in future fiscal years the member contribution rate for safety employees in Tier III shall become greater or less, as determined by CalPERS valuations, the additional contribution made by the employee under Government Code section 20516(f) will be increased or decreased accordingly so that the total employee contribution equals 13.5% of pensionable compensation. Provided however, that the employee contribution shall never fall below the statutorily required contribution. Effective the pay period that includes January 1, 2023, the CalPERS retirement contributions for the Assistant Fire Chief classification shall be as noted above and shall not be tied to the retirement contributions required by members of the Fire Management Association. Effective the pay period that includes January 1, 2025, the CalPERS retirement contributions for the Assistant Fire Chief classification shall be tied to the retirement contributions required by members of the Fire Management Association. If there are future changes to those employee retirement contributions, as set forth in a council -approved MOU, the same changes shall be made for the Assistant Fire Chief. C. Assistant Chief, Lifeguard Operations The employee contribution for the Assistant Chief of Lifeguard Operations will depend on what Tier the employee is in as defined above. Tier I and U. members will contribute the full statutory member contribution, equal to 9% of compensation earnable, plus an additional 4.6% of compensation earnable toward retirement costs as permitted under Government Code §20516(f), for a total contribution of 13.6%. Temporary Reduction. Effective the pay period that includes January 1, 2023, Tier I and Tier II employees shall contribute the full statutory member contribution, equal to 9%, plus an additional 3.1% of compensation earnable toward retirement costs as permitted under Government Code section 20516(f), for a total contribution of 12.1%. This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, Tier I and Tier II employees shall contribute the full Key and Management Compensation Plan Page 7 of 9 statutory member contribution, equal to 9% of compensation earnable, plus an additional 4.6% of compensation earnable toward retirement costs as permitted under Government Code section 20516(f), for a total contribution of 13.6%. Tier I1:1 members: In addition to the statutorily required 50% contribution of total normal costs ("member contribution rate"), Tier 3 members shall contribute an additional percentage of pensionable compensation toward retirement costs as cost sharing pursuant to Government Code §20516(f), so that their total contribution is 13.6%. Temporary Reduction. Effective the pay period that includes January 1, 2023, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f) for a total employee contribution that is no less than 12.1 % of pensionable compensation (i.e., Tier III employees pay the greater of 12.1% or 50% of the "total normal cost"). This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, the minimum statutory employee contribution for employees in Tier III is subject to the provisions of PEPRA and equals 50% of the "total normal cost". Tier III employees shall make an additional contribution of pensionable compensation toward retirement pursuant to Government Code section 20516(f) for a total employee contribution that is no less than 13.6% of pensionable compensation (i.e., Tier III employees pay the greater of 13.6% or 50% of the "total normal cost"). If in future fiscal years the member contribution rate for safety employees in Tier III shall become greater or less, as determined by CalPERS valuations, the additional contribution made by the employee under Government Code section 20516(f) will be increased or decreased accordingly so that the total employee contribution equals 13.6% of pensionable compensation. Provided however, that the employee contribution shall never fall below the statutorily required contribution. Effective the pay period that includes January 1, 2023, the CalPERS retirement contributions for the Assistant Chief of Lifeguard Operations Key and Management Compensation Plan Page 8 of 9 classification shall be as noted above and shall not be tied to the retirement contributions required by members of the Lifeguard Management Association. Effective the pay period that includes January 1, 2025, the CalPERS retirement contributions for the Assistant Chief of Lifeguard Operations classification shall be tied to the retirement contributions required by members of the Lifeguard Management Association. If there are future changes to those employee retirement contributions, as set forth in a council -approved MOU, the same changes shall be made for the Assistant Chief of Lifeguard Operations. 2. Except as expressly modified herein, all other terms and provisions set forth in the Plan shall remain unchanged and shall be in full force and effect. Key and Management Compensation Plan Page 9 of 9 EXHIBIT I_ AMENDMENT A TO CITY OF NEWPORT BEACH THIRD AMENDED AND RESTATED EMPLOYMENT AGREEMENT — CITY MANAGER WHEREAS, on January 25, 2022, the City of Newport Beach, a California municipal corporation and Charter City ("Employer" or "City") and GRACE K. LEUNG ("Employee"), an individual (sometimes collectively referred to herein as "the Parties") entered into a Third Amended and Restated Employment Agreement ("Agreement") for the period of January 25, 2022 through December 30, 2026; WHEREAS, given increases in the cost of medical insurance and to aid in the recruitment and retention of valuable employees, the City Council wishes to amend the Agreement; and WHEREAS, this amendment will not be binding until it is approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. Section 4.K, Employee Benefits, Retirement-Ca1PERS of the Agreement is amended to read as follows: K. Retirement-CalPERS Employee is a California Public Employees' Retirement System ("Ca1PERS") classic member. Employee is enrolled in the City's Tier II "Classic" Ca1PERS retirement program. Employee contributes thirteen percent (13%) of compensation earnable towards Employee's retirement benefit which is designated as follows: 7% of Employee/Member's total PERSable salary as the Employee/Member Contribution and 6% as cost sharing of the Employer Contribution Rate in accordance with Government Code Section 20516(f). Employee's retirement contributions shall be tied to the retirement contributions required by Tier II non -safety employees covered by the Key & Management Compensation Plan ("Plan"). If there are changes to the retirement contributions required by non -safety employees covered by the Plan, as set forth in a council -approved Plan, during the term of this Agreement, this Agreement shall be deemed amended and Employee will be subject to the same formula or percentage contribution as it is applied to the Tier II non -safety Key & Management employees covered under the Plan and for the same duration. Employee retirement contributions that are in addition to the normal Ca1PERS Member Contribution shall be calculated on Base Salary, special pays, and other pays normally reported as "PERSable" compensation (known either as compensation earnable or pensionable compensation) and will be made on a pre-tax basis through payroll deduction, to the extent allowable by law. 2. Except as expressly modified herein, all other terms and provisions set forth in the Agreement shall remain unchanged and shall be in full force and effect. Signatures on the next page Leung Employment Contract Page 2 of 3 EMPLOYER CITY OF NEWPORT BEACH A Municipal Corporation Kevin Muldoon, Mayor Date: APPROVED AS TO FORM: By: A^-- a Aar n C. Harp, City Attorney ATTEST: Leilani Brown, City Clerk EMPLOYEE, An Individual By: Gr . Leung Date: Date: ( 0 l 2- 7 / 2 Z. Date: Leung Employment Contract Page 3 of 3 EXHIBIT M AMENDMENT A TO CITY OF NEWPORT BEACH SEVENTH AMENDED AND RESTATED EMPLOYMENT AGREEMENT — CITY ATTORNEY WHEREAS, on March 22, 2022, the City of Newport Beach, a California municipal corporation and Charter City ("Employer" or "City") and AARON C. HARP ("Employee"), an individual (sometimes collectively referred to herein as "the Parties") entered into a Seventh Amended and Restated Employment Agreement ("Agreement") for the period of March 22, 2022 through December 30, 2028; WHEREAS, given increases in the cost of medical insurance and to aid in the recruitment and retention of valuable employees, the City Council wishes to amend the Agreement; and WHEREAS, this amendment will not be binding until it is approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: Section 4.J, Employee Benefits, Retirement-Ca1PERS of the Agreement is amended to read as follows: J. Retirement-CalPERS Employee is a California Public Employees' Retirement System ("Ca1PERS") classic member. Employee is enrolled in the City's Tier I "Classic" CalPERS retirement program. Employee contributes thirteen percent (13%) of compensation earnable towards Employee's retirement benefit which is designated as follows: Eight percent (8%) member contribution, 2.42% of compensation earnable as cost sharing per Government Code section 20516(a) and 2.58% of compensation earnable as cost sharing per Government Code section 20516(f). Employee's retirement contributions shall be tied to the retirement contributions required by Tier I non -safety employees covered by the Key & Management Compensation Plan ("Plan"). If there are changes to the retirement contributions required by Tier I non -safety employees covered by the Plan, as set forth in a council -approved Plan, during the term of this Agreement, this Agreement shall be deemed amended and Employee will be subject to the same formula or percentage contribution as it is applied to the Tier I non -safety Key & Management employees covered under the Plan and for the same duration. Employee retirement contributions that are in addition to the normal CalPERS Member Contribution shall be calculated on Base Salary, special pays, and other pays normally reported as "PERSable" compensation (known either as compensation earnable or pensionable compensation) and will be made on a pre-tax basis through payroll deduction, to the extent allowable by law. 2. Except as expressly modified herein, all other terms and provisions set forth in the Agreement shall remain unchanged and shall be in full force and effect. Signatures on the next page Harp Employment Contract Pa-e 2 of 3 Date: EMPLOYER CITY OF NEWPORT BEACH EMPLOYEE, Municipal Corporation 7AnInA By.C' Kevin Muldoon, Mayor 'Aron C. Harp Date: // / 3 APPROVED AS TO FORM: Date: � ��'vthid02- �- Charles Sakai, Attorney ATTEST: Date: Leilani Brown, City Clerk Harp Employment Contract Page 3 of 3 EXHIBIT N AMENDMENT A TO CITY OF NEWPORT BEACH: SEVENTH AMENDED AND RESTATED ENIPLOYMENT AGREEMENT — CITY CLERK WHEREAS, on May 24, 2022, the City of Newport Beach, a California municipal corporation and Charter City ("Employer" or "City") and LEILANI I. BROWN ("Employee"), an individual (sometimes collectively referred to herein as "the Parties") entered into a Seventh Amended and Restated Employment Agreement ("Agreement") for the period of May 24, 2022 through May 24, 2026; WHEREAS, given increases in the cost of medical insurance and to aid in the recruitment and retention of valuable employees, the City Council wishes to amend the Agreement; and WHEREAS, this amendment will not be binding until it is approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. Section 4.J, Employee Benefits, Retirement- CaIPERS of the Agreement is amended to read as follows: J. Retirement-Ca1PERS Employee is a California Public Employees' Retirement System ("CaIPERS") classic member. Employee is enrolled in the City's Tier I "Classic" CaIPERS retirement program. Employee contributes thirteen percent (13%) of compensation earnable towards Employee's retirement benefit which is designated as follows: Eight percent (8%) member contribution, 2.42% of compensation earnable as cost sharing per Government Code section 20516(a) and 2.58% of compensation earnable as cost sharing per Government Code section 20516(f). Employee's retirement contributions shall be tied to the retirement contributions required by Tier I non -safety employees covered by the Key & Management Compensation Plan ("Plan"). If there are changes to the retirement contributions required by Tier I non -safety employees covered by the Plan, as set forth in a council -approved Plan, during the term of this Agreement, this Agreement shall be deemed amended and Employee will be subject to the same formula or percentage contribution as it is applied to the Tier I non -safety Key & Management employees covered under the Plan and for the same duration. Employee retirement contributions that are in addition to the normal CalPERS Member Contribution shall be calculated on Base Salary, special pays, and other pays normally reported as "PERSable" compensation (known either as compensation earnable or pensionable compensation) and will be made on a pre-tax basis through payroll deduction, to the extent allowable by law. 2. Except as expressly modified herein, all other terms and provisions set forth in the Agreement shall remain unchanged and shall be in full force and effect. Signatures on the next page Brown Employment Contract Page 2 of 3 EMPLOYER CITY OF NEWPORT BEACH A Municipal Corporation Kevin Muldoon, Mayor Date: EMPLOYEE, An Individual By: b�yk Leilani I. Brown Date: l I - ? lvw APPROVED AS TO FORM: By: 4V--,-C &—.- Date: ar n C. Harp, City Attorney ATTEST: Date: Eric Bryan, Deputy City Clerk o/Z 7 /2 Z Brown Employment Contract Page 3 of 3 EXHIBIT AMENDMENT A TO CITY OF NEWPORT BEACH. THIRD AMENDED AND RESTATED EMPLOYMENT AGREEMENT — CITY OF NEWPORT BEACH POLICE CHIEF WHEREAS, on February 8, 2022, the City of Newport Beach, a California municipal corporation and Charter City ("Employer" or "City") and JON LEWIS ("Employee"), an individual (sometimes collectively referred to herein as "the Parties") entered into a Third Amended and Restated Employment Agreement ("Agreement") for the period of February 8, 2022 through December 30, 2025; WHEREAS, given increases in the cost of medical insurance and to aid in the recruitment and retention of valuable employees, the City Council wishes to amend the Agreement; and WHEREAS, this amendment will not be binding until it is approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. Section 5.J., Employee Benefits, Retirement- Ca1PERS of the Agreement is amended to read as follows: J. Retirement-Ca1PERS Employee shall be eligible for the "3% at 50" retirement formula (i.e., the same retirement formula set forth in the NBPMA MOU for employees enrolled in the Tier I ("Legacy" retirement formula). Employee contributes 14.6% of compensation earnable towards Employee's retirement benefits, which is designated as follows: 9% of Employee/Member's total compensation earnable salary as the Employee/Member Contribution; and 5.6% as cost sharing of the Employer Contribution Rate in accordance with Government Code section 20516(f). Temporary Reduction. Effective the pay period that includes January 1, 2023, Employee shall contribute the full statutory member contribution, equal to 9%, plus an additional 4.1 % of compensation earnable toward retirement costs as permitted Amendment - Lewis Employment Contract Page I of 3 under Government Code section 20516(f), for a total contribution of 13.1 %. This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, Employee shall contribute the full statutory member contribution required by members of the NBPMA, which is currently equal to 9% of compensation earnable, plus an additional 5.6% of compensation earnable toward retirement costs as permitted under Government Code section 20516(f), for a total contribution of 14.6%. Effective the pay period that includes January 1, 2023, the CalPERS retirement contributions for Employee shall be as noted above and shall not be tied to the retirement contributions required by members of the NBPNIA. Effective the pay period that includes January 1, 2025, the CalPERS retirement contributions for Employee shall be tied to the retirement contributions required by members of the NBPMA. If there are future changes to those employee retirement contributions, this Agreement shall be deemed amended and Employee shall be subject to the same formula or percentage contribution as applied to the Tier I Legacy members of the NBPMA, as set forth in a council -approved MOU, and for the same duration. 2. Except as expressly modified herein, all other terms and provisions set forth in the Agreement shall remain unchanged and shall be in full force and effect. Signatures on the next page Amendment - Lewis Employment Contract Page 2 of 3 EMPLOYER CITY OF NEWPORT BEACH A Municipal Corporation Grace K. Leung, City Manager Date: EMPLOYEE, An Individim] Date: APPROVED AS TO FORM: 1.0 By: �. Date: 2 Aaron C. Harp, City Attorney LIN ATTEST: Leilani Brown, City Clerk Date: Amendment - Lewis Employment Contract Page 3 of 3 EXHISIT P AMENDMENT A TO CITY OF NEWPORT BEACH FIRST AMENDED AND RESTATED EMPLOYMENT AGREEMENT — CITY OF NEWPORT BEACH FIRE CHIEF WHEREAS, on February 8, 2022, the City of Newport Beach, a California municipal corporation and Charter City ("Employer" or "City") and JEFF BOYLES ("Employee"), an individual (sometimes collectively referred to herein as "the Parties") entered into a First Amended and Restated Employment Agreement ("Agreement") for the period of February 8, 2022 through December 30, 2025; WHEREAS, given increases in the cost of medical insurance and to aid in the recruitment and retention of valuable employees, the Council wishes to amend the Agreement; and WHEREAS, this amendment will not be binding until it is approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. Section 5.J., Employee Benefits, Retirement- Ca1PERS of the Agreement is amended to read as follows: J. Retirement-Ca1PERS Employee shall be eligible for the "3% at 50" retirement formula (i.e., the same retirement formula set forth in the NBFMA MOU for employees enrolled in the Tier I ("Legacy" retirement formula). Employee contributes 13.5% of compensation earnable towards Employee's retirement benefits, which is designated as follows: 9% of Employee/Member's total compensation earnable salary as the Employee/Member Contribution; and 4.5% as cost sharing of the Employer Contribution Rate in accordance with Government Code section 20516(f). Temporary Reduction. Effective the pay period that includes January 1, 2023, Employee shall contribute the full statutory member contribution, equal to 9%, plus an additional 3% of compensation earnable toward retirement costs as permitted Amendment - Boyles Employment Contract Page I of 3 under Government Code section 20516(f), for a total contribution of 12%. This reduction in the employee contribution rate sunsets at the end of the last full pay period in December 2024. Accordingly, effective the pay period that includes January 1, 2025, Employee shall contribute the full statutory member contribution required by members of the NBFMA, which is currently equal to 9% of compensation earnable, plus an additional 4.5% of compensation earnable toward retirement costs as permitted under Government Code section 20516(f), for a total contribution of 13.5%. Effective the pay period that includes January 1, 2023, the CalPERS retirement contributions for Employee shall be as noted above and shall not be tied to the retirement contributions required by members of the NBFMA. Effective the pay period that includes January 1, 2025, the CalPERS retirement contributions for Employee shall be tied to the retirement contributions required by members of the NBFMA. If there are future changes to those employee retirement contributions, this Agreement shall be deemed amended and Employee shall be subject to the same formula or percentage contribution as applied to Tier I Legacy members of the - NBFMA, as set forth in a council -approved MOU, and for the same duration. 2. Except as expressly modified herein, all other terms and provisions set forth in the Plan shall remain unchanged and shall be in full force and effect. Signatures on the next page Amendment - Boyles Employment Contract Page 2 of 3 EMPLOYER CITY OF NEWPORT BEACH A Municipal Corporation Grace K. Leung, City Manager Date: EMPLOYEE, An Individual Y Jef Boyles, Fire Chie Date: /JDQ. <' , -20.Z 7 APPROVED AS TO FORM: B �^'� �, 1�----� Date: i Y• Aaron C. Harp, City Attorney IM ATTEST: Leilani Brown, City Clerk Date: Amendment - Boyles Employment Contract Page 3 of 3 STATE OF CALIFORNIA } COUNTY OF ORANGE ss. CITY OF NEWPORI BEACH I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; the foregoing resolution, being Resolution No. 2022-92 was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 291h day of November, 2022; and the same was so passed and adopted by the following vote, to wit. - AYES: Mayor Kevin Muldoon, Mayor Pro Tern Noah Blom, Council Member Brad Avery, Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield, Council Member Will O'Neill NAYS: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 301h day of November, 2022. 4w- 64jh� Leilani I. Brown City Clerk Newport Beach, California