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HomeMy WebLinkAboutCity Council - 2025-62 RESOLUTION NO. 2025-62 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING AND IMPLEMENTING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE MARINE SAFETY MANAGEMENT ASSOCIATION (MSMA) AND THE CITY FOR JANUARY 1, 2025,THROUGH DECEMBER 31, 2027 The City Council of the City of Huntington Beach does resolve as follows: The Memorandum of Understanding between the City of Huntington Beach and the Marine Safety Management Association(MSMA), a copy of which is attached hereto as Exhibit "A" and by reference made a part hereof, is hereby approved and ordered implemented in accordance with the terms and conditions thereof; and the City Manager is authorized to execute this Agreement. Such Memorandum of Understanding shall be effective for the term of January 1, 2025, through December 31, 2027. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the nth day of October , 2025. Mayor REVIEWED AND APPROVED: APPROVED AS TO FORM: 4". ity Manager ct City Attorney INITIATED AND APPROVED: Director of uman Resources 25-17088/390138 Reso No.2025-62 Exhibit"A" Memorandum of Understanding Between Marine Safety Management Association and City of Huntington Beach January 1 , 2025 — December 31 , 2027 • MARINE SAFETY MANAGEMENT ASSOCIATION MEMORANDUM OF UNDERSTANDING TABLE OF CONTENTS PREAMBLE 1 ARTICLE I—TERM OF MOU 1 ARTICLE II— REPRESENTATIONAL UNIT/CLASSIFICATIONS 1 ARTICLE III — MANAGEMENT RIGHTS 2 ARTICLE IV— EXISTING CONDITIONS OF EMPLOYMENT 2 ARTICLE V—SEVERABILITY 2 ARTICLE VI —SALARY SCHEDULES 2 ARTICLE VII —SPECIAL PAY 3 A. EDUCATION 3 B. LONGEVITY 4 C. ACTING ASSIGNMENT PAY 5 D. CERTIFICATION PAY 5 E. HOLIDAY PAY 6 F. BILINGUAL SKILL PAY 7 G. EFFECTIVE DATE OF SPECIAL PAY 7 H. NO PYRAMIDING OF SPECIAL PAY 7 I. REPORTING TO PERS 7 ARTICLE VIII — UNIFORMS, CLOTHING, TOOLS AND EQUIPMENT 8 A. GENERAL POLICY 8 B. AFFECTED EMPLOYEES 8 C. PERSONAL PROTECTIVE EQUIPMENT 8 D. EMPLOYEE RESPONSIBILITIES 8 E. REPORTABLE TO CALPERS 8 ARTICLE IX— HOURS OR WORK/OVERTIME 9 A. WORK SCHEDULE 9 B. HOURS OF WORK DEFINED 9 C. OVERTIME/COMPENSATORY TIME 9 1. Paid Overtime 9 2. Compensatory Time 10 3. Court Time 10 D. STANDBY 10 E. ON-CALL 10 ARTICLE X— HEALTH AND OTHER INSURANCE BENEFITS 10 A. HEALTH 10 1. CALPERS PEMHCA 11 2. Dental Insurance 12 3. Retiree(Annuitant)Coverage 12 4. Additional Costs for Participation in the PEMHCA Program 13 MSMA MOU January 1,2025—December 31,2027 MARINE SAFETY MANAGEMENT ASSOCIATION MEMORANDUM OF UNDERSTANDING TABLE OF CONTENTS B. MEDICAL CASH-OUT 14 C. SECTION 125 EMPLOYEE PLAN 14 D. LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT(AD & D) INSURANCE 14 E. LONG TERM DISABILITY INSURANCE 15 ARTICLE XI — RETIREMENT 15 A. CALPERS SAFETY"CLASSIC" MEMBER RETIREMENT BENEFITS 15 1. CaIPERS Safety"Classic Member" Retirement Formula 15 2. CaIPERS Safety"Classic Member" Final Compensation 16 3. CalPERS Safety"Classic Member"Contribution 16 4. CaIPERS Safety"Classic Member"Cost Sharing 16 B. CALPERS SAFETY"NEW MEMBER" RETIREMENT BENEFITS 16 1. CaIPERS Safety"New Member"Retirement Formula 16 2. CaIPERS Safety"New Member"Final Compensation 16 3. CaIPERS Safety"New Member"Contribution 17 4. CaIPERS Safety"New Member"Cost Sharing 17 C. IRS CODE SECTION 414(H)(2) 17 D. SELF FUNDED SUPPLEMENTAL RETIREMENT BENEFIT 17 E. HEALTH SAVINGS ACCOUNT FOR POST RETIREMENT MEDICAL BENEFITS 17 F. PRE-RETIREMENT OPTIONAL SETTLEMENT 2 DEATH BENEFIT 18 G. 1959 SURVIVORS' BENEFIT LEVEL IV 18 H. MEDICAL INSURANCE FOR RETIREES 18 ARTICLE XII — LEAVE BENEFITS 18 A. GENERAL LEAVE 18 1. Purpose 18 2. Anniversary Date 18 3. Accrual 18 4. Eligibility and Approval 19 5. Leave Conversion to Cash 19 6. Deferred Compensation/Leave Cash-Out 19 7. Pay-Off at Separation from Employment 20 B. VACATION 20 1. Accrual 20 2. Eligibility and Permission 20 C. SICK LEAVE 20 D. FAMILY LEAVE BENEFIT ENTITLEMENTS 20 E. BEREAVEMENT LEAVE 21 F. VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM 21 ARTICLE XIII —CITY RULES 21 ARTICLE XIV— MISCELLANEOUS 21 A. SALARY UPON APPOINTMENT 21 MSMA MOU January 1,2025—December 31,2027 ii MARINE SAFETY MANAGEMENT ASSOCIATION MEMORANDUM OF UNDERSTANDING TABLE OF CONTENTS B. PHYSICAL EXAMINATIONS 21 C. CONDITIONING TIME 21 D. 1,500 HOUR RECURRENT EMPLOYEES 22 E. COLLECTION OF PAYROLL OVERPAYMENTS 22 F. GRIEVANCE HEARING COST SHARING 22 G. PERSONNEL RULE 19 MODIFICATION 22 H. UPDATE EMPLOYEE-EMPLOYER RELATIONS RESOLUTION (EERR) 22 I. MODIFIED RETURTN TO WORK POLICY 23 J. CONTROLLED SUBSTANCE AND ALCOHOL TESTING 23 ARTICLE XV-CITY COUNCIL APPROVAL 24 EXHIBIT A-MSMA SALARY SCHEDULE 25 EXHIBIT B-SERVICE CREDIT SUBSIDY PLAN 26 EXHIBIT C-MODIFICATIONS TO EMPLOYEE-EMPLOYER RELATIONS RESOLUTION 29 EXHIBIT D- MODIFICATIONS TO PERSONNEL RULE 19 31 EXHIBIT E-VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM 34 MSMA MOU January 1,2025—December 31,2027 iii MEMORANDUM OF UNDERSTANDING Between THE CITY OF HUNTINGTON BEACH (Hereinafter called CITY) And THE HUNTINGTON BEACH MARINE SAFETY MANAGEMENT ASSOCIATION (Hereinafter called ASSOCIATION or MSMA) PREAMBLE WHEREAS, pursuant to California law, the City and the representatives of the Association, a duly recognized employee association, have met and conferred in good faith and reached a full agreement concerning wages, hours, and other terms and conditions of employment. WHEREAS, except as otherwise expressly provided herein, all terms and conditions of this Agreement shall apply to all employees represented by the Association, and WHEREAS, the representatives of the City and Association desire to reduce their agreements to writing, NOW THEREFORE, this Memorandum of Understanding is made,, to become effective January 1, 2025, and is agreed as follows: ARTICLE I—TERM OF MOU This Memorandum of Understanding shall be in effect fora term commencing on January 1, 2025, and ending at midnight on December 31, 2027., No further improvements or changes in the salaries and monetary benefits of the employees represented by the Association shall take effect during the term of this agreement, and the Association expressly waives any right to request any improvements or changes in salaries or monetary benefits for the employees represented by the Association which would take effect prior to December 31, 2027, and the City of Huntington Beach, through its representatives, shall not be required to meet and confer as to any such request. ARTICLE II — REPRESENTATIONAL UNIT/CLASSIFICATIONS It is recognized that the Marine Safety Management Association is the employee organization, which has the right to meet and confer in good faith with the City on behalf of the employees of the Huntington Beach Fire Department within the following classification and assignment titles: Marine Safety Battalion Chief Marine Safety Captain Marine Safety Specialist MSMA MOU January 1,2025—December 31,2027 1 MARINE SAFETY MANAGEMENT ASSOCIATION ARTICLE III —MANAGEMENT RIGHTS The parties agree that the City has the right to unilaterally make decisions on all matters outside the scope of bargaining. Furthermore, except as expressly abridged or modified herein, the City retains all rights, powers and authority with respect to the management and direction of the performance of marine safety services and the work forces performing such services, provided that nothing herein shall change the City's obligation to meet and confer as to the effects of any such management decision upon wages, hours and terms and conditions of employment or be construed as granting the Fire Chief or the City the right to make unilateral changes in wages, hours and terms and conditions of employment. Such rights include, but are not limited to, consideration of the merits, necessity, level or organization of City services, including establishing staffing requirements, overtime assignments, number and location of work stations, nature of work to be performed, contracting for any work or operation, reasonable employee performance standards, including reasonable work and safety rules and regulations in order to maintain the efficiency and economy desirable for the performance of City services. The parties agree to meet and confer during the term of this agreement on revisions, changes, modifications and additions to the Personnel Rules and/or Department Rules when requested by City. ARTICLE IV— EXISTING CONDITIONS OF EMPLOYMENT Except as otherwise expressly provided herein, the adoption of this Memorandum of Understanding shall not change existing benefits and terms and conditions of employment which have been established in prior Memoranda of Understanding between the City and the Association. ARTICLE V— SEVERABILITY If any section, subsection, sentence, clause, phrase or portion of this MOU or any additions or amendments thereof, or the application thereof to any person, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this MOU or its application to other persons. The City Council hereby declares that it would have adopted this MOU and each section, subsection, sentence, clause, phrase or portion, and any additions or amendments thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions, or the application thereof to any person, be declared invalid or unconstitutional. ARTICLE VI —SALARY SCHEDULES All employees are required to utilize direct deposit of payroll checks. The City shall issue each employee direct deposit advice (payroll receipt) each pay period that details all income, withholdings, and deductions. MSMA MOU January 1,2025—December 31,2027 2 MARINE SAFETY MANAGEMENT ASSOCIATION A. Base Salary Adiustments For each year of this MOU, the base salary of each classification represented by the Association shall be increased as set forth below, and reflected in Exhibit A,. 1. Effective the pay period including January 1, 2025, employees shall receive a base salary increase of three percent(3%). 2. Effective the pay period including January 1, 2026, employees shall receive a base salary increase of three percent(3%). 3. Effective the pay period including January 1, 2027, employees shall receive a base salary increase of three percent(3%). B. New Top Step Effective the first full pay period following City Council adoption of this MOU, the existing Performance Bonus shall be replaced with the addition of a new salary step at the top of the salary range. This added step will provide a five percent(5%) increase over current Step G. The parties agree to remove the current Step A to continue to provide for a seven-step salary schedule. C. Equity Adjustment to Marine Safety Specialist Classification Effective July 1, 2025, the Marine Safety Specialist classification will receive a one-time ten percent (10%) equity adjustment to base salary in addition to the salary adjustment provided in Section A of this Article. ARTICLE VII —SPECIAL PAY A. Education 1. Incentive Plan•— It is the purpose and intent of the City to provide an Education Incentive Plan to motivate the employee to participate in, and continue with their education so as to improve their knowledge and general proficiency which will, in turn, result in additional benefits to the Fire Department and to the City. As the levels of additional education listed below are satisfactorily completed and attained, the employee will receive additional monetary compensation in recognition of their educational achievement. a. Level I —Any employee who has attained an Associate Degree, or attained Junior status in a degree program, shall receive educational incentive pay of three percent (3%) of their base rate of pay. b. Level II —Any employee who has attained a Bachelor's Degree shall receive education incentive pay of six percent (6%) of their base rate of pay. MSMA MOU January 1,2025—December 31,2027 3 MARINE SAFETY MANAGEMENT ASSOCIATION c. Maximum Education Incentive Pay—The maximum education incentive pay an employee may receive is six percent (6%) of their base rate of pay. An employee may only receive this education incentive pay for one degree. d. Degree Majors - Degree majors will be reviewed and approved by the Fire Chief to ensure that it will enhance the employee's ability to do their job. For current employees seeking additional degrees, the course of study will be reviewed and approved by the Fire Chief in advance. Appeals may be directed to the Director of Human Resources for final determination. e. Effective Date — Following approval, the additional education incentive pay shall commence the beginning of the pay period following the employee's submission of a completed application that qualifies for education incentive pay. 2. All employees who were hired before September 19,2005, and were still employed with the City as of April 1, 2016,who do not possess the degrees listed above shall continue to receive the education incentive pay in effect as of September 19, 2005. Such pay shall not increase unless an employee obtains one of the degrees listed above. In the event an employee obtains an Associate or Bachelor's degree, only the special pay in sections 1 a and 1 b shall apply, respectively, and the following Education Incentive Level Plan shall no longer apply: Education Maximum Years Continuing Incentive College Training of Education College Monthly Level Units Points Service Units Required Amount Annually 1 30 10 1 6 $50 2 60 20 2 3 75 3 90 30 2 3 100 4 120 3 3 150 5 150 4 0 150 The parties agree that to the extent permitted by law, the compensation in this section is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(2) Educational Incentive. B. Longevity Pay Effective January 1, 2026, all bargaining unit members shall be eligible to receive the following longevity pay: 1. Ten (10)years or more, but less than fifteen (15) years, of service shall be eligible to receive longevity pay equal to two and one-half percent(2.5%) of base salary. 2. Fifteen (15)years or more, but less than twenty(20)years, of service in the Marine Safety Division shall receive longevity pay equal to five (5%) of base salary. 3. Twenty (20) years or more of service shall receive longevity pay equal to seven and one-half percent(7.5%) of base salary. MSMA MOU January 1,2025—December 31,2027 4 MARINE SAFETY MANAGEMENT ASSOCIATION 4. For employees with part-time service in a marine safety classification, 2,000 regular hours worked shall equate to 1 year of service. (Example, an employee who averaged 1,200 regular hours(excluding overtime)for 5 years, will be credited with 3 years of service (1,200 x 5 = 6,000)J. There shall be no pyramiding of this special pay. Unit members shall only receive one (1) Longevity Pay under this provision. The maximum amount of Longevity Pay that a member may receive is seven and one-half percent(7.5%). The parties agree that to the extent permitted by law, Longevity Pay is special compensation and shall be reported as "compensation earnable" pursuant to Title 2 CCR,Section 571(a)(1) and a "pensionable compensation" pursuant to Section 571.1 (b)(1) - Longevity Pay. C. Acting Assignment Pay 1. When formally assigned to perform in an acting capacity in the absence of the Marine Safety Division Chief, a Marine Safety Battalion Chief shall be compensated for each full hour worked at the rate of twelve and one-half percent (12.5%) of the employee's base hourly rate of pay. 2. Acting Marine Safety Division Chief selection shall be made at the discretion of the Fire Chief or designee, and seniority will not be the controlling criteria. The parties agree that to the extent permitted by law, the compensation in the section is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(3) (Premium Pay) Temporary Upgrade Pay. This pay is only reported to CalPERS for employees who are "classic" employees per the Public Employees' Pension Reform Act. D. Certification Pay 1. Marine Safety Specialist— Employees in this classification shall not be eligible for Certification Pay. 2. Marine Safety Captain—Employees classified as Marine Captain shall receive five percent (5%) above their base hourly rate for maintaining active certification in all of the following: SCUBA/Rescue, ICS (Incident Command System) 100 and 200; Instructor 1 and Instructor 2; SCUBA/Dry Suit; and Instructor Emergency Response Red Cross. 3. Marine Safety Battalion Chief— Employees classified as Marine Safety Battalion Chief shall receive five percent (5%) above their base hourly rate for maintaining active certification in all of the following: ICS (Incident Command System) 300; Chief Officer 3A, 3B, 3C and 3D. Employees receiving Certification Pay for Company Officer 2A, 2B, and 2D certification at the time of City Council approval MSMA MOU January 1,2026—December 31,2027 5 MARINE SAFETY MANAGEMENT ASSOCIATION of this MOU may use those certifications as a substitute for the Chief Officer 3A- 3D certifications, above. Employees who have completed classes under the previous State Fire Marshal's course track will be eligible to receive the Special Certification Pay upon confirmation of the Fire Chief. The parties agree that to the extent permitted by law, the compensation in this section is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(2) Educational Incentive. E. Holiday Pay The pay granted to members of this unit under this section is additional compensation for employees who are normally required to work on an approved holiday, because the classification of Marine Safety Captain, Marine Safety Battalion Chief, and Marine Safety Specialist are positions that require staffing without regard to holidays. 1. Holidays Worked Employees who are required to work on a specified City holiday shall receive Holiday Pay in addition to the Holiday In-Lieu Pay set forth herein equal to the overtime rate for all hours worked. 2. Holiday Pay In-Lieu In addition to regular compensation, employees shall receive, each month, one- twelfth (1/12) of the total holiday hours (80) earned for the year. The following are the recognized legal holidays under this MOU: 1. New Year's Day 2. Martin Luther King Birthday Holiday 3. Presidents' Day 4. Memorial Day 5. Independence Day 6. Labor Day 7. Veterans Day 8. Thanksgiving Day 9. Day After Thanksgiving 10. Christmas Day Any day declared by the President of the United States to be a national holiday, or by the Governor of the State of California to be a State holiday, and adopted as an employee holiday by the City Council of Huntington Beach. MSMA MOU January 1,2025—December 31,2027 6 MARINE SAFETY MANAGEMENT ASSOCIATION The parties agree that to the extent permitted by law, Holidays Worked and Holiday In-Lieu Pay is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(5) Holiday Pay. F. Bilingual Skill Pay Employees whose bilingual skills are qualified, in accordance with the most current Huntington Beach Marine Safety Manual Policy A-10, shall be paid an additional five percent (5%) of their base rate of pay in addition to their bi-weekly salary. ' Eligibility for bilingual pay shall be limited to the following languages: Spanish, Vietnamese, French, German, Japanese, and sign language. In order to be qualified and certified for said compensation, employee's language proficiency will be tested and certified by the Director of Human Resources or designee. Basic conversational proficiency will be evaluated based on response to a scenario driven oral. evaluation. The Human Resources Department will notify candidates of the results of the oral evaluation. If the candidate's attempt is unsuccessful, they may repeat the process in six (6) months'time from the date of the previous exam. Bilingual skill pay shall begin the first day of the pay period following certification. The parties agree that to the extent permitted by law, Bilingual Skill Pay is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(4) Bilingual Premium. G. Effective Date of Special Pay All special pay shall be effective the first full pay period following certification and verification as approved by the Fire Chief or designee. H. No Pyramiding of Special Pay Each special pay that is a percentage of base hourly pay shall not be counted towards the value of any other special pay. I. Reporting to PERS Pursuant to state law and regulations, compensation paid as a result of this Article shall be reported to the California Public Employees' Retirement System (CaIPERS) as special compensation. In the event that CalPERS challenges the City's report of any special compensation as compensation earnable and informs the City that it cannot not report the pay since it does not qualify as special compensation per Title 2 CCR section 571, the City is not obligated to continue to report the pay. This is provided for per Title 2 Section 571(c) & (d). MSMA MOU January 1,2025—December 31,2027 7 MARINE SAFETY MANAGEMENT ASSOCIATION ARTICLE VIII- UNIFORMS, CLOTHING, TOOLS AND EQUIPMENT A. General Policy The City will provide uniforms to all employees on active duty who are required to wear a standard uniform for appearance, uniformity, and public recognition purposes. B. Affected Employees All employees shall wear a standard City uniform, as provided by the City of Huntington Beach Fire Department. The Fire Chief shall determine which employees must wear a uniform. C. Personal Protective Equipment All personal protective equipment shall be provided based on employee safety needs for the performance of duties as approved by the Fire Chief. • D. Employee Responsibilities 1. Wear a clean and complete uniform as required. 2. Uniform appearance shall be worn with pride in appearance to the public(i.e., shirt buttoned, shirt tail tucked in, etc.). 3. Wash and provide minimum repair(i.e., buttons, small tears, etc.). 4. Not wear the uniform for other than City duties or work. 5. Notify supervisor of the need to replace due to disrepair or severe staining producing an undesirable appearance. 6. Turn in all uniform components, including patches, upon separation from employment. 7. Turn in all personal protective equipment upon separation from employment. 8. Wear all personal protective equipment prescribed by the City safety officer and/or Supervisor of the division. E. Reportable to CaIPERS 1. The City will report to CaIPERS the average annual cost of uniforms for each employee as special compensation in accordance with Title 2, California Code of Regulations, Section 571(a)(5) Uniform Allowance. For employees who are not required to wear a uniform on a daily basis or who are not actively employed for MSIVIA MOU January 1,2025—December 31,2027 8 MARINE SAFETY MANAGEMENT ASSOCIATION an entire payroll calendar year, a prorated cost of uniforms shall apply. This provision shall apply to "classic" members as defined by the Public Employees' Pension Reform Act of 2013 (PEPRA). The cost of uniforms reported to Ca1PERS shall be based on classification, and for 2025 is aIs follows: Classification Bi-Weekly Amount Marine Safety Specialist $28.77 Marine Safety Captain $28.77 Marine Safety Battalion Chief $31.86 2. For"new members"as defined by PEPRA, the cost of uniforms will not be reported as compensation earnable to CalPERS. ARTICLE IX— HOURS OF WORK/OVERTIME A. Work Schedule 1. The 4/10 work schedule shall be defined as working four (4) days, ten (10) hours per day, for a total of (40) hours per week, twenty-eight (28) day work period consistent with the 7(K) exemption set forth in the Fair Labor Standards Act (FLSA). 2. The 4/10 work schedule is designed to be in compliance with the requirements of the FLSA. All employees on the 4/10 work schedule are subject to be called to work any time to meet any and all emergencies or unusual conditions which, in the opinion of the City Manager, Fire Chief, or their designee, may require such service from any of said employees. B. Hours of Work—Defined For purposes of this article, calculating overtime, general leave, previously accrued vacation, sick leave and compensatory time shall count as hours worked. C. Overtime/Compensatory Time 1._ Paid Overtime a. All employees covered by this MOU shall be eligible for overtime pay at one and one-half (1 %) times their regular rate of pay, as defined by the FLSA, for all actual work performed in excess of the employees' scheduled hours in their declared work period. b. Regular rate of pay is defined as the employee's base hourly rate of pay plus their eligible special pays. MSMA MOU January 1,2025—December 31,2027 9 MARINE SAFETY MANAGEMENT ASSOCIATION 2. Compensatory Time Employees may elect to receive compensatory time off that may be earned to a maximum of one hundred twenty (120) hours in lieu of such overtime pay. Employees may convert up to sixty (60) hours of compensatory time to cash at the employee's regular rate of pay once per calendar year. 3. Court Time a. Court Standby Employees required to be on standby for a court appearance during other than their scheduled working hours shall receive a minimum of two (2) hours of their regular rate of pay for each morning and afternoon court sessions. b. Court Appearance Employees required to appear in court during other than their scheduled working hours shall receive a minimum of three (3) hours at the overtime rate. D. Standby Employees who are authorized to be on standby status by their Supervisor shall be compensated two (2) hours at the overtime rate for each eight(8) hour standby period, or any part thereof. A Supervisor shall notify an available employee, in advance, of the need to be on standby status. E. On-Call A minimum of two(2) employees will be scheduled to be on-call shall be compensated two (2) hours at the straight pay rate per night. Employees assigned on-call during holidays will receive three (3) hours at the straight pay rate per night. On-call assignments and assignment duration shall be determined by operational schedules. On-call assignment shall not overlap the normal operational period. ARTICLE X— HEALTH AND OTHER INSURANCE BENEFITS A. Health The City shall continue to make available group medical, dental and vision benefits to all association employees. The effective date for medical, dental and vision coverage is the first of the month following date of hire. Effective the first of the month following the employee's date of hire, any required employee payroll deduction shall begin with the first full pay period following the effective date of coverage and shall continue through the end of the month in which the employee separates, unless otherwise MSMA MOU January 1,2025—December 31,2027 10 MARINE SAFETY MANAGEMENT ASSOCIATION precluded by CaIPERS PEMHCA. All employee contributions shall be deducted on a pre-tax basis. A copy of the medical, dental and vision plan brochures may be obtained from the Human Resources Department. 1. California Public Employees' Retirement System—Public Employees'Medical and Hospital Care Act (CaIPERS PEMHCA) The City presently contracts with CaIPERS to provide medical coverage. The City is required under CaIPERS PEMHCA to make a contribution to retiree medical premiums. A retiree's right to receive a City contribution, and the City's obligation to make payment on behalf of retirees, shall only exist as long as the City contracts with CaIPERS for medical insurance. In addition, while the City is in CaIPERS, its obligations to make payments on behalf of retirees shall be limited to the minimum payment required by law. a. PEMHCA Employer Contributions The City shall contribute on behalf of each employee, the mandated minimum sum as required per month toward the payment of premiums for medical insurance under the PEMHCA program. As the mandated minimum is increased, the City shall make the appropriate adjustments by decreasing its flex benefits contribution accordingly as defined in the following sub-section. b. Maximum Employer Contributions Toward Flex Benefits For the term of this Agreement, the City's maximum monthly employer contribution for each employee's medical and vision insurance premiums are set forth as follows: i. Employee only ("EE") — The cost of the premium up to a maximum of $769.16. Effective the pay period including January 1, 2025, the City agrees to increase the maximum employer contribution amount for EE coverage, but not higher than $856.16 per month. Effective the pay period including January 1, 2026, the City agrees to increase this amount, but not higher than $943.16 per month. Effective the pay period including January 1, 2027, the City agrees to increase this amount, but not higher than $1,030.16. ii. Employee + one dependent ("EE + 1") —The cost of the premium up to a maximum of$1,492.28. Effective the pay period including January 1, 2025, the City agrees to increase the maximum employer contribution amount for EE + 1 coverage, but not higher than $1,579.28 per month. Effective the pay period including January 1, 2026, the City agrees to increase this amount, but not higher than $1,666.28 per month. Effective the pay period MSMA MOU January 1,2025—December 31,2027 11 MARINE SAFETY MANAGEMENT ASSOCIATION including January 1, 2027, the City agrees to increase this amount, but not higher than $1,753.28. iii. Employee + two or more dependents ("EE + 2") —The cost of the premium up to a maximum of$1,828.28. Effective the pay period including January 1, 2025, the City agrees to increase the maximum employer contribution for EE + 2 coverage, but not higher than $1,915.28 per month. Effective the pay period including January 1, 2026, the City agrees to increase the amount for EE + 2 coverage, but not higher than $2,002.28 per month. Effective the pay period including January 1, 2027, the City agrees to increase the amount for EE+ 2 coverage, but not higher than $2,089.28. iv. The City shall also pay up to $22.76 per month for each employee for the VSP Vision Plan. The maximum City contribution shall be based on the employee's enrollment in each plan. The parties agree that the required PEMHCA contribution (i.e., the annual PEMHCA statutory minimum) is included in this sum stated in the sub- section above. If the employee enrolls in a plan wherein the costs exceed the City contribution, the employee is responsible for all additional premiums through pre- tax payroll deductions. 2. Dental Insurance The annual maximum benefit for the Delta Dental PPO plan is $2,000.00 a. The maximum monthly City contribution for dental insurance for the Delta Dental PPO plan shall be as follows: 1) employee only ("EE") - $57.86; 2) employee plus one dependent ("EE + 1") - $108.02; 3) employee plus two or more dependents ("EE + 2") - $142.36. b. The maximum monthly City contribution for dental insurance for the Delta Care HMO plan shall be as follows: 1) employee only ("EE") - $25.77; 2) employee plus one dependent ("EE" + 1") .- $43.81; 3) employee plus two or more dependents ("EE + 2") - $67.00. 3. Retiree (Annuitant) Coverage As required by the Government Code, retired employees (annuitants) shall have available the ability to participate in the PEMHCA program. The City's requirement to provide retirees and/or annuitants medical coverage is solely governed by the Government Code that requires the City to extend this benefit to retirees (annuitants). While the City is contracted with CaIPERS to participate in the PEMHCA program, CaIPERS shall be the sole determiner of eligibility for retiree and/or annuitant to participate in the PEMHCA program. MSMA MOU January 1,2025—December 31,2027 12 • MARINE SAFETY MANAGEMENT ASSOCIATION a. City Contribution (Unequal Contribution Method) for Retirees As provided by the Government Code and the CaIPERS Board, and requested by the Association, the City shall use the Unequal Contribution Method to make City contributions on behalf of each retiree or annuitant. The starting year for the Unequal Contributions Method is 2004 at $1.00 per month. The City's contribution for each annuitant shall be increased annually by five percent(5%) of the monthly contribution for employees, until such time as the contributions are equal. The Service Credit Subsidy will be reduced every January 1st by an amount equal to any required amount to be paid by the City on behalf of the retiree (annuitant). The City shall make these payments only while the City is a participant in the PEMHCA program. b. Termination of Participation in the CaIPERS PEMHCA Program — Impact to Retirees • The City's requirement to provide retirees (annuitants) medical coverage is solely governed by the Government Code requirement that PEMHCA agencies extend this benefit to retirees (annuitants). If by agreement between the Association and the City or if the City elects to impose termination of its participation in the PEMHCA program, retirees (annuitants) shall no longer be eligible for City provided medical insurance. In the event that the City terminates its participation in the PEMHCA program, the retiree medical subsidy program in place in Resolution No. 2000-123 Exhibit D to the Memorandum of Understanding shall be reinstated. The City shall make any necessary modifications to conform to the new City sponsored medical insurance plan. 4. Additional Costs for Participation in the PEMHCA Program a. Retiree and/or Annuitant Coverage The Association shall pay to the City an amount equal to $1.00 per month for each additional retiree and/or annuitant in the bargaining unit who elects to participate in the PEMHCA plan but is not participating in the City sponsored retiree medical program as of the beginning of a pay period after the PEMHCA program is in place. Each January 1st the amount per month paid to the City for each retiree and/or annuitant described above shall increase by the amount PEMHCA requires the City to pay on behalf of each retiree (annuitant). Article IX.A.3.a. provides an example of expected payments per retiree or annuitant per month. In the event of passage of State Legislation, Judicial Rulings, or CaIPERS Board Actions that increases the mandatory minimum monthly contribution for retirees (annuitants), the Association shall pay an equal amount to the City. MSMA MOU January 1,2025—December 31,2027 13 MARINE SAFETY MANAGEMENT ASSOCIATION Payments shall be made the first of the month (following implementation). If the Association fails to make timely payments for two consecutive months, the City shall implement a decrease in the supplemental benefit contribution to health insurance for each unit employee by an amount equal to the total increased cost paid by the City. [For example, if the increased cost for retirees equals $6,000 per year, the monthly supplemental benefit for each employee will be decreased as follows: $6,000 divided by twelve (months) = $500, which is then divided by the number of employees receiving supplemental benefits]. b. Termination Clause The City and Association may each request termination of the City's contract with CaIPERS after the announcement of State Legislation, Judicial Rulings, or a CaIPERS Board Action that changes the employer's contribution, insurance premiums or program changes to the CaIPERS medical plan. The City and Association may elect to terminate its participation in the CaIPERS PEMHCA program by mutual agreement through the meet and confer process between the Association and the City. B. M If anedical employeeCash-Out is covered by a medical program outside of a City-provided program (evidence must be supplied to the Human Resources Department), the employee may elect to discontinue City medical coverage and receive three hundred twenty two dollars and sixty one cents ($322.61) bi-weekly to deposit into a deferred compensation account or any other pre-tax program offered by the City, so long as the contribution is in accordance with applicable Internal Revenue Code of regulations. C. Section 125 Employee Plan The City shall provide an Internal Revenue Code section 125 employee plan that allows employees to use pre-tax salary to pay for regular childcare, adult dependent care and/or unreimbursed medical expenses as determined by the Internal Revenue Code. D. Life and Accidental Death and Dismemberment (AD&D) Insurance Coverage The City will provide fifty thousand dollars ($50,000) of term life insurance and fifty thousand dollars ($50,000) of AD&D insurance coverage for each employee at the City's cost, without evidence of insurability other than evidence of full-time employment status. Optional insurance is available at the employee's own cost. MSMA MOU January 1,2025—December 31,2027 14 MARINE SAFETY MANAGEMENT ASSOCIATION E. Long Term Disability Insurance 1. This program provides, for each incident of illness or injury, a waiting period of thirty (30) calendar days, during which the employee may use accumulated sick leave, general leave pay, or the employee may elect to be in an unpaid status. Subsequent to the thirty (30) day waiting period, the employee will be covered by an insurance plan paid for by the City which will provide 66 2/3% of the employee's salary rate (excluding overtime and any special pay) up to a maximum of$10,000 a month in accordance with the following: Disability Due to Disability Due to Accident Illness First 30 Calendar Regular Pay Regular Pay Days Next 24 Calendar 66 2/3% of Base Pay 66 2/3% of Base Pay Months To age 65 66 2/3% of Base Pay None 2. The LTD plan is integrated with Workers' Compensation, Social Security and other non-private program benefits to which the employee's entitled. 3. Disability is defined as the inability to perform all of the duties of the employee's regular occupation during two (2)years and thereafter the inability to engage in any employment or occupation for which they are fitted by reason of education, training or experience. 4. The LTD Plan provides for a Survivors' benefit payment for three (3) months beyond the employee's death. 5. The terms and conditions of the disability insurance coverage are set forth in the policy, a copy of which is on file in the Human Resources Department. In the event of any conflict between the policy and this article, the policy shall control. The City may change insurance companies, policies, or self-insure this benefit, provided that the plans shall remain comparable to that currently in effect. ARTICLE XI — RETIREMENT A. CaIPERS Safety"Classic Member" Retirement Benefits 1. CaIPERS Safety"Classic Member" Retirement Formula The City shall provide all safety employees described as "classic members" by the Public Employees' Pension Reform Act of 2013 — "PEPRA" with that certain retirement program commonly known and described as the "3% @ age 50 plan" which is based on the retirement formula as set forth in California Public MSMA MOU January 1,2025—December 31,2027 15 MARINE SAFETY MANAGEMENT ASSOCIATION Employees' Retirement Law (PERL), Section 21362.2 of the California Government Code. 2. CaIPERS Safety"Classic Member" Final Compensation The City shall contract with PERS to have retirement benefits calculated based on the employee's highest one year's compensation, pursuant to the provisions in California Public Employees' Retirement Law (PERL) Section 20042 of the Government Code "Final Compensation"— One Year— Local Member. 3. CaIPERS Safety"Classic Member" Contribution a. All "classic members" shall pay their CaIPERS member contribution of nine percent(9%) of compensation earnable. 4. CaIPERS Safety"Classic Member" Cost Sharing a. Effective the beginning of the pay period including January 1, 2023, classic member shall cost share two percent (2%) compensation earnable in accordance with Government Code section 20516(f). b. Effective the beginning of the pay period including January 1, 2024, classic member shall cost share an additional one percent (2%) compensation earnable in accordance with Government Code section 20516(f),for a total cost share of four percent (4%). B. CaIPERS Safety "New Member" Retirement Benefits The City shall provide for"New Members" within the meaning of the California Public Employees' Pension Reform Act (PEPRA) of 2013 as defined in California Government Code Section 7522.04(f). 1. CaIPERS Safety "New Member" Retirement Formula The City shall provide the 2.7% @ age 57 retirement formula set forth in California Government Code Section 7522.25(d) for all safety employees defined as "new members" per the Public Employees' Pension Reform Act (PEPRA) of 2013 represented by the Association. 2. CaIPERS Safety"New Member" Final Compensation Final Compensation for "new members" will be based on the highest annual average compensation earnable during the 36 consecutive months immediately preceding the effective date of his or her retirement, or some other 36 consecutive month period designated by the member, as required by California Government Code Section 7522.32(a). MSMA MOU January 1,2025—December 31,2027 16 MARINE SAFETY MANAGEMENT ASSOCIATION 3. CaIPERS Safety"New Member" Retirement Contribution Effective October 1, 2013 "new members" as defined by PEPRA shall contribute one half of the normal cost rate, as established by CalPERS. 4. CalPERS Safety"New Member" Cost Sharing a. Effective the beginning of the pay period including January 1, 2023 "new members" safety members shall pay at least thirteen percent (13%) of pensionable compensation as their retirement contribution. If the required contribution per PEPRA (half the normal cost) is less than thirteen percent (13%), employees shall pay the difference between the required PEPRA contribution and thirteen percent (13%) as cost sharing per Government Code section 20516(f). lithe required PEPRA contribution is at least thirteen percent (13%) or more, "new members" safety members will pay the required PEPRA contribution. C. The City has adopted the CaIPERS Resolution in accordance with IRS Code section 414(h)(2) to ensure that both the employee contribution and the City pickup of the required member contribution are made on a pre-tax basis. However, ultimately the tax status of any benefit is determined by law. D. Self-Funded Supplemental Retirement Benefit In the event an employee elects Option#1, Option#2,#2W, Option#3,#3W or Option #4 of the Public Employees' Retirement Law, and the employee is a unit employee who was hired before November 2, 1998, the City shall pay the difference between such elected option and the unmodified allowance which the employee would have received for his or her life alone as provided in California Government Code Sections 21455, 21456,21457, and 21458 as said referenced Government Code Sections exist as of the date of this agreement. The payment shall be made only to the employee, shall be payable by the City during the life of the employee, an upon that employee's death, the City's obligation shall cease. The method of funding for this benefit shall be at the sole discretion of the City. This benefit is vested for employees hired before November 2, 1998. All unit employees hired on or after November 2, 1998 shall not be eligible for this benefit. E. Health Savings Account for Post-Retirement Medical Benefits The City shall implement a voluntary health savings account plan during the term of the agreement for the purpose of allowing employees the opportunity to fund post medical retirement health premiums. MSMA MOU January 1,2025—December 31,2027 17 MARINE SAFETY MANAGEMENT ASSOCIATION F. Pre-Retirement Optional Settlement 2 Death Benefit The City provides its safety employees Pre-Retirement Optional Settlement 2 Death Benefit. G. 1959 Survivors' Benefit Level IV Members of the City's safety retirement plan shall be covered by the Fourth Level of the 1959 Survivor Benefit. H. Medical Insurance for Retirees As required by the Government Code while the City is contracted with CaIPERS to participate in Public Employees' Medical and Hospital Care Act (PEMHCA) program, retired employees (annuitants) shall have available the ability to participate in the PEMHCA program. CalPERS shall be the sole determiner of eligibility for retiree (annuitant) to participate in the PEMHCA program. ARTICLE XII- LEAVE BENEFITS A. General Leave The provisions on General Leave set forth below shall go into effect in the pay period including January 1, 2022. Prior to the effective date of General Leave, members of the Association earned vacation. Employees' vacation balances carry over past the effective date of General Leave. Although employees no longer earn vacation, they may use their vacation and shall be cashed out of any vacation balances at separation as provided herein. 1. Purpose — General leave may be used for any purpose, including vacation, sick leave, and personal leave. 2. Anniversary Date — For the purpose of computing General Leave, an employee's anniversary date shall be the most recent date on which they commenced full-time employment, unless otherwise provided in writing by agreement between the City and the employee upon initial hire or re-hire. 3. Accrual — Employees shall accrue General Leave at their appropriate assigned work schedule rate. Employees shall accrue annual General Leave with pay in accordance with the following: MSMA MOD January 1,2026—December 31,2027 18 MARINE SAFETY MANAGEMENT ASSOCIATION Years of Service Annual General Bi-Weekly General Leave Accrual Leave Accrual Rate First through Fourth Year 176 Hours 6.77 Fifth through Ninth Year 200 Hours 7.69 Tenth through Fourteenth Year 224 Hours 8.62 Fifteenth Year and Thereafter .256 Hours 9.85 4. Eligibility and Approval General Leave must be pre-approved, except for illness, injury, or family sickness, which may require a physician's statement for approval. Accrued General Leave may not be taken prior to six (6) months'service except for illness, injury or family sickness. Employees shall not be permitted to take General Leave in excess of actual time earned. Employees shall not accrue General Leave in excess of six hundred forty (640) hours. General Leave accumulated in excess of six hundred forty (640) hours shall be paid at the base hourly rate of pay, on the first pay day following such accumulation. Employees may not use their General Leave to advance their separation date on retirement or other separation from employment. 5. Leave Conversion to Cash On or before the beginning of the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out up to one hundred and twenty (120) hours of accrued General Leave, which will be earned in the following calendar year at the employee's regular rate of pay. The employee can elect to receive up to sixty (60) hours of General Leave cash out in the pay period that includes July 15. The employee shall receive any remaining General Leave cash out to which they irrevocably elected to cash out in the pay period that includes December 1. However, if the employee's General Leave balance is less than the amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for the amount of leave the employee has accrued at the time of the cash out. 6. Deferred Compensation/ Leave Cash Out — The value of any unused earned General Leave or previously accrued vacation may be transferred to deferred compensation at the regular rate of pay in connection with separation from employment, but only during the time the employee is actively employed with the City. The employee must request the transfer no later than the pay period prior to the employee's last day of employment. MSMA MOU January 1,2025-December 31,2027 19 MARINE SAFETY MANAGEMENT ASSOCIATION 7. Pay-Off at Separation from Employment Upon separation from employment, the employee shall receive compensation at their current regular rate of pay for all unused, earned general leave or previously accrued vacation to which they are entitled up to and including the effective date of their separation from employment. B. Vacation 1. Accrual — Effective January 1, 2022, employees shall no longer accrue vacation leave. 2. Eligibility and Permission No employee shall be permitted to take a vacation in excess of actual time earned and vacation shall not be accrued in excess of three hundred twenty (320) hours. Vacations shall be taken only with permission of the Marine Safety Division Chief or designee; however, the Marine Safety Division Chief or designee shall schedule all vacations with due consideration for the wish of the employee and particular regard for the need of the department. C. Sick Leave Full-time employees hired on or before the pay period following Council approval of this 2022-2024 MOU will receive a one-time Sick Leave bank totaling 96 hours. Once this Sick Leave bank is fully used, employees will no longer receive Sick Leave, only General Leave as described above. The one-time bank may not be cashed out at any time, nor, upon separation from employment, transferred to deferred compensation, and/or a qualified medical retirement trust program. D. Family Leave Benefit Entitlements All employees will be allowed to use up to sixty (60) hours per calendar year to care for a child, parent, spouse, or registered domestic partner during illness. This paragraph will continue in its current form so long as any other unit receives it, and will sunset, in the same calendar year, if eliminated as the result of contract negotiations. The City will provide family and medical care leave for eligible employees that meet all requirements of State and Federal law. Rights and obligations are set forth in the Department of Labor Regulations implementing the Family Medical Leave Act(FMLA), and the regulations of the California Fair Employment and Housing Commission implementing the California Family Rights Act (CFRA). MSMA MOU January 1,2026—December 31,2027 20 MARINE SAFETY MANAGEMENT ASSOCIATION The City shall comply with all State and Federal leave benefit entitlement laws. An employee on an approved leave shall be allowed to use paid sick leave and earned vacation, and/or compensatory time for duration of the approved leave. E. Bereavement Leave Employees shall be entitled to bereavement leave not to exceed three (3)work shifts in each instance of death in their immediate family. Immediate family is defined as a parent, sibling, spouse, registered domestic partner, child, grandparent, grandchild, or wards of which the employee is the legal guardian, recognizing all birth, marital, and other legal ties (i.e., step relatives, in-laws, etc.). F. Voluntary Catastrophic Leave Donation Program Under certain conditions, employees may donate leave time to another employee in need. The program is outlined in Exhibit E of this Memorandum.of Understanding. ARTICLE XIII —CITY RULES All City Personnel Rules shall apply to Association members, however, to the extent this MOU modifies the City's Personnel Rules; the Personnel Rules as modified will apply to Association members. ARTICLE XIV—MISCELLANEOUS A. Salary Upon Appointment When an appointment of a recurrent lifeguard to the classification of Marine Safety Specialist or Marine Safety Captain occurs, the salary step upon appointment shall be determined in the same manner as salary step upon promotions under the City's Personnel Rules. B. Physical Examinations The City agrees to pay for bi-annual physical examinations, to include stress EKG, when authorized by the Department Head, with the understanding that results thereof • may be utilized for the determination of the employee's continued ability to perform duties of the position. A copy of the physical examination shall be provided to the employee upon request. C. Conditioning Time Unit employees may be allowed up to one (1) hour on each regularly scheduled shift to be used for physical conditioning. MSMA MOU January 1,2025—December 31,2027 21 MARINE SAFETY MANAGEMENT ASSOCIATION D. 1,500 Hour Recurrent Employees There is a fifteen hundred (1,500)work hour per year for non-MSMA positions, subject to official change in Personnel Rules 5-24. E. Collection of Payroll Overpayments In the event that a payroll overpayment is discovered and verified, and considering all reasonable factors including the length of time that the overpayment was made and if and when the employee could have reasonably known about such overpayment, the City will take action to collect from the employee the amount of overpayment(s). Such collection shall be processed by payroll deduction over a reasonable period of time considering the total amount of overpayment. In the event the employee separates from employment during the collection period, the final amount shall be deducted from the last payroll check of the employee. If applicable, the balance due from the employee shall be communicated upon employment separation if the last payroll check does not sufficiently cover the amount due the City. It shall be the responsibility of the employee and the City to periodically monitor the accuracy of compensation payments or reimbursements due to the possibility of a clerical oversight or error. The City reserves the right to also collect compensation over payments caused by the result of misinterpretation of a pay provision by non- authorized personnel. The interpretation of all pay provisions shall be administered by the City Manager or designee. Unauthorized compensation payments shall not constitute a past practice. F. Grievance Hearing Cost Sharing Grievance hearing costs shall be shared equally by the City and the Association. The parties agree that under no circumstances shall the grievant(s) be required to pay any part of the grievance hearing costs. G. Personnel Rule 19 Modification City and Association agree to implement Personnel Rule 19 modifications as provided in Exhibit D attached hereto and incorporated by reference. H. Update Employee-Employer Relations Resolution (EERR) During the term of the Agreement, the City and the Association agree to meet and confer to update the Employee-Employer Relations Resolution to reflect current state law. MSMA MOU January 1,2025—December 31,2027 22 MARINE SAFETY MANAGEMENT ASSOCIATION I. Modified Return to Work Policy The City and the Association agree to meet and confer during the term of the Agreement to establish a modified return to work policy for employees who experience industrial or non-industrial illness and/or injury. J. Controlled Substance and Alcohol Testing The City maintains the right to conduct a test during working hours of any employee that it reasonably suspects is under the influence of alcohol or a controlled substance in the workplace, consistent with the department policy. MSMA MOU January 1,2025—December 31,2027 23 MARINE SAFETY MANAGEMENT ASSOCIATION ARTICLE XV— CITY COUNCIL APPROVAL It is the understanding of the City and the Association that this Memorandum of Understanding is of no force or affect whatsoever unless and until adopted by Resolution of the City Council of the City of Huntington Beach. IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Understanding this 7th day of October , 2025. HUNTINGTON BEACH CITY OF HUNTINGTON BEACH MARINE SAFETY MANAGEMENT A Municipal Corporation ASSOCIATION By: c — 4ds� . — By: Travis Hopkins Sterli o roft City Manager MSMA President By: By: Marissa Sur Ja n Ha org Director of Human Resources MSMA Vice President �J Eric McCoy Derek Peters Fire Chief MSMA Board Member By: Rob Wexler, Attorney for MSMA APPROVED AS TO FORM By: �:. Michael Vigliotta City Attorney COUNTERPART MSMA MOU January 1,2025—December 31,2027 24 MARINE SAFETY MANAGEMENT ASSOCIATION ARTICLE XV—CITY COUNCIL APPROVAL It is the understanding of the City and the Association that this Memorandum of Understanding is of no force or affect whatsoever unless and until adopted by Resolution of the City Council of the City of Huntington Beach. IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Understanding this 7th day of October , 2025. HUNTINGTON BEACH CITY OF HUNTINGTON BEACH MARINE SAFETY MANAGEMENT A Municipal Corporation ASSOCIATION By: By: Travis Hopkins Sterling Foxcroft City Manager MSMA President By: By: Marissa Sur Jachin Hamborg Director of Human Resources MSMA Vice President By: By: Eric McCoy Derek Peters Fire Chief MSMA Board Member By: 1.1 Rob Wexler, Attorney for MSMA APPROVED AS TO FORM By: Michael Vigliotta City Attorney COUNTERPART MSMA MOU January 1,2025—December 31,2027 24 MARINE SAFETY MANAGEMENT ASSOCIATION EXHIBIT A- MSMA SALARY SCHEDULE Effective the Beginning of the Pay Period Including January 1, 2025 Classification Title Ra • tep A ',Step B , Step Marine Safety Specialist 164 $28.36 $29.78 $31.26 $32.83 $34.47 $36.19 $38.00 Marine Safety Captain 209 $44.37 $46.59 $48.92 $51.37 $53.94 $56.63 $59.46 Marine Safety Battalion Chief 229 $54.14 $56.85 $59.69 $62.68 $65.81 $69.10 $72.56 Effective July 1, 2025 • Classification Title Range Step A ; Marine Safety Specialist 174 $31.32 $32.89 $34.53 $36.26 $38.07 $39.98 $41.98 Marine Safety Captain 209 $44.37 $46.59 $48.92 $51.37 $53.94 $56.63 $59.46 Marine Safety Battalion Chief 229 $54.14 $56.85 $59.69 $62.68 $65.81 $69.10 $72.56 Effective the Beginning of the Pay Period After Council Adoption F1011 lassification Title a ep Step tep C' `e Step Marine Safety Specialist MSM813 $32.89 $34.53 $36.26 $38.07 $39.98 $41.98 $44.08 Marine Safety Captain MSM701 $46.59 $48.92 $51.37 $53.94 $56.63 $59.46 $62.44 Marine Safety Battalion Chief MSM702 $56.85 $59.69 $62.68 $65.81 $69.10 $72.56 $76.19 Effective the Beginning of the Pay Period Including January 1, 2026 � a assi ca on Title Rang j . , Marine Safety Specialist 177 $33.89 $35.58 $37.36 $39.23 $41.19 $43.25 $45.41 Marine Safety Captain 212 $48.00 $50.40 $52.92 $55.57 $58.35 $61.27 $64.33 Marine Safety Battalion Chief 232 $58.57 $61.50 $64.58 $67.81 $71.20 $74.76 $78.49 Effective the Beginning of the Pay Period Including January 1, 2027 Classification Title Marine Safety Specialist 180 $34.91 $36.66 $38.49 $40.42 $42.44 $44.56 $46.79 Marine Safety Captain 215 $49.46 $51.93 $54.53 $57.25 $60.12 $63.12 $66.28 Marine Safety Battalion Chief 235 $60.35 $63.37 $66.53 $69.86 $73.35 $77.02 $80.87 MSMA MOU January 1,2025-Ducember 31,202/ 25 MARINE SAFETY MANAGEMENT ASSOCIATION EXHIBIT B—SERVICE CREDIT SUBSIDY PLAN An employee who has retired from the City and meets the plan participation requirements ' shall receive a monthly Service Credit Subsidy to reimburse the retiree for the payment of qualified medical expenses incurred for the purchase of medical insurance. Plan Participation Requirements 1. At the time of retirement, the employee has a minimum of ten (10)years of continuous regular(permanent) City service or is granted an industrial disability retirement; and 2. At the time of retirement, the employee is employed by the City; and 3. Following official separation from the City, the employee is granted a retirement allowance by the California Public Employees' Retirement System (CalPERS). The City's obligation to pay the Service Credit Subsidy as indicated shall be modified downward or cease during the lifetime of the retiree upon the occurrence of any one of the following: a. During any period the retired employee is eligible to receive or receives medical insurance coverage at the expense of another employer, the payment will be suspended. "Another employer" as used herein means private employer or public employer or the employer of a spouse. As a condition of being eligible to receive the Service Credit Subsidy as set forth in this plan, the City shall have the right to require any retiree to annually certify that the retiree is not receiving or eligible to receive any such medical insurance benefits from another employer. If it is later discovered that a misrepresentation has occurred, the retiree will be responsible for reimbursement of those amounts inappropriately expended and the retiree's eligibility to receive further benefits will cease. b. On the first of the month in which a retiree or dependent reaches age sixty-five (65) or on the date the retiree.or dependent can first apply and become eligible, automatically or voluntarily, for medical coverage under Medicare (whether or not such application is made) the City's obligation to pay Service Credit Subsidy may be adjusted downward or eliminated. c. In the event of the death of an eligible employee,whether retired or not,the amount of the Service Credit Subsidy benefit which the deceased employee was eligible for at the time of their death shall be paid to the surviving spouse or dependent for a period not to exceed twelve (12) months from the date of death. 4. Minimum Eligibility for Benefits — With the exception of an industrial disability retirement, eligibility for Service Credit Subsidy begins after an employee has completed ten (10) years of continuous regular (permanent) service with the City of MSMA MOU January 1,2025—December 31,2027 26 MARINE SAFETY MANAGEMENT ASSOCIATION EXHIBIT B—SERVICE CREDIT SUBSIDY PLAN Huntington Beach. Said service must be continuous unless prior service is reinstated at the time of their rehire in accordance with the City's Personnel Rules. To receive the Service Credit Subsidy retirees are required to purchase medical insurance from City sponsored plans. The City shall have the right to require any retiree (annuitant) to annually certify that the retiree is purchasing medical insurance benefits. 5. Disability Retirees—Industrial disability retirees with less than ten (10)years of service shall receive a maximum monthly payment toward the premium for health insurance of one hundred twenty dollars ($120). Payments shall be in accordance with the stipulations and conditions, which exist for all retirees. 6. Service Credit Subsidy — Payment shall not exceed dollar amount, which is equal to the qualified medical expenses incurred for the purchase of City sponsored medical insurance. 7. Maximum Monthly Service Credit Subsidy Payments — All retirees, including those retired as a result of disability whose number of years of service prior to retirement exceeds ten (10), continuous years of regular(permanent) service shall be entitled to maximum monthly Service Credit Subsidy by the City for each year of completed City service as follows: Maximum Service Credit Subsidy Retirements After: Service Credit Years of Subsidy Service 10 $120 11 135 12 150 13 165 14 180 15 195 16 210 17 225 18 240 19 255 20 270 21 285 22 299 23 314 24 329 25 344 MSMA MOU January 1,2025—December 31,2027 27 MARINE SAFETY MANAGEMENT ASSOCIATION EXHIBIT B—SERVICE CREDIT SUBSIDY PLAN The Service Credit Subsidy will be reduced every January 1st by an amount equal to any required amount to be paid by the City on behalf of the retiree (annuitant). Article IX.A.3.a. provides an example of expected reductions per retiree per month. 8. Medicare a. All persons eligible for Medicare coverage at age sixty-five (65). Those with sufficient credited quarters of Social Security will receive Part A of Medicare at no cost. Those without sufficient credited quarters are still eligible for Medicare at age sixty-five (65), but will have to pay for Part A of Medicare if the individual elects to take Medicare. In all cases, the participant pays for Part B of Medicare. b. When a retiree and their spouse are both sixty-five (65) or over, and neither is eligible for paid PartA of Medicare, the Service Credit Subsidy shall pay for PartA for each of them or the maximum subsidy, whichever is less. c. When a retiree at age sixty-five (65) is eligible for paid Part A of Medicare and their spouse is not eligible for paid Part A of Medicare, the spouse shall not receive the subsidy. When a retiree at age sixty-five (65) is not eligible for paid Part A of Medicare and their spouse who is also age sixty-five (65) is eligible for paid Part A of Medicare, the subsidy shall be for the retiree's Part A only. 9. Cancellation a. For retirees/dependents eligible for paid Part A of Medicare, the following cancellation provisions apply: i. Coverage for a retiree under the Service Credit Subsidy Plan will be eliminated on the first day of the month in which the retiree reaches age sixty-five (65). ii. At age sixty-five (65) retirees are eligible to make application for Medicare. Upon being considered "eligible to make application", whether or not application has been made for Medicare, the Service Credit Subsidy Plan will be eliminated. MSMA MOU January 1,2025—December 31,2027 28 MARINE SAFETY MANAGEMENT ASSOCIATION • EXHIBIT C— MODIFICATION TO EMPLOYEE-EMPLOYER RELATIONS RESOLUTION A. Employer-Employee Relations Resolution 1. Modification of Section 7— Decertification and Modification a. The City and the Association desire to maintain labor stability within the representational unit to the greatest extent possible, consistent with the employee's right to select the representative of his or her own choosing. For these purposes, the parties agree that this Agreement shall act as a bar to appropriateness of this unit and the selection of the representative of this unit, except during the month of August prior to the expiration of this Agreement. Changes in bargaining unit shall not be effective until expiration of the MOU, except as may be determined by the Personnel Commission pursuant to the procedures outlined below. This provision shall modify and supersede the time limits, where inconsistent, contained in Section 7 of the current Employer- Employee Relations Resolution of the City of Huntington Beach. b. The City and the Association have agreed to a procedure whereby the City, by and through the Director of Human Resources, would be entitled to propose a Unit Modification. The Association and the City agree to jointly recommend a modification of the City of Huntington Beach Employer-Employee Relations Resolution (Resolution Number 3335) upon the City's having completed its obligation to meet and confer on this issue with all other bargaining units. The proposed change to the Employer-Employee Relations Resolution is as follows: 7-3. Personnel Direction Motion of Unit Modification —The Director of Human Resources may propose, during the same period for filing a Petition for Decertification, that an established unit be modified in accordance with the following procedure: 1) The Director of Human Resources shall give written notice of the proposed Unit Modification or Modifications to all employee organizations that may be affected by the proposed change. Said written notification shall contain the Director of Human Resources rationale for the proposed change including all information which justifies the change pursuant to the criteria established in Section 6-5 for appropriateness of Units. Additionally, the Director of Human Resources shall provide all affected employee organizations with all correspondence, memoranda, and other documents which relate to any input regarding the Unit Modification which may have been received by the City or from affected employees and/or sent by the City to affected employees; 2) Following receipt of the Director of Human Resources Proposal for Unit Modification any affected employee organization shall be afforded not less MSMA MOU January 1,2025—December 31,2027 29 MARINE SAFETY MANAGEMENT ASSOCIATION EXHIBIT C— MODIFICATION TO EMPLOYEE-EMPLOYER RELATIONS RESOLUTION than thirty (30) days to receive input from its members regarding the proposed change and to formulate a written and/or oral response to the Motion for Unit Modification to the Personnel Commission; 3) The Personnel Commission shall conduct a noticed Public Hearing regarding the Motion for Unit Modification at which time all affected employee organizations and other interested parties shall be heard. The Personnel Commission shall make a determination regarding the proposed Unit Modification which determination may include a granting of the motion, a denying of the motion, or other appropriate orders relating to the appropriate creation of Bargaining Units. Following the Personnel Commission's determination of the composition of the appropriate Unit or Units, it shall give written notice of such determination to all affected employee organizations; 4) Any party who chooses to appeal from the decision of the Personnel Commission is entitled to appeal in accordance with the provision of Section 14-4 of Resolution Number 3335. B. During the term of the agreement, the City and the Association agree to update the Employee-Employer Relations Resolution to reflect current State law. MSMA MOU January 1,2025—December 31,2027 30 MARINE SAFETY MANAGEMENT ASSOCIATION EXHIBIT D— MODIFICATION TO PERSONNEL RULE 19 19-1. PURPOSE. The purpose of this rule is to provide a means by which grievances of employees or employee organizations may be considered, discussed and resolved at the level closest to their point of origin. The grievance procedure provided for in this rule does not apply to the review of employee disciplinary matters which subject is treated in Rule 20 hereof. 19-2. DEFINITION. For the purpose of this rule, a grievance is a dispute concerning the interpretation or application of any provision of the City's Employer-Employee Relations Resolution, or any provision of this resolution or any departmental rule governing personnel practices or working conditions, with the exception of matters excluded by Section 19-3. 19-3. MATTERS EXLUDED FROM GRIEVANCE PROCEDURE. The following subjects are excluded from the grievance procedure provided for herein: (a) The review of employee disciplinary matters, which is treated in Rule 20 hereof. (b) All matters subject to impasse procedure, provided in the Employer- Employee Relations Resolution. 19-4. SUBMISSION OF GRIEVANCES. Any individual employee or recognized employee organization shall have the right to present a grievance. If two (2) or more employees have essentially the same grievance and report to the same supervisor, they may, and if requested to do so by the City, must jointly or collectively present and pursue their grievance. If a grievance is alleged by three (3) or more employees, the group shall, at the request of the City, appoint one of such employees to speak for the group. 19-5. GRIEVANCE PROCEDURE. The grievance procedure shall consist of the following steps, each of which must be completed prior to any request for further consideration of the matter unless otherwise provided herein: Step 1. Informal Discussion (optional). If an employee feels that he has a grievance, as defined in Section 19-2, he may request a meeting with his immediate supervisor within ten (10) days after the employee becomes aware or reasonably should have become aware of the subject matter of the grievance. The immediate supervisor, within ten (10) days of such request, shall meet with the employee when so requested and discuss the grievance in an effort to clarify the issue and work toward a cooperative settlement or resolution of the dispute. The immediate supervisor shall present, verbally or in writing, his decision to the employee within ten (10) days from the time of the informal discussion. MSMA MOU January 1,2025—December 31,2027 31 MARINE SAFETY MANAGEMENT ASSOCIATION EXHIBIT D—MODIFICATION TO PERSONNEL RULE 19 Step 2. Formal Procedure. Immediate Supervisor. If the grievance is not settled through informal discussion, or if the employee elects not to invoke his right to informal discussion, the employee may formally submit a grievance to his immediate supervisor within ten (10) days following the decision pursuant to informal discussion, or in the event the employee does not elect to invoke his right to informal discussion, within ten (10) days after the occurrence which gives rise to the grievance or after the employee becomes aware or reasonably should have been aware of the subject matter of the grievance. Such submission shall be in writing, stating the nature of the grievance and a suggested solution or requested remedy. Within ten (10)days after the receipt of the written grievance, the immediate supervisor shall meet with the employee. Within ten (10) days thereafter written decision shall be given the employee by the immediate supervisor. Step 3. Department Head. In cases where the department head is not the immediate supervisor, if the grievance is not settled under Step 2, the grievance may be presented to the department head. The grievance shall be submitted within ten (10) days after the receipt of the written decision from Step 2. Within ten (10) days after the receipt of the written grievance, the department head or his representative, shall meet with the employee and his immediate supervisor, if any. Within ten (10) days thereafter written decision shall be given to the employee. Step 4. City Manager. If the grievance is not settled under Step 3, the grievance may be presented to the City Manager in accordance with the following procedure: Within fifteen (15) days after the time the decision is rendered under Step 3 above, a written statement of the grievance shall be filed with the Director of Human Resources who shall act as hearing officer and shall set the matter for hearing within fifteen (15) days thereafter and shall cause notice to be served upon all interested parties. The Director of Human Resources, or his representative, shall hear the matter de novo and shall make recommended findings, conclusions and decision in the form of a written report and recommendation to the City Manager within ten (10)days following such hearing. The City Manager may, in his discretion, receive additional evidence or argument by setting the matter for hearing within ten (10) days following his receipt of such report and causing notice of such hearing to be served upon all interested parties. Within ten (10) days after receipt of report, or the hearing provided for above, if such hearing is set by the City Manager, the City Manager shall make written decision and cause such to be served upon the employee or employee organization and the Director of Human Resources. MSMA MOU January 1,2025—December 31,2027 32 MARINE SAFETY MANAGEMENT ASSOCIATION EXHIBIT D — MODIFICATION TO PERSONNEL RULE 19 Step 5. Personnel Commission. If the grievance is not settled under Step 4, it may be appealed to the Personnel Commission for de novo hearing and final determination in accordance with the following procedure: (a) Within ten (10) days after the time decision is rendered under Step 4 above, a written statement of grievance shall be filed with the Director of Human Resources. Such statement of grievance shall set forth in detail the nature of the grievance, the facts surrounding the subject matter of the grievance, the contentions of the employee and the proposed solution or determination. (b) As soon as practicable thereafter, the Director of Human Resources shall set the matter for hearing before a hearing officer either selected by mutual consent of the parties or from a list approved by the Personnel Commission. Ratification of the hearing officer selected by mutual consent of the parties, if from a list approved by the Personnel Commission, shall not require separate approval or ratification by the Personnel Commission. The hearing officer shall hear the case and make recommended findings, conclusions and decision in the form of a written report and recommendations to the Personnel Commission. In lieu of the hearing officer process, the Personnel Commission may agree to hear a case directly upon submission of the case by mutual consent of the parties. 19-6. SUPPLEMENTAL HEARING BY PERSONNEL COMMISSION (a) The Commission may, in its sole discretion, after it has received the written report and recommendation of the hearing officer, set the matter for private hearing for the purpose of receiving additional evidence or argument. In the event the Commission sets a private hearing for such purpose, the Director of Human Resources shall give written notice of such to all parties concerned in such matter. (b) The Commission, following a consideration of the hearing officer's written report and recommendation and deliberation thereon and any supplemental hearing before the Commission, shall make findings, conclusions and decision which shall be final and binding on all parties and from which there shall be no further appeal. 19-7. GRIEVANCE. DEPARTMENT HEAD. Any department head who has a grievance may present it to the City Manager for determination. The City Manager shall render a written decision to said department head within ten (10) days after such submission, which decision.may be appealed by the department head to the Personnel Commission in accordance with Step 5 of Section 19-5. MSMA MOU January 1,2025—December 31,2027 33 MARINE SAFETY MANAGEMENT ASSOCIATION EXHIBIT E—VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM Guidelines 1. Purpose The purpose of the voluntary catastrophic leave donation program is to bridge employees who have been approved leave time to either: return to work, long-term disability, or medical retirement. Employees who accrue vacation, general leave or compensatory time may donate such leave to another employee when a catastrophic illness or injury befalls that employee or because the employee is needed to care for a seriously ill family member. The leave-sharing Leave Donation Program is Citywide across all departments and is intended to provide an additional benefit. Nothing in this program is intended to change current policy and practice for use and/or accrual of vacation, general, or sick leave. 2. Definitions Catastrophic Illness or lniury — A serious debilitating illness or injury which incapacitates the employee or an employee's family member. Family Member— For the purposes of this policy, the definition of a family member is that defined in the Family Medical Leave Act (child, parent, spouse or domestic partner). 3. Eligible Leave Accrued compensatory, vacation or general leave may be donated. The minimum donation an employee may make is two (2) hours and the maximum is forty (40) hours. 4. Eligibility Employees who accrue vacation or general leave may donate such hours to eligible recipients. Compensatory time accrued may also be donated. An eligible recipient is an employee who: • Accrues vacation or general leave; • Is not receiving disability benefits or Workers'Compensation payments; and • Requests donated leave. 5. Transfer of Leave The maximum donation credited to a recipient's leave account shall be the amount necessary to ensure continuation of the employee's regular salary during the employee's period of approved catastrophic leave. Donations will be voluntary, confidential and irrevocable. Hours donated will be converted into a dollar amount MSMA MOU January 1,2025—December 31,2027 34 MARINE SAFETY MANAGEMENT ASSOCIATION EXHIBIT E —VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM based on the hourly wage of the donor. The dollar amount will then be converted into accrued hours based on the recipient's hourly wage. An employee needing leave will complete a Leave Request Form and submit it to the Department Director for approval. The Department Director will forward the form to Human Resources for processing. Human Resources, working with the department, will send out the request for leave donations. Employees wanting to make donations will submit a Leave Donation Form to the Finance Department (City payroll). All donation forms submitted to payroll will be date stamped and used in order received for each bi-weekly pay period. Multiple donations will be rotated in order to insure even use of time from donors. Any donation form submitted that is not needed will be returned to the donor. 6. Other Please contact the Human Resources Department on questions regarding employee participation in this program. MSMA MOU January 1,2025—December 31,2027 35 MARINE SAFETY MANAGEMENT ASSOCIATION EXHIBIT E—VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM Voluntary Catastrophic Leave Donation Program Leave Request Form According to the provisions of the Voluntary Catastrophic Leave Donation Program, I hereby request donated vacation, general leave or compensatory time. MY SIGNATURE CERTIFIES THAT: • A leave of absence in relation to a catastrophic illness or injury has been approved by my department; and • I am not receiving disability benefits or Workers' Compensation payments. Name: (Please Print or Type:Last, First, MI) Work Phone: Department: Job Title: Employee ID#: (Requester Signature: Date: Department Director Signature of Support: 1Date: Human.Resources Department-Use Only End donation date will bridge to: ❑ Long Term Disability End donation date: ❑ Medical Retirement beginning ❑ Length of FMLA leave ending ❑ Return to work Human Resources Director Signature: Date signed: Please submit this form to the Human Resources Department for processing. MSMA MOU January 1,2025-December 31,2027 36 MARINE SAFETY MANAGEMENT ASSOCIATION EXHIBIT E—VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM Voluntary Catastrophic Leave Donation Program Leave Donation Form Donor, please complete Donor Name: (Please Print or Type:Lasf, First, MI) Work Phone: Donor Job Title: Type of Accrued Leave: Number of Hours I wish to donate: ❑ Vacation Hours of Vacation 0 Compensatory Time Hours of Compensatory Time ❑ General Leave Hours of General Leave I understand that this voluntary donation of leave credits, once processed, is irrevocable; but if not needed,the donation will be returned to me. I also understand that this donation will remain confidential. I wish to donate my accrued vacation, comp or general leave hours to the Leave Donation Program for: Eligible recipient employee's name (Last, First, MI): Donor Signature: Date: Please submit to Payroll in the Finance Department. MSMA MOU January 1,2025—December 31,2027 37 Res. No. 2025-62 • STATE OF CALIFORNIA =_ COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, LISA LANE BARNES, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on October 7, 2025 by the following vote: AYES: Twining, McKeon, Burns, Van Der Mark, Gruel NOES: None ABSENT: Kennedy, Williams ABSTAIN: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California