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HomeMy WebLinkAbout08 - Amending the MOU with the Newport Beach Police AssociationO��EWPoP CITY OF NEWPORT BEACH City Council Staff Report November 22, 2016 Agenda Item No. 8 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dave Kiff, City Manager — 949-644-3001 dkiff@newporbeachca.gov Barbara Salvini, Human Resources Director — 949-644-3259 bsalvini@newportbeachca.gov PREPARED BY: Maggie Williams-Dalgart, Senior Human Resources Analyst PHONE: 949-644-3337 TITLE: Resolution No. 2016-122 Amending the Memorandum of Understanding with the Newport Beach Police Association ABSTRACT: On July 15, 2014, the City and the Newport Beach Police Association (NBPA) entered into a Memorandum of Understanding ("MOU") for the period July 1, 2014 through June 30, 2017. This MOU includes compensation terms associated with Canine and Motor Officer assignments. Upon further review of these contract provisions it has been determined the MOU provisions require clarification. City and NPBA representatives have met and conferred in good faith and agreed upon revisions to the MOU which are set forth in the proposed Second Side Letter Agreement. The Second Side Letter Agreement is presented for City Council's approval/adoption (or rejection) and is the final step in the process to amend the NBPA MOU. RECOMMENDATION: a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Adopt Resolution No. 2016-122, A Resolution of the City Council of the City of Newport Beach, California, Approving the Second Side Letter of Agreement to the 2014-17 Memorandum of Understanding between the City of Newport Beach and the Newport Beach Police Association Regarding Further Amendments Clarifying Motor Officer and Canine Officer Compensation Provisions. 8-1 Resolution No. 2016-122 Amending the Memorandum of Understanding with the Newport Beach Police Association November 22, 2016 Page 2 FUNDING REQUIREMENTS: There is no supplemental budget request for this item. The FY2016-17 Police Department budget includes sufficient payroll funding to continue these compensation provisions. DISCUSSION: The Newport Beach Police Department currently utilizes two (2) Canine Officers and eight (8) Motor Officers. Employees working in these assignments receive compensation related to the care and maintenance of their canines, motorcycles, and related equipment. The amount of compensation is subject to "meet and confer" (negotiations) between the City and the NBPA. These pays have been incorporated into NBPA contracts for many years. Both pays are "PERS-able" and are added to base salary for pension calculations. At the time of the last MOU adoption, Canine and Motor Officers were provided with six (6) additional hours of overtime pay per month to compensate them for the additional hours required to care and maintain their department -issued canines, motorcycles, and related equipment. On August 1, 2016, the parties entered into a Side Letter Agreement (Attachment B) amending the relevant language contained in the operative MOU in order to comply with applicable California Public Employee Retirement System ("PERS") regulations. The revisions were administrative in nature and did not alter employee compensation or increase the cost to the City. Following implementation of the administrative changes it was discovered there was conflict between the terms of the new Side Letter Agreement and the actual amount of premium pay Canine Officers were receiving. Specifically, in 2005, the Police Department conducted a study of Canine compensation and determined that the six (6) hours per month did not accurately reflect the actual time Canine Officers were spending while performing canine care and maintenance related duties. Rather, the study revealed employees were spending approximately ten (10) hours per month on these activities. Consequently, in 2005 the Department began compensating Canine Officers by providing ten (10) hours a month paid at time and a half (effectively fifteen (15) hours of compensation) to more accurately reflect the amount of off-duty time the Canine Officers needed for handling, training and boarding their canines. In light of the new information, City and NBPA representatives met and conferred to discuss the issue. As a part of those discussions, the City did a new survey to determine comparable rates for Canine Officers in the region, and found that fifteen (15) hours of compensation is indeed in line with what other agencies are providing. Resolution No. 2016-122 Amending the Memorandum of Understanding with the Newport Beach Police Association November 22, 2016 Page 3 The attached Second Side Letter Agreement, presented for City Council's consideration, replaces the initial Side Letter Agreement. The revised language for the Canine Officers incorporates the 2005 study findings and includes the fifteen (15) hours of compensation. Motor Officers will continue to receive six (6) hours per month paid at time and a half for the routine and consistent responsibilities associated with maintaining and servicing their motorcycles. The Second Side Letter Agreement also stipulates that the parties agree the Canine and Motor Officer pay provisions comply with the Fair Labor Standards Act (FLSA). If the City Council approves adoption of the Second Side Letter Agreement, staff from the Police Department, Human Resources Department and Finance Department will implement the associated changes as soon as practicable. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Resolution No. 2016-122 Exhibit A to Resolution No. 2016-22 — Second Side Letter Agreement Attachment B — First Side Letter Agreement Attachment A RESOLUTION NO. 2016 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH APPROVING THE SECOND SIDE LETTER OF AGREEMENT TO THE 2014-17 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH POLICE ASSOCIATION REGARDING FURTHER AMENDMENTS CLARIFYING MOTOR OFFICER AND CANINE OFFICER COMPENSATION PROVISIONS WHEREAS, on or about August 9, 2005, then Newport Beach Police Department Police Chief Bob McDonell determined Police Officers who work with canines spend approximately ten (10) hours per month handling, training, and boarding their canines; WHEREAS, thereafter, Police Officers assigned to work with canines were compensated at the rate of ten (10) hours a month paid at time and a half (effectively fifteen (15) hours of compensation); WHEREAS, on or about July 15, 2014, the City Council of the City of Newport Beach authorized the City of Newport Beach to enter into a Memorandum of Understanding (MOU) with the Newport Beach Police Association (NBPA) by adopting Resolution No. 2014-54; WHEREAS, the MOU provides for compensation, benefits, and other terms and conditions of employment for employees represented by the NBPA for the period July 1, 2014 through June 30, 2017; WHEREAS, certain elements of compensation as stated in the MOU for Motor Officer Pay and Canine Officer Pay required additional clarification based upon input from CalPERS; WHEREAS, representatives from the City of Newport Beach and the NBPA met and conferred in good faith and agreed to non -substantive revisions to the MOU to clarify the City's existing practice for compensating City employees in NBPA for Motor Officer Pay and Canine Pay, which agreement was memorialized in that certain document entitled "Side Letter to the 2014-17 Memorandum of Understanding Between the City of Newport Beach and the Newport Beach Police Association Clarifying Canine and Motor Officer Pay Provisions" dated August 1, 2016 ("First Side Letter"); WHEREAS, subsequent to the execution of the First Side Letter, it was discovered the amount of compensation determined by Chief McDonell in 2005 had not been incorporated into the MOU; WHEREAS, representatives from the City of Newport Beach and the NBPA have met and conferred in good faith to resolve the compensation inconsistencies, resulting Resolution No. 2016 - Page 2 of 3 in the drafting of a Second Side Letter to the MOU ("Second Side Letter"), attached hereto and incorporated herein by reference; and WHEREAS, the City Council of the City of Newport Beach desires to amend the MOU between the City of Newport Beach and the NBPA by approving the Second Side Letter and authorizing the City Manager to execute the Second Side Letter. NOW, THEREFORE, the City Council of the City of Newport Beach hereby resolves as follows: Section 1: The recitals provided above are true and correct and are incorporated into the operative part of this resolution. Section 2: The Second Side Letter, as attached hereto as Exhibit A, is hereby approved and the City Manager is authorized to execute the Second Side Letter on behalf of the City. Section 3: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, is 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, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared invalid or unconstitutional. Section 4: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQK) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. RIM Resolution No, 2016 - Page 3 of 3 Section 5: 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 day of , 2016. Diane B. Dixon Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aaron C. Harp City Attorney Attachment: Exhibit A (Second Side Letter) SECOND SIDE LETTER OF AGREEMENT TO THE 201417 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH POLICE ASSOCIATION REGARDING FURTHER AMENDMENTS CLARIFYING MOTOR OFFICER AND CANINE OFFICER COMPENSATION PROVISIONS This Second Side Letter of Agreement ("Second Side Letter") between the City of Newport Beach ("City") and the Newport Beach Police Association ("NBPA") is entered into with respect to the following: RECITALS A. On or about August 9, 2005, then Newport Beach Police Department Police Chief Bob McDonell, at the request of the Canine Officers, reviewed the amount of compensation to be paid to Canine Officers based upon the amount of off-duty time being spent by Canine Officers in handling, training, and boarding their canines. At the time of Chief McDonell's review, the amount being paid to Canine Officers was six (6) hours a month paid at time and a half (effectively nine hours of compensation) and the Canine Officers were asking for an increase in the amount of such monthly compensation. As a result of his review, Chief McDonell determined that Canine Officers should be compensated ten (10) hours a month paid at time and a half (effectively fifteen hours of. compensation) with such fifteen hours being a reasonable amount of off-duty time to compensate Canine Officers for handling, training, and boarding their canines each month while off-duty. Payments to Canine Officers for off-duty canine activities after Chief McDonell's review became ten (10) hours a month paid at time and a half. B. On or about July 15, 2014, the City and NBPA entered into a Memorandum of Understanding ("MOU") regarding wages, benefits, and other terms and conditions of employment for employees represented by NBPA, for the period July 1, 2014 through June 30, 2017. C. On or about August 1, 2016, the City and NBPA entered into that certain "Side Letter to the 2014-17 Memorandum of Understanding Between the City of Newport Beach and the Newport Beach Police Association Clarifying Canine and. Motor Officer Pay Provisions" ("First Side Letter") to clarify the City's existing practice for compensating City employees in NBPA for Motor Officer Pay and Canine Pay to comply with the applicable California Public Employee Retirement System ("PERS") regulations and modify the MOD's terms regarding such premium pay in recognition of, respectively, patrolling the City on a motorcycle and maintaining and servicing the motorcycle (Motor Officer Pay) and handling, training, and boarding canines (Canine Pay). D. As part of the efforts in clarifying the MOU to comply with the PERS regulations via the First Side Letter, it was discovered that there was conflict between (1) the terms of the MOU and the First Side Letter regarding the amount of Canine Pay 01088.0004/317766.1 -1- 8-7 (six hours a month at time and a half, effectively nine hours of compensation) and (2) the amount determined by Chief McDonell in 2005 at the request of the Canine Officers (ten hours a month at time and a half, effectively fifteen hours of compensation) and actually paid to Canine Officers at all times thereafter. E. The purpose of this Second Side Letter is to further amend and clarify the MOU regarding compensation to Motor Officers and to Canine Officers under the terms and conditions herein. Among other things, the parties hereto intend for this Second Side Letter to: (1) clarify and amend the MOU to state that Canine Officers are to receive compensation of fifteen hours a month at two-thirds of their regular hourly rate of pay at time and a half (effectively fifteen hours of compensation) for off-duty canine responsibilities; (2) ratify payments to Canine Officers since Chief McDonell's review in 2005 and determination of ten hours a month at time and a half (effectively fifteen hours of compensation) notwithstanding any inconsistencies in the terms of the MOU and the First Side Letter; (3) make the provisions of this Second Side Letter regarding payments to Canine Officers since Chief McDonell's review in 2005 and determination of ten hours a month at time and a half (effectively fifteen hours of compensation) retroactive to cover all such ratified payments; and (4) memorialize the understanding and agreement of the parties hereto that the terms and conditions herein result in capturing complete and accurate payment of all Canine Pay since Chief McDonell's review in 2005. TERMS AND CONDITIONS All of the foregoing Recitals are true and correct and are incorporated herein as part of the Second Side Letter for all purposes. 2. Subsection (J) of section 2, Compensation, of the MOU, as amended by the First Side Letter, is hereby deleted in its entirety and amended to read: Motor Officer 1. FLSA Standard Employees assigned to work as Motor Officers that routinely and consistently patrol the City on a motorcycle and maintaining and servicing their motorcycle are entitled to compensation for such off-duty activities. The parties acknowledge that the Fair Labor Standards Act (FLSA), which governs the entitlement to compensation for off-duty motorcycle duties, entitles the parties to agree to a reasonable number of hours per month for the performance of such duties. The FLSA also allows the parties hereto to agree on appropriate compensation for the performance of such off-duty motorcycle duties. It is the intent of the parties through the provisions of this Subsection (J) to fully comply with -2- the requirements of the FLSA and that such provisions do comply with the FLSA. 2. Motorcycle Premium Pay Employees assigned to work as Motor Officers shall receive an additional six (6) hours of straight time compensation per month, paid at one and one-half (1.5) times their regular hourly rate of pay. This pay is in recognition of the routine and consistent responsibility for patrolling the City on a motorcycle and for maintaining and servicing the motorcycle. Pursuant to PERS regulations and limitations, the City shall report Motor Officer premium pay as special compensation, and therefore compensation earnable, pursuant to Title 2 of the California Code of Regulations, Section 571(a)(5) and Government Code Section 20636, 3. Motorcycle Reimbursement Employees assigned to work as Motor Officers who are required to perform extraordinary off-duty motorcycle care (in rare instances) which causes a substantial increase in the normal off-duty hours worked for that month, shall submit a written request to the Police Chief or the Chief s assigned designee for additional compensation for the hours, spent performing such work. Pursuant to PERS regulations and limitations, the City will not report compensation to perform extraordinary off-duty motorcycle care as special compensation, and therefore not compensation earnable, pursuant to Title 2 of the California Code of Regulations, Section 571 and Government Code Section 20636. 3. Subsection (K) of section 2, Compensation, of the MOU, as amended by the First Side Letter, is hereby deleted in its entirety and amended to read: K. Canine Officer 1. FLSA Standard Employees assigned to work as Canine Officers that routinely and consistently handle, train, and board the canines are entitled to compensation for such off-duty activities. The parties acknowledge that the Fair Labor Standards Act (FLSA), which governs the entitlement to compensation for off-duty canine duties, entitles the parties to agree to a reasonable number of hours per month for the performance of such duties. The FLSA also allows the parties hereto to agree on appropriate compensation for the performance of such off-duty canine duties. It is the intent of the parties through the provisions of this Subsection (K) to fully -3- :• comply with the requirements of the FLSA and that such provisions do comply with the FLSA. 2. Canine Premium Pay Employees assigned to work as Canine Officers shall receive compensation of fifteen (15) hours a month at two-thirds (2/3) of their regular hourly rate of pay at time and a half for canine duties. This pay is in recognition of the routine and consistent responsibility for handling, training, and boarding the canines. Pursuant to PERS regulations and limitations, the City shall report Canine Officer premium pay as special compensation, and therefore compensation earnable, pursuant to Title 2 of the California Code of Regulations, Section 571(a)(5) and Government Code Section 20636. 3. Canine Reimbursement Employees assigned to work as Canine Officers who are required to perform extraordinary off-duty canine care, such as a veterinary emergency or other rare occurrence, which causes a substantial increase in the normal off-duty hours worked for that month, shall submit a written request to the Police Chief or the Chief s assigned designee for additional compensation for the hours spent performing such work. Pursuant to PERS regulations and limitations, the City will not report compensation to perform extraordinary off-duty canine care as special compensation, and therefore not compensation earnable, pursuant to Title 2 of the California Code of Regulations, Section 571 and Government Code Section 20 63 6, 4. The parties hereto hereby agree and acknowledge that payments to Canine Officers since Chief McDonell's review in 2005 of ten hours a month at time and a half (effectively fifteen hours of compensation) are hereby ratified notwithstanding any inconsistencies in the terms of the MOU. 5. Subsection (K)(2) of the MOU, as amended by this Second Side Letter, regarding Canine Premium Pay shall apply retroactively to all payments to Canine Officers ratified in section 4 of this Second Side Letter. The parties agree and acknowledge that this retroactivity provision, in conjunction with the ratification of all such payments in section 4 hereof, results in capturing the complete and accurate accounting of all payments of Canine Pay since Chief McDonell's review in 2005 and determination, in response to the request of the Canine Officers, that such amount should be ten hours a month at time and a half (effectively fifteen hours of compensation). The parties agree that Chief McDonell's determination constitutes a reasonable number of hours per month for -4- 8-10 the performance of off-duty canine duties for all periods covered by this Second Side Letter, b. The understanding reached in this Second Side Letter will continue through the term of the MOU. It is fiu-thher understood that this Second Side Letter is not for the purpose of increasing or decreasing a benefit or changing a practice, but to further clarify the MOU regarding compensation to Motor Officers and to Canine Officers under the terms and conditions herein. All other provisions of the current MOU, existing policy, applicable Police Department Standard Operating Procedure or related practices, shall remain unchanged. Executed this day of , 2016. CITY OF NEWPORT BEACH NEWPORT BEACH POLICE By: DaN,e Kiff, City Manager APPROVED AS TO FORM: BV: Aaron C. Harp, City Attorney ATTEST: Leilani I. Brown, City Clerk -3- ASSOCIATION By: V'lad Anderson, President APPROVED AS TO FORM: Stephen Silver, Counsel 8-11 Attachment B Side Letter to the 2014-17 Memorandum of Understanding Between the City of Newport Beach and the Newport Beach Police Association Clarifying Canine and Motor Officer Pay Provisions The City of Newport Beach and the Newport Beach Police Association (NBPA) entered into a Memorandum of Understanding (MOU) regarding wages, benefits and other terms and conditions of employment for employees represented by NBPA, for the period July 1, 2014 through June 30, 2017. Included in the MOU is a provision that Safety employees assigned to work as Canine or Motor Officers shall receive additional compensation for the added responsibility of the assignment. Since Canine and Motor Officer are deemed assignment pays, the City has reported Canine and Motor Officer compensation to the California Public Employee Retirement System (PERS) as compensation earnable under Government Code Section 20636. PERS recently contacted the City regarding the MOU provision, indicating that it was vague and inconsistent with PERS regulations regarding reportable compensation. The purpose of this Side Letter is to clarify existing practice for Canine Pay and Motor Officer Pay. Motor Officers are responsible for patrolling the City on a motorcycle and are required to maintain and service the vehicle. Canine Officers are responsible for patrolling with the assigned canine, as well as handling, training and boarding the animal. The additional compensation is provided in recognition of the consistent and routine requirements of these assignments. For the purposes of clarifying the language to comply with PERS regulations, Section 2, Compensation, shall be modified to read as follows: J. Motor Officer Employees assigned to work as Motor Officers shall receive an additional nine (9) hours of straight time compensation per month. This pay is in recognition of the routine and consistent responsibility for patrolling the City on a motorcycle and for maintaining and servicing the vehicle. Pursuant to PERS regulations and limitations, the City shall report Motor Officer premium as special compensation, and therefore compensation earnable, pursuant to California Code of Regulations Section 571(a)(4) and Government Code Section 20636. K. Canine Officer Employees assigned to work as Canine Officers shall receive an additional nine (9) hours of straight time compensation per month. This compensation is in recognition of the routine and consistent responsibility for handling, training, and boarding the Canine. Pursuant to PERS regulations and limitations, the City shall report Canine Officer premium as special compensation, and therefore compensation earnable, pursuant to California Code of Regulations Section 571(a)(4) and Government Code Section 20636. 7/22/16 8-12 Side Letter: NEPA Motor and Canine Officer Pays Page 2 The understanding reached in this Side Letter will continue through the term of the 2014-17 MOU. It is further understood that this Side Letter is not for the purpose of increasing or decreasing a benefit or changing a practice, but to clarify proper reporting under PERS. All other provisions of the current MOU, existing policy, applicable Police Department Standard Operating Procedure or related practices, shall remain unchanged. Executed this day of A114V� , 2016. City of Newport Beach By: � Da Kiff, City Manag Approv as to Form: l Aaron Harp, City Attorney Newport Beach Police Association, By: 0— /Q�aa�_ Vlad Anderson, resident Attest: "';' Leilani Brown, City Clerk 712212016 8-13