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Home My WebLink About05 - Approving a Side Letter Agreement with the Newport Beach Police AssociationQ SEW Pp�T CITY OF z NEWPORT BEACH c�<,FORN'P City Council Staff Report February 27, 2024 Agenda Item No. 5 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Grace K. Leung, City Manager - 949-644-3001, gleung@newportbeachca.gov PREPARED BY: Barbara J. Salvini, Human Resources Director - 949-644-3259, bsalvini@newportbeachca.gov TITLE: Resolution No. 2024-11: Approving a Side Letter Agreement with the Newport Beach Police Association ABSTRACT: The City Council wishes to enhance recruitment efforts of police officers by providing the police chief with discretion to appoint lateral officers at the top steps of the police officer salary schedule. C7xd01Ly,I►yil=1zlI7_rIlei ►6's a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Adopt Resolution No. 2024-11, A Resolution of the City Council of the City of Newport Beach, California, Approving a Side Letter Agreement with the Newport Beach Police Association. DISCUSSION: The City of Newport Beach is currently in a multi -year memorandum of understanding (MOU) with the Newport Beach Police Association (NBPA), with said agreement expiring November 30, 2025. Following adoption of the MOU, the City and the NBPA entered into three side letter agreements, dated August 23, 2022, November 8, 2022, and April 11, 2023, respectively. The current MOU and three side letter agreements cover wages, benefits and other terms and conditions of employment for these represented employees. In 1987, the City and the NBPA negotiated a Master Police Officer Recognition Program (MORP). This program compensated police officers based on a combination of special skills, training and years of service. In order to comply with changing regulations issued by the officers' pension system, the California Public Employees Retirement System (CaIPERS), it became necessary to unbundle the constellation of pays associated with the MORP and establish pays that were not tied to one another. 5-1 Resolution No. 2024-11: Approving a Side Letter Agreement with the Newport Beach Police Association February 27, 2024 Page 2 Consequently, in 2018, the MORP was deconstructed. As noted above, one of the components of the MORP was pay associated with years of service (longevity pay). When the 2018 MOU was negotiated, longevity pay was incorporated into the higher steps in the police officer salary schedule by requiring officers to remain at the higher steps for a certain number of years before they could advance to the next step. The parties agreed police officers could not advance to these higher steps until they satisfied the requisite waiting period, which was intended to equate with the prior MORP longevity component. This model has carried over to the current MOU and side letter agreements. The police officer salary range contains 12 steps, with most of the steps separated from one another by five percent. Police officers are eligible to advance through these steps annually until they reach Step 10, at which point they cannot advance to Step 11 until they have been at Step 10 for three years. Similarly, police officers at Step 11 are not eligible to move from Step 11 to Step 12 until they have been at Step 11 for five years. Again, these higher steps are designed to recognize the officers' length of service, or longevity, with the City. Currently, lateral officer recruits are not eligible for Steps 11 or 12 because they do not satisfy the years of service requirement for these steps (three years for Step 11 and five years for Step 12). The City Council wishes to enhance recruitment efforts of lateral police officers by providing the police chief with discretion to appoint them at the top steps of the police officer salary range, regardless of the years of service requirement. The NBPA agrees with this modification to the MOU and is supportive of the Side Letter of Agreement which is being presented to the City Council for review, consideration and adoption. a I,*a_N I ►yi U_To 9 The current budget includes sufficient funding for hiring lateral officer recruits at steps 11 or 12 of the police officer salary schedule upon hire. 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). ATTACHMENT: Attachment A — Resolution No. 2024-11 5-2 ATTACHMENT A RESOLUTION NO. 2024- 11 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING A SIDE LETTER AGREEMENT WITH THE NEWPORT BEACH POLICE ASSOCIATION WHEREAS, the City Council of the City of Newport Beach ("City Council") previously adopted Resolution No. 2001-50, the "Employer -Employee Relations Resolution," pursuant to authority contained in the Meyers-Milias-Brown Act, Government Code 3500, et seq.; WHEREAS, on December 14, 2021, the City Council adopted Resolution No. 2021-129 approving a Memorandum of Understanding ("MOU") between the City of Newport Beach ("City") and the Newport Beach Police Association ("NBPA") with a term of July 1, 2021 through November 30, 2025; WHEREAS, on April 11, 2023, the City Council adopted Resolution No. 2023-19 approving a Side Letter of Agreement with NBPA amending the Table of Contents to modify Section 2(B) and making modifications to the salary schedule for the classification of Police Officer, which changes were effective the pay period that included July 1, 2023 ("July 2023 Side Letter'); WHEREAS, representatives from the City and NBPA share a mutual desire to enhance the ability of the Police Chief to recruit lateral law enforcement officers in the classification of Police Officer; and WHEREAS, representatives from the City and NBPA met and conferred and agreed to supplement Section 2(B)(1) of the July 2023 Side Letter as it relates to the hire of lateral police officers. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby approve the Side Letter of Agreement, set forth in Exhibit A which is attached hereto and incorporated herein by this reference. The language contained in the attached Side Letter of Agreement shall prevail over any previously adopted language that conflicts herewith. Section 2: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. 5-3 Resolution No. 2024- Page 2 of 2 Section 3: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 4: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. 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 27th day of February, 2024. Will O'Neill Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY TTORNEY'S OFFI E Aar n C. Harp City Attorney Attachment: Exhibit A: Side Letter of Agreement Between the City and NBPA 5-4 EXHIBIT A SIDE LETTER OF AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND THE NEWPORT BEACH POLICE ASSOCIATION This Side Letter of Agreement ("Agreement") between the CITY OF NEWPORT BEACH ("City") and the NEWPORT BEACH POLICE ASSOCIATION ("Association") (collectively, "Parties") is entered into with respect to the following: WHEREAS, on December 14, 2021, the City Council adopted Resolution No. 2021-129 approving a Memorandum of Understanding ("MOU") between the Parties with a term of July 1, 2021, through November 30, 2025; and WHEREAS, on April 11, 2023, the City Council adopted Resolution No. 2023- 19 approving a Side Letter of Agreement with the Association amending Section 2 Compensation, Subpart B of the MOU, making modifications to the salary schedule for the classification of Police Officer, which changes were effective the pay period that included July 1, 2023 ("July 2023 Side Letter"); WHEREAS, the Parties share a mutual desire to enhance the ability of the City of Newport Beach Chief of Police to recruit lateral law enforcement officers in the classification of Police Officer; WHEREAS, the Parties have met and conferred and agreed to supplement Section 2(B)(1) of the July 2023 Side Letter, as set forth below; and WHEREAS, this Agreement will not have the effect of an agreement and will not be binding on either party until it is approved by the City Council. NOW, THEREFORE, it is mutually agreed between the Parties as follows: 1. Section 2 Compensation, Subsection B, Salary Schedule Adjustments, Subsection (1), Police Officer Classification, of the July 2023 Side Letter shall be amended to add Section 2(B)(1)(4) to read as follows: "4. Effective the pay period following City Council adoption of this Agreement, the Chief of Police shall have the discretion to place lateral police officers in steps 11 or 12 upon hire. The movement through any remaining steps shall be based upon years of service with the City of Newport Beach as set forth in the Side Letter dated April 11, 2023." 2. Except as modified herein, all other existing wages, hours and other terms and conditions of employment shall remain unchanged and shall be in full force and effect. [SIGNATURES ON FOLLOWING PAGE] NBPA Side Letter Agreement — February 2024 5-5 Executed this 30 day of 5Ar4 V M- ' , 2024 ATTEST: C: FOR THE NEWPORT BEACH POLICE ASSOCIATION: By: 4'eu IL oseph De Julio, Aresident FOR THE CITY OF NEWPORT BEACH: Will O'Neill, Mayor CITY OF NEWPORT BEACH APPROVED AS TO FORM: By: A on C. Harp, City Attorney Leilani Brown, City Clerk NBPA Side Letter Agreement — February 2024 5-6