HomeMy WebLinkAbout2024-60 - Approving Side Letter Agreements with Labor Groups Representing City Employees, Approving an Amendment to the Key and Management Compensation Plan and Authorizing the City Manager to Enter into Amendment B to the Employment Agreement With the FiRESOLUTION NO. 2024-60
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, APPROVING
SIDE LETTER AGREEMENTS WITH LABOR GROUPS
REPRESENTING CITY EMPLOYEES, APPROVING AN
AMENDMENT TO THE KEY AND MANAGEMENT
COMPENSATION PLAN AND AUTHORIZING THE CITY
MANAGER TO ENTER INTO AMENDMENT B TO THE
EMPLOYMENT AGREEMENT WITH THE FIRE CHIEF
WHEREAS, the City Council of the City of Newport Beach ("City Council")
previously adopted Resolution No. 2001-50, the "Employer -Employee Relations
Resolution," pursuant to authority contained in the Meyers-Milias-Brown Act, Government
Code 3500, et seq. ;
WHEREAS, the City of Newport Beach ("City") promotes effective communication
and collaborative working relationships with its employees to foster improved relations
while balancing good management practices;
WHEREAS, the City previously entered into a Memorandum of Understanding
with the Part Time Employees Association of Newport Beach ("PTEANB"), a recognized
organization, for the term of January 1, 2022, through December 31, 2025, and,
thereafter, temporarily reduced the employee retirement percentage contributions
pursuant to a Side Letter of Agreement dated November 29, 2022;
WHEREAS, the City previously entered into a Memorandum of Understanding with
the Association of Newport Beach Ocean Lifeguards ("ANBOL"), a recognized
organization, for the term of September 13, 2022, through June 30, 2025, and, thereafter,
temporarily reduced the employee retirement percentage contributions pursuant to a Side
Letter of Agreement dated November 29, 2022;
WHEREAS, the City previously entered into a Memorandum of Understanding
with the Newport Beach Police Association ("NBPA"), a recognized organization, for the
term of July 1, 2021, through November 30, 2025, and, thereafter, temporarily increased
the City's monthly contribution towards the cafeteria plan ("Cafeteria Plan") pursuant to a
Side Letter of Agreement dated November 29, 2022;
WHEREAS, the City previously entered into a Memorandum of Understanding
with the Newport Beach Police Management Association ("NBPMA"), a recognized
organization, for the term of July 1, 2022, through June 30, 2026, and, thereafter,
temporarily increased the City's monthly contribution towards the Cafeteria Plan pursuant
to a Side Letter of Agreement dated November 29, 2022;
Resolution No. 2024-60
Page 2 of 6
WHEREAS, the City previously entered into a Memorandum of Understanding
with the Newport Beach Firefighters Association ("NBFA") a recognized organization, for
the term of January 1, 2022, through December 31, 2025, and, thereafter, temporarily
increased the City's monthly contribution towards the Cafeteria Plan pursuant to a Side
Letter of Agreement dated November 29, 2022;
WHEREAS, the City previously entered into a Memorandum of Understanding
with the Newport Beach Fire Management Association ("NBFMA"), a recognized
organization, for the term of July 1, 2022, through June 30, 2026, and, thereafter,
temporarily increased the City's monthly contribution towards the Cafeteria Plan pursuant
to a Side Letter of Agreement dated November 29, 2022;
WHEREAS, the City previously entered into a Memorandum of Understanding
with the Newport Beach Lifeguard Management Association ("NBLMA"), a recognized
organization, for the term of January 1, 2022, through December 31, 2025, and,
thereafter, temporarily increased the City's monthly contribution towards the Cafeteria
Plan pursuant to a Side Letter of Agreement dated November 29, 2022;
WHEREAS, the City Council previously adopted Resolution No. 2022-10
approving a Key and Management Compensation Plan ("Plan"), which established
compensation and benefit terms for unrepresented employees, including Executive
Management, Administrative Management, Division Management and Confidential
employees for the period January 1, 2022, through December 31, 2025, and, thereafter,
temporarily reduced the employee retirement percentage contributions pursuant to the
Second and Third Amendments to the Plan;
WHEREAS, on January 25, 2022, the City and City Manager entered into a Third
Amended and Restated Employment Agreement, for the period of January 25, 2022,
through December 30, 2026, and, on November 29, 2022, modified the employee
retirement percentage contributions to be the same as the non -safety employees covered
by the Plan, pursuant to Amendment A to the Third Amended and Restated Employment
Agreement;
WHEREAS, on March 22, 2022, the City and City Attorney entered into a Seventh
Amended and Restated Employment Agreement, for the period of March 22, 2022,
through December 30, 2028, and, on November 29, 2022, modified the employee
retirement percentage contributions to be the same as the non -safety employees covered
by the Plan, pursuant to Amendment A to the Seventh Amended and Restated
Employment Agreement;
Resolution No. 2024-60
Page 3of6
WHEREAS, on May 24, 2022, the City and City Clerk entered into a Seventh
Amended and Restated Employment Agreement, for the period of May 24, 2022, through
May 24, 2026, and, on November 29, 2022, modified the employee retirement percentage
contributions to be the same as the non -safety employees covered by the Plan, pursuant
to Amendment A to the Seventh Amended and Restated Employment Agreement;
WHEREAS, on February 8, 2022, the City Council authorized the City Manager
to enter into the First Amended and Restated Employment Agreement with the Fire Chief,
for the period of February 8, 2022, through December 30, 2025, and, on November 29,
2022, authorized the temporary reduction of the employee retirement percentage
contributions pursuant to Amendment A to the First Amended and Restated Employment
Agreement;
WHEREAS, the country has continued to experience inflation and healthcare cost
increases since the approval of the Memoranda of Understanding, Plan, employment
agreements, and amendments thereto;
WHEREAS, the City Council desires to amend the Memoranda of Understanding
between the City and certain recognized organizations by approving Side Letters of
Agreement with PTEANB and ANBOL, which provide for an extension of a temporary
reduction in the employee retirement percentage contributions, as set forth in Exhibits A
through B,
WHEREAS, the City Council desires to amend the Memoranda of Understanding
between the City and certain recognized associations by approving Side Letters of
Agreement with NBPA, NBPMA, NBFA, NBFMA, and NBLMA, which provide for an
extension of the temporary increase in the City's monthly contribution towards the
Cafeteria Plan as well as a bonus to eligible employees, as set forth in Exhibits C through
G;
WHEREAS, the City Council desires to amend the Plan to provide a bonus to
eligible Key and Management employees as well as a temporary reduction in the
employee retirement percentage contributions for Key and Management employees, as
set forth in Exhibit H;
WHEREAS, the City Council recognizes that the council appointees' retirement
percentage contributions are the same as those for Key and Management employees;
Resolution No. 2024-60
Page 4 of 6
WHEREAS, the City Council wishes to authorize the City Manager to enter into
an amendment to the employment agreement with the Fire Chief to provide for a
temporary reduction in the employee retirement percentage contribution as well as a
bonus, as set forth in Exhibit I;
WHEREAS, by adopting this resolution, the City Council intends to extend the
temporary reduction of employee retirement percentage contributions, as set forth in
Exhibits A, B, H and I, and which, by previous contractual amendments, includes the
council appointees;
WHEREAS, by adopting this resolution, the City Council intends to extend the
temporary increase in the City's monthly contribution towards the Cafeteria Plan, as set
forth in Exhibits C through G as well as provide a bonus to eligible employees, as set forth
in Exhibits C through I; and
WHEREAS, by adopting this resolution, the City Council also desires to replace
certain language contained in the existing Memoranda of Understanding, Plan, and Fire
Chief's First Amended and Restated Employment Agreement by adopting the Side
Letters of Agreement, the amendment to the Plan and authorizing the City Manager to
enter into an amendment to the Fire Chief's First Amended and Restated Employment
Agreement, and for the language set forth in Exhibits A through I to serve as the
controlling language, as set forth therein.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 2: The City Council hereby approves, and authorizes the Mayor to
execute, all the Side Letters of Agreement attached hereto as set forth in Exhibits A
through G, which are incorporated herein by this reference, as well as the employee
retirement percentage contributions, bonuses, and/or cafeteria plan contributions as set
forth therein. The employee retirement percentage contributions, bonus and/or cafeteria
plan contributions referenced in the attached Side Letters of Agreement shall prevail over
any previously adopted employee retirement percentage contributions, bonus and/or
cafeteria plan contributions that conflict therewith.
Resolution No. 2024-60
Page 5 of 6
Section 3: The City Council hereby approves the Amendment to the Plan
attached hereto as set forth in Exhibit H, which is incorporated herein by reference, as
well as the employee retirement percentage contributions and bonuses set forth therein.
The employee retirement percentage contributions and bonuses referenced in Exhibit H
shall prevail over any previously adopted employee retirement percentage contributions
or bonuses that conflict therewith.
Section 4: The City Council hereby authorizes the City Manager to enter
Amendment B to the Fire Chief's First Amended and Restated Employment Agreement
as set forth in Exhibit I, which is attached hereto and incorporated herein by this reference
and approves the employee retirement percentage contributions and bonus set forth
therein. The employee retirement percentage contributions and bonus referenced in
Exhibit I shall prevail over any previously adopted employee retirement percentage
contributions or bonus that conflicts therewith.
Section 5: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this resolution. The City
Council hereby declares that it would have passed this resolution, and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 6: The City Council finds the adoption of this resolution is not subject to
the California Environmental Quality Act ("CEQX) pursuant to Sections 15060(c)(2) (the
activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly or
indirectly.
Resolution No. 2024-60
Page 6 of 6
Section 7: This resolution shall take effect immediately upon its adoption by
the City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 27th day of August, 2024.
ATTEST:
Leirani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY A ORNEY'S OFFI
A on C. Harp
City Attorney
'N�_'F'ORN�
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Will O'Neill
Mayor
Attachments: Exhibit A: Side Letter of Agreement between the City and PTEANB
Exhibit B: Side Letter of Agreement between the City and ANBOL
Exhibit C: Side Letter of Agreement between the City and NBPA
Exhibit D: Side Letter of Agreement between the City and NBPMA
Exhibit E: Side Letter of Agreement between the City and NBFA
Exhibit F: Side Letter of Agreement between the City and NBFMA
Exhibit G: Side Letter of Agreement between the City and NBLMA
Exhibit H: Fifth Amendment to the City Key and Management
Compensation Plan
Exhibit I: Amendment B to the First Amended and Restated
Employment Agreement between the City and the Fire Chief
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH f
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; the foregoing resolution, being Resolution
No. 2024-60 was duly introduced before and adopted by the City Council of said City at a regular meeting
of said Council held on the 27th day of August, 2024; and the same was so passed and adopted by the
following vote, to wit:
AYES: Mayor Will O'Neill, Mayor Pro Tern Joe Stapleton, Councilmember Brad Avery,
Councilmember Noah Blom, Councilmember Robyn Grant, Councilmember
Lauren Kleiman, Councilmember Erik Weigand
NAYS: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said
City this 28th day of August, 2024.
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Leilani I. Brown
City Clerk
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