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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� Z,,.::: �1,e 6 � - �;e r1o, -1 ��, 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. c l +Plkn z Leilani I. Brown City Clerk ��- PQR� o. :. 1