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Home My WebLink About04 - Side Letter Agreement with the Newport Beach Police Management AssociationP0 m CITY OF z NEWPORT BEACH cl't City Council Staff Report </ FO RN September 12, 2017 Agenda Item No. 4 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dave Kiff, City Manager — 949-644-3301 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. 2017-57, Approving the Side Letter Agreement with the Newport Beach Police Management Association ABSTRACT: On October 13, 2015, the City of Newport Beach and the Newport Beach Police Management Association (NBPMA) entered into a Memorandum of Understanding (MOU) for the period of January 1, 2015 through June 30, 2018, regarding wages, benefits, and other terms and conditions of employment for employees represented by the NBPMA, which includes Police Lieutenants and Police Sergeants. One of the services NBPMA members provide is motorcycle patrol. Although the motor officers routinely service their motorcycles off duty, the NBPMA MOU does not provide a mechanism to compensate them for this off duty activity. City and NBPMA representatives met and conferred in good faith and agreed upon revisions to the MOU to provide for motor officer compensation, which are set forth in the proposed Side Letter Agreement (Side Letter). The Side Letter is presented for City Council's approval/adoption (or rejection) and is the final step in the process to amend the NBPMA 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. 2017-57, A Resolution of the City Council of the City of Newport Beach, California, Approving the Side Letter Agreement to the 2015-18 Memorandum of Understanding between the City of Newport Beach Police Management Association Establishing Motor Officer Compensation Provisions. 4-1 NBPMA Side Letter Agreement September 12, 2017 Page 2 FUNDING REQUIREMENTS: The estimated cost to provide motor officer compensation for employees in the NBPMA is $17,540 annually. The FY2017-18 Police Department budget includes sufficient funding to cover the costs associated with the side letter agreement. DISCUSSION: The Newport Beach Police Department regularly utilizes Police Sergeants to operate as motor officers. In addition to the motor officers' patrolling responsibilities, they also service and maintain their vehicles after their normal shift ends. Since the current MOU is silent as to how they should be compensated for their off-duty activities, the City and NBPMA representatives met and conferred at NBPMA's request to discuss the terms and conditions, as well as compensation, for motorcycle assignment. For the Council's information, current practice and policy for motor officers within the Newport Beach Police Association (rank -and -file versus management) is that these officers are compensated an additional 6 hours per month, paid at time and a half. The attached Side Letter Agreement with NBPMA provides that motor officers will be paid an additional 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 Side Letter Agreement also stipulates that the parties agree the motor officer compensation provisions comply with the Fair Labor Standards Act (FLSA). Further, it is understood between the City and the NBPMA that the motor officer compensation is not reportable as special compensation to the California Public Employees Retirement System (PERS). If the City Council approves adoption of the Side Letter Agreement, staff from the Police Department, Human Resources Department and Finance Department will implement the associated changes as soon as practicable, with the intention of implementing the changes by the pay period following its adoption by the City Council. 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. 2017-57, Approving the Side Letter Agreement Exhibit 1 — Side Letter Agreement with the NBPMA for Motor Officer Compensation 4-2 Attachment A RESOLUTION NO. 2017 - 57 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING THE SIDE LETTER OF AGREEMENT TO THE 2015-18 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION ESTABLISHING MOTOR OFFICER COMPENSATION PROVISIONS WHEREAS, the City of Newport Beach ("City") and the Newport Beach Police Management Association ("NBPMA") entered into a Memorandum of Understanding ("MOU") regarding wages, benefits, and other terms and conditions of employment for the period January 1, 2015 through June 30, 2018; WHEREAS, to provide optimal patrol services to the public, NBPMA members may be assigned to motorcycle detail; WHEREAS, NBPMA employees working as motor officers service and maintain their motorcycle after hours; WHEREAS, compensation for such servicing is not specified in the MOU, WHEREAS, representatives from the City and NBPMA met and conferred in good faith regarding revisions to the MOU to establish the terms and conditions regarding compensation for the off-duty maintenance and servicing of motorcycles by NBPMA employees assigned as motor officers, which agreement is memorialized in that certain Side Letter to the MOU Establishing Motor Officer Compensation ("Side Letter Agreement"), a copy of which is attached hereto as Exhibit 1 and incorporated herein by this reference; and WHEREAS, the City Council of the City of Newport Beach desires to amend the MOU by approving the Side Letter Agreement and authorizing the City Manager to execute the Side Letter Agreement substantially in conformance with Exhibit 1. NOW, THEREFORE, the City Council of the City of Newport Beach hereby resolves as follows: Section 1: The City Council does hereby approve the Side Letter Agreement and authorizes the City Manager to execute the Side Letter Agreement substantially in conformance with Exhibit 1 on behalf of the City. Section 2: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. 4-3 Resolution No, 2017 - 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, 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, 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 the pay period following its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this day of , 2017. Kevin Muldoon Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aaron'-C-.arp ChM 0MIklct- City Attorney Attachment: Exhibit 1 — Side Letter Agreement 4-4 Exhibit 1 Side Letter to the 2015-18 Memorandum of Understanding Between the City of Newport Beach and the Newport Beach Police Management Association Establishing Motor Officer Compensation This Side Letter of Agreement ("Side Letter") between the City of Newport Beach and the Newport Beach Police Management Association ("NBPMA"), together are the "Parties", is entered into with respect to the following: RECITALS A. The City of Newport Beach and the Newport Beach Police Management Association (NBPMA) entered into a Memorandum of Understanding (MOU) regarding wages, benefits and other terms and conditions of employment for employees represented by NBPMA, for the period January 1, 2015 through June 30, 2018. B. Employees in the unit working as motor officers routinely service and maintain their motorcycle after work hours. C. The purpose of this Side Letter is to establish the terms, conditions and compensation for motor officers. TERMS AND CONDITIONS 1. All of the foregoing Recitals are true and correct and are incorporated herein as part of the Side Letter for all purposes. 2. Section 2, Compensation, of the MOU, is hereby amended to include the following Subsection: K. Motorcycle Assignment a. Employees assigned to work as motor officers are entitled to compensation for the off duty maintenance and servicing of their motorcycles. 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 such duties. The FLSA also allows the Parties to agree on appropriate compensation for the performance of such off-duty motorcycle duties. It is the intent of the Parties through this Subsection (K) to fully comply with the requirements of the FLSA and that such provisions do comply with the FLSA. b. The Chief of Police, at his or her sole discretion, shall determine the number of unit positions assigned to motor officer duties. At any time 4-5 LOU. NBPMA Motor Pay Page 2 this number may decrease or increase depending on the decision of the Chief of Police. c. Employees assigned 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 compensation for the off-duty maintenance and servicing of the motorcycle. The Parties agree the additional compensation is for the performance of off-duty work and does not meet the definition of compensation earnable under Government Code Section 20636, and will therefore not be reported to PERS. The understanding reached in this Side Letter will continue through the term of the 2015- 18 MOU. All other provisions of the current MOU, existing policy, applicable Police Department Standard Operating Procedure or related practices, shall remain unchanged. Executed this City of Newport Beach Dave Kiff, City Manager Approved as to Form: Aaron Harp, City Attorney day of 2017. Newport Beach Police Management Association By: William Depweg, resident Attest: Leilani Brown, City Clerk