HomeMy WebLinkAbout09 - Amendment to the Key and Management Compensation Plan and Amendment C to the Employment Agreement with the Fire ChiefQ �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
November 12, 2024
Agenda Item No. 9
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Barbara J. Salvini, Human Resources Director - 949-644-3300,
bsalvini@newportbeachca.gov
PREPARED BY: Barbara J. Salvini, Human Resources Director
TITLE: Resolution No. 2024-82: Approving an Amendment to the Key and
Management Compensation Plan and Authorizing the City Manager
to Enter into Amendment C to the Employment Agreement with the
Fire Chief
ABSTRACT:
To address recruitment and retention challenges associated with the City of Newport
Beach's sworn executive management personnel, the City Council wishes to provide
Scholastic Achievement Pay to Key and Management police, fire and lifeguard safety
chiefs and employees under the same terms and conditions as the Scholastic
Achievement Pay Program as set forth in their respective safety management
associations' Council -approved Memorandum of Understanding (MOU) or side letter
agreements. Further, the city manager wishes to adjust the termination date of the fire
chief's employment agreement from December 30, 2025 to December 30, 2027.
RECOMMENDATIONS:
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. 2024-82, A Resolution of the City of Newport Beach, California,
Approving an Amendment to the Key and Management Compensation Plan and
Authorizing the City Manager to Enter into Amendment C to the Employment
Agreement with the Fire Chief, and
c) Authorize the City Manager to Execute Amendment C to the Fire Chief Employment
Agreement.
DISCUSSION:
Although the City of Newport Beach's safety management collective bargaining
associations negotiated for additional compensation in the form of a Scholastic
Achievement Pay program in their respective MOUs, this pay is unavailable to Key and
Management police, fire and lifeguard safety employees.
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Resolution No. 2024-82: Approving an Amendment to the Key and Management
Compensation Plan and Authorizing the City Manager to Enter into
Amendment C to the Employment Agreement with the Fire Chief
November 12, 2024
Page 2
The City Council wishes to amend the Plan to provide Key and Management safety
employees with the same eligibility for Scholastic Achievement Pay that is offered to their
respective management association members. If approved, Key and Management police
safety employees may receive an additional 2%-8.5% of pay, depending on the date of
hire and number of units or degrees obtained. Key and Management fire safety
employees may receive an additional 5.5%-7% of pay, depending upon the degree
obtained. Finally, the assistant chief, lifeguard operations may receive 1 % depending on
the degree obtained.
Because the fire chief has an employment agreement, it is necessary to amend his
contract to provide the Scholastic Achievement Pay benefit. In addition to the Scholastic
Achievement Pay benefit, the city manager wishes to extend the fire chief's employment
agreement, which is currently slated to terminate on December 30, 2025, for two years,
with a new termination date of December 30, 2027.
The proposed adjustments to provide scholastic pay for eligible Key and Management
safety employees are intended to incentivize existing employees to stay, and to
encourage and attract safety management candidates from outside agencies to apply
when vacancies occur.
FISCAL IMPACT:
The estimated cost to provide scholastic pay for eligible Key and Management safety
employees is $69,800 for the remainder of Fiscal Year 2024-25, assuming the scholastic
pay becomes effective the first full pay period following City Council approval. The Fiscal
Year 2024-25 budget includes sufficient budget savings to fund the cost associated with
the proposed amendment to the Key and Management Compensation Plan.
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. 2024-82
Attachment B — Costing Summary
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ATTACHMENT A
RESOLUTION NO. 2024-82
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, APPROVING AN
AMENDMENT TO THE KEY AND MANAGEMENT
COMPENSATION PLAN AND AUTHORIZING THE CITY
MANAGER TO ENTER INTO AMENDMENT C 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 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;
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;
WHEREAS, the City Council desires to amend the Plan to provide Scholastic
Achievement Pay to eligible Key and Management employees, as set forth in Exhibit A;
and
WHEREAS, the City Council wishes to authorize the City Manager to enter into
an amendment to the employment agreement with the Fire Chief to extend the term of
the agreement and provide Scholastic Achievement Pay, as set forth in Exhibit B.
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.
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Resolution No. 2024-
Page 2 of 3
Section 2: The City Council hereby approves the Amendment to the Plan
attached hereto as set forth in Exhibit A, which is incorporated herein by reference and
approves the eligibility for Scholastic Achievement Pay set forth therein.
Section 3: The City Council hereby authorizes the City Manager to enter
Amendment C to the Fire Chiefs First Amended and Restated Employment Agreement
as set forth in Exhibit B, which is attached hereto and incorporated herein by this
reference and approves the amended term and eligibility for Scholastic Achievement Pay
set forth therein.
Section 4: 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 5: 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.
Resolution No. 2024-
Page 3 of 3
Section 6: 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 12th day of November, 2024.
Will O'Neill
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Aaron C. Harp
City Attorney
Attachments: Exhibit A: Sixth Amendment to the City Key and Management
Compensation Plan
Exhibit B: Amendment C to the First Amended and Restated
Employment Agreement between the City and the Fire Chief
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SIXTH AMENDMENT TO
CITY OF NEWPORT BEACH
KEY AND MANAGEMENT COMPENSATION PLAN
WHEREAS, on January 25, 2022, the City Council adopted Resolution No. 2022-
10 adopting a Key and Management Compensation Plan ("Plan") for the period of January
1, 2022, through December 31, 2025;
WHEREAS, on August 23, 2022, the City Council adopted Resolution No. 2022-
52 amending the Plan and modifying the cost -of -living adjustments for Key and
Management Employees ("First Amendment to the Plan");
WHEREAS, on November 29, 2022, the City Council adopted Resolution No.
2022-92 amending the Plan and modifying employee retirement contributions to
CalPERS for Key and Management Employees ("Second Amendment to the Plan");
WHEREAS, on April 11, 2023, the City Council adopted Resolution No. 2023-19
amending the Plan and adjusting the salary schedules and modifying the language
related to employee retirement contributions to CalPERS for Key and Management Safety
Employees ("Third Amendment to the Plan");
WHEREAS, on November 28, 2023, the City Council adopted Resolution No.
2023-82 amending the Plan and modifying certain positions and titles for Key and
Management Employees ("Fourth Amendment to the Plan");
WHEREAS, on December 12, 2023, the City Council adopted Resolution No.
2023-85 approving revised salary schedules for Key and Management Employees;
WHEREAS, on August 27, 2024, the City Council adopted Resolution No. 2024-
60 amending the Plan and extending previously modified language related to employee
retirement contributions to CalPERS for Key and Management Employees and providing
lump sum bonuses to eligible Key and Management Employees ("Fifth Amendment to the
Plan");
WHEREAS, the City Council wishes to further amend the Plan to provide sworn
safety Key and Management Employees with the same eligibility for Scholastic
Achievement Pay that is offered to unit members of their respective safety management
associations; and
WHEREAS, this amendment will not be binding until it is approved by the City
Council.
Key and Management Plan Page 1 of 3
NOW, THEREFORE, the City Council of the City of Newport Beach wishes to
amend the Plan as follows:
Section 1. The Compensation section of the Plan is amended to include the
following language:
"J. SCHOLASTIC ACHIEVEMENT PAY — PUBLIC SAFETY
1. Police Safety
Absent an Employment Agreement or Resolution to the contrary, Key and
Management police safety employees are entitled to additional
compensation in the form of Scholastic Achievement Pay under the same
terms and conditions as members of the Newport Beach Police
Management Association. If there are future changes to the Scholastic
Achievement Pay Program as set forth in a council -approved MOU or side
letter agreement with the Newport Beach Police Management Association,
the same program shall apply for Key and Management police safety
employees.
The parties agree that to the extent permitted by law, the Scholastic
Achievement Pay in this section is special compensation and shall be
reported to CaIPERS as such.
2. Fire Safety
Absent an Employment Agreement or Resolution to the contrary, Key and
Management fire safety employees are entitled to additional compensation
in the form of Scholastic Achievement Pay under the same terms and
conditions as members of the Newport Beach Fire Management
Association. If there are future changes to the Scholastic Achievement Pay
Program as set forth in a council -approved MOU or side letter agreement
with the Newport Beach Fire Management Association, the same program
shall apply for Key and Management fire safety employees.
The parties agree that to the extent permitted by law, the Scholastic
Achievement Pay in this section is special compensation and shall be
reported to CalPERS as such.
3. Assistant Chief, Lifeguard Operations
Except as modified herein, the Assistant Chief of Lifeguard Operations shall
be eligible for Scholastic Achievement Pay under the same terms and
Key and Management Plan
Page 2 of 3
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conditions as members of the Newport Beach Lifeguard Management
Association. Scholastic Achievement Pay shall be included in the Assistant
Chief of Lifeguard Operations paycheck for the pay period immediately
following approval by the Fire Chief. It is the responsibility of the Assistant
Chief of Lifeguard Operations to apply for Scholastic Achievement Pay.
Approval of the application for Scholastic Achievement Pay shall not be
unreasonably withheld or delayed, and the Assistant Chief of Lifeguard
Operations shall not be entitled to receive Scholastic Achievement Pay prior
to the date the application is approved even though the Assistant Chief of
Lifeguard Operations may have been eligible prior to approval. If there are
future changes to the Scholastic Achievement Pay Program as set forth in
a council -approved MOU or side letter agreement with the Newport Beach
Lifeguard Management Association, the same program shall apply to the
Assistant Chief of Lifeguard Operations.
The parties agree that to the extent permitted by law, the Scholastic
Achievement Pay in this section is special compensation and shall be
reported to CalPERS as such."
Section 2. Except as expressly modified herein, all other terms and provisions
set forth in the Plan shall remain unchanged and shall be in full force and effect.
Key and Management Plan
Page 3of3
AMENDMENT C TO CITY OF NEWPORT BEACH
FIRST AMENDED AND RESTATED EMPLOYMENT
AGREEMENT — CITY OF NEWPORT BEACH FIRE CHIEF
WHEREAS, on February 8, 2022, the City of Newport Beach, a California
municipal corporation and Charter City ("Employer" or "City") and JEFF BOYLES
("Employee"), an individual (sometimes collectively referred to herein as "the Parties")
entered into a First Amended and Restated Employment Agreement ("Agreement")
for the period of February 8, 2022, through December 30, 2025;
WHEREAS, the Council wishes to amend the Agreement to extend the term
and to provide Employee with the same eligibility for Scholastic Achievement Pay that
is offered to members of the Newport Beach Fire Management Association; and
WHEREAS, this amendment will not be binding until it is approved by the City
Council.
NOW, THEREFORE, it is mutually agreed between the Parties as follows:
1. Section 1, Term, Subsection A, is amended to read as follows:
"A. This Agreement shall become effective February 8, 2022 ("Effective
Date") and shall terminate on December 30, 2027, subject to City's
right to terminate Employee's employment at any time, as provided
for in this Agreement."
2. Section 4, Compensation and Performance Evaluation is amended to add Section
G as follows:
"G. Scholastic Achievement Pay. Employee is entitled to additional
compensation contingent upon scholastic achievement. Employee
may apply for scholastic achievement pay when eligible and
scholastic achievement pay shall be included in Employee's
paycheck for the pay period immediately after approval by the City
Manager. It is Employee's responsibility to apply for scholastic
achievement pay. Employee is not entitled to receive scholastic
achievement pay prior to the date the application is approved, even
if Employee was eligible prior to City Manager approval. Additional
compensation for Scholastic Achievement Pay is as follows:
Degree
Scholastic Pay Percentage
BA/BS
5.5%
MA/MS/JD
7.0%
Amendment C to Agreement - Fire
Page 1 of 3
If there are future changes to the scholastic pay percentages
offered to members of the Fire Management Association as set
forth in a council -approved Memorandum of Understanding or side
letter agreement, the same percentage changes will be made for
Employee.
The Parties agree that to the extent permitted by law, the scholastic
achievement pay in this section is special compensation and shall
be reported to CalPERS as such, pursuant to Title 2 CCR, Section
571(a)(2) and 571.1(b)(2) Educational Incentive Pay."
3. Except as expressly modified herein, all other terms and provisions set forth in the
Agreement shall remain unchanged and shall be in full force and effect.
(Signatures on the Next Page)
Amendment C to Agreement - Fire
Page 2 of 3
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EMPLOYER
CITY OF NEWPORT BEACH
A Municipal Corporation
Grace K. Leung, City Manager
Date:
EMPLOYEE,
An Individual
11• _ �i�ief
Date: 10L--;,�2 6_2 y
APPROVED AS TO FORM:
By. C 4"k.— Date:
Aaron C. Harp, City Attorney
ATTEST:
Date:
Leilani I. Brown, City Clerk
Amendment C. to Agreement - Fire
Page 3 of 3
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ATTACHMENT B
Key Terms
Align Police Chief & Assistant Police Chief's Scholastic Pay with PMA
Align Fire Chief & Assistant Fire Chief's Scholastic Pay with FMA
Align Assistant Chief, Lifeguard Operations' Scholastic Pay with LMA
Summary of Proposal Cost
Total Cost
City of Newport Beach
Analysis of Proposal
November 12, 2024
60 Units - 2%
90 Units - 3%
BA/BS - 7%
MA/MS/JD - 8.5%
BA/BS - 5.5%
MA/MS/JD - 7%
Lifeguard Battalion Chief - 1% for MA/MS
$2,100,281 $69,800 $119,658
Assumes the additional scholastic pay goes into effect the first full pay period following the November 12th Council meeting, therefore the cost in FY2024-25
represents 7 months, the full fiscal year cost is shown in FY 2025-26.
5.70%
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