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Home My WebLink About05 - Approving an Amendment to the Key and Management Compensation PlanQ �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report January 14, 2025 Agenda Item No. 5 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. 2025-4: Approving an Amendment to the Key and Management Compensation Plan ABSTRACT: To address recruitment and retention challenges associated with the City of Newport Beach's sworn executive management personnel, the City Council wishes to amend the Key and Management Compensation Plan by amending the existing eligibility criteria for Scholastic Achievement Pay for Key and Management sworn police employees. 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; and b) Adopt Resolution No. 2025-4, A Resolution of the City of Newport Beach, California, Approving an Amendment to the Key and Management Compensation Plan. DISCUSSION: On November 12, 2024, the City Council approved offering Scholastic Achievement Pay to sworn Key and Management police, fire and lifeguard safety employees. The City Council wishes to clarify the eligibility criteria for sworn police Key and Management employees. If approved, Key and Management police safety employees are eligible to receive an additional 7%-8.5% of pay, depending on the degree obtained. The Plan adjustments are intended to clarify the eligibility criteria for Key and Management sworn police employees and to provide parity with the eligibility criteria for Key and Management sworn fire employees. It is anticipated the adjustments will incentivize existing employees to stay and encourage and attract safety management candidates from outside agencies to apply when vacancies occur. FISCAL IMPACT: The estimated maximum cost to provide scholastic pay for eligible Key and Management sworn police employees is $39,400 for the remainder of Fiscal Year 2024-25. 5-1 Resolution Approving an Amendment to the Key and Management Compensation Plan January 14, 2025 Page 2 The Fiscal Year 2024-25 budget includes sufficient savings to fund the cost of 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). ATTACHMENT: Attachment A — Resolution No. 2025-4 5-2 ATTACHMENT A RESOLUTION NO. 2025-4 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING THE SEVENTH AMENDMENT TO THE KEY AND MANAGEMENT COMPENSATION PLAN 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; and WHEREAS, the City Council desires to amend the Plan to clarify the eligibility of Scholastic Achievement Pay for eligible Key and Management police public safety employees, as set forth in Exhibit A. 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 the Seventh Amendment to the Plan attached hereto as set forth in Exhibit A, which is incorporated herein by reference and clarifies the eligibility for Scholastic Achievement Pay for Key and Management police public safety employees as set forth therein. 5-3 Resolution No. 2025- 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 14th day of January, 2025. Joe Stapleton Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY TTORNEYS FFICE 4 Aaron C. Harp City Attorney Attachments: Exhibit A: Seventh Amendment to the City Key and Management Compensation Plan 5-4 EXHIBIT A SEVENTH 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 Ca1PERS for Key and Management Employees and providing lump sum bonuses to eligible Key and Management Employees ("Fifth Amendment to the Plan"); WHEREAS, on November 12, 2024, the City Council adopted Resolution No. 2024-82 amending the Plan and extending eligibility for Scholastic Achievement Pay to sworn employees covered by the Key and Management Plan ("Sixth Amendment to the Plan"); WHEREAS, the City Council wishes to further amend the Plan to clarify the eligibility of Scholastic Achievement Pay for sworn police Key and Management Employees; and WHEREAS, this amendment will not be binding until it is approved by the City Council. Key and Management Plan Page 1 of 2 5-5 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 to Section J. Scholastic Achievement Pay — Public Safety: "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 as follows: BAIBS — 7% MAIMSIJD -- 8.5% 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 2 of 2 5-6