HomeMy WebLinkAbout11 - Approving Side Letters of Agreement with the Newport Beach Fire Association Related to Move Up Pay and the Holiday Benefit Conversion RatioQ �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
July 22, 2025
Agenda Item No. 11
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Grace K. Leung, City Manager - 949-644-3001,
gleung@newportbeachca.gov
PREPARED BY: Barbara J. Salvini, Human Resources Director - 949-644-3300,
bsalvini@newportbeachca.gov
TITLE: Resolution No. 2025-50: Approving Side Letters of Agreement with
the Newport Beach Fire Association Related to Move Up Pay and the
Holiday Benefit Conversion Ratio
ABSTRACT:
Recently, a successor memorandum of understanding (MOU) was entered into between
the City of Newport Beach and the Newport Beach Fire Association. Upon implementing
the new terms of the MOU, it was determined that a side letter is needed to clarify certain
MOU language related to holiday pay. Another side letter is needed to resolve an issue
regarding "move up" payments.
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. 2025-50, A Resolution of the City Council of the City of Newport
Beach, California, Approving Side Letters of Agreement with the Newport Beach
Firefighters Association Related to Move Up Pay and the Holiday Benefit Conversion
Ratio.
DISCUSSION:
Since entering into a multi -year agreement with the Newport Beach Fire Association
(NBFA or Association), it became apparent during implementation of the new MOU terms
that two side letters are needed to 1) clarify holiday pay language and 2) resolve an issue
regarding payments related to "move up" assignments, when an employee is temporarily
assigned to a higher position.
If the City Council adopts Resolution No. 2025-50, City staff will work to implement the
provisions as soon as practicable.
FISCAL IMPACT:
One of the side letters recommends that the City reinstate the holiday benefit conversion
ratio provided under the prior MOU by distinguishing between safety and non -safety
employees and adjusting the holiday benefit for safety employees accordingly. This
proposed change would reinstate the conversion ratio from the previous MOU and would
not have a budgetary impact, as the current budget already assumes the ratio used in the
prior MOU.
Resolution No. 2025-50: Approving Side Letters of Agreement with the Newport Beach
Fire Association Related to Move Up Pay and the Holiday Benefit Conversion Ratio
July 22, 2025
Page 2
Another side letter proposes that the City not pursue repayment from individuals who
were moved up from fire captain to battalion chief between December 12, 2018, and
October 11, 2024. The total amount at issue for all affected individuals is less than $1,000.
Approving this side letter would also not have a budgetary impact, as the current budget
does not assume these funds will be recovered.
The side letters are included as exhibits to Resolution No. 2025-50.
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. 2025-50
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ATTACHMENT A
RESOLUTION NO. 2025-50
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, APPROVING
SIDE LETTERS OF AGREEMENT WITH THE NEWPORT
BEACH FIREFIGHTERS ASSOCIATION RELATED TO
MOVE UP PAY AND THE HOLIDAY BENEFIT
CONVERSION RATIO
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 a Memorandum of Understanding
("MOU") with the NBFA, for the term of January 1, 2022, through December 31, 2025;
WHEREAS, on May 13, 2025, the City Council adopted Resolution No. 2025-20
approving a Memorandum of Understanding ("Memorandum of Understanding") with the
Newport Beach Firefighters Association ("NBFA"), a recognized organization, with a term
of May 3, 2025, through June 30, 2028;
WHEREAS, the City Council desires to enter into a Side Letter of Agreement
between the City and NBFA, resolving any issue regarding alleged overpayments of
the "move up" pay under the prior MOU, as set forth in Exhibit A; and
WHEREAS, the City Council desires to enter into a Side Letter of Agreement
between the City and NBFA, amending the Memorandum of Understanding with the
NBFA to reinstate the holiday benefit conversion ratio provided under the proceeding
MOU, as set forth in Exhibit B.
11-3
Resolution No. 2025-
Page 2 of 3
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows..
Section 1: The City Council hereby approves, and authorizes the Mayor to
execute, the Side Letters of Agreement attached hereto as Exhibits A and B, which are
incorporated herein by this reference. The terms referenced in the attached Side Letters
of Agreement shall prevail over any previously adopted terms within the MOU or
Memorandum of Understanding that conflict herewith.
Section 2: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
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.
11-4
Resolution No. 2025-
Page 3 of 3
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 22nd day of July, 2025.
Joe Stapleton
Mayor
ATTEST:
Molly Perry
Interim City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
ar n C. Harp
City Attorney
Attachments: Exhibit A: Side Letter of Agreement between the City and NBFA — Move
Up Pay
Exhibit B: Side Letter of Agreement between the City and NBFA - Holiday
Benefit Conversion Ratio
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EXHIBIT A
SIDE LETTER OF AGREEMENT
BETWEEN
CITY OF NEWPORT BEACH
AND
THE NEWPORT BEACH FIREFIGHTERS ASSOCIATION
This Side Letter of Agreement ("Agreement") is made and entered into this
22nd day of July 2025, by and between the City of Newport Beach ("City") and the Newport
Beach Firefighters Association ("Association") (collectively "Parties") with respect to the
following.
WHEREAS, on May 13, 2025, the City Council adopted Resolution No. 2025-20
approving a Memorandum of Understanding ("MOU") between the Parties with a term of May
3, 2025, through June 30, 2028;
WHEREAS, prior to the negotiation over that successor MOU, an issue arose
regarding the rate at which pay for "move up" assignments from Captain to Battalion
Chief was paid;
WHEREAS, the successor MOU resolved the issue by increasing the rate paid for
such move -up pay to the level at which it had been paid;
WHEREAS, the parties now wish to resolve any issue regarding alleged
overpayments of the "move up" pay under the prior MOU; and
WHEREAS, the total amount of payments at issue to all affected individuals is
under $1,000.
NOW, THEREFORE, it is mutually agreed between the Parties as follows:
1. The City agrees not to pursue backpay from individuals that were moved up from the
classifications of Fire Captain to Battalion Chief during the timeframe of December 12, 2018, to
October 11, 2024.
2. Except as expressly modified herein, all other provisions, terms, and covenants set
forth in the MOU shall remain unchanged and shall be in full force and effect.
Signatures on the next page
11-6
Executed this 22nd day of July, 2025
FOR THE NEWPORT BEACH FIREFIGHTERS ASSOCIATION:
BY: ���Uvn 26, 2025 17 29 POT)
Robert Salerno, NBFA President
FOR THE CITY OF NEWPORT BEACH:
Date:
By:
Joe Stapleton
Mayor
CITY OF NEWPORT BEACH
APPROVED AS TO FORM:
BY: C,—`
Aar n C. Harp, City Attorney
ATTEST:
BY: Molly McLaughlin Perry, City Clerk
[End of Signatures]
11-7
*:/:II:IN2:3
SIDE LETTER OF AGREEMENT
BETWEEN
CITY OF NEWPORT BEACH
AND
THE NEWPORT BEACH FIREFIGHTERS ASSOCIATION
This Side Letter of Agreement ("Agreement") is made and entered into this 22nd day of
July 2025, by and between the City of Newport Beach ("City") and the Newport Beach
Firefighters Association ("Association") (collectively "Parties") with respect to the
following:
WHEREAS, on May 13, 2025, the City Council adopted Resolution No. 2025-20
approving a Memorandum of Understanding ("Current MOU") between the Parties with a
term of May 3, 2025, through June 30, 2028;
WHEREAS, the Current MOU covers 56-hour Line employees, all of whom are
Safety employees, and 40-hour Staff employees, some of whom are Safety employees
and some of whom are Non -Safety employees;
WHEREAS, the Current MOU and preceding MOU provide different Holiday
benefits for Line employees and Staff employees;
WHEREAS, during negotiations over the Current MOU, the parties agreed to
adjust the Holiday benefit for Line employees and maintain status quo for Staff
employees;
WHEREAS, the Current MOU and preceding MOU do not recognize a
distinction between Safety Staff and Non -Safety Staff employees with respect to the
Holiday benefit;
WHEREAS, Safety Staff employees may be reassigned to Line positions, and
Line employees may be reassigned to Safety Staff positions;
WHEREAS, upon reassignment, the employee's Holiday benefit is
automatically converted to the benefit provided for the newly assigned position (Line or
Staff);
WHEREAS, by adjusting the Holiday benefit for Line employees only, the
Current MOU changed the Holiday benefit conversion ratio from the ratio provided
under the preceding MOU;
WHEREAS, the parties now wish to amend the Current MOU to reinstate the
Holiday benefit conversion ratio provided under the preceding MOU by distinguishing
between Safety Staff and Non -Safety Staff employees and adjusting the Holiday benefit
for Safety Staff employees; and
WHEREAS, this Agreement will not have the effect of an agreement, and will
not be binding on either Party, until it is approved by the City Council;
NOW, THEREFORE, it is mutually agreed between the Parties to amend MOU
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Section 3.B.2 regarding Holiday Time for Staff Employees and Section 3.H regarding
Reassignment as set forth below. Except as expressly modified herein, all other provisions,
terms, and covenants set forth in the MOU shall remain unchanged and shall be in full force and
effect.
SECTION 3. LEAVES
B. HOLIDAY TIME
2. STAFF EMPLOYEES:
2. Staff Employees (Safety & Non -Safety): The holiday benefit for staff employees
differs for safety and non -safety staff employees. Non -safety staff employees shall accrue 3.96
hours of holiday leave per pay period (102.96 hours per year). Effective July 12, 2025, safety staff
employees shall accrue 5.26 hours of holiday leave per pay period (136.76 hours per year). This
holiday leave is to provide leave for employees for the following twelve (12) holidays:
New Years' Day, Martin Luther King Birthday, Presidents Day, Memorial Day, Independence
Day, Labor Day, Veterans Day, Thanksgiving Day and the day after Thanksgiving, one-half day
on Christmas Eve, Christmas, one-half day on New Year's Eve and one floating holiday.
The holiday leave accrued will be added to employees' flex leave banks. The maximum accrual of
flex leave set forth in Section 3(A)(1) above includes holiday leave.
Even though the holiday leave is added to employees' flex leave banks, safety staff employees
have the option to work on a holiday or use flex leave. Non -safety staff employees may be
required to take specified City holidays off at the sole discretion of the Fire Chief. If that occurs,
time will be charged against the employee's Flex leave bank.
Notwithstanding the holiday leave benefit provided above, newly hired non -safety staff
employees shall have the one-time option (at the time of hire) to accrue holiday time as pay. If
that occurs, such an employee's flex leave maximum accrual (addressed in Section 3A1 above)
will be reduced by 205.92 hours which is equal to two years (52 pay periods) of holiday leave for
non -safety staff. Additionally, employees assigned to a safety staffposition shall have the one-time
option (at the time of assignment) to accrue half of their holiday time as pay for the duration of
the assignment. If that occurs, such an employee's flex leave maximum accrual will be reduced
for the duration of the assignment by 136.76 hours which is equal to half of two years (52 pay
periods) of holiday leave for safety staff. Effective July 12, 2025, employees who are currently
assigned to safety staffposition on July 12, 2025 will have the one-time option to elect to accrue
half of their holiday time as pay for the remainder of their assignment.
If holiday time is provided as pay (if, that election is made as provided above) it shall not be
reported to Ca1PERS as special compensation per California Code of Regulations 571(a)(5)
because these employees do not work in positions that require scheduled staffing without regard
to holidays.
SECTION 3. LEAVES
H. REASSIGNMENT (Line & Safety Staff):
In the event a line employee is reassigned to a safety staff position, or a safety staff employee is
11-9
reassigned to a line position, the City shall automatically convert the Holiday Time, Flex Leave,
Bereavement Leave and other benefits from the position previously held to the newly assigned
position. The ratio for conversion of safety staff employee benefits to line employee benefits shall
be 7/5 and the ratio for converting line employee benefits to safety staff employee benefits shall
be 5/7. When a line employee is reassigned to a safety staffposition, that employee shall have the
one-time option (at the time of assignment) to accrue half of their holiday time as pay for the
duration of the assignment.
Signatures on the next page
11-10
Executed this 22nd day of July, 2025
FOR THE NEWPORT BEACH FIRE ASSOCIATION:
BY: RvU +no (Jul 11, 2025 10:19 PDT)
Robert Salerno, NBFA President
FOR THE CITY OF NEWPORT BEACH:
Date:
By:
Joe Stapleton
Mayor
CITY OF NEWPORT BEACH
APPROVED AS TO FORM:
By:
Aaron C. Harp, City Attorney
ATTEST:
BY: Molly McLaughlin Perry, City Clerk