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HomeMy WebLinkAbout16 - Promotional Process of the Police DepartmentCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. I6 January 12, 2010 TO: HONORABLE MAYOR AND COUNCIL MEMBERS FROM: David R. Hunt, City Attorney ext. 3131, dhunt @newportbeachca.gov Terri Cassidy, Human Resources Director ext. 3300, tcassidy @newportbeachca.gov SUBJECT: Civil Service Board's Recommendations after Completion of the Police Management Association's Request of an Investigation into the Promotional Processes of the Police Department ISSUE: Should the City Council accept the recommendations of the Civil Service Board after completion of the Police Management Association's requested investigation into the promotional processes of the Police Department? RECOMMENDATION: Accept the recommendations of the Civil Service Board as set forth in its resolution 2009 -02 from its December 7, 2009 meeting; and 2. Direct staff to present the recommendations to the Charter Update Commission for consideration of Civil Service System modernization. BACKGROUND: As you know, the Police Management Association ( "PMA ") requested an investigation of the police promotional processes via correspondence dated December 22, 2008. That investigation was conducted by the Civil Service Board ( "CSB ") pursuant to the provisions of the Civil Service Rule 501.4. The investigation was completed and the CSB accepted the investigation as having been objective, thorough, and complete. The CSB adopted a resolution at its December 7, 2009 meeting accepting the investigation, adopting the findings of the investigation, adopting the recommendations from the investigation and making further recommendations of its own. We have appended a copy of the December 7, 2009 CSB staff report along with its attachments as Attachment "1" to this staff report. In addition, we append the final executed resolution from the CSB as Attachment "2 ". Civil Service Board's Recommendations after Completion of the Police Management Association's Request of an Investigation into the Promotional Processes of the Police Department January 12, 2010 Page 2 At this time, it is appropriate for the Council to give direction on whether it wishes to accept the recommendations of the CSB and give direction on an appropriate work program for the staff to pursue in addressing the issues. A great many of the concerns raised in the investigation have been dealt with already in the effort to address the issues raised in a timely manner. An extensive chronology of the events is reflected in the attached CSB Staff Report. In brief summary, however, we note: Former Chief Klein created a committee within the department to address promotional process issues. That committee issued its recommendations to Chief Klein in June of 2009 and many of the recommendations have been put into to effect by Chief Luman with the approval of the CSB in the last round of promotional testing. • The Police Legal Advisor position has been eliminated with the agreement of all involved parties. • Three City Attorney legal opinions were issued clarifying chief officer promotional process requirements, addressing the question of validity of the Continued Employment Agreement, and clarifying the length of time employment lists can be extended and their effective dates. When considering what direction you wish to give, we note you have already placed the issue of modernization of the Civil Service System in the list of issues for the Charter Update Commission to address. The Commission can make recommendations on any overall modernization. You may wish to defer any Council action on the CSB's recommendations until after the Charter Update Commission has addressed the issue of Civil Service modernization. A very brief summary of the Board's recommendations and staffs recommended Council response is set out below: No. I Summa : Recommended Council Response: 1. If you wish to retain the Continued No Action Needed at this Time. Address Employment Agreement ( "CEA "), require as needed in negotiations with labor they be reviewed by Office of the City organizations. Except as might otherwise Attorney ( "OCA ") and be approved by the be agreed, staff recommends no renewal of City Manager; and maintained with all other the CEA. personnel files. 2.. Review "Whole Number Scoring." No Action Needed. Chief Officer has recommended and the Board approved abandoning the conce t. Civil Service Board's Recommendations after Completion of the Police Management Association's Request of an Investigation into the Promotional Processes of the Police Department January 12, 2010 Page 3 3. Insure timely evaluation and create No Action Needed. This issue is under consequences for failure of supervisors to review by the City Manager and since he is comply. the ultimate appointing authority for these positions, we recommend he take action on this recommendation reporting back to the Council as directed. 4. Review issues re "fitness evaluation" portion No Action Needed. This process has been of the Police promotional process. modified on recommendation of the Chief Officer and agreement by the Board addressing all concerns raised. 5. Revise Civil Service Rules to eliminate any No Action Needed at this Time. The issue ambiguities regarding duration and extension has been addressed by City Attorney of employment lists. Opinions and the issue can be considered after completion of the Charter Update Commission's review process. 6. Prohibit appointing authority from sitting on No Action Needed at this Time. This review panels either as an evaluator or an practice has been abandoned, though there observer. are no formal rules that have been adopted. Formal rules can be addressed in the context of the City Manager's authority as the ultimate appointing authority and otherwise be left for resolution in the Civil Service context until after completion of the Charter Update Process. 7. Insure compliance with ordinance provisions No Action Needed at this Time. The re Chief Officer recruitment. process has received clarity from the City Attorney Opinion and the new City Manager is committed to conducting an open recruitment for the next Chief of Police. The Council can await taking action on this issue until after the Charter Update Commission makes its recommendations. 8. Direct that the Police Department create a No Action Needed at this Time. We succession plan. recommend that this process be engaged in by the new Chief of Police once hired under the direction of the City Manager, with reports to Council as needed in the process. 9. Develop a career development plan for ranks No Action Needed at this Time. We of sergeant, lieutenant, and captain. recommend that this process be engaged in by the new Chief of Police once hired under the direction of the City Manager, with reports to Council as needed in the process. 10. Review issues re the Police Legal Advisor No Action Needed. The position has been position. eliminated upon the agreement of all involved parties. Civil Service Board's Recommendations after Completion of the Police Management Association's Request of an Investigation into the Promotional Processes of the Police Department January 12, 2010 Page 4 ENVIRONMENTAL REVIEW: Addressing procedural issues within City government such as this one is not a "project" as defined in the California Environmental Quality Act ( "CEQA ") implementing guidelines. PUBLIC NOTICE: Notice has been given consistent with the Ralph M. Brown Act. No other public notice is required for this item. CONCLUSION: The CSB has made recommendations to the City Council pursuant to the CSR's role in conducting investigations into the personnel system. We now seek direction from the Council with respect to the recommendations of the CSB. We look forward to receiving your direction. Prepared & Submitted by: Submitted by 0 AkE��Z:� David R. Hunt, City Attorney Terri Cassidy, Human Resources Director Attachment 1: December 7, 2009 CSB Staff Report Attachment 2: Resolution 2009 -02 A08 -00224 CC from DRH 01.12.10 Mtg ATTACHMENT 1 December 7, 2009 CSB Staff Report CITY OF NEWPORT BEACH CIVIL SERVICE BOARD STAFF REPORT Agenda Item No. (December 7, 2009) TO: HONORABLE CHAIR AND MEMBERS OF THE CIVIL SERVICE BOARD FROM: David R. Hunt, City Attorney ext. 3131, dhunt @newportbeachca.gov SUBJECT: Review and Approval of Promotional Investigation Report; Adoption of Findings and making of Recommendations MATTER: NBPMA Promotional Process Investigation Review the police promotional investigation and the executive summary public report prepared based upon it; adopt proposed resolution accepting the report as objective, thorough, and complete and making findings and recommendations based upon the report. DISCUSSION: Brief Background The Newport Beach Police Management Association ( "PMA ") requested via correspondence dated December 22, 2008 that an investigation of police promotional process be conducted by the Civil Service Board ("Board "). The Board authorized the investigation and speed its scope on March 16, 2009 via resolution. A copy of the resolution is appended as Attachment "1" to this staff report. The Board then appointed James Blaylock as an independent Investigator to address the issues. Mr. Blaylock issued a confidential report to the Board through the Office of the City Attorney on October 5, 2009. The Board has had three closed session meetings considering the confidential report, its findings and recommendations. The Board has scheduled final action on the investigation for its December 7, 2009 regular meeting. 2. Intervening Events Multiple events occurred during the time the investigation was pending. Some were brought about as a result of the investigation, some were tangentially related to the investigation, and some had little or no relationship to the investigation whatsoever. Review and Approval of Promotional Investigation Report; Adoption of Findings and making of Recommendations December 7, 2009 Page 2 These events, however, are significant in a review of the investigative report as well as in making a determination as to what recommendations the Board will adopt The events of significance that occurred during this approximate eight month period are as follows: • On April 3, 2009, the Office of the City Attorney issued a legal opinion determining that the 2007 Chief of Police Recruitment was conducted in a manner inconsistent with the City's Civil Service ordinance. • On April 6, 2009, Chief John Klein announced that as a result of concerns raised regarding recent promotions within the Police Department and concerns about the promotional process as a whole, he was "temporarily suspending any future promotions or additional promotional testing until there is a finding from the Civil Service investigation." • On April 27, 2009, the Police Legal Advisor's relationship to the Office of the City Attorney and designation as the Deputy City Attorney was eliminated pursuant to an agreement between the parties.' • On May 4, 2009, the CSB accepted the elimination of the Police Legal Advisor 0 duties from the lieutenant's job description from the Police Department. • On June 4, 2009, the Office of the City Attorney issued a legal opinion addressing the question of what length of time employment lists may be extended under the Civil Service ordinance, concluding lists may be extended "up to' a full year and any increment within that time frame. • On June 30, 2009, the internal Police Department committee created by Chief John Klein in October of 2008 to review police promotional processes presented Its final report to the Chief of Police. This Committee was composed of representatives from the PMA, Newport Beach Police Employee's Association ('PEA") and Human Resources. It was called upon to address all issues related to promotions within the Police Department. The Committee's report was presented to the CSB in October of 2009 and is part of the basis chosen by Chief of Police Luman'S 2 request for proceeding forward with the new promotional process to be utilized by the Police Department. The process for change was in part initiated independent of the Investigation since it was a decision I made when I first became City Attorney in light of my charge from the Council to consolidate all legal services fully within the Office of the City r Attorney. 2 On July 12, 2009, Robert Luman replaced refiring John Klein as Chief of Police. Review and Approval of Promotional Investigation Report; Adoption of Findings and making of Recommendations December 7, 2009 Page 3 • On September 4, 2009, the Office of the City Attorney issued a legal opinion clarifying the effective date of employment lists, establishing that the date of certification by the Civil Service Board is the effective date of the list. • On October 5, 2009, the confidential report regarding the investigation was issued to the Office of the City Attorney. • On October 5, 2009, Chief Luman initially presented a preview his preferred plan for the ongoing promotional processes within the Police Department to the Board at its regular meeting. • On October 26, 2009, the Board held its first dosed session to consider the confidential report. • On November 2, 2009, Chief Luman requested authority from the Board to proceed forward with promotions consistent with the finding of the investigation that no manipulation was found with respect to the police promotional processes and the existing employment lists could be utilized for promotion to the two vacant positions, one lieutenant and one sergeant, which existed in the police �l department before the original term of the list had expired. �J • On November 3, 2009, Chief Luman commenced the process for formulating new employment fists pursuant to the direction of the CSB at its November 2, 2009 meeting, advertising the commencement of promotional processes consistent with the Board's action. • On November 21, 2009, Chief Luman announced the promotion of Damon Psaros to the rank of sergeant and Scott McKnight to the rank of lieutenant within the Police Department based upon the former employment lists that were certified by the Board prior to the commencement of the investigation. • On November 23, 2009, the Board held its second closed session meeting to consider the report, • On November 30, 2009, the Board held its third closed session meeting to consider the report. 3. December 7. 2009 Hearing A summary public report has been prepared at the Board's direction. The summary public report Is intended to provide as much transparency as possible under the law `l with respect to the investigation. The 209 page confidential report contains extensive confidential information regarding personnel matters and issues which cannot be Review and Approval of Promotional Investigation Report; Adoption of Findings and making of Recommendations December 7, 2009 Page 4 divulged based upon privacy interests. Additionally, there were extensive witness interviews and an investigation covered under the attorney work product privilege. The assertion of the privilege is necessary in order to allow witnesses the opportunity to be completely candid in all of their discussions with the investigator. As such, the witness interviews, along with the balance of the investigation, are covered by the attorney work product privilege. Both confidential personnel matters and attorney work product documents and communications are privileged matters are exempted from disclosure under the California Public Records Act (Government Code Section 6264(c) and (k) respectively.) The hearing scheduled on December 7, 2009 is for receiving comments and testimony with respect to the report, considering the report and determining whether or not the Board will accept it as objective, thorough and complete. The summary public report is appended as Attachment "2" to this staff report. Should you accept the report as objective, thorough, and complete, you then need to determine whether you adopt Its findings and its recommendations and whether you wish to make additional recommendations of your own. While these issues have been considered in the context of reviewing the report in dosed session, no final action has f 1 been taken on any of these questions and they are ripe for you to consider at the December 7, 2009 meeting. We have prepared a proposed resolution for your consideration. In brief, the resolution provides that you find the report to be objective, thorough, and complete, that you adopt its findings as your own, and in addition, you adopt the recommendations of the report as your own and make additional recommendations. The proposed resolution is appended as Attachment "3" to this staff report. It is appropriate for you to: 1) Conduct a hearing on the issues raised in the approved scope of investigation and addressed in the report; 2) Receive testimony; 3) Close the public hearing; and 4) Make a decision as to how you wish to proceed. The Board has multiple alternatives available to it for final deciding these issues: D The Board can accept the report as objective, thorough, and complete, and take action regarding findings and recommendations; The Board can direct further investigation or work be performed within the scope of the investigation adopted by you on March 16, 2009; or ➢ The Board can reject the report and direct staff to take further action the Board deems appropriate. Review and Approval of Promotional Investigation Report; Adoption of Findings and making of Recommendations December 7, 2009 Page 5 CONCLUSION: The investigation was requested at the end of December of 2008. You directed an investigation be conducted pursuant to the specific scope that you adopted on March 16, 2009. You are now formally presented with the final report based upon that investigation. We recommend that you accept the report as objective, thorough, and complete, adopt its findings and recommendations, and make further recommendations as you deem appropriate. All of these actions can be performed through the approval and adoption of the resolution presented to you for consideration. Prepared by: David R. Hunt City Attorney ,. Attachment 1: March 16, 2009 Resolution t Attachment 2: Summary Public Report Attachment 3: Proposed Resolution cc: Mayor and City Council (w /Enc.) Dave Kiff, City Manager (w /Enc.) Chief Luman, Police Dept (w /Enc.) Terri Cassidy, Human Resources Director (w /Enc.) PMA Board David Syvock, NBPEA President A08W229 DOWMeg Mig 3� x This page intentionally blank 4 m ATTACHMENT 1 CSB December 7, 2009 Staff Report 0. March 16, 2009 Resolution 1 RESOLUTION OF THE CIVIL SERVICE BOARD OF THE CITY OF NEWPORT BEACH DIRECTING AN INVESTIGATION OF POLICE PROMOTIONAL PROCESSES AS REQUESTED BY THE NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION UNDER CIVIL SERVICE BOARD RULE 501A WHEREAS, the Newport Beach Police Management Association ("PMA") is an organized and recognized City employees' association: WHEREAS, Civil SerWm Rule 501A states, In pertinent part, "The Board shall make any investigation concembV the administration of personnel in the Civil Service and reports Its findings to the City Cound and City Manager when requested to do so by the City Council, the City Manager or by an organized City employees' association;' WHEREAS, the PMA made a request for an investigation of the police promotional practices via correspondence from their counsel dated December 22, 2008; WHEREAS, the Civil Service Board ("C SSR) has considered the Issues raised by the PMA and Its request at its January 5, 2009 rrreeft, briefly heard testimony at Its February 5, 2009, March 2, 2009 meeting, and at Its March 16, 2009 special meeting; NOW THEREFORE, the CSB hereby resolves as follows: ±` SECTION 1: An investigation of the issues raised by the PMA that are rwithin the jurisdiction of the CSB shall be conducted pursuant to the Scope of Investigation attached hereto as Exhibit 'A" and hereby incorporated by reference. This Investigation is being conducted by the CSB pursuant to the CSS's authority. SECTION 2: The Office of the City Afbomey COCA") is directed by the CSB to retain James R. Blaylock to conduct an Investigation as defined under Section 1. The Investigator Is appointed to conduct this Investigation through the Orifice of the City Attorney on behalf of the CSB and pursuant to the CSR's authority. The investigator is appointed to conduct an inquiry of the issues and determine all facts that are relevant to answering the questions set out in the scope of kwestigation. The Investigator stmt!. be retained by, and coordinate his efforts through, the OCA. SECTION 8: The OCA and Secretary of the Board shall provide the Investigator with all necessary support and assistance. The Secretary of the Board shall be the primary point of contact for the Investigator to the CSB. The OCA shall perform the duties and MIMI the role of legal advisor to the Investigator and shall render all legal opinions that arise out of the fans that are investigated. The CSB Secretary and OCA shalt keep the CS8 fully apprised of the progress of the investigation and of all communications from the investlgator regarding all substantive issues to be addressed. 0 SECTION 4: if the investigator discovers farts during the course of this investigation that he believes, in his professional judgment, may warrant further investigation but fall outside of the express scope of this investigation, he shall bring them to the attention of the OCA and Secretary of the Board. It the facts raise issues within the jurisdiction of the Board, the OCA and the Secretary of the Board shall present them to the Board and the Board shall decide whether or not to increase the scope of the investigation. If the facts raise issues that are not within the jurisdiction of the Board, the OCA shall determine the appropriate course of action. Section 5: The investigator shall ultimately report all findings, conchmions, and recammwWatlons to the Board in writing. The written report shall be submitted to the Board through the OCA and the-Secretary of Board. PASSED, APPROVED AND ADOPTED THIS 10 DAY OF MARCH, 201)9 AYES, CIVIL SERVICE BOARD MEMBERS-41X, SO Cdus.�1 NOES, CIVIL SERVICE BOARD MEMBERS ABSENTCIVIL SERVICE BOARD MEMBERS CIVIL SERVICE BOARD: A-X-4 `' Bert Carson, Chairman ATTEST: Secretary of the C4A1 Servloe Board APPROVED AS TO FORM: I O w E CITY ATTORNEY David R. Hunt, City Atfomey ; I Do dwem"apelice pKpM;)ffwava savicesynat JbrdedMwlthp=owdm*um; daMbedowtosa nod from mJ&200&wgt 2OMaddMdba Ming* . .vu 71oftelffiftax czam" ow 03M key.c� dOMIAMMAS of"Coactua^ PRIM aftM Chd Swvke Bynum, x4 Ifack v64 Maydimm AoW bo, dow Is bfikmftnmhl&bom*4ofiboCidgavioSy*W i �'. �.'' �,., a y "CS ID m tD 7 O Gf 6 .� 3 ATTACHMENT 2 CSB December 7, 2009 Staff Report Summary Public Report t This page intentionally blank i CITY OF NEWPORT BEACH SUMMARY OF REPORT TO CIVIL SERVICE BOARD RE: POSSIBLE MANIPULATION OF POLICE DEPARTMENT PROMOTIONAL PROCESSES DECEMBER 7, 2009 Prepared By: James R. Blaylock TABLE OF CONTENTS Page 1. BACKGROUND & METHODOLOGY ...................................... ..............................1 II: SCOPE OF INVESTIGATION ................................................. ..............................2 111. INTERVIEWS CONDUCTED ................................................. ..............................3 IV. CHRONOLOGY ...................................................................... ..............................4 V. FINDINGS OF FACT ............................................................. ..............................4 VI. RECOMMENDATIONS .......................................................... ..............................9 SUMMARY OF REPORT TO CIVIL SERVICE BOARD RE: POSSIBLE MANIPULATION OF POLICE DEPARTMENT PROMOTIONAL PROCESSES BACKGROUND & METHODOLOGY On December 22, 2008, the Newport Beach Police Management Association ( "NBPMA" or "PMA "), through its legal counsel, requested that the Civil Service Board ( "Board ") conduct an investigation regarding the Newport Beach Police Department's promotional processes, as applied to supervisory ranks, on the grounds the processes failed to comply with Civil Service Rules & Regulations relative to "faimess and objectivity." On January 28, 2009, the PMA provided a number of documents to the Board in support of its general allegation. The Board subsequently reviewed the documents provided by the PMA, worked with the City Attomey to define the scope of an investigation, and interviewed potential investigators. On March 16, 2009, the Board passed a resolution authorizing the retention of James Blaylock to conduct an investigation and to report all findings, conclusions and recommendations to the Board in writing, through the Office of the City Attorney. On October 5, 2009, the investigator submitted a confidential report to the Civil Service Board and City Attorney, consisting of 209 pages of text and 100 exhibits,' including interview recordings and accompanying transcripts. Much of this material included information deemed to be confidential personnel records under the Public Safety Officers Procedural Bill of Rights Act (Govt. Code sections 3300 et. seq.), Penal Code section 832.7, and other provisions of state law.. The Civil Service Board and City Attorney directed the investigator to prepare a summary report for public dissemination, with the objective of providing the maximum disclosure of relevant investigative findings regarding NBPD promotional processes, while protecting the confidential nature of personnel information contained in the original report. This "Summary of Report to Civil Service Board" is the result of that directive. This investigation entailed: Review of documents submitted to the Board by the NBPMA. Review of documents submitted to the investigator by the PMA complainants. Review of documents submitted to the investigator by various witnesses. Review of applicable Civil Service Board Rules and Regulations. ' The exhibit list and actual exhibits are not included as part of this report, since many of them contain confidential personnel information. Page 1 of 10 Review of applicable Municipal Codes. Review of promotional process test documents from 2005 through 2008. Review of City Council Policy F -20 as applied to the September 12, 2005, "Continued Employment Agreement," signed by the City Manager. Review of documents related to the 2007 recruitment for the position of Chief of Police. Review of documents related to the °Rule of Eight" and "Whole Number Scoring" changes implemented in 2006. Review of grievances filed by the PMA complainants. Review of relevant Department emails and memoranda. Interviews of three PMA complainants and twenty witnesses; review of corresponding transcripts. Preparation of confidential investigation report with findings and recommendations. 11. SCOPE OF INVESTIGATION The scope of this investigation was defined by the Civil Service Board by its Resolution adopted on March 16, 2009. The Resolution defined the scope of the investigation as follows: General Scone: Do the current police promotional procedures, as used from mid -2005 through 2008, achieve the purpose of the Civil Service System through providing ... an equitable and uniform procedure for dealing with personnel matters, to attract to the City service the most competent persons available, to assure that the appointment and promotion of employees will be based on merit and fitness, and to provide reasonable security for employees, "or has the system been managed during this time so as to.-(1) allow individuals to exert greater discretion than is warranted, thus marginalizing the objectivity necessary for a process designed to foster fairness and merit, and (2) evidence a disregard for provisions of the Newport Beach Municipal Code, Civil Service Board Rules and /or Council policy? Ultimate Questions: Number 1: Was the City Manager's authority exceeded and Council Policy F -20 violated by entering into the agreement regarding post - retirement continued or part -time Page 2 of 10 employment["Continued EmploymentAgreement'Y for NBPMA members in September of 2005, and, if so, what are the consequences of that conclusion, and what, if anything, should be done to address the issue in the context of the Civil Service System? Number2: Has the application of the provisions ofthe "Continued Employment Agreement" affected the promotional process of the Police Department in such a way as to make it inconsistent with the purpose of the Civil Service System, and if so, what if anything, should be done to address the issue in the context of the Civil Service System? Number 3: Are the promotional process changes instituted in March 2006, including but not limited to numerical rating changes, the "Rule of Eight" and `Whole Number Scoring," consistent with the purpose of the Civil Service System, and, ff not, what, if anything, should be done to address this issue in the context of the Civil Service System? Number 4: Were the current promotional lists for Captain, Lieutenant, and Sergeant vacated early in 2006 in a manner consistent with Civil Service Rules, and, if not, what, if anything, should be done to address this issue in the context of the Civil Service System? Number 5: Is it appropriate for the appointing authority to sit on oral boards for interviewing promotional candidates, and, if not, what, if anything, should be done to address this issue in the context of the Civil Service System? Number 6. Was the 2007 recruitment for the position of Chief of Police conducted consistent with the Newport Beach Municipal Code, the Civil Service Board Rules and purpose, and, ff not, what, if anything, should be done to address this issue in the context of the Civil Service System? Number 7: Were the two three month extensions of the Police Captain Promotional Eligibility lists in 20082 inconsistent with the Newport Beach Municipal Code, the Civil Service Board Rules or the purpose of the Civil Service System, and, if not, what, if anything, should be done to address this issue in the context of the Civil Service System? Ill. INTERVIEWS CONDUCTED The investigator initially interviewed three PMA members who had flied grievances regarding alleged improprieties and inequities in the NBPD promotional processes. These interviews, which were conducted between May 6, 2009 and May 12, 2009 were each digitally recorded and transcribed. Before questioning commenced, each PMA member /complainant was read a statement regarding the general scope of investigation, as set forth above, and each complainant said the statement was an accurate summation 2 This is an incorrect date. The "eligibility lists° in question were extended in calendar year 2007. Page 3 of 10 of the concerns raised by the NBPMA. In addition, the investigator interviewed twenty witnesses between May 12, 2009, and September 18, 2009. These witnesses included current and former City employees, a labor consultant to the City, two former Police Chiefs from outside departments and a former Civil Service Board member who served as raters in promotional processes, and a local businessman. Sixteen of these interviews were recorded and subsequently transcribed. IV. CHRONOLOGY The investigator prepared a detailed chronology containing the dates of more then eighty relevant events ranging from 1978 to May 2009, including references to numerous documentary exhibits. V. FINDINGS OF FACT The "Findings of Fact" are the culmination of the comprehensive analysis portion of the confidential report to the CSB, and address the seven "Ultimate Questions" enumerated in the "Scope of Investigation" statement and one additional allegation raised by the PMA. Sub - findings were made by the investigator where relevant to the Ultimate Question raised and are indicated by an indent and appropriate numbering. Ultimate Question No. 1: Was the City Manager's authority exceeded and Council Policy F -20 violated by entering into the agreement regarding post - retirement continued or part -time employment [Continued Employment Agreement] for NBPMA members in September of 2005, and, if so, whatare the consequences of that conclusion, and what, if anything, should be done to address the issue in the context of the Civil Service System? Findings on Ultimate Question No. 1: Although the September 12, 2005 "Agreement Regarding Post - Retirement Continued or Part-time Employment for NBPMA Members" ( "Continued Employment Agreement" or "CEA ") is inconsistent with the City Charter and violated Council Policy F -20, there is no director documentary evidence, and the evidence is insufficient to conclude the agreement was used as a device to manipulate promotional processes. 1.1 The City Manager's authority was exceeded and Council Policy violated by execution of the "Agreement Regarding Post - retirement Continued or Part- time Employment for NBPMA Members" in September 2005. 1.2 The preponderance of the evidence does not indicate PMA members were Page 4 of 10 intentionally misled regarding the incorporation of the Continued Employment Agreement into the 2005 -2006 NBPMA MOU. Ultimate Question No 2: Has the application of the provisions of the "Continued Employment Agreement" affected the promotional process of the Police Department in such a way as to make it inconsistent with the purpose of the Civil Service System, and, if so, what if anything, should be done to address the issue in the context of the Civil Service System? Finding on Ultimate Question No. 2: The preponderance of the evidence establishes that the application of the Continued Employment-Agreements executed by three (now) former PMA members had no material effect on downstream promotional opportunities for members of the PMA and there is no direct evidence any PMA complainant was disadvantaged by application of the CEA. Ultimate Question No. 3: Are the promotional process changes instituted in March 2006, including but not limited to numericalrating changes, the Rule of Eight-and "W hole Number Scoring," consistent with the purpose of the Civil Service System, and, if not, what, if anything, should be done to address this issue in the context of the Civil Service System? Findings on Ultimate Question No. 3: The preponderance of the evidence does not establish that application of "Whole Number Scoring" and the "Rule of Eight" was inherently disadvantageous to candidates for promotion to the ranks of Sergeant, Lieutenant, and Captain. However, there is a significant portion of the Department that believes these rule changes do not "assure appointment and promotion of employees will be based on merit and fitness." 3.1 The preponderance of the evidence indicates the 2006 changes to the promotional process were not implemented for the purpose of manipulating the outcomes of the promotional testing processes. 3.2 The preponderance of the evidence establishes that application of "Whole Number Scoring" and the "Rule of Eight" was not inherently disadvantageous or unfair to some candidates. As approved, the changes to the promotional process are consistent with the purpose of the Civil Service System; however, they have been rendered ineffectual by a belief the changes were applied unfairly. Page 5 of 10 Ultimate Question No. 4: Were the current promotional lists for Captain, Lieutenant, and Sergeant vacated early in 2006 in a manner consistent with Civil Service Rules, and if not what, if anything, should be done to address this issue in the context of the Civil Service System? Findings on Ultimate Question No. 4: The preponderance of the evidence establishes that the decision to suspend making additional promotions from the 2005 Sergeants', Lieutenants', and Captains' promotional eligibility lists complied with existing Civil Service Rules. 4.1 Civil Service Rules were not violated when the promotional eligibility lists were "vacated" in early 2006. Ultimate Question No. 5: Is it appropriate for the appointing authority to sit on oral boards for interviewing promotional candidates and , if not, what, if anything, should be done to address this issue in the context of the Civil Service System? Findings on Ultimate Question No. 5: It is not appropriate for the appointing authority to serve as an evaluator in a promotional process because it opens the process to claims of bias, or the appearance of bias. There is insufficient evidence to determine whether the appointing authority's presence and ratings during the 2006 Captains' oral interviews had a material impact on the candidates' oral scores. However, the preponderance of the evidence indicates it is unlikely his presence, or his scoring, had any effect on the promotions that were subsequently made from the resulting eligibility list. 5.1 The participation of the appointing authorities in the oral boards of the 2005 and 2006 Captains' promotional processes was inappropriate. 5.2 The appointing authority's plan to serve as an oral board rater in the 2008 Captains' promotional process was inappropriate; however, his selection of the Newport Beach Fire Chief as a member of the 2008 Captains' promotional oral board was not prejudicial to the process. 5.3 The appointing authority should not rate or participate on oral boards interviewing promotional candidates, because such participation opens the process to claims of bias, or the appearance of bias. Page 6 of 10 Ultimate_ Question No. 6 Was the 2007 recruitment for the position of Chief of Police conducted consistent with the Newport Beach Municipal Code, the Civil Service Board Rules and purpose, and, if not, what, if anything, should be done to address this issue in the context of the Civil Service System? Findinus on Ultimate Question No. 6: The 2007 Chief of Police selection process was not conducted as an open recruitment as required by the Newport Beach Municipal Code and Civil Service Rules. The preponderance of the evidence does not establish that the 2007 Chief of Police selection process was manipulated. The preponderance of the evidence establishes the oral interview portion of the 2007 Chief of Police selection process was conducted in a manner consistent with existing Municipal Code provisions and CSB Rules, there was no attempt to insert, or actual insertion of, bias into the process, and the candidates' scores were assigned in a legitimate manner. 6.1 There is insufficient evidence to conclude one particular candidate was predestined to be selected as Chief of Police, as evidenced by one local businessman's alleged 2005 comments to Newport Beach police officers. 6.2 The 2007 Police Chief recruitment was not conducted consistent with the Municipal Code and Civil Service Rules and purpose. 6.3 The oral interview scores assigned to the candidates for Chief of Police wen: not inconsistent with the former City Manager's insistence that one candidate was the "clear' choice for Chief of Police. 6.4 There is no evidence anyone improperly profited from creation of the Deputy Chiefs position, although it appears the position was not formally approved by the City Council. Ultimate Question No. 7: Were the two three month extensions of the Police Captain Promotional Eligibility lists in 20083 inconsistent with the Newport Beach Municipal Code, the Civil Service Board Rules or the purpose of the Civil Service System, and, ifnot, what, if anything, should be done to address this issue in the context of the Civil Service System? 3 This is an incorrect date. The "eligibility lists° in question were extended in calendar year 2007. Page 7 of 10 Findings on Ultimate Question No. 7: The preponderance of the evidence establishes the extensions of the 2006 Captains' promotional list were consistent with the Municipal Code and Civil Service Rules. 7.1 The two three month extensions of the Captains' Promotional List were consistent with Civil Service Rules, specifically Rule 501.2.3.1. 7.2 The two candidates remaining on the May 2006 Captains' promotional eligibility list were given adequate notice of the appointing authority's intent to ask the CSB for another three month extension of the list, and they both waived the thirty day notice requirement contained in Rule 501.2.3.1. Additional PMA Allegation: Did the relationship between Newport Beach Police Department and the Integrated Law and Justice Agency for Orange County have an impact on Department promotional processes? Finding: The preponderance of the evidence does not support any inappropriate links between the promotional processes at Newport Beach Police Department and the Integrated Law and Justice Agency for Orange County. Findings Regarding the "General Scope of Investigation" As detailed in the "General Scope of Investigation" statement, the investigatorwas charged with making a determination as to whether or not individuals were allowed "to exert greater discretion than is warranted [over the promotional processes within the Newport Beach Police Department], thus marginalizing the objectivity necessary for a process designed to foster fairness and merit;" and by so doing, "evidence a disregard" for the provisions of the Newport Beach Municipal Code, the Civil Service Board Rules, and City Council Policy. The underlying allegation in the complaint filed by the PMA and PMA complainants is that there was a plan to "manipulate" the outcomes of the promotional processes as applied to the supervisory ranks, particularly the rank of Captain, as early as 2005. This allegation is based on a series of "suspicious" events, such as the execution of the NBPMA Continued Employment Agreement, the implementation of "Whole Number Scoring," and former Police Chief Robert McDonell's.participation as an oral board rater in the 2006 Captains' promotional process. As detailed in the foregoing analysis of the seven "Ultimate Questions," some of McDonell's decisions were calculated to give the appointing authority additional control Page 8 of 10 over the promotional processes. However, the preponderance of the evidence does not establish that any actions were designed to promote any one individual, such as former Police Chief John Klein. It is apparent McDoneil thought Klein could one day be a viable Chiefs candidate, but there is no corroborative evidence indicating this was "the" reason for his proposed changes to the promotional process. When McDoneil chose to participate in the 2006 Captains' promotional process, he should have considered the possibility that unsuccessful candidates might challenge the integrity of that process as well as future processes. By the time Klein became Chief, the PMA began to question the propriety of the Chiefs involvement in the evaluative part of the 2008 Captains' promotional process, as did the Human Resources Director, Barbara Ramsey. Unfortunately for Klein, his timing was imperfect and he failed to understand that he did not have enough organizational good will to do what his predecessor had done. This culminated in the PMA's insistence on a Civil Service Board investigation. While the investigator found no direct evidence of a grand design to manipulate the Promotional processes, there was an apparent disregard for the need to conduct these processes in a manner consistent with the stated purpose of the Civil Service System, i.e., promotional processes (perceived to be) based on equity and merit. Instead, the actions of some upper management personnel, as set forth in the findings set forth above, resulted in a perception that the police promotional procedures used from mid -2005 through 2008 were corrupt by design. Therefore, the investigator has concluded that the objectives of the Civil Service System were, in fact, "marginalized." VI. RECOMMENDATIONS 1. If there is an interest by the City Council in maintaining the PMA Continued Employment Agreement, require a thorough review of the individual agreements by the City Attomey's Office and approval of each agreement by the City Manager. 2. Review the concept of "Whole Number Scoring" to determine it's effectiveness in future promotional processes and whether or not its continued use is consistent with the purpose of the Civil Service System. If there is no confidence in the concept, it should be abandoned. 3. Implement an employee "annual performance review tracking system" designed to ensure the timely completion of evaluations. 4. Review the "fitness evaluation" phase of the promotional process to ensure each candidate's annual performance evaluations are an integral part of that process and receive due consideration from the evaluators. If the "Continued Employment Agreement" is going to be retained for retired PMA employees, then obtain a NBPMA endorsement acknowledging the propriety of allowing retired Captains and Lieutenants working under a CEA to participate as fitness evaluators. If no such Page 9 of 10 endorsement is obtained, reconsider allowing these practices to continue. 5. Modify the Civil Service Rules relevant to "employment lists" to eliminate any possible ambiguities related to issues associated with the duration of lists, suspension of lists,_ vacation of lists, and expiration of lists. 6. Prohibit the appointing authority from participating as an evaluator /rater in any future promotional processes within the Police Department. Allowing the appointing authority to evaluate candidates in the preliminary phases of a promotional process is problematic for the following reasons: It creates an opportunity for individuals to exercise undue influence over the process; it sets the stage for grievances and other legal challenges by the candidates based on allegations of bias and unfairness; and it is inconsistent with the stated purpose of the Civil Service System, which is to "assure that the appointment and promotion of employees will be based on merit and fitness..." 7. Ensure the City Manager complies with Civil Service Rules relevant to the selection of Chief of Police, i.e., recruitments are open and competitive, or consider modifying the rules by expanding the City Manager's discretion to hold closed, or internal recruitments, after obtaining City Council approval. 8. Develop a Police Department "succession plan" forthe purpose of projecting future vacancies and for determining when promotional processes should be conducted. While there is no way to determine the exact date of any employee's retirement or termination, identifying projected retirement dates will do much to eliminate the disruptions created by unplanned vacancies. Consider the concept of "over hiring" as a means of mitigating the impacts of potential retirements by officers who are approaching their thirty year anniversary with the Department. 9.. Define a career development plan applicable to the ranks of Sergeant, Lieutenant, and Captain. Such a plan should be available to anyone who expresses an interest in promoting to supervisory, mid- management, or upper management positions and meets, or will meet, the minimum qualifications required to promote to the next rank. 10. Review the responsibilities and potential conflicts of interest involved in the Police Legal Advisor position, as well as the cross - designation of Deputy City Attorney, to .determine if it is in the best interests of the City to retain such a position. END OF REPORT Page 10 of 10 x 0 ATTACHMENT 3 CSB December 7, 2009 Staff Report Proposed Resolution w This page intentionally blank t1 Ip;� l CSB RESOLUTION NO. 2009 -_ RESOLUTION OF THE CIVIL SERVICE BOARD OF THE CITY OF NEWPORT BEACH ACCEPTING AN INVESTIGATION OF POLICE PROMOTIONAL PROCESSES AS COMPLETE AND ADOPTING FINDINGS AND RECOMMENDATIONS WHEREAS, the Newport Beach Police Management Association ( "PMA ") is an organized and recognized City employees' association; WHEREAS, Civil Service Rule 501.4 states, in pertinent part, "The Board shall make any investigation concerning the administration of personnel in the Civil Service and reports its findings to the City Council and City Manager when requested to do so by the City Council, the City Manager or by an organized City employees' association;" WHEREAS, the PMA made a request for an investigation of the police promotional processes via correspondence from their counsel dated December 22,2008; WHEREAS, the Civil Service Board ( "CSB ") has considered the issues raised by the PMA and its request at its January 5, 2009 meeting, briefly heard testimony at its February 5, 2009, March 2, 2009 meeting, and at its March 16, 2009 special meeting; WHEREAS, the CSB considered and interviewed potential investigators and ultimately (J chose James Blaylock, to conduct the investigation on behalf of the CSB; WHEREAS, James Blaylock conducted a total of 22 interviews and reviewed over 100 documents and prepared a confidential report including setting out his analysis, findings, conclusions, and recommendations, all supported by the evidence developed In the investigation; WHEREAS, as a result of this investigation instituted by this Board there have been City Attomey opinions generated that correct errors and resolve ambiguities in the Civil Service System; WHEREAS, in the context of this ongoing investigation the Chief of Police brought recommendations and requests to this Board to modify the promotional processes of the Police Department eliminating most, if not all, of the concerns raised by the PMA in the process and this Board approved those changes; WHEREAS, the CSB was presented with the confidential report prepared by James Blaylock on October 14, 2009, and considered that report at three extensive closed session meetings, the first on October 26, 2009,the second on November 23, 2009, and the third on November 30, 2009;. -11- WHEREAS, the CSB, having reviewed, discussed, and taken such action as 0 appropriate with respect to the investigation, desires to accept the investigation, adopting the findings and recommendations and make further recommendations; and NOW THEREFORE, the CSB hereby resolves as follows: SECTION 1: Having reviewed the investigation thoroughly, questioned the investigator, and come to its own conclusions with respect to the facts developed and the analysis provided, the CSB hereby accepts the investigation as having been completed consistent with the scope of the investigation, and as being objective, thorough and complete. SECTION 2: The CSB hereby approves and adopts as its own the findings of facts in the investigation as set forth below: A. -ULTIMATE QUESTION NO. 1: Was City Manager's authority exceeded and Council Policy F -20 violated by the entering into of the agreement regarding post - retirement continued or part-time employment rContinued Employment Agreement ") for NBPMA members in September of 2005, and, if so, what are the consequences of that conclusion, and what, if anything, should be done to address the Issue in the context of the Civil Service System? ➢ Finding as to Ultimate Question No. 1: Although the September 2, 2005 Agreement regarding "Post - Retirement Continued or Part-Time Employment for NBPMA Members (Continued Employment Agreement ") is inconsistent with the City Charter and violated Council Policy F -20, there is no direct or documentary evidence and the evidence is insufficient to conclude the agreement was intentionally used as a device to manipulate promotional processes. 1.1 The City Manager's authority was exceeded and Council Policy violated by execution of the "Agreement Regarding Post - retlrement Continued or Part-time Employment for NBPMA Members" in September 2005. 1.2 The preponderance of the evidence does not indicate PMA members were intentionally misled regarding the incorporation of the Continued Employment Agreement into the 2005 -2006 NBPMA MOU. B. ULTIMATE QUESTION NO. 2: Has the application of the provisions of the Continued Employment Agreement affected the promotional process of the Police Department in such a way as to make it inconsistent with the purpose of the Civil Service System, and, if so, what if anything, should be done to address -2- D Finding as to Ultimate Question No. 2: The preponderance of the evidence establishes that the application of the Continued Employment Agreements executed by Newman, Hyams and Desmond had no material effect on downstream promotional opportunities for members of the PMA and there is no evidence any PMA Complainant was disadvantaged by application of the CEA. C. ULTIMATE QUESTION NO. 3: Are the promotional process changes instituted in March 2006, including but not limited to numerical rating changes, the "Rule of Eight" and "Whole Number Scoring," consistent with the purpose of the Civil Service System, and, If not, what, if anything, should be done to address this issue in the context of the Civil Service System? Finding as to Ultimate Question No. 3: The preponderance of the evidence does not establish that application of "Whole Number Scoring" and the "Rule of Eight" was Inherently disadvantageous to candidates for promotion to the ranks of Sergeant, Lieutenant and Captain. However, there is a significant portion of the Department that believes these rule charges do not "assure appointment and promotion of employees will be based on merit and fitness." 3.1 The preponderance of the evidence indicates the 2006 0 changes to the promotional process were not implemented for the purpose of manipulating the outcomes of the promotional testing processes. 3.2 The preponderance of the evidence establishes that application of "Whole Number Scoring" and the "Rule of Eight" was not inherently disadvantageous or unfair to some candidates. As approved, the changes to the promotional process are consistent with the purpose of the Civil Service System; however, they have been rendered ineffectual by a belief the changes were applied unfairly. D. ULTIMATE QUESTION NO. 4: Were the current promotional lists for Captain, Lieutenant, and Sergeant vacated early in 2006 in a manner consistent with Civil Service Rules, and, If not what, if anything, should be done to address the issue in the context of the Civil Service System? ➢ Finding as to Ultimate Question No. 4. The preponderance of the evidence establishes that the decision to suspend making additional promotions from the 2005 Sergeants', Lieutenants', and Captains' promotional eligibility lists compiled with existing Civil Service Rules. -3- 4.1 Civil Service Rules were not violated when the promotional eligibility lists were 'vacated" in early 2006. E. ULTIMATE QUESTION NO. 5: Is it appropriate for the appointing authority to sit on oral boards for interviewing promotional candidates, and, if not, what, if anything, should be done to address the issue in the context of the Civil Service System? Finding as to Ultimate Question No. 5: It is not appropriate for the appointing authority to serve as an evaluator in a promotional process because it opens the process to claims of bias, or the appearance of bias. There is insufficient evidence to determine whether the appointing authority's presence and ratings during the 2006 Captains' oral interviews had a material impact on the candidates' oral scores. However, the preponderance of the evidence indicates it is unlikely his presence, or his scoring, had any effect on the promotions that were subsequently made from the resulting eligibility list. 5.1 The participation of 1he appointing authorities in the oral boards of the 2005 and 2006 Captains' promotional processes was inappropriate. 5.2 The appointing authority s plan to serve as an oral board rater in the 2008 Captains' promotional process was inappropriate; however, his selection of the Newport Beach Fire Chief as a member of the 2008 Captains' promotional oral board was not prejudicial to the process. 5.3 The appointing authority should not rate or participate on oral boards interviewing promotional candidates, because such participation opens the process to claims of bias, or the appearance of bias. F. ULTIMATE QUESTION NO. 6: Was the 2007 recruitment for the position of Chief of Police conducted consistent with Newport Beach Municipal Code, the CSB Rules and purpose, and, if not what, if anything, should be done to address the issue in the context of the Civil Service System? Finding as to Ultimate Question No. 6: The 2007 Chief of Police selection process was not conducted as an open recruitment as required by the Newport Beach Municipal Code and Civil Service Rules. The preponderance of the evidence does not establish that the 2007 Chief of Police selection process was manipulated. 0 �J The preponderance of the evidence establishes the oral interview portion of the 2007 Chief of Police selection process was conducted In a manner consistent with existing municipal code provisions and CSB rules, there was no attempt to insert, or actual insertion of, bias into the process, and the candidates' scores were assigned in a legitimate manner. 6.1 There is insufficient evidence to conclude one particular candidate was predestined to be selected as Chief of Police, as evidenced by one local businessman's alleged 2005 comments to Newport Beach police officers. 6.2 The 2007 Police Chief recruitment was not conducted consistent with the Municipal Code and Civil Service Rules and purpose. 6.3 The oral interview scores assigned to the candidates for Chief of Police were not inconsistent with the former City Manager's insistence that one candidate was the 'clear' choice for Chief of Police. 6.4 There Is no evidence anyone improperly profited from creation of the Deputy Chiefs position, although it appears the position was not formally approved by the City Council. G. ULTIMATE QUESTION NO. 7: Were the two three month extensions of the Police Captain Promotional Eligibility lists in 2008 inconsistent with the Newport Beach Municipal Code, the CSB Rules or the purpose of the Civil Service System, and, if not, what, if anything, should be done to address the issue in the context of the Civil Service System? ➢ Finding as to Ultimate Question No. 7: The preponderance of the evidence establishes the extensions of the 2006 Captains' promotional. list were consistent with Municipal Code and Civil Services Rules. 7.1 The two three month extensions of the Captains' Promotional List were consistent with Civil Service Rules, specifically Rule 501.2.3.1. 7.2 The two candidates remaining on the May 2006 Captains' promotional eligibility list were given adequate notice of the appointing authority's intent to ask the CSB for another three month extension of the list, and they both waived the thirty day notice requirement contained in Rule 501.2.3.1. -5- SECTION 3: Consistent with the facts found and analysis provided by the investigator, we further find with respect to the general scope of the investigation: ➢ While there has been no direct evidence of a grand design to manipulate the promotional processes found, there was an apparent disregard for the need to conduct these processes in a manner consistent with the stated purpose of the Civil Service system, i.e., promotional processes based on equity and merit. Instead the actions of the management staff conducting the processes as set out in the prior findings resulted in a perception that the police promotional procedures used from mid 2005 through 2008 were corrupt by design. Therefore, this Board has concluded that the objectives of the Civil Service System were, in fact, marginalized. SECTION A: The CSB hereby adopts the recommendations of the report as its own and makes further recommendations as set forth below: A. Recommendation No. 1: If there is an interest by the City Council in maintaining the PMA Continued Employment Agreement, require a thorough review of the individual agreements by the City Attorney's Office and approval of each agreement by the City Manager. The Board further recommends that if the City Council chooses to maintain a Continued Employment Agreement that it does so in a manner [ avoiding the isolation of the Police Department through the handling of such agreements by having Human Resources and the Office of the City Attorney included in the process. B. Recommendation No. 2. Review the concept of "Whole Number Scoring" to determine its effectiveness in future promotional processes and whether or not Its continued use Is consistent with the purpose of the Civil Service System. If there is no confidence in the concept, it should be abandoned. D The Board supports abandoning the use of 'Whole Number Scoring." C. Recommendation No. 3. Implement an employee "annual performance review tracking system" designed to ensure the timely completion of evaluations. ➢ The Board further recommends policies be adopted that create consequences for the failure of supervisodal and management personnel to prepare personnel evaluations in a timely manner. D. Recommendation No, 4. Review the "fitness evaluation" phase of the promotional process to ensure each candidate's annual performance evaluations are an integral part of that process and receive due consideration from the } evaluators. If the "Continued Employment Agreement" is going to be retained for U retired PMA employees, then obtain a NBPMA endorsement acknowledging the f propriety of allowing retired Captains and Lieutenants working under a CEA to participate as fitness evaluators. If no such endorsement is obtained, reconsider allowing these practices to continue. The Board further recommends the Chief of Police consider candidates annual performance evaluations prior to any appointment from a promotional list. E. Recommendation No 5 Modify the Civil Service Rules relevant to "employment lists" to eliminate any possible ambiguities related to issues associated with the duration of lists, suspension of lists, vacation of lists, and expiration of lists. The Board further recommends clarifying the policy in a manner such that it is clear that employment lists can be extended for less than a year, utilizing language consistent with the Employee Manual indicating that employment lists may be extended for any increment of time "up to" one year from its original certification date. F. Recommendation No. 6. Prohibit the appointing authority from participating as an evaluator /rater in any future promotional processes within the Police [)apartment. Allowing the appointing authority to evaluate candidates in the preliminary phases of a promotional process is problematic for the following reasons: It creates an opportunity for individuals to exercise undue influence over the process; it sets the stage for grievances and other legal challenges by the candidates based on allegations of bias and unfairness; and if is inconsistent with the stated purpose of the Civil Service System, which is to "assure that the appointment and promotion of employees will be based on merit and fitness." D The Board further recommends prohibiting the appointing authority from participating as an observer in any future promotional process and potentially limiting the choices as to who sits on an Interview panel as a rater, restricting who makes the choices, and requiring that Human Resources approve appointments to interview panels. G. Recommendation No 7 Ensure the City Manager complies with Civil Services Rules relevant to the selection of Chief of Police, i.e., recruitments are open and competitive, or consider modifying the rules by expanding the City Manager's discretion to hold dosed, or internal recruitments, after obtaining City Council approval. j H. Recommendation No 8 Develop a Police Department "succession plan" for the I purpose of projecting future vacancies and for determining when promotional processes should be conducted. While there is no way to determine the exact date of any employee's retirement or termination, Identifying projected retirement dates will do much to eliminate the disruptions created by unplanned vacancies. Consider the concept of 'over hiring" as a means of mitigating the Impacts of potential retirements by officers who are approaching their thirty year anniversary with the Department Recommendation No 9. Define a career development plan applicable to the ranks of Sergeant, Lieutenant, and Captain. Such a plan should be available to anyone who expresses an interest in promoting to supervisory, mid- management, or upper management positions and meets, or will meet, the minimum qualifications required to promote to the next rank. J. Recommendation No. 10. Review the responsibilities and potential conflicts of interest involved in the police legal advisor position, as well as the cross - designation of deputy city attorney, to determine if it is the in the best interests of the City to retain such a position. D The Board notes the position of Police Legal Advisor has already been eliminated from job descriptions and its relationship with the Office of the City Attorney has been severed. The Board supports and approved that change. SECTION 5: The Board further recommends the City Council review the amount and nature of the Citys resources allocated to the Orange County Integrated Law & Justice { Task Force and determine whether the benefit received by the City is sufficient to support continued allocation of resources at the same level. i�...l SECTION 6: The CSB wishes to express its appreciation to the NBPMA and its Board for bringing these matters forward for review by the CSB. The CSB recognizes these Issues were of some contention. On the other hand, clear errors were identified and addressed as a result of the request for investigation by the NBPMA. Those errors in the implementation of the promotional processes within the Police Department have been remedied. The CSB recognizes that these issues may not have been fully addressed had the NBPMA not made the request for investigation. The CSB appreciates the devotion of the officers who brought this matter forward as employees of the City of Newport Beach to address concerns they saw in the operations of the Police Department. PASSED, APPROVED AND ADOPTED THIS 74 DAY OF DECEMBER, 2009 AYES, CIVIL SERVICE BOARD MEMBERS 1 NOES, CIVIL SERVICE BOARD MEMBERS ABSENT CIVIL SERVICE BOARD MEMBERS CIVIL SERVICE BOARD: Douglas Coulter, Chairman ATTEST: Terri Cassidy, Human Resources Director Secretary of the Civil Service Board APPROVED AS TO FORM: ±. OFFICE OF THE CITY ATTORNEY �J David R. Hunt, City Attorney LAW M2241- APWa'f6 Repad- FMW for Uq Meeft M [ri7 ID 7 T. fD 7 .t O O fl1 6 O 7C ATTACHMENT 2 Resolution 2009 -02 CSB RESOLUTION NO. 2009 -02 RESOLUTION OF THE CIVIL SERVICE BOARD OF THE CITY OF NEWPORT BEACH ACCEPTING AN INVESTIGATION OF POLICE PROMOTIONAL PROCESSES AS COMPLETE AND ADOPTING FINDINGS AND RECOMMENDATIONS WHEREAS, the Newport Beach Police Management Association ( "PMA ") is an organized and recognized City employees' association; WHEREAS, Civil Service Rule 501.4 states, in pertinent part, "The Board shall make any investigation concerning the administration of personnel in the Civil Service and reports its findings to the City Council and City Manager when requested to do so by the City Council, the City Manager or by an organized City employees' association;" WHEREAS, the PMA made a request for an investigation of the police promotional processes via correspondence from their counsel dated December 22, 2008; WHEREAS, the Civil Service Board ( "CSB ") has considered the issues raised by the PMA and its request at its January 5, 2009 meeting, briefly heard testimony at its February 5, 2009, March 2, 2009 meeting, and at its March 16, 2009 special meeting; WHEREAS, the CSB considered and interviewed potential investigators and ultimately chose James Blaylock, to conduct the investigation on behalf of the CSB; WHEREAS, James Blaylock conducted a total of 22 interviews and reviewed over 100 documents and prepared a confidential report including setting out his analysis, findings, conclusions, and recommendations, all supported by the evidence developed in the investigation; WHEREAS, as a result of this investigation instituted by this Board there have been City Attorney opinions generated that correct errors and resolve ambiguities in the Civil Service System; WHEREAS, in the context of this ongoing investigation the Chief of Police brought recommendations and requests to this Board to modify the promotional processes of the Police Department eliminating most, if not all, of the concerns raised by the PMA in the process and this Board approved those changes; WHEREAS, the CSB was presented with the confidential report prepared by James Blaylock on October 14, 2009, and considered that report at three extensive closed session meetings, the first on October 26, 2009,the second on November 23, 2009, and the third on November 30, 2009; -1- WHEREAS, the CSB, having reviewed, discussed, and taken such action as appropriate with respect to the investigation, desires to accept the investigation, adopting the findings and recommendations and make further recommendations; and NOW THEREFORE, the CSB hereby resolves as follows: SECTION 1: Having reviewed the investigation thoroughly, questioned the investigator, and come to its own conclusions with respect to the facts developed and the analysis provided, the CSB hereby accepts the investigation as having been completed consistent with the scope of the investigation, and as being objective, thorough and complete. SECTION 2: The CSB hereby approves and adopts as its own the findings of facts in the investigation as set forth below: A. ULTIMATE QUESTION NO. 1: Was City Manager's authority exceeded and Council Policy F -20 violated by the entering into of the agreement regarding post- retirement continued or part-time employment C'Continued Employment Agreement"] for NBPMA members in September of 2005, and, ff so, what are the consequences of that conclusion, and what, if anything, should be done to address the issue in the context of the Civil Service System? Finding as to Ultimate Question No. 1: Although the September 12, 2005 Agreement regarding "Post- Retirement Continued or Part-Time Employment for NBPMA Members (Continued Employment Agreement") is inconsistent with the City Charter and violated Council Policy F -20, there is no direct or documentary evidence and the evidence is insufficient to conclude the agreement was intentionally used as a device to manipulate promotional processes. 1.1 The City Manager's authority was exceeded and Council Policy violated by execution of the "Agreement Regarding Post - retirement Continued or Part-time Employment for NBPMA Members" in September 2005. 1.2 The preponderance of the evidence does not indicate PMA members were intentionally misled regarding the incorporation of the Continued Employment Agreement into the 2005 -2006 NBPMA MOU. B. ULTIMATE QUESTION NO. 2: Has the application of the provisions of the Continued Employment Agreement affected the promotional process of the Police Department in such a way as to make it inconsistent with the purpose of the Civil Service System, and, if so, what if anything, should be done to address -2- the issue in the context of the Civil Service System? ➢ Finding as to Ultimate Question No. 2: The preponderance of the evidence establishes that the application of the Continued Employment Agreements executed by Newman, Hyams and Desmond had no material effect on downstream promotional opportunities for members of the PMA and there is no evidence any PMA Complainant was disadvantaged by application of the CEA. C. ULTIMATE QUESTION NO. 3: Are the promotional process changes instituted in March 2006, including but not limited to numerical rating changes, the "Rule of Eight" and "Whole Number Scoring," consistent with the purpose of the Civil Service System, and, if not, what, if anything, should be done to address this issue in the context of the Civil Service System? ➢ Finding as to Ultimate Question No. 3: The preponderance of the evidence does not establish that application of "Whole Number Scoring" and the "Rule of Eight" was inherently disadvantageous to candidates for promotion to the ranks of Sergeant, Lieutenant and Captain. However, there is a significant portion of the Department that believes these rule changes do not "assure appointment and promotion of employees will be based on merit and fitness." 3.1 The preponderance of the evidence indicates the 2006 changes to the promotional process were not implemented for the purpose of manipulating the outcomes of the promotional testing processes. 3.2 The preponderance of the evidence establishes that application of "Whole Number Scoring" and the "Rule of Eight" was not inherently disadvantageous or unfair to some candidates. As approved, the changes to the promotional process are consistent with the purpose of the Civil Service System; however, they have been rendered ineffectual by a belief the changes were applied unfairly. D. ULTIMATE QUESTION NO. 4: Were the current promotional lists for Captain, Lieutenant, and Sergeant vacated early in 2006 in a manner consistent with Civil Service Rules, and, if not, what, if anything, should be done to address the issue in the context of the Civil Service System? ➢ Finding as to Ultimate Question No. 4: The preponderance of the evidence establishes that the decision to suspend making additional promotions from the 2005 Sergeants', Lieutenants', and Captains' promotional eligibility lists complied with existing Civil Service Rules. -3- 4.1 Civil Service Rules were not violated when the promotional eligibility lists were "vacated" in early 2006. E. ULTIMATE QUESTION NO. 5: Is it appropriate for the appointing authority to sit on oral boards for interviewing promotional candidates, and, if not, what, if anything, should be done to address the issue in the context of the Civil Service System? ➢ Finding as to Ultimate Question No. 5: It is not appropriate for the appointing authority to serve as an evaluator in a promotional process because it opens the process to claims of bias, or the appearance of bias. There is insufficient evidence to determine whether the appointing authority's presence and ratings during the 2006 Captains' oral interviews had a material impact on the candidates' oral scores. However, the preponderance of the evidence indicates it is unlikely his presence, or his scoring, had any effect on the promotions that were subsequently made from the resulting eligibility list. 5.1 The participation of the appointing authorities in the oral boards of the 2005 and 2006 Captains' promotional processes was inappropriate. 5.2 The appointing authority's plan to serve as an oral board rater in the 2008 Captains' promotional process was inappropriate; however, his selection of the Newport Beach Fire Chief as a member of the 2008 Captains' promotional oral board was not prejudicial to the process. 5.3 The appointing authority should not rate or participate on oral boards interviewing promotional candidates, because such participation opens the process to claims of bias, or the appearance of bias. F. ULTIMATE QUESTION NO. 6: Was the 2007 recruitment for the position of Chief of Police conducted consistent with Newport Beach Municipal Code, the CSB Rules and purpose, and, if not, what, if anything, should be done to address the issue in the context of the Civil Service System? Finding as to Ultimate Question No. 6: The 2007 Chief of Police selection process was not conducted as an open recruitment as required by the Newport Beach Municipal Code and Civil Service Rules. G! The preponderance of the evidence does not establish that the 2007 Chief of Police selection process was manipulated. The preponderance of the evidence establishes the oral interview portion of the 2007 Chief of Police selection process was conducted in a manner consistent with existing municipal code provisions and CSB rules, there was no attempt to insert, or actual insertion of, bias into the process, and the candidates' scores were assigned in a legitimate manner. 6.1 There is insufficient evidence to conclude one particular candidate was predestined to be selected as Chief of Police, as evidenced by one local businessman's alleged 2005 comments to Newport Beach police officers. 6.2 The 2007 Police Chief recruitment was not conducted consistent with the Municipal Code and Civil Service Rules and purpose. 6.3 The oral interview scores assigned to the candidates for Chief of Police were not inconsistent with the former City Manager's insistence that one candidate was the "clear" choice for Chief of Police. 6.4 There is no evidence anyone improperly profited from creation of the Deputy Chiefs position, although it appears the position was not formally approved by the City Council. G. ULTIMATE QUESTION NO. 7: Were the two three month extensions of the Police Captain Promotional Eligibility lists in 2008 inconsistent with the Newport Beach Municipal Code, the CSB Rules or the purpose of the Civil Service System, and, if not, what, if anything, should be done to address the issue in the context of the Civil Service System? ➢ Finding as to Ultimate Question No. 7: The preponderance of the evidence establishes the extensions of the 2006 Captains' promotional list were consistent with Municipal Code and Civil Services Rules. 7.1 The two three month extensions of the Captains' Promotional List were consistent with Civil Service Rules, specifically Rule 501.2.3.1. 7.2 The two candidates remaining on the May 2006 Captains' promotional eligibility list were given adequate notice of the appointing authority's intent to ask the CSB for another three 11.2 month extension of the list, and they both waived the thirty day notice requirement contained in Rule 501.2.3.1. SECTION 3: Consistent with the facts found and analysis provided by the investigator, we further find with respect to the general scope of the investigation: ➢ While there has been no direct evidence of a grand design to manipulate the promotional processes found, there was an apparent disregard for the need to conduct these processes in a manner consistent with the stated purpose of the Civil Service system, i.e., promotional processes based on equity and merit. Instead the actions of the management staff conducting the processes as set out in the prior findings resulted in a perception that the police promotional procedures used from mid 2005 through 2008 were corrupt by design. Therefore, this Board has concluded that the objectives of the Civil Service System were, in fact, marginalized. SECTION 4: The CSB hereby adopts the recommendations of the report as its own and makes further recommendations as set forth below: A. Recommendation No. 1: If there is an interest by the City Council in maintaining the PMA Continued Employment Agreement, require a thorough review of the individual agreements by the City Attorney's Office and approval of each agreement by the City Manager. ➢ The Board further recommends that if the City Council chooses to maintain a Continued Employment Agreement that it does so in a manner avoiding the isolation of the Police Department through the handling of such agreements by having Human Resources and the Office of the City Attorney included in the process. B. Recommendation No. 2. Review the concept of "Whole Number Scoring" to determine its effectiveness in future promotional processes and whether or not its continued use is consistent with the purpose of the Civil Service System. If there is no confidence in the concept, it should be abandoned. ➢ The Board supports abandoning the use of "Whole Number Scoring." C. Recommendation No. 3. Implement an employee "annual performance review tracking system" designed to ensure the timely completion of evaluations. ➢ The Board further recommends policies be adopted that create consequences for the failure of supervisorial and management personnel to prepare personnel evaluations in a timely manner. 0 D. Recommendation No. 4. Review the "fitness evaluation" phase of the promotional process to ensure each candidate's annual performance evaluations are an integral part of that process and receive due consideration from the evaluators. If the "Continued Employment Agreement" is going to be retained for retired PMA employees, then obtain a NBPMA endorsement acknowledging the propriety of allowing retired Captains and lieutenants working under a CEA to participate as fitness evaluators. If no such endorsement is obtained, reconsider allowing these practices to continue. The Board further recommends the Chief of Police consider candidates annual performance evaluations prior to any appointment from a promotional list. E. Recommendation No. 5. Modify the Civil Service Rules relevant to "employment lists" to eliminate any possible ambiguities related to issues associated with the duration of lists, suspension of lists, vacation of lists, and expiration of lists. ➢ The Board further recommends clarifying the policy in a manner such that it is clear that employment lists can be extended for less than a year, utilizing language consistent with the Employee Manual indicating that employment lists may be extended for any increment of time "up to" one year from its original certification date. F. Recommendation No. 6. Prohibit the appointing authority from participating as an evaluator /rater in any future promotional processes within the Police Department. Allowing the appointing authority to evaluate candidates in the preliminary phases of a promotional process is problematic for the following reasons: It creates an opportunity for individuals to exercise undue influence over the process; it sets the stage for grievances and other legal challenges by the candidates based on allegations of bias and unfaimess; and it is inconsistent with the stated purpose of the Civil Service System, which is to "assure that the appointment and promotion of employees will be based on merit and fitness." ➢ The Board further recommends prohibiting the appointing authority from participating as an observer in any future promotional process and potentially limiting the choices as to who sits on an interview panel as a rater, restricting who makes the choices, and requiring that Human Resources approve appointments to interview panels. G. Recommendation No. 7 Ensure the City Manager complies with Civil Services Rules relevant to the selection of Chief of Police, i.e., recruitments are open and competitive, or consider modifying the rules by expanding the City Manager's discretion to hold closed, or internal recruitments, after obtaining City Council approval. Ire H. Recommendation No. 8. Develop a Police Department "succession plan" for the purpose of projecting future vacancies and for determining when promotional processes should be conducted. While there is no way to determine the exact date of any employee's retirement or termination, identifying projected retirement dates will do much to eliminate the disruptions created by unplanned vacancies. Consider the concept of `over hiring" as a means of mitigating the impacts of potential retirements by officers who are approaching their thirty year anniversary with the Department. Recommendation No. 9. Define a career development plan applicable to the ranks of Sergeant, Lieutenant, and Captain. Such a plan should be available to anyone who expresses an interest in promoting to supervisory, mid - management, or upper management positions and meets, or will meet, the minimum qualifications required to promote to the next rank. J. Recommendation No. 10. Review the responsibilities and potential conflicts of interest involved in the police legal advisor position, as well as the cross - designation of deputy city attorney, to determine if it is the in the best interests of the City to retain such a position. ➢ The Board notes the position of Police Legal Advisor has already been eliminated from job descriptions and its relationship with the Office of the City Attorney has been severed. The Board supports and approved that change. SECTION 5: The Board further recommends the City Council review the amount and nature of the City's resources allocated to the Orange County Integrated Law & Justice Task Force and determine whether the benefit received by the City is sufficient to support continued allocation of resources at the same level. SECTION 6: The CSB wishes to express its appreciation to the NBPMA and its Board for bringing these matters forward for review by the CSB. The CSB recognizes these issues were of some contention. On the other hand, clear errors were identified and addressed as a result of the request for investigation by the NBPMA. Those errors in the implementation of the promotional processes within the Police Department have been remedied. The CSB recognizes that these issues may not have been fully addressed had the NBPMA not made the request for investigation. The CSB appreciates the devotion of the officers who brought this matter forward as employees of the City of Newport Beach to address concerns they saw in the operations of the Police Department. PASSED, APPROVED AND ADOPTED THIS 7h DAY OF DECEMBER, 2009 AYES, CIVIL SERVICE BOARD MEMB 19 NOES, CIVIL SERVICE BOARD MEMBERS ABSENT CIVIL. SERVICE BOARD MEMBERS CIVIL SERVICE BOARD: Douglas Coulter, hairman ATTEST: 1 Terri Cassidy, Human Resources DlWctor Secretary of the Civil Service Board APPROVED AS TO FORM: ITY�ATT�ORNEY David R. Hunt, City Attorney�' � (A06 -W2241 - CSB Resolution Approving Report - Final for 1217 Meeting w