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Home My WebLink About08 - Amendments to Memoranda of Understanding with Certain Safety Units== CITY OF NEWPOR)Tj REACH ea C921FOR�`P City Council Staff Report Agenda Item No. 8 January 10, 2012 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, City Manager 949 - 644 -3002, dkiff @newportbeachca.gov PREPARED BY: Terri L. Cassidy, Human Resources Director APPROVED:��( U v TITLE: Amendments to the Memoranda of Understanding with Certain Safety Units ►1:kW7!T84S The Memoranda of Understanding (MOU) between the City of Newport Beach and the Police Association (PA), Police Management Association (PMA), and Fire Management Association (FMA) include a provision for safety employees to contribute 3.5% toward retirement costs. These provisions were to "sunset" when the respective contracts expired December 31, 2011. City and Association representatives met and conferred in good faith and reached agreement to extend the employee contributions beyond December 31, 2011. The City Council may consider approving the Amendments to the Memoranda of Understanding to execute the agreements. RECOMMENDATION: Approve Amendments to the Memoranda of Understanding between the City of Newport Beach and the Police Association, Police Management Association, and Fire Management Association, to extend the employee retirement contribution until successor Memoranda of Understanding are adopted. In the case of PA and PMA, or until February 29, 2012, whichever occurs first. FUNDING REQUIREMENTS: There is no funding requirement for this item. Amendments to the Memoranda of Understanding with Certain Safety Units January 10, 2012 Page 2 DISCUSSION: City and Association representatives have been meeting and conferring in good faith to agree upon successor Memoranda of Understanding to the MOUs that expired December 31, 2011. Increasing pension obligations and the need for employees to share in the cost of the retirement benefit has been a major point of discussion during negotiations. Recognizing that employees should continue to contribute toward the retirement benefit, City and Association representatives agreed to extend the 3.5% employee contribution until a successor MOU is adopted. As to the PA and PMA Amendments, in the event the City and the associations do not adopt a successor MOU by February 29, 2012, the 3.5% contribution will cease and employees will be reimbursed the amount contributed as of January 1, 2012. The FMA Amendment is silent on this matter. It is worth noting that the Memoranda of Understanding with the Lifeguard Management Association and Firefighters Association do not contain a sunset provision and no amendment is necessary. 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). Submitted by: Terri L. Cassidy Human Resources Director Attachments: A. Side Letter Agreement with the Police Association B. Side Letter Agreement with the Police Management Association C. Side Letter Agreement with the Fire Management Association ATTACHMENT A AMENDMENT TO 2010 -2011 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH POLICE ASSOCIATION WHEREAS, the 2010 -2011 Memorandum of Understanding between representatives of the City of Newport Beach and the Newport Beach Police Association, Section 4 FRINGE BENEFITS (D) THE RETIREMENT BENEFIT (3) provides in part that, "Effective July 3, 2010 and through December 31, 2011, all swom unit employees will contribute 3.5% of base pay towards retirement costs. "; and WHEREAS, representatives of the City and the Newport Beach Police Association are in the process of negotiating a successor to the 2010 -2011 Memorandum of Understanding; and WHEREAS, said meet and confer process is not likely to conclude on or before December 31, 2011; NOW THEREFORE, representatives of the City and the Newport Beach Police Association agree that all provisions in Section 4(D)(3)(b) of the 2010 -2011 Memorandum of Understanding shall remain in full force and effect through and including either the date upon which the City Council adopts a Memorandum of Understanding that is a successor to the 2010- 2011 MOU, or February 29, 2012, whichever event occurs first. In the event that February 29, 2012 is concluded without the City Council having adopted a successor to the 2010 -2011 MOU, the value of the 3.5% base pay contributed towards retirement during the period January 1, 2012 through and including February 29, 2012, shall be reimbursed to each unit member, without interest. Said reimbursement shall be made in equal installments paid over four (4) successive payroll periods commencing with the first payroll period commencing on or after March 1, 2012. IT 1S AGREED: ,1ltzotL By: Dave S oci, President Date Newport Beach Police Association City of Newport Beach Date By: Nancy Gardner, Mayor ATTEST: By: Leilani Brown, City Clerk Date APPR _ VED AS TO FORM: By: Aaron Harp, City Attorney Date Page Iof1 555315.4 NE020 -025 ATTACHMENT B AMENDMENT TO 2010 -2011 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH POLICE MANAGEMENT ASSOCIATION WHEREAS, the 2010 -2011 Memorandum of Understanding between representatives of the City of Newport Beach and the Newport Beach Police Management Association, Section 4 FRINGE BENEFITS (D) RETIREMENT BENEFITS (5) provides in part that, "Effective July 3, 2010 and through December 31, 2011, all sworn unit employees will contribute 3.5% of base pay towards retirement costs.'; and WHEREAS, representatives of the City and the Newport Beach Police Management Association are in the process of negotiating a successor to the 2010 -2011 Memorandum of Understanding; and WHEREAS, said meet and confer process is not likely to conclude on or before December 31, 2011; NOW THEREFORE, representatives of the City and the ]Newport Beach Police Management Association agree that all provisions in Section 4(D)(5) of the 2010 -2011 Memorandum of Understanding shall remain in full force and effect through and including either the date upon which the City Council adopts a Memorandum of Understanding that is a successor to the 2010 -2011 MOU, or February 29, 2012, whichever event occurs first. In the event that February 29, 2012 is concluded without the City Council having adopted a successor to the 2010 -2011 MOU, the value of the 3.5% base pay contributed towards retirement during the period January 1, 2012 through and including February 29, 2012, shall be reimbursed to each unit member, without interest. Said reimbursement shall be made in equal installments paid over four (4) successive payroll periods commencing with the first payroll period commencing on or after March 1, 2012. IT IS AGREED: ILE 'ly IZ /22/tl By: Steve Rasmussen, President Date Newport Beach Police Management Association City of Newport Beach Date By: Nancy Gardner, Mayor ATTEST: By: Leilani Brown, City Clerk APPROVED AS TO FO By: Aaron Harp, City Attorney 555315.3 NE020 -025 Date Date Page 1 of 1 ATTACHMENT C AMENDMENT TO 2008 -2011 SUPPLEMENTAL MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION WHEREAS, the 2008 -2011 Supplemental Memorandum of Understanding between representatives of the City of Newport Beach and the Newport Beach Fire Management Association, Section 4 FRINGE BENEFITS (D) THE RETIREMENT BENEFIT (3) provides in part that, "Effective November 6, 2010, all safety unit employees hired into the unit July 31, 2010 or later will contribute 3.5% of base pay towards retirement costs. Employees hired into the unit prior to July 31, 2010 will pay 5.0 %, also effective November 6, 2010. Both of these payments will continue through December 31, 2011. "; and WHEREAS, representatives of the City and the Newport Beach Fire Management Association are in the process of negotiating a successor to the 2008 -2011 Memorandum of Understanding; and WHEREAS, said meet and confer process is not likely to conclude on or before December 31, 2011; NOW THEREFORE, subject to a modification to Section 4(D)(3) which will now require that all unit members will now contribute 3.5% of base pay towards retirement costs, representatives of the City and the Newport Beach Fire Management Association agree that all provisions in Section 4(D)(3) of the 2008 -2011 Supplemental Memorandum of Understanding shall remain in full force and effect through and including the date upon which either the City Council adopts a Memorandum of Understanding that is a successor to the 2008 -2011 MOU, or in the case of an impasse existing regarding negotiation of said successor MOU, all available and/or required impasse proceedings have been exhausted, whichever event occurs first. IT IS AGREED: By: Chip Duncan President, Newport Beach Fire Management Association / 2--111? l Date City of Newport Beach Date By: Nancy Gardner, Mayor Page 1 of 2 553974.2 NE020 -027 ATTEST: By: Leilani Brown, City Clerk APPRJJVED AS TO FO : �L-- By: Aaron Harp, City .h omey 553974.2 NE020 -027 Date Date Page 2 of 2