HomeMy WebLinkAbout25B - AMENDMENT TO SA POA MOUREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
AUGUST 18, 2020
TITLE:
APPROVE THIRD AMENDMENT TO THE
SANTA ANA POLICE OFFICERS
ASSOCIATION MOU 2018-21 TO COMPLY
WITH THE HOLIDAY PAY REPORTING OF
SPECIAL COMPENSATION
REQUIREMENTS CONTAINED WITHIN THE
PUBLIC EMPLOYEES' RETIREMENT LAW
/s/Kristine Ridge
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1s' Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
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FILE NUMBER
Authorize the City Manager to execute a third amendment to the Memorandum of Understanding
(MOU) with the Santa Ana Police Officers Association (SAPOA) for the period July 1, 2018 through
December 31, 2021, modifying and delineating specific articles of the MOU to comply with the
holiday pay reporting of special compensation requirements contained within the Public
Employees' Retirement Law (PERL) subject to non -substantive changes approved by the City
Manager and City Attorney.
DISCUSSION
The CaIPERS' Office of Audit Services (OAS) conducted and provided an Employer Compliance
Review (ECR) to the City of Santa Ana on June 25, 2020. The ECR issued a Notification of
Compliance and Resolution on July 2, 2020 identifying areas of special compensation where the
City was not in compliance with the holiday pay reporting of special compensation requirements
contained within the Public Employees' Retirement Law (PERL) (California Code of Regulations
Title 2 CCR, Sections 571(a)(5) and 571.1(b)(4) Holiday Pay and Government (Gov.) Code section
20636). It is the City's responsibility to comply with all terms and conditions of resolution and
compliance set forth in the employer's contract with CalPERS. Holiday pay is to be reported as
earned and not when paid. In order to avoid an administrative burden on the Payroll Division to
implement the corrective action by CalPERS, the City and SAPOA met and conferred over the
findings and agreed to modify Article 9.0; Sections 9.2, 9.3, 9.5, and 9.6, comply with CalPERS,
and honor the intent of the negotiated compensation (Exhibit 1). The implications of not correcting
the language would affect the employees' retirement benefits.
Effective January 1, 2021, and every year thereafter members will be given two options for use of
their holiday hours:
25B-1
Santa Ana Police Officers Association Amendment
August 18, 2020
Page 2
Option 1 - Employees can use their eleven-8 hour holidays, i.e., 88 holiday hours during the
calendar year by scheduling it as time off. Holiday hours not used in the calendar year
earned will not be cashed out or carried over to the following year.
Option 2 - Employees may make an irrevocable election to receive holiday pay in lieu (paid
at the regular rate of pay at straight time) of time off for the holiday. If this option is chosen,
employees must submit their irrevocable election by December 15th of each calendar year
(the first being 2020), the parties agree that to the extent permitted by law, this holiday pay
in lieu is defined as special compensation and shall be reported to CalPERS pursuant to
Title 2 CCR, Section 571(a)(5) and 571.1(b)(4) Holiday Pay.
FISCAL IMPACT
The recommended action only changes the timing of events such as reporting, employee elections,
and payment. There is no quantifiable or significant fiscal impact associated with the
recommendation.
Submitted By: Steven V. Pham, Executive Director — Human Resources Department
Exhibit: 1. Third Amendment to SAPOA MOU 2018-2021
25B-2
EXHIBIT 1
SIDE LETTER OF AGREEMENT
BETWEEN
CITY OF SANTA ANA
AND
SANTA ANA POLICE OFFICERS ASSOCIATION
This Side Letter of Agreement ("Agreement") between the City of Santa Ana ("City") and the
Santa Ana Police Officers Association ("POK) (collectively "Parties") is entered into with respect
to the following:
WHEREAS, the Parties are parties to a Memorandum of Understanding ("MOU") with a
term of July 1, 2018 through December 31, 2021; and
WHEREAS, the Parties wish to make modifications to sections with Article IX of their
MOU addressing the subject of holidays; and
WHEREAS, the following sets forth the Parties' Agreement:
1. The parties agree effective December 1, 2020, they will replace current section 9.2
of their MOU (just be(ow) with a new provision which is set forth below.
Current Provision
9.2 Full-time, permanent and probationary employees covered by this MOU shall
be entitled to receive 96 hours off during the calendar year in lieu of the twelve
(12) holidays specified in Section 9 1. Said hours, up to a maximum of 80
hours, may be carried over from one calendar year to the next and shall be
cashed out upon separation from employment, not to exceed a maximum of
160 hours An employee who works ton a City observed 'legal" holiday shall
be paid at his or her straight time rate.
However, if an employee who separated from the service of the City has
taken time off for holidays in advance of the date or day the holiday actually
occurred, he or she must pay the City the cash value for such used but
unearned holiday time off benefits prior to or at the time of separation.
New Provision
9.2 Effective January 1. 2021 and every year thereafter:
Full-time, permanent and probationary employees covered by this MOU shall
receive 96 holiday hours each year (12 eight -hour holidays) in lieu of the
twelve (12) holidays specified in Section 9.1. However. the Floating holiday
in Section 9.1 shall be donated back to the City to pay for the Association
Representative per Section 14.1 For each of the remaining eievan i11)
holidays. employees have the following two options:
25B-3
A. Option 1 Employees can use their eleven 8-hour holidays, i.e.. 88
used.
of
reported to CaIPERS as 5 cial Com nsation.
3 If an employee ieaVeS City emplo went Burin the year and has
An employee who does irrevocabl elect option 2 by December 15 of the previous
calendarear will receive holidays per option 1,
2_ Effective December 1, 2020, Sections 9.3, 9.5 and 9.6 of the Parties' MOIL are
deleted.
25B-4
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3. Effective December 1, 2020, Section 9,4 is renumbered 9-3
9,34 All employees must actually work at least one day preceding the day a holiday
listed in Section 9.1, actually occurs in order to receive credit for such holiday,
The employee will then be credited with all remaining holidays in the year
occurring after the appointment.
An employee separating from the service of the City must actually work at
least one day following the day a holiday listed in Section 9.1, actually occurs
in order to receive credit for that holiday.
A newly appointed employee must complete six (6) months of continuous,
full-time service in order to receive credit for the Floating Holiday listed in
Section 9.1 above.
FOR THE CITY
Steven V. tharY'
Of Hurnart
Peter J. Brown
Labor Negotiator
Executive Director
roes
Date
Date
FOR THE SANTA ANA Pp�10E OFFICERS ASSOCIATION
—U ry Sano, POA President Date
Charles Goldwasser Date
Labor Negotiator
25B-5