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Home My WebLink About25F - AGMT - MOU - PMAREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 4, 2007 TITLE: AGREEMENT WITH THE POLICE MANAGEMENT ASSOCIATION ITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1~` Reading ^ Ordinance on 2otl Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute an agreement with the Police Management Association regarding wages and other terms and conditions of employment. DISCUSSION The City and the Police Management Association (PMA) recently completed contract negotiations resulting in a two-year contract extension (attached as Exhibit "A") of the existing Memorandum of Understanding. This extension period covers July 1, 2008 through June 30, 2010. The provisions of the extended agreement are as follows: 1. Salary Increase July 1, 2008 = 40 January 1, 2009 = 2.So July 1, 2009 = 4% January 1, 2010 = 2.So 2. Medical Premium Contributions: Maintain Kaiser California Ca1PERS HMO rates during extended term of agreement. 3. Retiree Health Subsidy: • Fiscal Year 2008-09 = Increase of 0.400 of annual bargaining unit payroll, including premiums; • Fiscal Year 2009-10 = Increase of 0.350 of annual bargaining unit payroll, including premiums. 4. Educational Incentive Program: Effective July 1, 2007 = Expand incentives to include advanced organizational development options. There is no increase to the existing 7.5°s ceiling. 25F-1 Agreement with PMA June 4, 2007 Page 2 of 2 5. Alternative work schedule: Effective July 1, 2007 = Reopener to discuss the possibility of an alternative work schedule. 6. 2.7°s at 55 Ca1PERS "Miscellaneous Employee" Retirement Formula: A. Employees agree formula: July July July B. City agrees to retirement formu FISCAL IMPACT to contribute toward enhanced retirement 1, 2007 = 2.Oo 1, 2008 = Additional 2.0°s (total of 4°s) 1, 2009 = Additional 2.3°s (total of 6.30) amend Ca1PERS contract for 2.7% at 55 La, effective January 1, 2009. Funds for contract extension are available in the affected departmental accounts: Salary account (Object Code 6111) and Benefits account (Object code 6171), There is no new cost for FY 2007-08. APPROVED AS TO FUNDS AND ACCOUNTS: ~~?~ nrique J.; Alv Executi Dir c or Person 1 Se ices Department .-3iC~ -`.-sue Francisco Gutierrez Executive Director Finance & Management Services Agency 25F-2 Exhibit A TWO-YEAR CONTRACT EXTENSION TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SANTA ANA AND POLICE MANAGEMENT ASSOCIATION FOR FISCAL YEARS 2008-09 AND 2009-10 The City of Santa Ann (CITY) and the Police Management Association (PMA) have met and agreed to amend the Memorandum of Understanding (MOU) between the CITY and PMA for Fiscal years 2004-05 through 2007-08 by extending this MOU for two additional years. The existing MOU provisions will remain unchanged unless addressed by this addendum. The new expiration date of the MOU will be June 30, 2010, and the MOU will be amended as follows: AMENDED ARTICLE III (new language in bold) 3.2C Reopener - 4/10 Work Schedule. During the term of this Agreement, the City and Association agree to reopen this Article for the purpose of discussing the feasibility of implementing a 4/10 Work Schedule for those employees currently assigned to the 9/80 Work Schedule. For purposes of computing holiday, vacation, and sick leave accruals, an eight (8) hour day shall be the basis for computation. AMENDED ARTICLE IV (new language in bold) 4.3 Salaries. A. The base salaries of employees covered by this Agreement shall be adjusted as follows: Effective July 1, 2008, the base salaries of classifications covered by this Agreement shall be increased by approximately four percent (4~°). Effective Jnnunry 1, 2009, the base salaries of classifications covered by this Agreement shall be increased by approximately two and one-half percent (2.5%). Effective July 1, 2009, the base salaries of classifications covered by this Agreement shall be increased by approximately four percent (4%). 25F-3 Exhibit A Effective January 1, 2010, the base salaries of classifications covered by this Agreement shall be increased by approximately two and one-half percent (2.5%). Effective July 1, 2007, Miscellaneous employees covered by this Agreement shall contribute 2% of their salary toward the employer cost of the 2.7% at 55 retirement benefit. To the extent permitted by CaIPERS and Internal Revenue Service regulations, this 2% contribution shall be implemented through pnyroll deduction on n pre-tax basis. Effective July 1, 2008, Miscellaneous employees covered by this Agreement shall contribute nn additional two percent 2% of their salary (for n total of 4%) toward the employer cost of the 2.7% at 55 retirement benefit. To the extent permitted by CnIPERS and Internal Revenue Service regulations, this additional 2% contribution shall be implemented through pnyroll deduction on n pre-tax basis. Effective July 1, 2009, Miscellaneous employees covered by this Agreement shall contribute nn additional 2.3% of their salary (for a total of 6.3%) toward the employer cost of the 2.7% nt 55 retirement benefit. To the extent permitted by CaIPERS and Internal Revenue Service regulations, this additional 2.3% contribution shall be implemented through payroll deduction on a pre-tax basis. C. The City agrees, during the term of the Agreement, to #k^ ~^"-°~~~~ ' T^ maintain thirty-four (34) salary rate ranges (17%) between the classes of Police Captain and Police Lieutenant;-er~d. D. Retiree Health Subsidy Program. 1. Effective July 1, 2002, employees wil~4 began contributeing one-half percent (.5%) of their base salary plus pay additives through payroll deduction to a fund maintained by the City of Santa Ana for the purpose of providing retiree health insurance premium reduction assistance. This payroll deduction for retiree health insurance premium reduction assistance will continue until such time as the parties may mutually agree to end said deduction. 2. ~- Effective October 1, 2006 e+~d ^acL..~'_ '_^^?, - ---^~-~~••-'•• the -r __...__.7, City slaeN began contributeing an amount equal to one-half percent (.5%) of the bargaining unit's annual base salary, including pay additives, for the purpose of providing retiree health insurance premium reduction assistance. This City 25F-4 Exhibit A contribution shall continue until such time as the parties may mutually agree to end said contribution. 3. Effective October 1, 2008, the City shall contribute an additional nmount equal to four tenths of one percent (0.40%) of the bargaining unit's annual base salary, including pay additives, for a total City contribution of nine tenths of one percent (0.900) for the purpose of providing retiree henlth insurance premium reduction assistance. 4. Effective October 1, 2009, the City shall contribute an additional nmount equal to point three five tenths of one percent (0.350) of the bargaining unit's annual base salary, including pay additives, for a total City contribution of one and one quarter percent (1.25~e) for the purpose of providing retiree henlth insurance premium reduction assistance. AMENDED ARTICLE VI (new language in bold) 6.1 Effective July 1, 2005, members of the Association will be paid an Educational Incentive allowance in the amounts and in accordance with the criteria set forth below. Employees wishing to participate in any of the programs designated herein shall submit a request to the Police Chief. Final approval will be at the discretion of the police Chief, based on the needs of the Department and program benefits. In no event shall the application of this Educational Incentive program result in an employee being eligible to earn more than fifteen (15) salary rate ranges (approximately 7.5%) above his or her then current base monthly salary step. C. West Point Leadership Program. Any niernber employee covered by this Agreement who successfully completes the West Point Leadership Program shall be paid at a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. D. Police Executive Research Forum fPERF) Senior Management Institute for Police. Any n~~ employee covered by this Agreement who successfully completes the Senior Management Institute for Police shall be paid at a rate set five (5) salary rate ranges (approximately 2,5%) above his or her then current base monthly salary step. E. FBI National Academy. Any employee covered by this Agreement who successfully completes the FBI LEEDS Program shall be paid at a rate set five (5) salary rate ranges (approximately 2.50) above his or her then current base monthly salary step. 25F-5 Exhibit A F. International Association of Chiefs of Police, Any employee covered by this Agreement who successfully completes the Leadership in Police Organizations Program shall be paid nt n rate set five (5) salary rate ranges (approximately 2.50) above his or her then current base monthly salary step. 6. Advanced Leadership Program. The advanced leadership courses listed below represent curriculum that exceed minimum training mandates for Inw enforcement managers. The subject matter addresses n variety of critical topics associated with advanced organizational development and the role of leaders within the organization. AI courses are applicable to sworn and civilian managers. Any employee covered by this Agreement who successfully completes a cumulative total of 112 hours of the below listed advanced leadership courses shall be paid nt a rate set five (5) salary rate ranges (approximately 2.5%) above his or her then current base monthly salary step. Employees shall be paid nt n rote set five (5) salary rate ranges (approximately 2.50) for every 112 hours of successfully completed training. LEADERSHIP COURSES Hours Command Institute for Law Enforcement Executives (F.B.I.- LEEDA) 40 Contem ornry Leadership Issues (F.B.I. -LEEDA) 32 Executive Development Course (P.O.S.T.) 80 Mnna ement Civilian Seminar (Port I) (P.O.S.T.) 40 Mann ement Civilian Seminar (Part II) (P.O.S.T.) 32 Or anizationnl Leadership (P.O.S.T.) 40 Police Mann ement Seminar Advanced (P.O.S.T.) 40 Supervisor Leadership Institute (F.B.I. -LEEDA) 40 AMENDED ARTICLE XII (new fangunge in bold) 12.1 Health Insurance. The City shall contribute the following amounts toward the payment of premiums for affected employees and their dependents under the California Public Employees' Retirement System (CaIPERS) health insurance programs. A. Effective March 1, 2005, Jnnunry 1, 2006, January 1, 2007, January 1, 2008, Jnnunry 1, 2009, and January 1, 2010, respectively, the City shall 25F-6 Exhibit A contribute toward medical premiums an amount consistent with the rates then in effect for the "employee-only" and "family" tiers, respectively, of the CnIPERS Kaiser "Other Southern California° r;elT~ HMO plan. The "employee only" tier applies to employees who have no dependents. Effective January 1, 2006, the City skeµ established a Cafeteria Benefit Plan for employees covered by this Agreement. 12.7 Medical Retirement Subsidy Plan. A. Effective July 1, 1998, , the City began contributeding nn amount equal to one-half of one percent (.5%) of the bargaining unit's salary base for the purpose of providing a retiree health insurance subsidy plan. The specific payments made to members of the Association pursuant to this plan shall be designated at the sole discretion of the Association. The plan shall be administered by the City, at no cost to the Association or its members, in such a manner as to insure that the funds are invested in a reasonably secure plan that bears a reasonable rote of interest/growth given current financial markets. For purposes of this Agreement,, investments made pursuant to the then current Statement of Investment Policy for the City of Santa Ana, shall be deemed to meet the requirements of this section. Effective June 30, 2002, this .5% contribution is was eliminated. B. Effective July 1, 2002, employees covered by this Agreement skell-begirt began contributing one-half percent (.5%) of their base salary, plus pay additives, through payroll deduction to the above-specified fund currently maintained by the City. This payroll deduction for retiree health insurance premium reduction assistance will continue until such time as the parties may mutually agree to end said deduction. C. Effective October 1, 2006, °'' ^-'"`'--' ', '^^T, ^^~~~^~~ the City sk~el•4 began contributeing en-eddi*ienel one-half of one percent (.5%) of the bargaining unit's salary base, plus pay additives, for the purpose specified herein. T#is ° D. Effective October 1, 2008, the City shall contribute an additional four tenths of one percent (.400) for n total City contribution of nine tenths of one percent (.90%) of the bargaining unit's salary base, plus pay additives, for the purpose specified herein. 25F-7 Exhibit A E. Effective October 1, 2009, the City shall contribute an additional three and one-half tenths of one percent (.35°/°) for a total City contribution of one and one quarter percent (1.25°) of the bargaining unit's salary base, plus pay additives, for the purpose specified herein. This one and one quarter percent (1.25°) may be applied, instead, to the Retirement Health Savings Program, as defined in Article XIV, Section 14.9, if such n program is implemented nt a later date. AMENDED ARTIC4E XIV (new language in bold) 14.2 Deferred Retirement. The City will continue to make payment to CaIPERS on behalf of each affected employee, in nn amount necessary to pay one hundred percent (100%) of his or her individual retirement contribution. Such payments shall be credited to the individual employee's CaIPERS account, A. With respect to "safety-member' employees, the City shall pay an amount equal to nine-ninths (9l9ths) of his or her individual employee retirement contribution. B. With respect to "miscellaneous-member' employees covered by this Agreement, the City shall pay an amount equal to eight-eighths (8/8ths) of his or her individual employee retirement contribution. Such payments are not increases in base salary and no salary rate ranges applicable to any of the employees covered by this Agreement shall be changed or deemed to have been changed by reason thereof. As a result, the City will not treat these payments as ordinary income and, thus will not withhold Federal or State income tax from said payments. The City has received an opinion or ruling from the Internal Revenue Service confirming that these payments are deferred compensation, and not ordinary income. For the purpose of reporting an employee's compensation to CaIPERS, the City shall include these payments as if they were part of the employee's base salary. In the event that the City receives a ruling from the Internal Revenue Service that such payments are ordinary income of the employees instead of deferred compensation, the City's obligation to make such payments shall discontinue and in place thereof the base salary of each said employee shall forthwith be increased by eighteen (18) salary rate ranges (9%) for "safety member" employees covered under the 3% at age 50 CaIPERS formula and fourteen (14) salary rate ranges (7°1°) for all 25F-8 Exhibit A "miscellaneous member" employees covered under the 2% at age 55 CnIPERS formula, or sixteen (16) salary rate ranges (8~°), after January 1, 2009. 14.5 2% at 55 Service Retirement Benefit for Miscellaneous Members. CnIPERS designated "miscellaneous" employees represented by the Association shall be covered by the 2% at 55 retirement benefit. Effective July 1, 1997, the City agreed to pay 2.266% of the cost to provide this benefit to these employees. ° Employees agreed to pay one percent (1%) of the total cost of 3.266% for the 2% at 55 retirement benefit by authorizing a one percent (1%) deduction from their salary effective July 1, 1997. Effective November 1, 2001, this one percent (1%) deduction was eliminated. F,....,... L. F I I AA' II AA --1, 14.10 2.7~° nt 55 Service Retirement Benefit for Miscellaneous Members. Effective January 1, 2009, the City agrees to amend its retirement contract with CnIPERS to provide Miscellaneous employees covered by this Agreement with the 2.7~° at 55 Service Retirement benefit. Pursuant to CnIPERS regulations, this new formula will apply to employees that are in active status on the date this amendment takes effect. This new formula will apply to each year of eligible service credited with the City of Santa Ann. Pnyment of New 2.7% at 55 Service Retirement Benefit. Miscellaneous employees covered by this Agreement agree to pay 6.3~° of CnIPERS reportable compensation toward the cost of the 2.7~° nt 55 enhanced retirement formula, ns set forth in Article IV, Section 4.3A. Pre-Tnxnble Benefit. To the extent permitted by CnIPERS and Internal Revenue Service regulations, the City shall make the above employee deductions pre-tax contributions. 14.11Credit for Unused Sick Leave. Effective Janunry 1, 2002, a non-sworn employee covered by this Agreement can have unused accumulated sick leave at the time of retirement converted to additional service credit, pursuant to regulations prescribed by PERS. The City must report only those hours of unused sick leave that were accrued by the employee during the normal course of employment. This section applies to members whose effective date of retirement is within four (4) months of 25F-9 Exhibit A separation from employment. Effective July 1, 2007, the provisions of this section will also apply to sworn employees covered by this Agreement. AMENDED ARTICLE XXVI 26.1 The term of this Agreement sholl be from July 1, 2004 through June 30, 20910. 25F-10 Exhibit A ARTICLE XXVII 27.0 RATIFICATION AND EXECUTION The City and the Association have reached an understanding as to certain recommendations to be made to the City Council for the City of Santa Ana and have ngreed that the parties hereto will jointly urge said Council to adopt a new wnge and salary resolution which will provide for the changes contained in said joint recommendations. The City and the Association acknowledge that this Agreement shall not be in full force and effect until ratified by the membership of the Association and adopted by the City Council of the City of Santa Ana. Subject to the foregoing, this Agreement is hereby executed by the authorized representatives of the City and the Association and entered into this 7#~a 4th day of €e~eny June, 2007. CITY OF SANTA ANA, a Municipal Corporation of the State of California Dated: Doted: Dated: `~ ~ 7-1 ~ U~ ATTEST: Clerk of the Council By: Mayor By: City Mannger ey: Y~~.~; S. ~~ Assistant Director of Pers~nnel Services APPROVED AS TO FORM: //,~ ~`Assistdnt City Attorney 25F-11 Exhibit A This Agreement has been ratified by the membership of the Santa Ana Police Management Associntion. Dated: ~~~ ~O 7 By: ~ ~u~~~u~ President 25F-12 EXHI6IT A SALARY SCHEDULE MATRIX 0 1 2 3 4 5 6 7 8 9 M56 3205 3221 3237 3253 3269 3285 3302 3318 3335 3352 M57 3365 3381 3398 3415 3432 3449 3467 3484 3501 3519 M58 3533 3550 3568 3586 3604 3622 3640 3658 3676 3645 M59 3710 3728 3747 3765 3784 3803 3822 3841 3861 3880 M60 3896 3915 3935 3954 3974 3994 4014 4034 4054 4074 M61 4091 4111 4132 4152 4173 4194 4215 4236 4257 4278 M62 4296 4317 4339 4360 4382 4404 4426 4448 4470 4493 M63 4511 4533 4556 4579 4601 4624 4648 4671 4694 4718 M64 4741 4764 4787 4810 4834 4858 4882 4906 4930 4954 M65 4978 5002 5026 5051 5076 5101 5126 5151 5176 5201 M66 5226 5252 5278 5304 5330 5356 5382 5408 5434 5461 M67 5488 5515 5542 5569 5596 5623 5650 5678 5706 5734 M68 5762 5790 5818 5847 5876 5905 5934 5963 5992 6021 M69 6050 6080 6110 6140 6170 6200 6230 6260 6291 6322 M70 6353 6384 6415 6446 6478 6510 6542 6574 6606 6638 M71 6670 6702 6735 6766 6801 6835 6869 6903 6937 6971 M72 7005 7039 7073 7107 7141 7176 7211 7247 7283 7319 M73 7355 7391 7427 7463 7499 7535 7571 7609 7647 7685 M74 7723 7761 7799 7837 7875 7913 7951 7989 8029 8069 M75 8109 8149 8189 8229 8269 8309 8349 8389 8431 8473 M76 8515 8557 8599 8641 8683 8725 8767 8809 8853 8897 M77 8941 8985 9029 9073 9117 9161 9205 9250 9296 9342 M78 9388 9434 9482 9529 9577 9625 9673 9721 9770 9819 M79 9857 9906 9955 10005 10055 10105 10156 10207 10258 10309 M80 10350 10401 10453 10506 10558 10611 10664 10717 10771 10825 M81 10868 10922 10976 11031 11086 11142 11198 11254 11310 11366 M82 11411 11468 11525 11583 11640 11699 11757 11816 11875 11934 M83 11982 12041 12102 12162 12223 12284 12345 12407 12469 12532 M84 12581 12643 12707 12770 12834 12898 12963 13027 13093 13158 M85 13210 13275 13342 13409 13476 13543 13611 13678 13748 13816 M86 13871 13939 14009 14079 14150 14220 14292 14362 14435 14507 M87 14565 14636 14709 14783 14858 14931 15007 15080 15157 15232 M88 15293 15368 15444 15522 15601 15678 15757 15834 15915 15994 25F-13 F H P7 H x w o W O N m r r n NZZ mrn ron m~nv r~nr ~~ ~~~ ~ \ n~ N Z Z ~ r r ~ ~ ~ ~ ~ r ~ O W O rn m N V M NZZ co n r n n Q ~ ~ ~ ~ ~ coW ~o rnrnrn r r NZZ co ~ r _ Q ~ ~ ~ ~ ~ r ~ n W c0 N ° ~ ~ N Z Z m ~ r Q ~ ~ ~ ~ ~ n ~ .-. ~ ~ ~'' ~ ~ ~- C7 ~ ~ W H ~ Z Q J ~ ~ U ~ w ~ c~ z ~ O°z _ _ ~~ a¢~ ~ Z U ~ U ZZ Zd'^ a O W ~ h ~ ~ a ~ ~ O U aw OrKw ~ U ~ U a ~ m W W W W W ~ U U U U U J J J J J 00 000 as aaa r 0 0 N W N 25F-14