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HomeMy WebLinkAbout25E - SAMAREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 5, 2012 TITLE: AGREEMENT WITH THE SANTA ANA MANAGEMENT ASSOCIATION l CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 1st Reading ? Ordinance on 2"d 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 Santa Ana Management Association regarding wages and other terms and conditions of employment. DISCUSSION The City requested that the Santa Ana Management Association (SAMA) negotiate adjustments to its current Memorandum of Understanding to effect certain reductions in salary and benefit costs to the City. The provisions of this agreement include: 1) Salary Increase: The 3.5% salary increase scheduled for July 1, 2012 will be deferred to July 1, 2013. 2) CALPERS Retirement: Effective January 1, 2012, SAMA employees will contribute an additional 1.7% to CalPERS for the cost of the 2.7% at 55 service retirement benefit, for a total contribution of 8%. 3) Vacation Cash Out: SAMA employees will defer the cash-out of longevity vacation leave time for fiscal year 2012-13. 4) Medical Retirement Subsidy Plan: The City's deposit of 1.75% of payroll shall be deferred until July 1. 2013. FISCAL IMPACT For the remainder of the current fiscal year, and two following fiscal years of this agreement, there will be a cost savings to the City of $503,627. APPROVED AS TO FUNDS AND ACCOUNTS: Edward S. Raya Francisco Gutierrez Executive Director Executive Director Personnel Services Department Finance & Management Services Agency?k-- 25E-1 25E-2