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Home My WebLink About10/02/2007, C5 - MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO POLICE STAFF OF l 1 counaL "mtingD 70 a O j agenda 12epoizt It..Numbm ^s CITY O F SAN LUIS O B I S P O G FROM: Monica Irons,Director of Human Resourcesla SUBJECT: MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO POLICE STAFF OFFICERS' ASSOCIATION FOR THE PERIOD OF 07/01/2007—06/30/2012 CAO RECOMMENDATION Adopt a resolution approving the Memorandum of Agreement with the San Luis Obispo Police Staff Officers' Association for a five-year term. DISCUSSION The Memorandum of Agreement (MOA) between the City and the San Luis Obispo Police Staff Officers' Association (SLOPSOA) expired on June 30, 2007, after a three-year term. This association represents 13 safety management employees ranging from the ranks of Sergeant to Captain and four non-safety supervisors in communications and records. The City's negotiating team of Monica Irons and Karen Jenny met with the SLOPSOA negotiating team of Lieutenant Chris Staley, Sergeant Tom DePriest, Sergeant Keith Storton, and Communications Supervisor Kris Dutra five times over the past few months. As is typical for this group, they were professional, understanding of the City's positions, and clear about their priorities and concerns. One of SLOPSOA's key concerns continues to be maintaining appropriate salary differentials between their members and the employees they supervise, including members of the Police Officers' Association(POA). Currently the differential is 15% or slightly lower, depending upon classification. This is the target differential agreed to in the last negotiations with SLOPSOA, and it is a target used with other supervisory and management classifications in the City. This concern was addressed with additional contract language reinforcing the 15% target as discussed below under "Salary Differential". The proposed MOA includes equity or "market" adjustments for Captains, Lieutenants, and Communications Supervisors. Equity adjustments are necessary to bring the wages of these classifications closer to the market average when compared with the same ten comparable cities that are being used in the general and management compensation study. Captains, Lieutenants, and Communications Supervisors are paid from 7% to 13% below the average of the comparable cities; the remaining SLOPSOA classifications are paid competitively to market. The equity adjustments, in conjunction with the salary increases, provide the competitive wages necessary to attract and retain key people in these critical police management positions during the five-year contract. Council Agenda Report—SLOPSOA MOA Page 2 October 2,2007 Council provided economic parameters to the City's bargaining team in Closed Session on June 19, 2007. The agreement is within the economic guidelines set by Council and is comparable to other agreements approved by Council during the last two years. The following is a summary of the significant changes included in the agreement: Term: July 1, 2007 through June 30, 2012 Salary Increases: Salary increases according to the following schedule: Additional Equity or "Market" Adjustments Effective All Communications Date Classifications Captains Lieutenants Supervisors July 2007 2% January 2008 3% 3.5% 2.5% 2% July 2008 2% January 2009 3% 3.5% 2.5% 2% July 2009 2% January 2010 3% 3% 2.5% July 2010 3% January 2011 2% July 2011 3% January 2012 2% Salary Increases: The proposed 5% per year increases are consistent with increases in recent long-term contracts with Fire, Battalion Chiefs, and the general unit. Salary movement of 5% per year should help the City maintain competitive salaries and was necessary to secure a long-term agreement. Equity or"Market" Adiustments: As discussed above, the proposed adjustments address market inequities and increase the differential between classifications. This provides an incentive for employees to promote from within the City as "baby boomers" continue to retire. Salary Differential: Negotiations on. salary will be re-opened, if, during the term of the agreement, the difference between top-step police staff officers' classifications and top-step of the classifications they supervise falls below the 15% target. Health Insurance: Implement a cost-sharing formula adjusting the cafeteria plan contributions by an amount equal to one half of the average percentage GAAgenda Reports\2007\SLOPSOA_MOA_07-12.Doc �s z Council Agenda Report—SLOPSOA MOA Page 3 October 2,2007 change in PERS health plans available in 'San Luis Obispo County effective each December for the following year's premium increase. For calendar year 2008 (effective in December 2007) the City's monthly contribution will increase to the amounts shown in the table below: 1 Opt-Outs/Employee Only $ 489.00 Employee+ 1 Dependent $ 889.00 Employee+2 or More Dependents 7 $1,178.00 Uniform Allowance: Increase the uniform allowance from $900 to $1,000 per year. Re-opener: The City and the Association agree to meet and confer to discuss post- retirement health contributions if changes to this benefit are agreed to with the POA during the term of the agreement. Although benefit parity is a reasonable expectation, the City has steadfastly resisted enhancements to post-retirement health contributions. The city is very concerned about the potential unfunded liability of employer funded post-retirement health insurance. Other minor changes: Administrative changes to the way holiday leave is paid (bi-weekly instead of semi-monthly), adding grandchild to the list of eligible family members for use of family leave, and replacing language related to Catastrophic Leave with a reference to the City-wide policy. FISCAL IMPACT SLOPSOA represents 17 members (13 Safety and 4 Non-Safety)with an annual total compensation of approximately $2.7 million. The total cost for this five-year compensation package is approximately $591,600. Adequate funding is currently available in the MOA adjustment account in the current Financial Plan. Increases for subsequent years will be included in the succeeding Financial Plans for those years.. ALTERNATIVE Do not approve the resolution and direct staff to negotiate a different successor agreement. This alternative is not recommended as the agreement is consistent with the Council's previous direction and the City's employer-employee relations policies. ATTACHMENTS Resolution PLEASE NOTE. A copy of the MOA is available in the Council Reading File G:Wgenda Repons\2007\SLOPSOA_MOA_07-12.Doc �y Cr.3%5 { ATTACMENT 1 RESOLUTION NO. (2007 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ADOPTING AND RATIFYING THE MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO POLICE STAFF OFFICERS' ASSOCIATION FOR THE PERIOD OF JULY 19 2007—JUNE 305 2012 BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The Memorandum of Agreement between the City of San Luis Obispo and the San Luis Obispo Police Staff Officers' Association (SLOPSOA), attached hereto as Exhibit "A" and incorporated herein by this reference, is hereby adopted and ratified. SECTION 2. The Finance and Information Technology Director shall adjust the Personnel Services appropriation accounts to reflect the negotiated compensation changes. SECTION 3. The City Clerk shall furnish a copy of this resolution and a copy of the executed Memorandum of Agreement approved by it to: Chris Staley, SLOPSOA President and Monica Irons, Director of Human Resources. Upon motion of seconded by , and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this 2nd day of October, 2007. Mayor Dave Romero ATTEST: Audrey Hooper, City Clerk APPROVED AS TO FORM: 6LnPLowell,�CityAttorney