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Home My WebLink About02/19/2002, C4 - MEMORANDUM OF AGREEMENT WITH THE SAN LUIS OBISPO CITY POLICE OFFICERS' ASSOCIATION FOR THE PERIOD O i council j Agcnda izEpoRt CITY O F SAN LUIS O B I S P O ilr FROM: Ann Slate,Director of Human Resources SUBJECT: Memorandum of Agreement with the San Luis Obispo City Police Officers' Association for the period of July 1,2000,through June 30,2004 CAO RECOMMENDATION Adopt a resolution approving the Memorandum of Agreement. DISCUSSION The Memorandum of Agreement (MOA) between the City and the San Luis Obispo Police Officers' Association (POA) expired on June 30, 2000, after a term of two years. As provided for in that agreement,the City's negotiating team (Bill Avery,the City's chief negotiator,Karen Jenny, Risk Manager, Ann Slate, Director of Human Resources and Joe Hazouri, Police Lieutenant) entered into negotiations in April of 2000 with the.Association's negotiating team, led by Police Officer Dale Strobridge, to develop a successor agreement. The team met with the Association several times over a course of many months. Impasse was declared in July of 2001 and in accordance with the City's Charter, which had been amended in November of 2000 by a voter initiative,the parties entered into binding arbitration. Arbitration proceedings were conducted on December 17, 18, 19 and 20,2001 and additional dates in January and February 2002 had been scheduled. At the conclusion of the initial four days of hearings,the parties agreed to meet "off the record" in an attempt to resolve the disputed issues. Informal discussions began on December 27, 2001. The City Council, in closed session, was briefed on January 17, 2002, on the various outstanding issues and provided direction to staff regarding economic considerations. After meeting all day on January 30, 2002, the parties reached a tentative agreement that was ratified by a majority of the Association membership. The agreement is within the economic guidelines previously discussed with Council. Following is a summary of the significant changes and cost items included in the-agreement: Terms of the Agreement: 1. Term: 4 years 2. Salary: July 2000--5%increase for all employees in the unit July 2001--3%increase for all employees in the unit January 2002--2%increase for all employees in the unit C'4—( Council Agenda Report—POA MOA Paae 2 July 2002-3% increase for all employees in the unit except Field Service Technicians (FST) who will receive a ''/:% salary increase. (FST job descriptions shall be modified to remove the requirement of emergency medical dispatch certification and dispatch relief) January 2003-2%increase for all employees in the unit July 2003-5% increase for all employees in the unit except Police Officers who will receive 2%salary increase. January 2004-2%salary increase for Police Officers. 3. Retirement: Amend the Public Employees Retirement System (PERS) program currently available to Police Officers to include: o Single highest year as soon as possible. 0 3%@ 50 effective March 1,2003. 4. Salary Steps: Eliminate the lowest step in the current salary range for each classification in the bargaining unit. Compress the three-step Master Police Officer incentive to two steps,taking the total number of steps in the Police Officer classification from 9 steps to 7. 5. Cafeteria Plan: Effective March, 2002, change the current equal contribution of $415 per month to the City's cafeteria plan for health insurance premiums to a graduated system of $290 per month for employee only, $540 per month for employee plus one dependent, and $690 per month for family coverage. Thereafter, change contributions by an amount equal to the average increase in the amount of the available PERS HMO plans. 6. Holiday: Add one holiday bringing the total to 13 and provide for holiday pay consistent with practices in the Police Management and Firefighter employee groups. 7. Guaranteed Overtime: An increase in the overtime minimums of one hour for callback and court time. 8. Stand-by Pay: An increase to $30 per weekday and $35 per weekend day for investigators placed on stand-by. There are several non-economic provisions in the agreement covering issues like the promotional policy, overtime sign-ups, and the creation of Communications Supervisor positions through a reclassification. We believe this is a fair and equitable agreement that is consistent with previous Council direction and with recent settlements with other employee groups. (3:'aunda repor TOA NIOA 21M)-206-1 Agcndm Rcport.duc f Council Agenda Report—POA MOA Pa^e 3 FISCAL EMPACT C'.nmp ensatinn increases During the MOA Term The cost of this agreement is approximately $190,000 for year one, $246,000 for year two and $290,000 for year three and is available in the existing fund balances. Funds will be included in the next two-year financial plan to cover the year four costs of approximately $225,000. These amounts do not include the cost of improving the retirement benefit. Retirement Renefits Enhancements to the PERS plan to provide increased retirement benefits carry with them significant increases to the employers' contribution for retirement. Currently projected to be 4.2% beginning in July of 2002, it should remain at approximately that level until March of 2003 when the PERS plan is amended to provide the 3%at 50 formula. Estimates from PERS indicate that the employer rate will increase to almost 9% at that time and then further increase to 15% at the beginning of FY in 2003-2004. Staff is anticipating a very minor increase, if any, due to the implementation of single highest year. These costs are not only due to improving retirement benefits but also due to some legislative changes to PERS and a huge investment loss by PERS during the last.fiscal year. Although PERS reports improved investment returns since the all-time low of 2000-2001, the City cannot accurately predict PERS rates in the future. Because of the uncertainty of PERS rates and the desire of the City to provide a competitive retirement benefit, the cost of the improved retirement formula is not included in the compensation numbers presented above. 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 in the Council reading file and available for public review in the City Clerk's office. At the time of this report deadline, appropriate signatures were being obtained. G:mcenda r-Pur POA,MOA 2000-21104 Agenda Roporl.duc G 4-3 RESOLUTION NO. (2002 Series) A RESOLUTION OF THE CITY 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 OFFICERS' ASSOCIATION FOR THE PERIOD OF JULY 1,2000-JUNE 309 2004 BE IT RESOLVED, that the City Council of the City of San Luis Obispo hereby resolves as follows: SECTION 1. The Memorandum of Agreement between the City of San Luis Obispo and the San Luis Obispo City Police Officers' Association (POA), attached hereto as Exhibit "A" and incorporated herein by this reference, is hereby adopted and ratified. SECTION 2. The Finance 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: Dale Strobridge, San Luis Obispo Police Officers' Association, and Ann Slate,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 day of , 2002. ATTEST: Lee Price, City Clerk Mayor Allen Settle APPROVED AS TO FORM: J J rgity Attorney ��:'ager.Ju rope a`.Y_, \40A 2000-2004 Agenda RcTori.doe Cil