25F - AMENT SAPD POA MOU - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 16, 2020 TITLE APPROVE SECOND AMENDMENT TO THE SANTA ANA POLICE OFFICERS ASSOCIATION MOU CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ CONTINUED TO /s/ Kristine Ridge FILE NUMBER CITY MANAGER RECOMMENDED ACTION Authorize the City Manager to execute an amendment to the Memorandum of Understanding (MOU) with the Santa Ana Police Officers Association (POA) to defer the salary increase scheduled for July 1, 2020, extend the length of the existing contract and make a one-time additional City contribution to the Retiree Health fund. DISCUSSION The POA has collaborated with the City to restructure certain provisions of the POA MOU to create cost -saving measures for the upcoming fiscal year in light of the economic impacts of COVID-19. These measures will effect reductions in salary costs to the City, extend the length of the MOU by six months, and implement a one-time increase in the City's contribution to the POA's Retiree Health fund. The current contract, which is effective July 1, 2018 through June 30, 2021, provides a 4% base salary increase to all POA members effective July 1, 2020. This is the final salary increase scheduled during the term of this MOU. In the negotiated adjustment to this agreement, the 4% salary increase will be reduced and deferred to January 1, 2021 where the members will receive only a 2% salary increase. This deferral and lower increase will result in an estimated savings of $2,337,160 for the upcoming fiscal year. In addition, the MOU will be extended by six months into Fiscal Year 2021-22 where the remaining 2% of salary increase will take place on July 1, 2021. In addition, the City will provide a one-time 2% lump sum contribution to the Retiree Health fund. STRATEGIC PLAN ALIGNMENT Approval of item allows the City to meet Goal #7 — Team Santa Ana, Objective #5, Create a culture of innovation and efficiency within the organization and Objective #6, Provide a positive workplace environment that supports the health of its employees and celebrates its success. FISCAL IMPACT The proposed FY20-21 budget includes the $2,337,160 savings noted above. The additional cost for the following year (FY21-22) is $1,508,194 for the 2% increase on July 1, 2021, and $1,226,321 for the 2% lump -sum contribution to the Retiree Health fund. The General Fund carries 97% of the budget for the POA, and restricted funds carry the remaining 3%. 25F-1