Laserfiche WebLink
REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 16, 2020 <br />TITLE <br />APPROVE SECOND AMENDMENT TO <br />THE SANTA ANA POLICE OFFICERS <br />ASSOCIATION MEMORANDUM OF <br />UNDERSTANDING <br />(GENERAL FUND AND NON -GENERAL <br />FUND) <br />/s/ Kristine Ridge <br />CITY MANAGER <br />CLERK OF COUNCIL USE ONLY: <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1sl Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For_ <br />rK•�rnum�.ic. <br />FILE NUMBER <br />RECOMMENDED ACTION <br />Authorize the City Manager to execute an amendment to the Memorandum of Understanding <br />(MOU) with the Santa Ana Police Officers Association (POA) to defer the salary increase <br />scheduled for July 1, 2020, extend the length of the existing contract and make a one-time <br />additional City contribution to the Retiree Health fund. <br />DISCUSSION <br />The POA has collaborated with the City to restructure certain provisions of the POA MOU to create <br />cost -saving measures for the upcoming fiscal year in light of the economic impacts of COVID-19. <br />These measures will effect reductions in salary costs to the City, extend the length of the MOU by <br />six months, and implement a one-time increase in the City's contribution to the POA's Retiree <br />Health fund. The current contract, which is effective July 1, 2018 through June 30, 2021, provides <br />a 4% base salary increase to all POA members effective July 1, 2020. This is the final salary <br />increase scheduled during the term of this MOU. In the negotiated adjustment to this agreement, <br />the 4% salary increase will be deferred as follows: 2% salary increase effective January 1, 2021 <br />and a 2% salary increase effective July 1, 2021. This deferral and lower increase will result in an <br />estimated savings of $2,337,160 for the upcoming fiscal year. <br />The existing MOU term ends on June 30, 2021. In order to facilitate the salary increase on July <br />1, 2021, the existing MOU will be extended by six months from June 30, 2021 to December 31, <br />2021. In addition, the City will provide a one-time 2% lump sum contribution to the Retiree Health <br />fund. <br />FISCAL IMPACT <br />The proposed FY20-21 budget includes the $2,337,160 savings noted above. The additional cost <br />for the following year (FY21-22) is $1,508,194 for the 2% increase on July 1, 2021, and $1,226,321 <br />for the 2% lump -sum contribution to the Retiree Health fund. The General Fund carries 97% of the <br />budget for the POA, and restricted funds carry the remaining 3%. <br />25G-1 <br />