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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />AUGUST 18, 2020 <br />TITLE: <br />APPROVE FIRST AMENDMENT TO THE <br />SANTA ANA POLICE MANAGEMENT <br />ASSOCIATION MEMORANDUM OF <br />UNDERSTANDING 2018-21 <br />(GENERAL FUND) <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1s' Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />/s/Kristine Ridge FILE NUMBER <br />CITY MANAGER <br />RECOMMENDED ACTION <br />Authorize the City Manager to execute an amendment to the Memorandum of Understanding <br />(MOU) with the Santa Ana Police Management Association (SAPMA) for the period July 1, 2018 <br />through June 30, 2021, modifying specific articles of the MOU and extending the term through <br />December 31, 2021, subject to non -substantive changes approved by the City Manager and City <br />Attorney. <br />DISCUSSION <br />The SAPMA has collaborated with the City to restructure certain provisions of the Santa Ana Police <br />Management Association (SAPMA) Memorandum of Understanding (MOU) to create cost -saving <br />measures for the upcoming fiscal year in light of the economic impacts of COVID-19. These <br />measures will effect reductions in employee benefit costs by helping the City with its CalPERS <br />Retirement employer share costs. For fiscal year 20-21, CalPERS increased the normal cost of <br />pension benefits and increased the unfunded accrued liability, which means an increase in <br />employer contributions. The concessions made by the SAPMA will help reduce the increased cost <br />of employer contributions and help reduce the impact on the City's fiscal year budget. <br />Effective upon adoption of the SAPMA Amendment (Exhibit 1), members will pay an additional <br />four percent (4%) of CalPERS reportable compensation towards the employer's contributions. <br />Effective January 1, 2021 the additional four percent (4%) contribution will be reduced to a two <br />percent (2%) through June 30, 2021. The additional contributions towards the employer's <br />contribution is defined as "cost -sharing", pursuant to Government Code Section 20516(f). This <br />provision will sunset on June 30, 2021. The current MOU, which is effective July 1, 2018 through <br />June 30, 2021, will now be extended through December 31, 2021. In the negotiated terms to this <br />agreement, this cost saving measure will result in an estimated savings of $104,301 for the <br />upcoming fiscal year. <br />25C-1 <br />