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HomeMy WebLinkAbout25F - AMENT SAPD POA MOUREQUEST 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 Santa Ana Police Officers Association Amendment June 16, 2020 Page 2 25F-2 SECOND AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SANTA ANA AND THE SANTA ANA POLICE OFFICERS ASSOCIATION FOR FISCAL YEARS 2018-2021 THIS SECOND AMENDMENT to the above -referenced Memorandum of Understanding is entered into on June 16, 2020 by and between the Santa Ana Police Officers Association, a recognized employee bargaining group ("POA") and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City")(collectively referred to as "the Parties"). RECITALS A. The Santa Ana City Council approved the Memorandum of Understanding ("MOU") for the period July 1, 2018 —June 30, 2021 between the City and POA on February 5, 2019. B. On April 9, 2019, the Parties agreed to modify Article 5.6 of the MOU regarding correctional officer shift assignments. C. The parties have met and agreed to extend the MOU for an additional six months to December 31, 2021 and amend the MOU provisions as set forth below. The Parties therefore agree: Article IV, 4.3 SALARY ADJUSTMENTS A. Section 4.3 is amended to delete the following language: Effective in the pay period, which includes July 1, 2020, the base salary of employees covered by this MOU shall be increased by eight (8) salary rate ranges (approximately 4.0%). B. Section 4.3 is amended to add the following language: Effective in the pay period, which includes January 1, 2021, the base salary of employees covered by this MOU shall be increased by four (4) salary rate ranges (approximately 2.0%). Effective in the pay period, which includes July 1, 2021, the base salary of employees covered by this MOU shall be increased by four (4) salary rate ranges (approximately 2.0%). Second Amendment to Memorandum of Understanding Between the City of Santa Ana and the Santa Ana Police Officers Association for Fiscal Years 2018-2021 250-3 2. Article XII, 12.2 RETIREE HEALTH CONTRIBUTION, is amended to add the following language: Effective October 1, 2021, the City shall contribute a one-time additional two (2) percent lump sum contribution to the Retiree Health Contribution fund for each active employee who is covered by this MOU as of October 1, 2021. 3. Article XXV, 25.1 TERM, will be amended to read as follows (deleted language is stricken and new language is underlined): The term of this MOU shall be from July 1, 2018 through December 31 lime 20, 2021. 4. Except as modified by this Second Amendment, all terms and conditions of the Memorandum of Understanding as amended, shall remain in full force and effect. IN WITNESS WHEREOF, the Parties have execute this Second Amendment to the Memorandum of Understanding on the date and year first written above. ATTEST DAISY GOMEZ Clerk of the Council [Signatures continue on the next page] CITY OF SANTA ANA MIGUEL PULIDO Mayor KRISTINE RIDGE City Manager STEVEN V. PHAM Executive Director of Human Resources Second Amendment to Memorandum of Understanding Between the City of Santa Ana and the Santa Ana Police Officers Association for Fiscal Years 2018-2021 250-4 APPROVED AS TO FORM SONIA R. CARVALHO City Attorney By: A. LAURAA. ROSSINI Acting Chief Assistant City Attorney SANTA ANA POLICE OFFICERS ASSOCIATION GERRY SERRANO POA President Second Amendment to Memorandum of Understanding Between the City of Santa Ana and the Santa Ana Police Officers Association for Fiscal Years 2018-2021 250-5