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HomeMy WebLinkAbout25G - AMNED POA MOUREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 16, 2020 TITLE APPROVE SECOND AMENDMENT TO THE SANTA ANA POLICE OFFICERS ASSOCIATION MEMORANDUM OF UNDERSTANDING (GENERAL FUND AND NON -GENERAL FUND) /s/ Kristine Ridge CITY MANAGER CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1sl Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ rK•�rnum�.ic. FILE NUMBER 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 deferred as follows: 2% salary increase effective January 1, 2021 and a 2% salary increase effective July 1, 2021. This deferral and lower increase will result in an estimated savings of $2,337,160 for the upcoming fiscal year. The existing MOU term ends on June 30, 2021. In order to facilitate the salary increase on July 1, 2021, the existing MOU will be extended by six months from June 30, 2021 to December 31, 2021. In addition, the City will provide a one-time 2% lump sum contribution to the Retiree Health fund. 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%. 25G-1 Santa Ana Police Officers Association Amendment June 16, 2020 Page 2 Fiscal Impact Verified By: Kathryn Downs, CPA, Executive Director — Finance and Management Services Agency Submitted By: Steven V. Pham, Executive Director— Human Resources Department Exhibit: 1. Second Amendment to the POA MOU 25G-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 July 7, 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 ("MIOU") 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 MOO for an additional six months to December 31, 2.021 and amend the MOO 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 MOO shall be increased by eight (8) salary rate ranges (approximately 4.0%). 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 MOO 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 MOO 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 25G-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 Juae 30 2021. a. Except as modified by this Second Amendment, all terms and conditions of the Viem,ora:-ndum of Understanding as amended, shall remain in full force and effect. IN WITNESS WHEREOF, the Parties have execute this Second Amendment to the IVlemoran�- inn of Understanding on the date and year first written above. ATTEST CITY OF SANTA ANA DAISY GOMEZ MIGUEL PULIDO Clerk of the Council Mayor KRISTINE RIDGE City Manager Executive [Signatures continue on the next page] 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 25G-4 APPROVED AS TO FORM SONIA R. CARVALHO City Attorney LAURA A. ROSSINI Acting Chief Assistant City Attorney SANTA ANA POLICE OFFICERS ASSOCIATION Second Amendment to Memorandum of Understanding Between the City of Santa Ana and the Santa Ana Police Officers Association for Fiscal Years 2018-2021 25G-5