HomeMy WebLinkAbout25C - AMENDMENT TO POA MOUREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
AUGUST 18, 2020
TITLE:
APPROVE FIRST AMENDMENT TO THE
SANTA ANA POLICE MANAGEMENT
ASSOCIATION MEMORANDUM OF
UNDERSTANDING 2018-21
(GENERAL FUND)
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ 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 Management Association (SAPMA) for the period July 1, 2018
through June 30, 2021, modifying specific articles of the MOU and extending the term through
December 31, 2021, subject to non -substantive changes approved by the City Manager and City
Attorney.
DISCUSSION
The SAPMA has collaborated with the City to restructure certain provisions of the Santa Ana Police
Management Association (SAPMA) Memorandum of Understanding (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 employee benefit costs by helping the City with its CalPERS
Retirement employer share costs. For fiscal year 20-21, CalPERS increased the normal cost of
pension benefits and increased the unfunded accrued liability, which means an increase in
employer contributions. The concessions made by the SAPMA will help reduce the increased cost
of employer contributions and help reduce the impact on the City's fiscal year budget.
Effective upon adoption of the SAPMA Amendment (Exhibit 1), members will pay an additional
four percent (4%) of CalPERS reportable compensation towards the employer's contributions.
Effective January 1, 2021 the additional four percent (4%) contribution will be reduced to a two
percent (2%) through June 30, 2021. The additional contributions towards the employer's
contribution is defined as "cost -sharing", pursuant to Government Code Section 20516(f). This
provision will sunset on June 30, 2021. The current MOU, which is effective July 1, 2018 through
June 30, 2021, will now be extended through December 31, 2021. In the negotiated terms to this
agreement, this cost saving measure will result in an estimated savings of $104,301 for the
upcoming fiscal year.
25C-1
Santa Ana Police Management Association MOU Amendment
August 18, 2020
Page 2
The CaIPERS' Office of Audit Services (OAS) conducted and provided an Employer Compliance
Review (ECR) to the City of Santa Ana on June 25, 2020. The ECR issued a Notification of
Compliance and Resolution on July 2, 2020 identifying areas of special compensation where the
performance based adjustments language in the SAPMA MOU Section 4.8 was not in compliance
with the definition of special compensation in the California Code of Regulations (CCR) section
571(b) and Government (Gov.) Code section 20636, contained within the Public Employees'
Retirement Law (PERL). It is the City's responsibility to comply with all terms and conditions of
resolution and compliance set forth in the Employer's Contract with CalPERS. The City and
SAPMA met and conferred over the findings and agreed to modify Article 4.0 section 4.8
Performance Based Adjustments language to comply with CalPERS and to honor the intent of the
negotiated compensation back to its inception of July 1, 2014. The implications of not correcting
the language would affect the employees' and some retired members' retirement benefits.
The CalPERS Notification of Compliance and Resolution issued on July 2, 2020 mentioned above
in item #2, also identified another type of special compensation not in compliance. Holiday pay is
to be reported as earned and not when paid. In order to avoid an administrative burden on the
Payroll Division to implement the corrective action by CalPERS, the City met and conferred with
the SAPMA over the impacts and agreed to modify the language in Article 9.0, section 9.6.A.
Holiday Leave. Effective January 1, 2021, members will receive holiday pay in pay -period in which
the holiday occurs, if the holiday falls on their regular day off or if the member is scheduled to work
on the holiday unless the member completes an irrevocable election request form prior to the
calendar year earned requesting a "bank" to use their holiday hours anytime during the calendar
year earned.
FISCAL IMPACT
If the City Council approves the amendment to the PMA MOU, the City will realize FY20-21 cost
savings for the PMA members temporarily increased contribution to the employee pension plan.
The estimated one-time savings totaling approximately $104,301 (4% contribution from August 18
through December 31, 2020, and 2% contribution from January 1 through June 30, 2021) will be
realized entirely within the City's General Fund. The savings would increase slightly if any members
receive an annual bonus for superior work performance, or elect to cash -out their holiday hours;
as the members would make additional pension contributions on those amounts.
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. First Amendment SAPMA MOU 2018-2021
25C-2
SAPMA Side Letter #1 2018-2021
August 18, 2020
Page 3
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EXHIBIT 1
FIRST AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING
BETWEEN
CITY OF SANTA ANA
AND
SANTA ANA POLICE MANAGEMENT ASSOCIATION
REPRESENTATION UNIT
FOR THE TERM JULY 1, 2018 THROUGH DECEMBER 31, 2021
This First Amendment to the Memorandum of Understanding ("MOU") is entered into on
August 18, 2020, by and between the City of Santa Ana, a charter city and municipal corporation
organized and existing under the Constitution and the laws of the State of California ("City") and
the Santa Ana Police Management Association ("SAPMA") a recognized employee bargaining
unit (collectively "Parties").
RECITALS
WHEREAS, the Parties have entered into an MOU dated October 1, 2019 with a term of
July 1, 2018 through June 20, 2021; and
WHEREAS, the Parties wish to modify Articles 4.0, 9.0, 14.0, 26.0 of their MOU asset
forth below.
THE PARTIES THEREFORE AGREE as follows (additions are underlined and deletions
are stricken):
1. Article 4.0; Section 4.8, amend the language as follows:
4.8 Annual Performance Based Salary Adjustments -Bonus Pay:
Effective July 1, 2018, and every year thereafter, eEach Nan-Swern employee
covered by this MOU v.' E) has attui ned Step may be eligible to receive an annual
performance bonus, for superior performance as a one-time monetary incentive payment
based on a percentage of current annual rate of base salary in accordance with the following
criteria in Section 4.8A-C below.
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A. Performance Levels
For overall su erior performance rated as `5' Significantly Exceeds
Expectations, a one-time monetary incentive payment of five percent (5%).
2. For overall su ep riot performance rated as `4' Exceeds Expectations, a one-
time monetary incentive payment of two and one-half percent (2.5%).
3. For overall performance rated as `3' Meets Expectations, no monetary
incentive payment.
4. For overall performance rated as `2' Below Expectations, no monetary
incentive payment.
5. For overall performance rated as 'I' Significantly Below Expectations, no
monetary incentive payment.
2. Due to the results of the findings of a recent Employer Compliance Review, the Parties
agree that previous Performance Based Salary Adjustments between July 1, 2014 and June 30,
2018, governed by previous MOUs between the Parties, will be reevaluated utilizing the criteria
set forth in paragraph 1 of this First Amendment. Pursuant to this criteria, any annual performance
bonus earned during this period, will be paid pursuant to the amended terms of Section 4.8.
3. Article 9.0, Sections 9.2 and 9.4, to amend the language of these sections by moving the
following paragraph in its entirety from Section 9.2 to new Section 9.4 B. of their MOU:
25C-5
4. Article 9.0; Section 9.41 amending the language as follows:
9.4 Holiday Bank Election
A. Effective January 1, 2021, and every year thereafter
1. If an employee wants to use their holiday bank hours as described in Section
9.2 during the year in which the holiday leave time is accrued, but not necessarily used in
the pay period in which the holiday occurs, they must make an irrevocable election by
December 15`h of the prior calendar year (i.e. by December 15, 2020 for the calendar year
2021 holidays). Employees completing an irrevocable election form will not be
automatically cashed out as the holidays occur (if not taken off), and will retain those hours
for use any time during the current calendar year earned. Forms will be turned into the
Police Department Human Resources Department then forwarded to City Payroll. If an
employee leaves employment during the year and has not used their earned holiday time,
the eligible hours will be paid on their final check and will not be eligible to be reported to
CalPERS as Special Compensation.
B. Said substitute holidays may be taken at any time during the calendar year with
prior permission of the employee's supervisor and subject to the operational needs of the
Department. However, if an employee who separates from the service of the City has taken
time off for holidays in advance of the date or day the holidays occur, he or she must pay
the City the cash value for such used but unearned holiday time off benefits prior to or at
the time of separation.
C. Holiday time off may be taken in 30-minute increments.
5. Article 9.0; Section 9.6, amending the language as follows:
9.6 Leave Cash Option Employees covered by this MOU may cash out a
combination of holiday vacation, and management vacation leaves, up to a maximum of
260 hours in a calendar year.
6. Article 9.0, 9.6.A., amending the language as follows:
A. Holiday Leave:
Effective January 1, 2021, and every year thereafter:
i. Members of the association will receive holidav hours each vear as set forth
in Section 9.2 to be used as time off in the pay period in which the legal holiday occurs.
Holiday hours (excluding the floatingholiday) oliday) not used in the pay period in which the legal
holiday falls will be automatically given holiday pay -in -lieu.
2. Pay -in -lieu of time off will be based on the eleven (11) legal holidays
observed by the City of Santa Ana. Pay -in -lieu will be computed at eight (8) hours each
legal holiday at the regular rate of pay on a straight time basis. This additional
compensation will be paid as earned and reported to CaIPERS as Special Compensation
25C-6
pursuant to Title 2, Division 1, Chapter 2 of the California Code of Regulations,
specifically Section 571(a)(5) — Statutory Items, Holiday Pay.
Article 14.0; Section 14.5 and 14.6, amending the language to add the following:
14.5 Effective upon adoption of this agreement, members classified as Classic and New
(PEPRA) members will pay an additional four (4%) percent towards of CalPERS reportable
compensation toward the employer's cost. Effective January 1, 2021, the additional four (4%)
percent contribution mentioned above in this section will be reduced to a two (2%) percent
additional contribution to continue through June 30, 2021. The additional contributions listed
above will sunset on June 30, 2021. This additional em9lloyee contribution will be implemented
as "cost -sharing" pursuant to Government Code Section 20516(f).
14.6 Effective upon adoption of this agreement, members classified as Classic and New
(PEPRA) members will pay an additional four (4%) percent towards of CalPERS reportable
compensation toward the employer's cost. Effective January 1, 2021, the additional four (4%)
percent contribution mentioned above in this section will be reduced to a two (2%) percent
additional contribution to continue through June 30, 2021. The additional contributions listed
above will sunset on June 30, 2021. This additional employee contribution will be implemented
as "cost -sharing" pursuant to Government Code Section 20516(fl.
8. Article 26.0; Section 26.1, amending the language as follows:
The Term of this MOU shall be from July 1, 2018 through T��za '�21 December 31,
2021.
9. Except as modified by this First Amendment, all terms and conditions of the MOU shall
remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this First Amendment to the MOU,
on the date and year first written above.
CITY OF SANTA ANA
Kristine Ridge Date
City Manager
[Signatures continue on the next page]
25C-7
ATTEST:
Daisy Gomez
Clerk of Council
":• a •;u
Sonia'{R�. Carvalho, City Attorney
By: Cl, ,. A
Laura A. Rossini
Acting Chief Assistant City Attorney
RECOMMENDED FOR APPROVAL:
Date
8/04/2020
Date
Steven V. Pham, Executive Director Date
Of Human Resources
SANTA ANA POLICE MANAGEMENT ASSOCIATION
za
att ew own, S President Date
or his designee.
25C-8