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Home My WebLink About25G - AGMT SAPOA MOUREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JANUARY 16, 2018 TITLE: ADOPTION OF AMENDEMENT #1 WITH THE SANTA ANA POLICE OFFICERS ASSOCIATION (SAPOA) MEMORANDUM OF UNDERSTANDING (MOU) (STRATEGIC PLAN NO. 4,61 CI_V MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: /1276091WR ❑ As Recommended ❑ As Amended ❑ Ordinance on 1b1 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adoption of an amendment #1 modifying the Memorandum of Understanding (MOU) with the Santa Ana Police Officers Association (SAPOA) regarding wages and other terms and conditions of employment. DISCUSSION The City and the SAPOA recently agreed to the terms outlined in the attached amended agreement (Exhibit 1) modifying the MOU. The terms of the amendment are to modify the way in which the salary adjustment listed in Article IV, section 4.3 B. and Retiree Health Savings Article XII, 12.2 was intended to be included in base pay as reportable compensation to CalPERS. CalPERS has determined that the way the current language reads that the 1 % increase in base pay effective July 1, 2017 would not qualify as PERS compensation. The intent of both the City and SAPOA was that this salary increase is to be factored into base salary and reported to PERS and qualified compensation. In order to comply with the ruling we are recommending the clean-up of language as follows: a.) Salary: Effective July 1, 2017, the base salary of employees covered by this MOU such as they are on that date, shall be increased by one percent (I%). b.) Retiree Health Savings: Effective July 1, 2017, all employees covered by this MOU will contribute two percent (2%) of their base salary plus pay additives through payroll deduction to a fund maintained by the Santa Ana Police Officers Association for the purpose of providing retiree health insurance premium reduction assistance. This payroll deduction for retiree 25G-1 Adoption of Amendment #1 SAPOA MOU January 16, 2018 Page 2 health insurance premium reduction assistance will continue until such time as the parties may mutually agree to end said reduction. 2. Additionally, effective October 1, 2017, and each October 1st thereafter, the City shall contribute an amount equal to three-quarters percent (.75%) of the bargaining unit's annual base salary, including pay additives (excluding overtime), to a fund maintained by the Santa Ana Police Officers Association for the purpose of providing retiree health insurance premium reduction assistance. STRATEGIC PLAN ALIGNMENT Approval of item allows the City to meet Goal #7 — Team Santa Ana, Objective #4, Establish employee compensation that attracts and retains a highly qualified workforce and Objective.#6, Provide a positive workplace environment that supports the health of its employees and celebrates its success. FISCAL IMPACT There is no fiscal impact associated with this action. Ellen Smiley Acting Executive Dire or Personnel Services Agency Exhibit: 1. Amendment SAPOA MOU #1 25G-2 FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SANTA ANA AND THE SANTA ANA POLICE OFFICERS ASSOCIATION FOR FISCAL YEARS 2017-18 THIS FIRST AMENDMENT to the above -referenced Memorandum of Understanding is entered into on January 16, 2018, 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"). RECITALS A. The Santa Ana City Council approved the Memorandum of Understanding for Fiscal Years 2017- 2018 between the City and the POA on July 5, 2017. B. The parties would like to clarify the language contained in the MOU regarding the salary adjustment and the Retiree Health Insurance Plan to better effectuate what the parties had originally intended. The Parties therefore agree: 1. ARTICLE IV, SECTION 4.313, SALARY ADJUSTMENTS, is amended to read as follows: B. Effective July 1, 2017, the base salary of employees covered by this MOU such as they are on that date shall be increased by one percent (10/6). 2. ARTICLE XII, SECTION 12.2A AND B, RETIREE HEALTH INSURANCE PLAN, is amended to read as follows: A. Members retiring on or after July 1, 1997, may be provided health insurance premium reduction assistance. B. Effective July 1, 2017, all employees covered by this MOU will contribute two percent (2%) of their base salary plus pay additives through payroll deduction to a fund maintained by the Santa Ana Police Officers Association for the purpose of providing retiree health insurance premium reduction assistance. This payroll deduction for retiree health insurance premium reduction assistance will continue until such time as the parties may mutually agree to end said reduction. C. Additionally, effective October 1, 2017, and each October In thereafter, the City shall contribute an amount equal to three-quarters percent (.75%) of the bargaining unit's annual base salary, including pay additives (excluding overtime), to a fund maintained by the Santa Ana Police Officers Association for the purpose of providing retiree health insurance premium reduction assistance. D. All bargaining unit employees and the Association shall hold the City harmless, defend and indemnify the City for any claims regarding the administration of, or the payment of, claims under any Association designated health insurance benefit plan. 3. Except as modified by this First Amendment, all terms and conditions of the Memorandum of Understanding between the City of Santa Ana and the Santa Ana Police Officers Association for Fiscal Years 2017-2018 shall remain in full force and effect. Page t of 2 25G-3 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Memorandum of Understanding Between the City of Santa Ana and the Santa Ana Police Officers Association for Fiscal Years 2017-2018 on the date and year first written above. ATTEST MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM SONIA R. CARVALHO City Attorney By:�k 67�d��Jlt LAURA A. ROSSINI Senior Assistant City Attorney Page 2 of 2 25G-4 CITY OF SANTA ANA MIGUEL PULIDO Mayor RAUL GODINEZ, II. City Manager ELLEN SMILEY Acting Executive Director of Personnel Services Agency SANTA ANA POLICE OFFICERS ASSOCIATION GERRY SERRANO President