TO:
Honorable Mayor and Members of the City Council
THROUGH:
John Jalili, Interim City Manager
FROM:
Cathy Hanson, Human Resources Director
SUBJECT:Title
Memorandum of Agreement with Police Management Association (Human Resources Director Hanson).
APPROVE
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Recommended Action
RECOMMENDATION:
Staff recommends that City Council approve the Memorandum of Agreement between the City of Manhattan Beach and the Police Management Association (PMA).
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FISCAL IMPLICATIONS:
The estimated cost for the two year term of the Memorandum of Agreement with the Police Management Association is $373,066, which equates to a total increase of 11.6% over the two year term of the agreement (average of 5.8% per year). Of that total, $111,600 will occur in fiscal year 2013-2014 due to the timing of the salary increases, which are effective with the payroll period beginning November 30, 2013. Existing appropriations are sufficient to fund this agreement. Future budgets will reflect the costs for this labor agreement.
BACKGROUND:
In August 2012, the employees in the classifications of Police Captain and Police Lieutenant submitted a Petition for Recognition as the Manhattan Beach Police Management Association (PMA). Per the City of Manhattan Beach Employer Employee Relations Ordinance the PMA was formally recognized as the exclusive representative of these employee classifications on September 4, 2012. The City and the Association then began the meet and confer process over terms and conditions of employment.
DISCUSSION:
After meeting and conferring in good faith the Association and the City agreed to the financial terms and conditions of employment detailed in the attached Memorandum of Agreement. Following the approval of the Memorandum of Agreement the City with its labor negotiator will meet with the PMA to finalize a comprehensive Memorandum of Understanding that will include the financial as well as non-financial terms and conditions of employment and will be brought back to the City Council for approval.
The key provisions of the Memorandum of Agreement include:
· Term - Term of the Memorandum of Understanding will be November 30, 2013 - December 31, 2015.
· Salaries - Salary Ranges are listed in Exhibit A of the Memorandum of Understanding effective November 30, 2013 and January 1, 2015. Effective the first pay period including January 1, 2015 all employees in the bargaining group will receive a 3% base salary increase to offset an additional 3% pension contribution by the employees.
· Retirement - All employees not deemed "new members" by The California Public Employee' Pension Reform Act of 2013 (PEPRA) will continue to receive the 3% @50 plan, "single highest year" final compensation and effective November 30, 2013 shall pay the 9% member contribution. Employees deemed "new members" by PEPRA will receive the benefits and make the contributions defined by the Act. Effective January 1, 2015, employees shall contribute an additional 3% to pension costs (offset by a salary increase of 3%).
· Overtime - All employees in the bargaining unit are exempt from overtime per the Fair Labor Standards Act, however Lieutenants will receive overtime at one half base rate for field operations as defined in the Memorandum of Agreement.
· Healthcare - City provides a contribution to cover the California Public Employees' Retirement System PORAC Plan at the level the employee is enrolled but effective January 1, 2014 the amount the City will contribute for each employee will be 95% of the PORAC premium rate. Employees shall receive no cash back from healthcare allowances but those who opt out completely will receive 95% of the employee only PORAC premium rate allocated to the City's Section 125 Healthcare or Childcare Flexible Benefits Plan to the maximum allowed by law.
Since this is a new Association without a current Memorandum of Understanding and the Association and City desire to move forward and not delay implementation of the financial terms and conditions of employment, the City and Association agree to bring the Memorandum of Agreement to the City Council for approval before the Memorandum of Understanding is completed.
CONCLUSION:
Staff recommends that City Council approve the Memorandum of Agreement between the City of Manhattan Beach and the PMA.
Attachment:
1. Memorandum of Agreement with PMA