TO:
Honorable Mayor and Members of the City Council
THROUGH:
John Jalili, Interim City Manager
FROM:
Cathy A Hanson, Human Resources Director
SUBJECT:Title
Memorandum of Understanding 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 Understanding between the City of Manhattan Beach and the Police Management Association (PMA).
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FISCAL IMPLICATIONS:
There are no fiscal implications with this adoption. The fiscal impacts were discussed and approved by City Council at its December 3, 2013 Council meeting when it adopted the Memorandum of Agreement (MOA) with the PMA. The MOA and corresponding Staff Report (attached) detailed the financial impacts of the PMA agreement which is estimated to be $373,066 for the two year term.
BACKGROUND:
At its December 3, 2013 meeting, Council approved a Memorandum of Agreement (MOA) between the City and the PMA which represents the Police Captain and Police Lieutenant classifications. The MOA defined the term of the agreement (November 30, 2013 - December 31, 2015) as well as the key financial provisions of the MOU. Since this was a new Association without a current MOU, the City did not want to delay the implementation of the financial terms and conditions of employment while the actual MOU was crafted. The Association agreed to return to Council with the completed MOU which includes the financial and non-financial terms and conditions of employment.
DISCUSSION:
The attached MOU includes the terms and conditions of employment that were detailed in the MOA and previously approved by Council, as well as the non-financial terms and conditions agreed to through the negotiation process or previously applied to these classifications. Many of the non-financial provisions listed in the MOU are the same provisions these classifications were subject to when they were part of the Management Confidential group. However, it is necessary to put some of these provisions into the MOU since they are now represented by a recognized bargaining group and the provisions are subject to meet and confer.
As presented and approved at the December 3, 201 Council meeting the key provisions of the Memorandum of Agreement that are now incorporated into the Memorandum of Understanding include:
· Term - Term of the MOU is November 30, 2013 - December 31, 2015.
· Salaries - Salary Ranges are listed in Article 5 of the MOU. 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 began paying the 9% member contribution. Employees deemed "new members" by PEPRA 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 time and one half base rate for field operations as defined in Article 14 of the MOU.
· 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 contributes for each employee is 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.
CONCLUSION:
Staff recommends that City Council approve the Memorandum of Understanding between the City of Manhattan Beach and the PMA.
Attachments:
1. Memorandum of Understanding with the PMA
2. Staff Report and Memorandum of Agreement with the PMA (approved on 12/3/13)