SR-032508-1LCity Council Meeting: March 25, 2008
Agenda Item: ~ '~ ~--
To: Mayor and City Council
From: Karen Bancroft, Director of Human Resources
Subject: Resolution Implementing an Equity Adjustment Required by Memorandum
of Understanding between the City and the Santa Monica Police Officers
Association and a Resolution Authorizing the City Manager to Execute an
Amendment to the Memorandum of Understanding
Recommended Action
This report requests that Council adopt the attached Resolutions:
1) Resolution to implement an equity adjustment to satisfy the current Memorandum of
Understanding (MOU) between the City.. and the Santa Monica Police. Officers
Association (SMPOA)
2) Resolution to authorize the City Manager to execute an amendment to the SMPOA
MOU to provide SMPOA parity with the City's other bargaining units by allowing the
same percentage increase to the cap on the City's .contribution towards medical
insurance effective January 1, 2009. All other provisions of the MOU are being rolled
over for FY2008-2009.
Executive Summary
The current MOU between the City and SMPOA requires that the total compensation,
as defined in the MOU, of a Police Officer must be maintained at a level that will place
SMPOA at the #2 rank among the comparison cities. As of January 1, 2008, an equity
adjustment of 1.74% will satisfy this provision. The total increase will be approximately
$276,155 for FY2007-2008. Sufficient funds are available in the Non-departmental
budget to cover the additional cost.
The SMPOA agreement expires as of June 30, 2008. The association has agreed to
rollover their current MOU for another fiscal year (FY2008-2009). One issue that needs
to be addressed now because of the timing of increases to medical insurance premiums
is the City's contribution towards medical insurance premiums, which are effective
January 1, 2009. To give SMPOA parity with the City's other bargaining units, the
proposed amendment would provide for an adjustment in the City's contribution cap up
to a maximum of twelve percent (12.0%). The maximum additional cost would be
$169,362 for FY2008-2009. This report requests that an appropriation for this additional
cost be included in the FY2008-2009 budget.
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Discussion
SMPOA's current MOU is scheduled to expire on June 30, 2008. SMPOA has agreed
to rollover their MOU for fiscal year (FY2008-2009j. Per the terms of the MOU roll-over
provision, SMPOA will receive a cost of living adjustment (COLA) based on the January
2007 to January 2008 Consumer Price Index (CPI) for all Urban Wage Earners. and
Clerical Workers in Los Angeles-Riverside-Orange County, with the COLA not to
exceed four percent (4.0%). Since the CPI was 4.6%, SMPOA will receive a 4.0% cost
of living adjustment for FY2008-2009. This will be incorporated into the FY2008-2009
budget.
The terms of the City's MOU's correspond to the City's fiscal year whereas the cost of
medical insurance is adjusted by the medical insurance providers each calendar year.
The terms and conditions of medical insurance coverage for SM.POA are set forth in
their MOU. The terms and conditions of medical insurance coverage for all of the City's
other bargaining units (non-sworn and Firefighters) is set forth in a separate Umbrella
Agreement (MOU). Since SMPOA is rolling over their current MOU for another fiscal
year (FY2008-2009), an amendment to their MOU will be required in order to adjust the
City's contribution towards medical insurance premiums as of January 1, 2009 to give
SMPOA parity with the City's other bargaining units. The proposed amendment would
provide for an increase in the City's contribution cap up to a maximum of twelve percent
(12.0%), which is the same percentage increase that will be implemented for all of the
City's other bargaining units as of January 1, 2009.
Financial Impacts & Budget Actions
The total cost of the 1.74% equity adjustment will be $276,155 for FY2007-2008.. This
additional cost will be transferred from the Non-departmental set aside funds (account
01274.511010) to the Police Department. Assuming that there are no changes in the
number and. the current enrollment of active SMPOA employees, the total cost of the
increase in the City's contribution towards medical insurance premiums will not exceed
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$169,362 for FY2008-2009. This additional cost will need to be included in the FY2008-
2009 budget.
Prepared by:
Karen Bancroft, Director of Human Resources
Forwarded to Council:
P. L;e(nydnt Ewelli ~
City anager
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Approved:
Reference
Resolution Nos.
10278 (CCS) and
10279 (CCS).