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~;tYOf City Council Report
Santa Monica
City Council Meeting: April 28, 2009
Agenda Item: 0 `
To: Mayor and City Council
From:. Donna C. Peter. Director of Human Resources
Subject: Amendment to the Memorandum of Understanding with the Santa Monica
Police Officers Association
Recommended Action
Staff recommends that Council adopt the attached Resolution authorizing the City
Manager to execute an amendment to the Memorandum of Understanding (MOU)
between the City of Santa Monica and the Santa Monica Police Officers Association to
provide SMPOA a cap of up to 12% on the City's .contribution towards medical
insurance effective January 1, 2010 and January 1, 2011.
Executive Summary
The SMPOA current agreement expires on June 30, 2009. The association has agreed
to roll over its current MOU for two additional fiscal years (FY2009-2010 and FY2010-
2011). 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 of each calendar year. To give SMPOA parity
with the City's other bargaining units, the proposed amendment would provide an
adjustment in the City's contribution cap up to a maximum of twelve percent (12%) for
2010. For 2011, the increase in the cap (up to 12%) will be to provide for any potential
increases in the 2011 medical composite rate. The maximum additional cost would be
$358,620 for FY2009-2010 and $399,900 for FY2010-2011. Based on Council
approval, the .City Manager will include these appropriations in the proposed
FY2009-2010 and FY2010-2011 budgets.
Discussion
SMPOA requested to roll over their MOU for two additional fiscal years (FY2009-2010
and FY2010-2011). Per the terms of the MOU rollover provision, SMPOA will receive a
cost of living adjustment (COLA) based on the January 2008 to January 2009
Consumer Price Index (CPI) for all Urban Wage Earners and Clerical Workers in
Los Angeles -Riverside -Orange County, with the COLA to be increased by a
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minimum of two and one-half percent (2.5%). This will be incorporated into the FY2009-
2010 budget and FY2010-2011 budget.
The terms of the City's MOU correspond to the City's fiscal year whereas the cost of the
medical insurance is adjusted by the medical insurance providers each calendar year.
The terms and conditions of medical insurance coverage for SMPOA are set forth in its
MOU. The terms and conditions of medical coverage for-all of the City's other
bargaining units (non-sworn and Firefighters) are set forth in a separate Umbrella
Agreement (MOU). Since SMPOA is rolling over its current MOU for two. additional
fiscal years (FY2009-2010 and FY2010-2011), an amendment to the SMPOA MOU will
be required in order to adjust the City's contribution towards medical insurance
premiums as of January 1, 2010 and January 1, 2011. The proposed amendment
would provide for an increase in the City's contribution cap of up to a maximum of
twelve percent (12%) each year.
Financial Impacts & Budget Actions
The total cost of the increase in the City's contribution towards medical insurance
premiums will not exceed $358,620 for FY2009-2010 and not exceed $399,900 for
FY2010-2011, assuming that there are no changes in the number and the current
enrollment of active SMPOA employees. This additional cost will need to be included
consecutively in the FY2009-2010 budget and the FY2010-2011 budget.
Attachment: Resolution Amending SMPOA MOU
Prepared by:
Donna C. Peter, Director of Human Resources
Donna C. Peter
Director of Human Resources
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Approved: Forwarded to Council