SR 07-11-2017 3M
Ci ty Council
Report
City Council Meeting : July 11, 2017
Agenda Item: 3.M
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To: Mayor and City Council
From: Donna Peter, Director , Human Resources Department
Subject: Resolution Authorizing the City Manager to Execute a Memoranda of
Understanding with the Santa Monica Police Officers Association
Recommended Action
Staff recomm ends that the City Council:
1. Adopt the attached Resolution authorizing the City Manager to execute a
Memorandum of Understanding (MOU) between the City and the Santa Monica
Police Officers Association (POA)
2. Adopt the attached resolution in compliance with CalPERS regulations
eliminating Employer Paid Member Contribution (EPMC) for the Santa Monica
Police Officers Association (POA); and
3. Approve the attached revised salary schedule effective as a result of the
agreement reached for the classifications represented by POA.
Executive Summary
Negotiations for a successor to the Memorandum of Understanding (MOU) between
the City and the Santa Monica Police Officers Association (POA) have resulted in a
tentative agreement. The City and the POA have met and conferred in accordance
with the Meyers -Millias Brown Act (MMBA), and have reached a tentative agreement
on the terms and conditions of employment . The terms of the tentative agreements
are summarized below. The purpose of the Memorandum of Understanding i s to
promote and provide harmonious relations, cooperation, and understanding between
the City and the POA. The total cost of the negotiated changes is approximately
$1,052,032 for FY 2017 -18. The budget impact of these changes was included in
the General Fund FY 2017 -18 through FY 2021 -22 Five -Year Financial Forecast.
Background
The Meyers -Milias Brown Act requires that local public agencies negotiate with their
respective bargaining units regarding wages, hours and working conditions.
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Agreements with te n of the City’s eleven bargaining units expired at the end of June
and, under direction from the City Council, staff has been in negotiations for new terms.
The City Council approved the resolution for the City Manager to execute the current
MOU with the P OA on August 26, 2014.
Discussion
The overall policy of the City of Santa Monica has been to maintain competitive
wages, hours, and working conditions in a high -cost geographic labor market in
order to retain and attract a high -quality workforce to serve o ur community across a
wide range of specialized services. Since most, though not all, City jobs are
comparable to those in other municipalities, the City has traditionally looked to full -
service cities in our region of similar size and financial strength for labor market
comparisons. Market competitiveness in recruiting police officers, the increase in
the Consumer Price Index, internal equity, and offsetting contributions to pension
and medical benefits are also factors that contribute to the setting of compensation
during the negotiations process.
Generally, we find ourselves in first or second position among comparable cities. As
a result, the City has maintained competitiveness through modest cost of living
adjustments. The Council is undertaking a compensation review overseen by the
City Council Audit Subcommittee that will provide a comprehensive analysis for
future policy direction.
Negotiations are ongoing with several remaining bargaining units and agreements
are expected to be forthcoming ea rly in the new fiscal year. While the Executive Pay
Plan and the Coalition agreements were recently approved, this tentative agreement
with the POA is the first agreement with significant changes to be brought forward
for Council action.
The substantive terms of the tentative agreement are summarized as follows:
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The three -year agreement between the City of Santa Monica and the POA is
effective July 1, 2017, through June 30, 2020 .
Significant Negotiated Changes
6% salary increase in the first year of the agreement.
Employees will contribute a total of 15.5% (an increase from the current 6.5%
contribution) of their salaries towards the cost of their retirement benefits in the first
year of the agreement.
Elimination of the Employer Paid Member Contribu tion (EPMC), which is an
optional enhanced retirement benefit, the cost of which has been paid by the
employees.
Employees will pay an additional 2% of the cost of their health insurance premiums
the first year of the agreement and another 1% over the re maining two years .
Changes to the existing longevity provision .
The second and third years of the agreement each include a 2.5% salary
increase and additional 1% increased contributions toward retirement benefits. By the
third year of the contract POA m embers will be paying a total of 17.5% towards
retirement benefits.
Two resolutions are attached to this staff report for Council consideration. The first is a
resolution accepting the tentative agreement reached and authorizing the City
Manager to execut e the MOU. The second resolution is required under CalPERS
and discontinues the Employer Paid Member Contribution (EPMC), which is an
optional enhanced retirement benefit, the cost of which has been paid by the
employees.
Also attached for Council approva l is a salary schedule establishing the new
salary ranges for all classifications in the POA in compliance with CalPERS
requirements.
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Financial Impacts and Budget Action s
The total cost of the negotiated changes contained in the new POA agreement is
app roximately $1,052,032 for FY 2017 -18. Appropriations for all funds will be included
in the FY 2017 -18 Midyear Budget for Council approval.
Prepared By: Tatiana Morrison, Executive Administrative Assistant
Approved
Forwarded to Council
Attachments:
A. Resolution
B. Resolution
C. POA SALARY SCHEDULE 6% Council Mtg 20170711
Police Officers Association (POA)
Salary Schedule for July 11, 2017 City Council Meeting
Class Title Class Code BU Grade Step Hourly Rate Monthly Rate Annual Rate Bi-weekly Rate
Deputy Police Chief 0854 POA 050 1 88.73 15,380.00 184,560.00 7,098.46
2 93.12 16,140.00 193,680.00 7,449.23
3 98.59 17,089.00 205,068.00 7,887.23
4 104.07 18,039.00 216,468.00 8,325.69
5 109.55 18,988.00 227,856.00 8,763.69
Police Captain 0860 POA 040 1 80.67 13,982 167,784.00 6,453.23
2 84.65 14,673 176,076.00 6,772.15
3 89.63 15,536 186,432.00 7,170.46
4 94.61 16,399 196,788.00 7,568.77
5 99.59 17,262 207,144.00 7,967.08
Police Lieutenant 0970 POA 030 1 69.03 11,965 143,580.00 5,522.31
2 72.44 12,556.00 150,672.00 5,795.08
3 76.70 13,295.00 159,540.00 6,136.15
4 80.96 14,033.00 168,396.00 6,476.77
5 85.22 14,772.00 177,264.00 6,817.85
Police Officer 3270 POA 010 1 42.51 7,369.00 88,428.00 3,401.08
2 44.61 7,732.00 92,784.00 3,568.62
3 47.23 8,187.00 98,244.00 3,778.62
4 49.86 8,642.00 103,704.00 3,988.62
5 52.48 9,097.00 109,164.00 4,198.62
Police Officer - Pre-service 3268 POA 010 1 42.51 7,369.00 88,428.00 3,401.08
2 44.61 7,732.00 92,784.00 3,568.62
3 47.23 8,187.00 98,244.00 3,778.62
4 49.86 8,642.00 103,704.00 3,988.62
5 52.48 9,097.00 109,164.00 4,198.62
Police Officer-Lateral Transfr 3269 POA 010 1 42.51 7,369.00 88,428.00 3,401.08
2 44.61 7,732.00 92,784.00 3,568.62
3 47.23 8,187.00 98,244.00 3,778.62
4 49.86 8,642.00 103,704.00 3,988.62
5 52.48 9,097.00 109,164.00 4,198.62
Police Sergeant 3290 POA 020 1 56.52 9,796.00 117,552.00 4,521.23
2 59.31 10,280.00 123,360.00 4,744.62
3 62.80 10,885.00 130,620.00 5,023.85
4 66.28 11,489.00 137,868.00 5,302.62
5 69.77 12,094.00 145,128.00 5,581.85
REFERENCE:
Resolution No. 11056
(CCS)
&
MOU No. 10498
(CCS)
&
Resolution No. 11057
(CCS)