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Staff Report

Anaheim City Council
September 24, 2024

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Staff Report
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September 24, 2024
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Anaheim City Council
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3
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201 S. Anaheim Blvd.

Suite 501
Anaheim, CA 92805
Tel: (714) 765-5111
Fax: (714) 765-5215
www.anaheim.net

CITY COUNCIL AGENDA REPORT
City of Anaheim

HUMAN RESOURCES DEPARTMENT
DATE: SEPTEMBER 24, 2024
FROM: HUMAN RESOURCES DEPARTMENT
SUBJECT: LETTER OF UNDERSTANDING BETWEEN THE CITY OF

ANAHEIM AND THE ANAHEIM POLICE ASSOCIATION
EXTENDING THE JUNE 28, 2019 THROUGH JULY 3, 2025
MEMORANDUM OF UNDERSTANDING; AND APPROVAL OF

RELATED BUDGET AMENDMENT
ATTACHMENT (Y/N): YES ITEM # 21
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:

That the City Council consider the following actions:
1) By Resolution, approve a Letter of Understanding (“LOU”) between the City of Anaheim and the Anaheim Police Association (“APA”) extending the June 28, 2019 through July 3, 2025 Memorandum of Understanding (“MOU”) through June 30, 2026 and approving the proposed rates of compensation and revised terms and conditions for classifications represented by the APA; and, 2) By Motion, increase the Police Department’s Fiscal Year 2024/25 General Fund budget in the amount of $4,362,770.

DISCUSSION:

The MOU between the City and the APA was adopted on February 11, 2020 to establish wages, benefits, and other terms and conditions of employment. The APA represents approximately 417 employees in classifications including Police Officer, Police Sergeant, Bailiff, Corrections Facility Supervisor, and Corrections Officer.

The adopted MOU provides for a term of six (6) years from June 28, 2019 through July 3, 2025. Under City Council authority, City staff and APA representatives engaged in discussions to review current pay rates and certain terms and conditions of employment in the MOU, specifically Article 59, Mandatory Permanent Modified Duty Program (PMD Program). The City and the APA took into consideration the needs of the department to immediately and effectively deploy its personnel for service calls and other needed areas of police operation, as well as its ability to maintain a competitive edge in recruitment and retention. As a result of those discussions, a tentative agreement was reached and subsequently ratified by the APA on September 16, 2024.

Approval of a Letter of Understanding between the City of Anaheim and the Anaheim Police Association extending the June 28, 2019 through July 3, 2025 Memorandum of Understanding
September 24, 2024

Page 2 of 3 ends

Article 59 of the current MOU provides for a Mandatory Permanent Modified Duty Program designed to provide up to ten (10) safety employees who have permanent work restrictions an alternative assignment that would meet the needs of the Anaheim Police Department (APD) and the individual’s medical restrictions. Those assigned to the PMD Program who are otherwise eligible for an Industrial Disability Retirement (IDR) may remain employed in a modified capacity until regular service retirement, with some exception. This program has allowed safety employees who experienced a disabling industrial injury to continue employment in their career, in a permanently modified capacity. Employees in the PMD Program continue to accrue service years, receive salary adjustments under the MOU, as well as applicable specialty pay.

As the needs of the community increase as well as the resident and tourist population, APD continues to review their deployment operation and proposes officers be available to perform their full range of Police Officer duties, thereby reconsidering the PMD Program of which APA concurs. Further, absent any such LOU, pursuant to the MOU between the City and the APA, Article 59, Mandatory Permanent Modified Duty Program, Section

59.4.5, “Anaheim may eliminate the Program with at least one (1) year notice to the APA of such action." The LOU proposes immediate elimination of eight (8) positions. The remaining two positions and the PMD Program shall be terminated, in its entirety, by September 30, 2025. The elimination of the program does not impact safety employees who experience an industrial injury; the City must continue to comply with the requirements of the Americans with Disabilities Act and the Fair Employment and Housing Act/Civil Rights Department. Currently, the cost of the PMD Program is funded directly through the Human Resources Department’s (HRD), Workers Compensation division.

The City and the APA agreed to extend the MOU for one (1) year with the new contract expiration date on June 30, 2026. Other proposed revisions to the current terms and conditions to the MOU include:
 Employees shall receive a four percent (4%) across-the-board base wage increase retroactive to June 21, 2024.
 Five percent (5%) across-the-board base wage increase effective June 20, 2025.  Effective upon the adoption of the LOU by the City Council, no further employees shall be admitted into the PMD Program, and the PMD Program shall reduce from ten (10) positions to two (2) positions. The PMD Program shall terminate on September 30, 2025.

The City shall continue to engage with employees in the interactive process in accordance with requirements under the Americans with Disabilities Act and the Fair Employment and Housing Act/Civil Rights Department. The City and affected employees shall follow the Industrial Disability Retirement process and requirements as established by the California Public Employees’ Retirement System.

Approval of a Letter of Understanding between the City of Anaheim and the Anaheim Police Association extending the June 28, 2019 through July 3, 2025 Memorandum of Understanding
September 24, 2024

Page 3 of 3 ends

Other terms of the adopted MOU shall remain in effect.

IMPACT ON BUDGET:

The cost of the MOU extension is estimated to be $14,612,430 for the term of the LOU, including $4,362,770 for FY 2024/25, which will be offset by the cost of ten PMD Program positions in the approximate amount of $4,000,000, based on the current group of PMD Program participants. Future savings will be realized over time resulting in a greater net savings to the department and/or General Fund budget and operations.

Respectfully submitted,
Linda N. Andal
Human Resources Director
Attachments:

1. Resolution

2. Letter of Understanding (Exhibit to Resolution)

3. Appendix “A-1” – Wages of APA MOU – Effective June 21, 2024

4. Appendix “A-1” – Wages of APA MOU – Effective June 20, 2025

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