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File #: 22-954 Meeting Date: 11/15/2022
· No base salary increase in FY 2021-22
· A one percent (1%) increase in base salary in FY 2022-23, and a one percent (1%) employer match to Retirement Health Savings Accounts
· A two percent (2%) increase in base salary in FY 2023-24 · Elimination of Tier 2 vacation accrual plan
· Ability for Association to request contract reopeners in Years 2, 3 and 4.
The 2020 side letter also stated that employees would be reimbursed for the 5% salary furloughs if the City received Federal stimulus funds in excess of $40.5 million. The City of Costa Mesa did receive Federal American Rescue Plan funding, albeit a lesser amount, of $28.3 million.
Nonetheless, the City reimbursed all employees for the 5% furloughs due to their contributions and good faith bargaining which eliminated the need for layoffs at a time when the continuation of core public services was absolutely essential.
The current collective bargaining agreement between the City and CMPA covers 132 sworn Police Officers during the period of 2018-2024 and is scheduled to expire on June 30, 2024. CMPA requested to exercise the reopener for FY 2021-2022 and a series of collaborative and productive meetings between the City’s negotiation team and CMPA’s negotiation team were held, which resulted in the attached tentative Side Letter of Agreement (Attachment I). Under the proposed Side Letter of Agreement, the current term of the MOU would be extended by one year and expire on June 30, 2025. More importantly, the revised Side Letter of Agreement provides for the following: 1) Modest salary increases over the remaining three years of the contract to ensure Police Officer compensation remains competitive and is at or above the market; 2) Special compensation for Officers working in high risk or specialized assignments (e.g. Gang Unit) to further enhance participation and training in those assignments consistent with other cities; and, 3) A recruitment and retention incentive to encourage more tenured and experienced Police Officers and Sergeants to remain at the City longer to help train the next generation of Costa Mesa Police Officers.
ANALYSIS:
The City’sNegotiation Team and CMPA Negotiation Team held several meetings to discuss the MOU and issues raised by both parties, including but not limited to wages and benefits. During the course of negotiations, the City Negotiation Team met with the City Council to discuss the status and progress of negotiations and to receive direction specific to provisions under consideration. The negotiations were fully collaborative and were based on the shared interests of the CMPA employees and the City. The results of the negotiations have been compiled in the proposed Side Letter of Agreement.
The Police Officer classification has historically been a hard-to-fill position in the City and in the industry nationwide. With the current inflation rate at 8% and the Consumer Price Index at 8%, salary and benefits remain a challenge in this competitive employment market. The proposed Side Letter of Agreement takes into consideration specific objectives that align with the City Council’s Strategic Plan Goals - Recruit, Retain High Quality Staff and Strengthen the Public’sSafety and Improve Quality of Life and the City’simproved financial health as the proposed provisions have financial implications. A summary of the most significant MOU revisions is included below.
The following are the key provisions of the negotiated CMPA Side Letter:
· Term of Side Letter Upon City Council adoption, the term of the MOU will be extended throughPage 2 of 4 2069
File #: 22-954 Meeting Date: 11/15/2022
· Term of Side Letter Upon City Council adoption, the term of the MOU will be extended through June 30, 2025
· Salaries and Wages
o Effective January 2023, a 2% base salary increase
o Effective July 2023, an additional 3.0% base salary increase (above the 2% base salary increase negotiated in June 2020)
o Effective July 2024, a 4.25% base salary increase
· Cost Sharing and Retirement Contributions
o Effective July 2023 reduction of 1.25% of employee cost sharing, which will require future City Council approval to amend the City’scurrent cost sharing agreement with CalPERS via Government Code 20516(a).
· Recruitment and Retention Pay
o Effective January 2023, 10% of base salary for 25 years of sworn service o Effective July 2024, 7% for 20 years of sworn service and 5% for 15 years of sworn service
o Effective January 2025, 2.5% for 10 years of sworn service o For Police Officers transferring in from other agencies, up to 10 years of sworn employment outside of Costa Mesa can be counted
· Deferred Compensation
o Effective July 2024, employer contribution of 0.5% of base salary. · Specialty Assignment Pay
o Net 5% special assignment pay for Traffic (Non-Motor), Traffic Investigator, ISB Detective, SIU Detective, Gang Unit Investigator, SRO, Training/Recruitment Officer, South Coast Plaza Officer, and CPU Officer. The net 5% reflects the net impact of the new 7.5% specialty pay with the simultaneous removal of the 2.5% Uniform Pay for patrol assignments.
The CMPA Negotiation Team has agreed to a tentative agreement. The CMPA member ratification process was completed on November 5, 2022 with a majority of members approving the proposed tentative agreement featuring the items outlined above.
Some of the provisions agreed to above impact other employee groups per the “me too” provisions negotiated during the pandemic in other employee association side letters and resolutions. These provisions are currently under review and updated side letters and resolutions for the Costa Mesa Fire Association, Costa Mesa Fire Management Association, Costa Mesa Police Management Association, Costa Mesa Division Manager Association and unrepresented Executives and Confidential Managers will be brought back at a future council meeting for approval.
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File #: 22-954 Meeting Date: 11/15/2022
ALTERNATIVES:
The parties to this agreement considered a variety of issues in the context of good faith negotiations in accordance with Government Code Section 3500, et seq. (Meyer-Milias-Brown Act). The CMPA members have ratified the tentative agreement. This MOU represents the successful conclusion of labor negotiations, and alternatives need not be considered as a result of collaborative efforts expended.
FISCAL REVIEW:
The Fiscal Impact Analysis prepared pursuant to the City Council Policy 300-8 Transparency in Labor Negotiations recognizes the CMPA Fiscal Year 2022-23 increase is estimated at $620,000, and will take effect during the payroll cycle inclusive of January 1, 2023. The estimated annual fiscal impact to the City’sFY 2023-24 Budget is $1.9 million, and approximately $4.1 million in FY 2024-25. General Fund revenues are tracking well above pre-pandemic levels as evidenced by the projected $3.6 million surplus for the fiscal year ended June 30, 2022, as well as current year revenue receipts. As such, it is anticipated that General Fund revenues can cover the fiscal impact of this proposal in the current year, as well as the out-years.
Staff is requesting budget appropriations in the Police Department to effectuate the provisions contained in the proposed Side Letter of Agreement. Funding for future fiscal years will be included as part of that respective year’s budget.
LEGAL REVIEW:
The City’s special counsel, Liebert Cassidy Whitmore (LCW) and City Attorney’s Office have reviewed the agreements and resolutions and this report and approved them as to form.
CONCLUSION:
The proposed MOU and salary range adjustments support the City’sStrategic Plan Goals to recruit and retain high quality staff and strengthen the Public’sSafety and Improve the Quality of Life. Staff recommends that the City Council:
1. Approve and adopt the Side Letter of Agreement between the City of Costa Mesa and the Costa Mesa Police Association. (Attachment I).
2. Adopt Resolution Number 2022-XX (Attachment II), which revises the pay ranges for CMPA.
3. Approve Fiscal Impact Analyses (Attachment III).
4. Authorize the City Manager and members of the City’sNegotiation Team to execute the Side Letter of Agreement documents, and appropriate into the Police Department’sFiscal Year 2022- 23 Adopted Budget.
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SIDE LETTER OF AGREEMENT
CITY OF COSTA
AND
THE COSTA MESA POLICE ASSOCIATION
This Side Letter of Agreement (Agreement) between the City of Costa Mesa (City) and the Costa Mesa Police Association (Association) (collectively “Parties”) is entered into with respect to the following:
WHEREAS, the Parties are currently parties to a Memorandum of Understanding (MOU) with a term that expired on June 30, 2020, but was extended by a side letter (Attached hereto as Exhibit A) to expire on June 30, 2024; and
WHEREAS, the side letter in Section 3.2 gave the Association the option to reopen negotiations for the purpose of increasing pay and benefits and the Association exercised that option; and WHEREAS, the Parties have negotiated modifications to wages and benefits that modify the provisions of their MOU and wish to memorialize those changes in this Agreement; WHEREAS, the following memorializes the parties’ agreement.
The Parties agree to the following modifications to their MOU effective upon City Council approval of this Agreement on November 15, 2022 as reflected by the track changes to each of the articles below.
ARTICLE 2 - TERM OF AGREEMENT
2.1 The term of this MOU will commence on July 1, 2018, and will expire in the pay period that includes June 30, 20254.
ARTICLE 3 - BASIC SALARIES AND WAGES
3.1. Employees covered by this MOU shall be compensated at the established monthly base salary rates under the Basic Pay Schedule for covered employees. The three (3) classifications in the Association, under this Schedule Police Officer, Senior Police Officer, and Police Sergeant shall be assigned a range number established by the City Council resolution.
Effective in the pay period which includes July 1, 2021, the Association has the option to reopen negotiations for the purpose of increasing pay and benefits. If the Association elects to exercise this option, it must notify the City no later than April 1, 2021. Any changes to the MOU must be by mutual agreement of the parties.
Effective in the pay period which includes July 1, 2022, employees shall receive a one percent (1.0%) base salary increase. In addition, the Association has the option to reopen negotiations for the purpose of increasing pay and benefits. If the Association elects to exercise this option, it must notify the City no later than April 1, 2022. Any changes to the MOU must be by mutual agreement of the parties.
Effective the pay period that includes pay date of January 6, 2023, employees shall receive a two percent (2.0%) base salary increase for all classifications subject to this MOU.
Effective in the pay period which includes July 1, 2023, employees shall receive a two percent (2.0%) base salary increase. In addition, the Association has the option to reopen negotiations for the purpose of increasing pay and benefits. If the Association elects to exercise this option, it must notify the City no later than April 1, 2023. Any changes to the MOU must be by mutual agreement of the parties.
Attachment 1
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Effective the pay period that includes July 1, 2023, employees shall receive an additional three percent (3%) base salary increase for all classifications subject to this MOU. This three percent (3%) is in addition to but will not be compounded on the two percent (2%) which the parties previously (in 2020) agreed would be provided effective the pay period that includes July 1, 2023.
Effective the first full pay period beginning after July 1, 2024, employees shall receive a four and one quarter percent (4.25%) base salary increase for all classifications subject to this MOU.
The parties agree that the reopener provisions (for 2022 and 2023) addressed above (originally contained in their July 2020 Side Letter) have been satisfied and there are no further reopeners through the end of the term of thiseir MOU on June 30, 2025.
3.2 RECRUITMENT AND RETENTION INCENTIVE PAY
Recruitment and Retention Incentive Pay is compensation to incentivize Police Department sworn employees to remain with the City of Costa Mesa.
Effective the pay period including the pay date of January 6, 2023, employees in this bargaining unit who have been employed in a full-time sworn law enforcement position (as defined by California Penal Code sections 830.1, 830.2, 830.32 and 830.33 or the out-of-state equivalent as determined by the Chief of Police) for twenty-five (25) years or more (with a maximum of 10 years in such a position outside of the City of Costa Mesa) shall receive recruitment and retention incentive pay of ten percent (10%).
Effective the first full pay period beginning after July 1, 2024, employees in this bargaining unit who have been employed in a full-time sworn law enforcement position (as defined by California Penal Code sections 830.1, 830.2, 830.32 and 830.33 or the out-of-state equivalent as determined by the Chief of Police) for twenty (20) years or more (with a maximum of 10 years in such a position outside of the City of Costa Mesa shall receive recruitment and retention incentive pay of seven and one-half percent (7.5%).
Effective the first full pay period beginning after July 1, 2024, employees in this bargaining unit who have been employed in a full-time sworn law enforcement position (as defined by California Penal Code sections 830.1, 830.2, 830.32 and 830.33 or the out-of-state equivalent as determined by the Chief of Police) in a full-time sworn law enforcement position with the City of Costa Mesa for fifteen (15) years or more (with a maximum of 10 years in such a position outside of the City of Costa Mesa) shall receive recruitment and retention incentive pay of five percent (5%).
Effective the pay period that including the pay date of January 3, 2025, employees in this bargaining unit who have been employed ) in a full-time sworn law enforcement position (as defined by California Penal Code sections 830.1, 830.2, 830.32 and 830.33 or the out-of-state equivalent as determined by the Chief of Police) in a full-time sworn law enforcement position with the City of Costa Mesa for ten (10) years or more (with a maximum of 10 years in such a position outside of the City of Costa Mesa shall receive recruitment and retention incentive pay of two and one-half percent (2.5%).
Other civilian service will not count towards full-time sworn law enforcement service for this purpose.
The above recruitment and retention incentive pays are not cumulative. Once an employee becomes eligible for the next level of recruitment and retention incentive pay, they shall qualify for that level and no longer receive the prior level of pay (i.e. the maximum total incentive pay an employee can receive is a total of 10% for 25 or more years of sworn law enforcement service).
The parties agree, to the extent permitted by law, the compensation in this section is special compensation and shall be reported as such pursuant to Title 2 California Code of Regulations, Section 571 and 571.1.
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3.3 DEFERRED COMPENSATION
Effective the first full pay period beginning after July 1, 2024, the City will make a contribution to the City’s 457(b) provider that will equal one half of one percent (0.5%) of each employee’s base salary. Employees are responsible for tracking contributions to ensure that total contributions made by the City and employee do not exceed the maximum allowable contributions as per the IRS. City contributions are per year only. As such, they expire on the last payroll of the calendar year.
ARTICLE 5 - RETIREMENT
5.1 CALPERS - The City contracts with CalPERS for retirement benefits.
A. Employees Who Are Not “New Members” as Defined by Government Code Section 7522.04(f) – i.e., “Classic Members”
4. Cost Sharing: Classic member employees subject to the 3%@50 formula currently pay an additional five percent (5%) of compensation earnable as cost sharing into their employee account with CalPERS in accordance with Government Code section 20516(a).
Effective the pay period that includes July 1, 2023, for Classic member employees subject to the 3%@50 formula, cost sharing per Government Code section 20516(a) will be reduced by one and one quarter percent (1.25%) for a net contribution of three and three quarters’ percent (3.75%) per Government Code section 20516(a). When this three and three quarters’ percent (3.75%) is added to the employees’ payment of nine percent (9%) towards their member contribution, employees shall pay twelve and three quarters’ percent (12.75%) compensation earnable towards their pension.
B. For “New Member” Employees
3. Payment of Employee/Member Contribution: New member employees are responsible for paying the employee contribution of one-half of the total normal cost of the plan, as defined by CalPERS, through a payroll deduction. This amount will be determined by CalPERS in the future.
Effective the pay period that includes July 1, 2023, for new member employees subject to the
2.7%@57 formula, if one-half of the CalPERS’ annual normal cost rate goes below 12.75% (and it is rounded by CalPERS to the nearest one-quarter of a percent), new member employees subject to the 2.7%@57 formula shall pay the difference between the one-half of the total normal cost rate and twelve and three-quarters; percent (12.75%) of compensation earnable as cost sharing pursuant to Government Code section 20516(f).
Effective the pay period that includes July 1, 2023, for new member employees subject to the
2.7%@57 formula, if one-half of the CalPERS’ annual normal cost rate exceeds 12.75% (and it is rounded by CalPERS to the nearest one-quarter of a percent), the City will contribute the amount above 12.75% to the deferred compensation account (per IRS Code section 457(b)) of each new member.
ARTICLE 12 - SPECIALTY ASSIGNMENT PAY
12.3 UNIFORM ASSIGNMENT PAY - Employees in the classifications of Senior Police Officer and Police Sergeant who are regularly assigned to uniform automobile/motorcycle patrol, or traffic enforcement shall receive uniform assignment pay (2.5% of base salary). Employees, assigned to patrol or traffic enforcement for less than 14 consecutive days shall not be eligible for Uniform Assignment Pay. All Police Officers who are receiving Uniform Assignment Pay upon the effective date of this agreement shall continue to receive such pay. Uniform
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assignment pay shall also be applicable to employees in the Police Officer classification who are regularly assigned to uniform automobile/motorcycle patrol or traffic enforcement after three years of service with the City of Costa Mesa.
12.8 TRAFFIC DETAIL ASSIGNMENT PAY
Effective the pay period that includes pay date of January 6, 2023, employees assigned to traffic detail (Non- Motors) or who are assigned as Traffic Investigators shall receive seven and one-half percent (7.5%) of base salary while so assigned. Employees receiving this pay shall not be eligible to receive Uniform Assignment Pay provided for above in Article 12.3, and therefore, employees assigned to one of these specialty assignments will receive a net increase of five percent (5%) of base salary.
12.9 DETECTIVE / GANG UNIT INVESTIGATOR PAY
Effective the pay period that includes pay date of January 6, 2023, employees assigned as either an Investigative Services Bureau or Special Investigations Unit Detective or a Gang Unit Investigator shall receive seven and one- half percent (7.5%) of base salary while so assigned. Employees receiving this pay shall not be eligible to receive Uniform Assignment Pay provided for above in Article 12.3, and therefore, employees assigned to one of these specialty assignments will receive a net increase of five percent (5%) of base salary.
12.10 POLICE SPECIALTY OFFICER PAY
Effective the pay period the includes pay date of January 6, 2023, employees assigned in any of the following specialty officer assignments shall receive seven and one-half percent (7.5%) of base salary while so assigned: 1) School Resources Unit; 2) Training/Recruitment Unit; 3) South Coast Plaza Unit; 4) Community Policing Unit Officer; and, 5) Professional Standards/Admin Unit. Employees receiving this pay shall not be eligible to receive Uniform Assignment Pay provided for above in Article 12.3, and therefore, employees assigned to one of these specialty assignments will receive a net increase of five percent (5%) of base salary.
REPRESENTATIVES OF THE COSTA MESA REPRESENTATIVES OF THE CITY OF
POLICE ASSOCIATION COSTA MESA
JERAD A. KORTE LORI ANN FARRELL HARRISON
CMPA President City Manager
JAMES A. BROWN ALMA L. REYES
CMPA Negotiations Team Member Assistant to the City Manager
__________________________________ JESSE W. CHARTIER CAROL L. MOLINA CMPA Negotiations Team Member Finance Director
VIJAY K. CHAWLA KASAMA LEE
CMPA Negotiations Team Member Human Resources Manager
BRIAN T. HERNANDEZ
CMPA Negotiations Team Member
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RESOLUTION NO. 2022-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, REVISING THE PAY RANGES FOR JOB CLASSIFICATIONS
REPRESENTED BY THE COSTA MESA POLICE ASSOCIATION PURSUANT TO THE 2022 SIDE LETTER.
WHEREAS, on June 7, 2022, the City Council adopted Resolution No. 2022-36, revising the pay ranges for job classifications represented by the Costa Mesa Police Association, effective June 19, 2022; and
WHEREAS, the City of Costa Mesa and the Costa Mesa Police Association are currently parties to a Memorandum of Understanding (MOU) with a term that expired on June 30, 2020, but was extended by a side letter to expire on June 30, 2024; and WHEREAS, the parties have negotiated modifications to wages and benefits that modify the provisions of their MOU; and
WHEREAS, the City Council desires to repeal and replace Resolution No . 2022- 36, to revise the pay ranges for the classifications specified herein; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa as follows:
SECTION 1. The following pay ranges and monthly rates of pay for the identified job classifications are hereby established and placed under the Basic Salary Administration Plan effective the pay period that includes the pay date of January 6, 2023.
The monthly rate of pay may also be in increments between the monthly minimum and maximum pay steps.
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0201 Police Officer 050 $7,208 $7,568 $7,946 $8,343 $8,760 $9,198 $9,658 Monthly $86,496 $90,816 $95,352 $100,116 $105,120 $110,376 $115,896 Annual $41.58 $43.66 $45.84 $48.13 $50.54 $53.07 $55.72 Hourly
0203 Police Sergeant 056 $8,786 $9,225 $9,686 $10,170 $10,679 $11,213 $11,774 Monthly $105,432 $110,700 $116,232 $122,040 $128,148 $134,556 $141,288 Annual $50.69 $53.22 $55.88 $58.67 $61.61 $64.69 $67.93 Hourly
0202 Sr Police Officer 052 $7,567 $7,945 $8,342 $8,759 $9,197 $9,657 $10,140 Monthly $90,804 $95,340 $100,104 $105,108 $110,364 $115,884 $121,680 Annual $43.66 $45.84 $48.13 $50.53 $53.06 $55.71 $58.50 Hourly
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SECTION 2. The following pay ranges and monthly rates of pay for the identified job classifications are hereby established and placed under the Basic Salary Administration Plan effective the pay period that includes July 1, 2023. The monthly rate of pay may also be in increments between the monthly minimum and maximum pay steps.
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0201 Police Officer 050 $7,568 $7,946 $8,343 $8,760 $9,198 $9,658 $10,141 Monthly $90,816 $95,352 $100,116 $105,120 $110,376 $115,896 $121,692 Annual $43.66 $45.84 $48.13 $50.54 $53.07 $55.72 $58.51 Hourly
0203 Police Sergeant 056 $9,225 $9,686 $10,170 $10,679 $11,213 $11,774 $12,363 Monthly $110,700 $116,232 $122,040 $128,148 $134,556 $141,288 $148,356 Annual $53.22 $55.88 $58.67 $61.61 $64.69 $67.93 $71.33 Hourly
0202 Sr Police Officer 052 $7,945 $8,342 $8,759 $9,197 $9,657 $10,140 $10,647 Monthly $95,340 $100,104 $105,108 $110,364 $115,884 $121,680 $127,764 Annual $45.84 $48.13 $50.53 $53.06 $55.71 $58.50 $61.43 Hourly
SECTION 3. The following pay ranges and monthly rates of pay for the identified job classifications are hereby established and placed under the Basic Salary Administration Plan effective the first full pay period beginning after July 1, 2024 . The monthly rate of p ay may also be in increments between the monthly minimum and maximum pay steps.
Class Class Title Grade Step
Code 1 2 3 4 5 6 7
0201 Police Officer 050 $7,890 $8,284 $8,698 $9,133 $9,590 $10,069 $10,572 Monthly $94,680 $99,408 $104,376 $109,596 $115,080 $120,828 $126,864 Annual $45.52 $47.79 $50.18 $52.69 $55.33 $58.09 $60.99 Hourly
0203 Police Sergeant 056 $9,617 $10,098 $10,603 $11,133 $11,690 $12,274 $12,888 Monthly $115,404 $121,176 $127,236 $133,596 $140,280 $147,288 $154,656 Annual $55.48 $58.26 $61.17 $64.23 $67.44 $70.81 $74.35 Hourly
0202 Sr Police Officer 052 $8,282 $8,696 $9,131 $9,588 $10,067 $10,570 $11,099 Monthly $99,384 $104,352 $109,572 $115,056 $120,804 $126,840 $133,188 Annual $47.78 $50.17 $52.68 $55.32 $58.08 $60.98 $64.03 Hourly
SECTION 4. The City of Costa Mesa has contracted with the California Public Employees Retirement System (CalPERS) to provide retirement benefits to eligible City 2081
employees. Employees will contribute towards the employee and employer contribution as stipulated in the Memorandum of Understanding (MOU) with the Costa Mesa Cit y Employees Association. There will be no Employer Paid Member Contribution (EPMC).
SECTION 4. All parts of resolutions in conflict herewith are hereby rescinded.
PASSED AND ADOPTED this 15th day of November, 2022.
______________________________
John Stephens, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ ______________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 2022-XX and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 15th day of November, 2022, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 16th day of November, 2022.
__________________________
Brenda Green, City Clerk
(SEAL)
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