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Transparency in Labor Negotiations (TIN) Analysis Certification City of Costa Mesa Policy 300-8 Section 2 of Practices and Procedures states:
Section 2 Economic Analysis
a. The Finance Director shall prepare an economic analysis on the fiscal impacts of each term and condition of employment made available to the members of all recognized employee organizations. The economic analysis must be verified by an independent auditor.
b. The economic analysis shall be updated with each proposal and counterproposal presented throughout the negotiation process and posted on the website along with all proposals and counter proposals.
c. The economic analysis shall be prepared in the format shown on Attachment A and shall include written council member acknowledgement that the analysis has been reviewed by the council member.
Certification:
In accordance with this section, Lance, Soll & Lunghard, LLP, an independent auditor, has reviewed the City of Costa Mesa Proposal #2 to the City of Costa Mesa Police Association (CMPA) for Fiscal Year 2022-23 dated November 1, 2022 and the related study of supplemental data prepared by the City and believe that they accurately reflect the fiscal impacts of the proposal.
Bryan Gruber, CPA
Partner, Lance, Soll & Lunghard, LLP
Bla
PrimeGlobal
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Lance, Soll & Lunghard, LLP 203 N. Brea Blvd., Suite 203 Brea, CA92821 Phone: 714.672.0022
CONFIDENTIAL
Fiscal Impact Analysis for Compliance with City Council Policy 300-8 - Transparency in Labor Negotiations Cost of Costa Mesa Police Association (CMPA) Contract
Based on Fiscal Year 2022-23 Projected Costs CMPA (1% base) 1.00% 1.00% 2.00% 5.00% 4.25% City to CMPA Counter 2 Includes 2%
CMPA Proposal already Projected
Baseline Analysi Value of 1% negotiated Existing Existing Value of FY 23-24 FY 24-25 Unfunded Funded Funded
Pay/ FY 22-2 FY 22-23 FY 22-23 FY 22-23
Cost to City Cost to City Cost to City Cost to City Liability Liability Liability Benefit Cost to City ' Cost to City $15,736,805
$14,693,562 $14,840,497 $14,840,497 $14,987,433 $16,405,619 Base Salary $146,936 $146,936 $293,871 $749,372 $668,814 Incremental cost on Base Salary only ($453,223) $0
Reduction of the 2% already negotiated $127,137 254,274 354,085 397,319 Recruit & Retain Pay- 25 years 10% Year 1 50 146,969
Recruit & Retain Pay- 20 years 7.5% Year 1 77,278
Recruit & Retain Pay-15 years 5% Year 2 134,200
Recruit & Retain Pay- 10 years 2.5% Year 3
Pension / Retirement Benefits 2,870,851 2,899,276 3,044,239 3,173,620 5124,958,329 (2) $180,614,594 (2) Tier 1 3.0% @50 2,842,427 2,870,851
Included Above Included Above Included Above Included Above Included Above Included Above Tier 2 2.7% @ 55
Retirement Employer Rate 2.0% 229,434 244018
Retirement Pick Up 1.25%
$2,119 monthly 3,356,496 3,356,496 3,356,496 3,356,496 3,356,496 3,356,496 Cafeteria - Health
Benefits
Bilingual Pay 15% of Senior Police Officer position
•op Step subject to revision based on salar S227.15 per 177,106 184,633 pay perioc 165,365 167,019 168,673
adjustments)
Bilingual Pay (2.5% of Senior Police Officer
position Top Step subject to revisions based on $113.67 per salary adjustments) pay period
Holiday Allowance Pay
Canine Assignment Pay 11.3%
Canine Maintenance Pay ($15 × 1.5 x 7 hrs per $157.50 per pay period) pay period
Motor Officer Assignment Pa 5.0%
Motor Officer Maintenance Pay (3 hrs x 1.5;
Senior Police Officer position Top Step subject to $255.54 per - visions based on salary adjustment pay period
otor Training Officer Assignment P 5.0%
POST Advanced Certificate Pay 10.0%
POST Intermediate Certificate Pay 5.0%
2.5% 216,658
$17 per
MOU) pay period 22,100 22,100
pecial Assignment Pay various positior 5.0%
pecial Assignment Pay Officers Returning
Patrol 1% or 3%
CONFIDENTIAL
Fiscal Impact Analysis for Compliance with City Council Policy 300-8 - Transparency in Labor Negotiations Cost of Costa Mesa Police Association (CMPA) Contract
Based on Fiscal Year 2022-23 Projected Costs
Other Benefits 255,511 266.370
1.45% 238,593 240,975 240,979 243,359
Medicare 3.052,813 3.205,454 3,341,686
Overtime (3) 2,992,954 3,022,884 3.022,884
846,918 846,918 846,918 848,640 848,640
Retiree Medical (4) 846,918
154,897 156,446 156.148 157,995 166,895 172,945
Excess Accrual Payoff / Cash outs (5)
One Time Equipment Pay $ 3,000.00 97,607
457 Contribution 0.50%
Total 26,886,998 27,113,526 27,294,401 ≤ 27,955,629 29,460,373 3 31,022,793 226,529 407,403 1,068,632 1,504,744 1,562,420
Total Annual Incremental Cost 0.8% 5.4% 5.3%
Annual% Increase
Value of a 1% Cal PERS Pick Up $ 534,540
Cumulative Impact 1,068,632 3 2,573,375 4,135,795
TOTAL
Total Number of CMPA Employees 132
Fiscal Impact Analysis for Compliance with City Council Policy 300-8 - Transparency in Labor Negotiations CONFIDENTIAL Cost of Costa Mesa Police Association (CMPA) Contract
Based on Fiscal Year 2022-23 Projected Costs
Notes:
(Cost of Contract per item based on FY 2022-23 Adopted Budget and in some cases, prior year actuals. (2) Amounts from PERS Valuation for Safety Police Plan dated July 2021. UAL as of June 30, 2020 for Safety Police Plan is $134,408,959, with Market Value of Assets (Funded) of $194,274,521 City estimated proportionate share for CMPA Employees based on FTEs. (3) Overtime is not explicit in the contract, however is estimated based on the amount spent in prior years 11) Rate per employee is not explicit in the contract, however is calculated based on projected employer contributions calculated by Nyhart, an independent actuary with assumptions listed in the report that includes both explicit and implicit rate subsidy.
(5) Excess Accrual Payoff / Cash Out is not explicit in the contract, however is estimated based on the amount spent in prior years Council Member Acknowledgement:
Andrea Marr, Mayo Pro Tem - District 3
Lohn Stephons, Mayor
Don Harper, Council Member - District 1 Loren Gameros, Council Member - District 2 Manuel Chavez, Councilmember - District 4 Arlis Reynolds, Council Member - District