STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of August 9, 2022
TO: Members of the City Council
SUBMITTED BY: Dante Hall, City Manager
SUBJECT: Approve Memorandum of Understanding with the Hercules Police Officers Association (HPOA).
RECOMMENDATION:
Adopt a Resolution Approving a Memorandum of Understanding with the Hercules Police Officers Association (HPOA).
FISCAL IMPACT OF RECOMMENDATION:
Approval of these new labor-related items will result in costs, both ongoing and one-time in nature. The proposed MOU and Pay Plans cover a two-year period. The ongoing costs for the employees covered through these approvals are illustrated below. The table below breaks out the costs by fiscal year:
FY 2022-23
Group
Annualized On-Going Costs
One-Time Costs
Police
$162,000
$87,000
2023-24
Group
Annualized On-Going Costs
One-Time Costs
Police
$175,000
$90,000
The adopted FY 22-23 Budget provides an amount for both ongoing and one-time costs of 3% Ongoing and 3% One-time Retention Bonus. The long-term forecast projects a 3% increase in costs on an ongoing basis. Available ongoing and one-time monies are anticipated to be sufficient in FY 22-23 and FY 23-24 to meet the obligations. Labor agreements are still pending with the Teamsters represented groups of employees and the executive, mid-management, and unrepresented groups of employees. Depending on the outcome of those negotiations, it is anticipated that total ongoing costs will exceed what is budgeted for FY 22-23. As expected in the budget, these costs would be funded from the available balance, and the budget will be adjusted at mid-year.
DISCUSSION:
Existing Memorandums of Understanding (MOU) and agreements with HPOA employees have terms which ended June 30, 2022. The City has been engaged in the meet and confer process as required by law with the represented employees and in a consultation process with non-represented employees. The City Council has been providing the City’s labor negotiator with direction in closed sessions over the past few months. The City has reached an agreement with the HPOA on a proposed two-year Memorandum of Understanding. A summary of the changes proposed by the HPOA employee groups is set forth below:
Group
Summary of Terms
Hercules POA
MOU Term to June 30, 2024 (two years)
FY 22-23
4.5% COLA effective July 1, 2022
One-time 3% non-PERSable retention payment with employees able to elect to direct payment to deferred comp.
FY 23-24
4.5% COLA effective July 1, 2023.
One-time 3% non-PERSable retention payment with employees able to elect to direct payment to deferred comp.
ATTACHMENTS:
Resolution
Memorandum of Understanding with Hercules POA
Date Page 1