Placentia City Council
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DIRECTOR OF HUMAN RESOURCES
DATE: JULY 11, 2023
AGENDA REPORT
SUBJECT: RESOLUTION TO ADOPT A MEMORANDUM OF UNDERSTANDING BETWEEN
THE CITY OF PLACENTIA AND THE PLACENTIA POLICE OFFICERS'
ASSOCIATION
FISCAL
IMPACT: FISCAL YEAR 2023-24 $ 819,236 (Estimated)
FISCAL YEAR 2024-25 $ 523,100 (Estimated)
TOTAL $1,342,336
SUMMARY:
The City and the Placentia Police Officers' Association have engaged in good faith labor negotiations and have reached terms on the wages, hours, and working conditions for their respective employees.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Adopt Resolution R-2023-60 approving the terms between the City and the Police Officers' Association (PPOA); and
2. Adopt Resolution No. R-2023-61, A Resolution of the City Council of the City of Placentia, California authorizing a budget amendment in Fiscal Year 2023-24 in compliance with City Charter of the City of Placentia §§1206 and §§1209 pertaining to appropriations for actual expenditures; and
3. Authorize the City Administrator to execute a Memorandum of Understanding (MOU) based upon the terms for PPOA on behalf of the City, in a form approved by the City's Labor Counsel.
STRATEGIC PLAN STATEMENT:
There is no specific strategic planning goal or objective associated with this agenda item.
1.o.
July 11, 2023
City Council Agenda
July 11, 2023
DISCUSSION:
The MOU between the City and the PPOA expired on June 30, 2023. City representatives have been in discussion with the labor group representatives during the past six months. Based upon City Council direction and with cooperation from the bargaining units, the negotiations process has been successfully completed between the City and the PPOA.
The terms for this MOU include the following compensation and benefit adjustments:
1. Term: July 1, 2023 — June 30, 2025
2. Compensation: 8% market rate adjustments for PFA classifications effective the full pay period of July 2023 and 6% effective the full pay period of July 2024.
3. One -Time Compensation: All employees in paid status as of the approval and adoption of the MOU will receive a one-time 5%, based upon adjusted wages as of July 2023.
4. Holiday Closure: continue Holiday leave for the holiday closure for the term of the agreement.
5. Bereavement leave increased from 3 days to 5 days.
6. The City and Association agree to work with a City-wide committee to review and make recommendations for a revised Alternative Health and Wellness (AHW) program.
7. The City and Association agree to work with a City-wide committee for development of an employee paid, pre -funded post -employment retirement benefit program for employees hired after 1995.
8. Separate leave banks (Holiday, PTO, CTO) for more accurate tracking of accruals.
9. Non -Fair Labor Standards Act (non-FLSA) Compensation Time Off (CTO) accruals capped at a maximum of 425 hours effective the end of the contract term.
FISCAL IMPACT:
The total cost for the market rate adjustments is estimated to be:
Salary Increases
Increase Holiday Accrual (10 hour holiday)
Certification Pays
5% One Time Payment (Base rate)
Total
Fiscal Year 23-24 Fiscal Year 24-25
$620,098 $521,236
$20,395 $1,864
$5,480 $11,000
$178,743 $0
$819,236 $523,100
Funding for wage increases included in the FY23/24 Adopted Budget. Funding for One-time payment proposed to come from unassigned fund balance. Costs for increases will be offset by the addition of a cap to member's Non-FLSA Compensation Time Off bank which should generate long-term savings to the City.
City Council Agenda
July 11, 2023
Prepared by:
Alice Burnett
Director of Human Resources
Reviewed and approved:
Rosanna Ramirez
Deputy City Administrator
Reviewed and approved:
Jennifer Lampman
Director of Finance
Reviewed and approved:
Damen-R—Arru1
City Administrator
Attachments:
1. Resolution No. R-2023-60
2. Memorandum of Understanding
3. Resolution No. R-2023-61 Budget Amendment