Placentia City Council
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DIRECTOR OF HUMAN RESOURCES
DATE: JUNE 4, 2024
AGENDA REPORT
SUBJECT: RESOLUTION TO ADOPT A MEMORANDUM OF UNDERSTANDING BETWEEN
THE CITY OF PLACENTIA AND THE PLACENTIA POLICE AND FIRE
MANAGEMENT ASSOCIATION
FISCAL
IMPACT:
FISCAL YEAR 2023-24 & FISCAL YEAR 2024-25 $ 635,000 (Estimated) SUMMARY:
The City and the Placentia Police and Fire Management 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-2024-36 approving the terms between the City and the Police and Fire Management Association (PPFMA); and
2. Adopt Resolution No. R-2024-37, 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 PPFMA 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.
1.1. June 4, 2024
City Council Agenda
June 4, 2024
DISCUSSION:
The MOU between the City and the PPFMA expired on June 30, 2023. City representatives have been in discussion with the labor group representatives during the past 18 months. Although the City and Association participated in both pre and post -impasse processes, the City and Association were able to come to an agreement on terms for a successor MOU.
The terms for this MOU include the following compensation and benefit adjustments:
1. Term: July 1, 2023 — June 30, 2025
2. Compensation:
a. 8% market rate adjustments for Police Sergeant classifications effective the full pay period after adoption of this agreement and 6% effective the full pay period of July 2024.
b. 4% market rate adjustments for Police Lieutenant classifications effective the full pay period after adoption of this agreement and 4% effective the full pay period of July 2024.
c. 5% market rate adjustments for Police Captain classifications effective the full pay period after adoption of this agreement and 4% effective the full pay period of July 2024.
d. 6% market rate adjustments for Fire Battalion Chief classifications effective the full pay period after adoption of this agreement and 4% effective the full pay period of July 2024.
3. Longevity: 2.5% at 7 years, additional 2.5% at 15 years for cumulative 5% at 15 years.
4. Police - Non -Fair Labor Standards Act (non-FLSA) Compensation Time Off (CTO) accruals capped at a maximum of 360 hours effective the end of the contract term.
5. Fire - Fair Labor Standards Act (FLSA) Compensation Time Off (CTO) accruals capped at a maximum of 216 hours effective the end of the contract term.
6. Battalion Chief FLSA Period to 24 consecutive days (down from 28).
7. Battalion Chief Certification Pay: Certificate pay for Company Officer and/or Chief Officer from Office of the State Fire Marshal shall receive $245 per month — Max 2 certificates.
8. 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.
9. Holiday Closure: continue Holiday leave for the holiday closure for the term of the agreement.
FISCAL IMPACT:
The total cost for the market rate adjustments is estimated to be:
Salary Increases- Includes assumed cost impact on
overtime, pension expenses and Medicare
d .,. __. , Certification Pays
Longevity Pays
Projected Costs
$496,682
$17,640
$120,628
$634,950
Total !,
City Council Agenda
June 4, 2024
Funding for wage increases included in the FY23/24 Adopted Budget and the FY24/25 Proposed Budget. 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.
Prepared by:
Alice Burnett
Director of Human Resources
Reviewed and approved:
a/ vrrw u4' I.
Rosatrna Ramirez
Deputy City Administrator
Attachments:
1. Resolution No. R-2024-36
2. Memorandum of Understanding
Reviewed and approved:
Jennifer Lampman
Director of Finance
Reviewed and approved:
(
Dare . rru�
City Administrator