Placentia City Council
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DIRECTOR OF HUMAN RESOURCES
DATE: JULY 2, 2024
AGENDA REPORT
SUBJECT: RESOLUTION TO ADOPT A MEMORANDUM OF UNDERSTANDING BETWEEN
THE CITY OF PLACENTIA AND THE PLACENTIA POLICE AND FIRE MANAGEMENT ASSOCIATION FOR THE PERIOD OF JUNE 9, 2024 THROUGH JUNE 30, 2025
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. A Memorandum of Understanding (MOU) was adopted by City Council on June 4, 2024. However, while preparing for the implementation phase of the MOU, the City and Association had further discussions on how to implement it and agreed to revise the MOU in small, but substantive ways necessitating a new document to be approved by City Council.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Rescind Resolutions R-2024-36 previously adopting the MOU on June 4, 2024 and R-2024-37 previously adopting the related budget allocation on June 4, 2024 and adopt Resolution R-2024-47 approving the terms between the City and the Police and Fire Management Association (PPFMA); and
2. 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 Attorney's Office.
STRATEGIC PLAN STATEMENT:
There is no specific strategic planning goal or objective associated with this agenda item.
1.e.
July 2, 2024
City Council Agenda
June 4, 2024
Page2of3
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.
A Memorandum of Understanding (MOU) was adopted by the City Council on June 4, 2024.
However, while preparing for the implementation phase of the MOU, the City and Association realized that full implementation of the agreed terms related to the Compensation Time banks had not fully been vetted before adoption. This required additional discussions resulting in the Association and City agreeing to separating Holiday Accrual hours from the Compensation Time banks it was currently accruing to. Attached is a revised MOU with the approved Compensation Time Bank and Holiday Accrual language and new accrual banks.
Below is the revised summary of compensation and benefit adjustments and term for this MOU:
1. Term: June 9, 2024 — June 30, 2025
2. Compensation:
a. 8% market rate adjustments for Police Sergeant classifications effective June 9, 2024, and 6% effective the full pay period of July 2024. b. 4% market rate adjustments for Police Lieutenant classifications effective June 9, 2024, and 4% effective the full pay period of July 2024. c. 5% market rate adjustments for Police Captain classifications effective June 9, 2024, and 4% effective the full pay period of July 2024. d. 6% market rate adjustments for Fire Battalion Chief classifications effective June 9, 2024, and 4% effective the full pay period of July 2024.
3. Longevity: 2.5% upon completion of 7 years, additional 2.5% upon completion of 15 years for cumulative 5% upon completion of 15 years.
4. Police - Non -Fair Labor Standards Act (non-FLSA) Compensation Time Off (CTO) accruals capped at a maximum of 360 hours.
5. Fire - Fair Labor Standards Act (FLSA) Compensation Time Off (CTO) accruals capped at a maximum of 216 hours.
6. Holiday Accruals of 120 hours a year will accrue in its own Holiday bank and unused holiday time will be paid out at the end of the calendar year.
7. Battalion Chief FLSA Period to 24 consecutive days (down from 28).
8. 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.
9. Holiday Closure: continue Holiday leave for the holiday closure for the term of the agreement.
City Council Agenda
June 4, 2024
FISCAL IMPACT:
The total cost for the market rate adjustments is estimated to be:
Projected Costs
Salary Increases- Includes assumed cost impact on
overtime, pension expenses and Medicare
Certification Pays
Longevity Pays
$496,682
Total
$17,640
$120,628
$634,950
Funding for wage increases included in the FY23/24 Adopted Budget and the FY24/25 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:
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Alice Burnett
Director of Human Resources
Reviewed and approved:
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Rosanna Ramirez
Deputy City Administrato
Reviewed and approved:
Jennifer Lampman
Director of Finance
Reviewed and approved:
Damien -R- Arrula
City Administrator
Attachments:
1. Resolution No. R-2024-47
2. Memorandum of Understanding