Agenda Item No: 1.e
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: November 5, 2024
Submitted by: Alice Burnett
From: Administrative Services
Subject:
Resolution Adopting a Side Letter Agreement Amending the Memorandum of Understanding of the City of Placentia Police and Fire Management Association related to a Grievance Filed by PPFMA Against the City of Placentia.
Summary:
The City of Placentia and the Placentia Police and Fire Management Association (PPFMA) have reached a settlement agreement to resolve a grievance filed by PPFMA on behalf of three members promoted to higher ranks. The grievance concerned the application of Personnel Rule IV, which governs salary step placement upon promotion, and whether specialty pays should be included in the calculation. After multiple levels of review and denial of the grievance, the City and PPFMA have agreed on a settlement to avoid arbitration. The agreement addresses salary step placement, medical opt -out payments, and other compensation matters, while ensuring compliance with City policies and maintaining fiscal responsibility. Approval of the settlement is recommended to avoid further legal proceedings.
Recommendation:
Recommended Action: It is recommended that the City Council:
1. Adopt Resolution No. R-2024-68 a Resolution of the City Council of the City of Placentia, California approving a side letter settlement agreement amending the memorandum of understanding of the City of Placentia Police and Fire Management Association to address the process of determining the salary step upon promotion and to amend Article 12 (E) of the Memorandum of Understanding amending the Medical Opt Out provision; and
2. Authorize the City Administrator to execute the agreement, in a form approved by the City Attorney.
Strategic Plan Statement:
There is no specific strategic planning goal or objective associated with this agenda item.
Discussion:
The Placentia Police and Fire Management Association (PPFMA) filed a grievance against the City on August 24, 2023, regarding the salary step placement of three promoted members, Lieutenant Scott Millsap, Sergeant Matt Herren, and Sergeant Joe Gillis. The grievance asserted that the City misapplied Personnel Rule IV, which governs salary increases for employees promoted within the same promotional series. PPFMA stated that specialty pays 180
should have been included in the calculation of the members' salary step placement upon promotion.
After multiple levels of review and denial by both the Chief of Police and the City Administrator, PPFMA pursued arbitration as per Personnel Rule XIII. However, to avoid the costs and potential risks of arbitration, the City and PPFMA reached a mutually agreed settlement.
SUMMARY OF THE SETTLEMENT AGREEMENT:
1. The City agrees to forgive certain overpayments made to the affected members.
2. PPFMA and the affected members agree to withdraw the grievance filed on August 24, 2023.
3. PPFMA members promoted from a classification represented by the Placentia Police Officers' Association (POA) will retain higher medical opt -out amounts if they received more than $400 per month before their promotion.
4. The City agrees to modify the calculation of salary step placement upon promotion.
Future promotions will consider base salary plus specialty pays, ensuring at least a 5.4% increase in accordance with Personnel Rule IV.
5. Off-duty maintenance of a motorcycle pay and canine care pay will be excluded from the promotion calculation.
6. Affected employees must work a night shift for one year before night differential pay can be included in salary calculations.
7. Both parties agree to bear their own costs and attorney's fees.
This Settlement Agreement represents a fair and reasonable resolution to the grievance filed by PPFMA. It upholds the City's obligations under Personnel Rule IV while addressing the concerns raised by the association. Approval of this Agreement will mitigate further legal expenses and promote a positive working relationship with PPFMA.
Fiscal Impact Summary:
The forgiveness of the overpayment will result in a minimal financial impact on the City. The changes in medical opt -out payments are expected to have a manageable effect on future budgets. The settlement avoids the significant legal costs associated with arbitration.
Attachments
Settlement Agreement PPFMA Grievance 2024.pdf
PPFMA Placentia Side Letter Agreement.pdf
Resolution for Settlement Agreement PPFMA Grievance and Side Letter.docx 181
SETTLEMENT AGREEMENT OF GRIEVANCE FILED BY PLACENTIA POLICE
AND FIRE MANAGEMENT ASSOCIATION AGAINST THE CITY OF PLACENTIA This Settlement Agreement ("Agreement") is entered into between the Placentia Police and Fire Management Association ("PPFMA") and the City of Placentia ("City") related to a grievance filed by PPFMA against the City.
Recitals
1 City of Placentia Personnel Rule IV ("Personnel Rule IV") provides that, "[a]n employee promoted or reclassified from one job class to a higher job class in the same promotional series shall be placed at a salary step in the range of the higher job class which provides not less than 5.4% salary increase, and shall be given a new anniversary date for purposes of salary step placement."
2. The City and PPFMA are parties to a Memorandum of Understanding ("MOU") which has a term of June 9, 2024 to June 30, 2025.
3. PPFMA filed a written grievance addressed to Chief of Police Brad Butts, dated August 24, 2023 ("Grievance"), asserting that the City placed Lieutenant Scott Millsap, Sergeant Matt Herren, and Sergeant Joe Gillis ("affected members") at an incorrect salary step when they were promoted to their current rank, in violation of Personnel Rule IV.
4. PPFMA asserts that Personnel Rule IV requires the City to consider employees' base salary plus specialty pays when determining their salary step placement upon promotion.
5. PPFMA also requested in its Grievance that the City cease and desist from seeking an unrelated overpayment from the affected members.
6. On October 24, 2023, Chief of Police Brad Butts sent a response letter to PPFMA denying the Grievance and asserting that the affected members were placed at a salary step that resulted in a salary increase at or above 5.4%, as required by Personnel Rule IV.
7. On October 25, 2023, PPFMA appealed Chief of Police Brad Butts' decision denying the Grievance and requested a meeting with City Administrator Damien Arrula, pursuant to the Grievance Procedure in City of Placentia Personnel Rule XIII ("Personnel Rule XIII").
12605001.2 PL010-028
8. On January 4, 2024, City Administrator Damien Arrula met with PPFMA representatives to discuss the Grievance.
9. On January 24, 2024, City Administrator Damien Arrula sent a letter to PPFMA denying the Grievance. The City Administrator asserted that he denied the Grievance because it was untimely and because the affected members were placed on the correct salary step upon promotion, in compliance with Personnel Rule IV.
10. PPFMA timely appealed the City's decision and requested that the Grievance be heard by a neutral arbitrator, pursuant to Personnel Rule XIII.
11. The City and PPFMA have reached an agreement on terms for settling the Grievance to avoid the cost and risks associated with further arbitration.
12. By entering into this Agreement, neither the City nor PPFMA admits to any wrongdoing and specifically deny that any wrongdoing occurred.
THEREFORE, the City and PPFMA agree as follows:
1. The Recitals set forth above are incorporated into this Agreement in their entirety as if fully set forth herein.
The City forgives the overpayments paid to Lieutenant Scott Millsap, Sergeant Matt Herren, and Sergeant Joe Gillis as identified in the Grievance.
3. The PPFMA and affected members withdraw all their claims from the Grievance initially filed on August 24, 2023.
4. Payment for opting out of medical insurance, for those employees in classifications represented by PPFMA, shall be as follows:
PPFMA Employees who promote into the PPFMA from a City classification represented by the Placentia Police Officers' Association ("POA") after the date of this side letter, who received a medical opt -out payment from the City greater than $400 per month before promotion, will retain their higher opt -out amount upon promotion to the PPFMA.
Current PPFMA members (as of the date of this side letter) who previously received a higher medical opt -out payment before promotion from a POA represented classification, but now receive a $400 monthly opt -out payment, will receive the higher amount that they previously received on a prospective basis only. PPFMA members who opt -out of medical coverage for the first time after promotion from a POA represented classification and all lateral hires into a PPFMA represented classification after the date of this side letter will receive an opt -out amount of $400 per month. For example, if an employee 12605001.2 PL010-028
currently receiving medical coverage promotes into the PPFMA and then decides to opt - out of medical coverage, they will only receive the $400 monthly benefit provided in the PPFMA MOU.
5. Effective on the signed date of this Agreement, the City will use the following method for calculating PPFMA members' salary placement upon promotion in accordance with Personnel Rule IV:
a. The City will compare the sum of base salary plus all specialty pays that a member earns both before and after their promotion to the minimum 5.4% increase on promotion.
b. In instances where a 5.4% salary increase places a member in-between steps, the City will bump the member to the next higher step.
c. Pay for off-duty maintenance of a motorcycle and off-duty pay for the care and feeding of a canine will be excluded from these calculations as they represent overtime.
d. Members must work night shift for a one-year period prior to promotion in order for the City to include night -shift differential pay in the calculation.
6. The City and PPFMA agree to enter into the Side Letter of Agreement attached as "Exhibit A" to this Agreement. This Agreement and Exhibit A are effective upon City Council approval.
7. The City and PPFMA agree to pay their own costs and attorney's fees related in any way to the Grievance and this Agreement.
Placentia Police and Fire City of Placentia
Management Association
By:
Signature:
Email:
Tom McKenzie
PPFMA President
Dated: 10/31/24
12605001.2 PL010-028
raw/ Mc-Keit/zit-
, 1FPOT , By:
[email protected]
Signature: aalma nviiez
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Email: [email protected]
Rosanna Ramirez,
Acting City Administrator
Dated: 10/31/24
Settlement Agreement PPFMA Grievance
2024.11.05
Final Audit Report 2024-10-31
Created: 2024-10-29
By: Alice Burnett ([email protected])
Status: Signed
Transaction ID: CBJCHBCAABAAG9VP92cHwTbiQz1_20kd8MzFHXFwzMbg "Settlement Agreement PPFMA Grievance 2024.11.05" History Document created by Alice Burnett ([email protected]) 2024-10-29 - 0:30:23 AM GMT
Document emailed to Rosanna Ramirez ([email protected]) for signature 2024-10-29 - 0:30:27 AM GMT
Document emailed to Tom McKenzie ([email protected]) for signature 2024-10-29 - 0:30:28 AM GMT
Email viewed by Rosanna Ramirez ([email protected]) 2024-10-31 - 6:55:26 PM GMT
Document e -signed by Rosanna Ramirez ([email protected]) Signature Date: 2024-10-31 - 7:08:56 PM GMT - Time Source: server Email viewed by Tom McKenzie ([email protected])
2024-10-31 - 9:15:24 PM GMT
Document e -signed by Tom McKenzie ([email protected]) Signature Date: 2024-10-31 - 9:16:05 PM GMT - Time Source: server Agreement completed.
2024-10-31 - 9:16:05 PM GMT
Adobe Acrobat Sign
EXHIBIT A
Side Letter of Agreement Between
The City of Placentia and the Placentia Police and Fire Management Association Effective: Upon City Council Approval
This Side Letter of Agreement ("Side Letter") is made by and between the City of Placentia ("City") and the Placentia Police and Fire Management Association ("PPFMA") (collectively "the Parties") and is entered into with respect to the following:
WHEREAS, the City and PPFMA have previously entered into a Memorandum of Understanding ("MOU") covering the period of June 9, 2024 through June 30, 2025; and WHEREAS, Article 12(E) of the MOU provides that: "Employees hired or promoted into PPFMA after January 1, 2020 who opt out, will receive an opt out amount of $400 per month." WHEREAS, the City's Personnel Rules, Rule IV, provides, in part: "An employee promoted or reclassified from one job class to a higher job class in the same promotional series shall be placed at a salary step in the range of the higher job class which provides not less than 5.4% salary increase, and shall be given a new anniversary date for purposes of salary step advancements."
WHEREAS, the Parties have met and conferred regarding the terms of this Side Letter; and WHEREAS, the Parties have determined to memorialize their agreement by this Side Letter.
NOW THEREFORE the Parties hereto agree as follows:
1. Employees who promote into the PPFMA from a City classification represented by the Placentia Police Officers' Association ("POA") after the date of this side letter, who received a medical opt -out payment from the City greater than $400 per month before promotion, will retain their higher opt -out amount upon promotion to the PPFMA.
Current PPFMA members (as of the date of this side letter) who previously received a higher medical opt -out payment before promotion from a POA represented classification, but now receive a $400 monthly opt -out payment, will receive the higher amount that they previously received on a prospective basis only. PPFMA members who opt -out of medical coverage for the first time after promotion from a POA represented classification and all lateral hires into a PPFMA represented classification after the date of this side letter will receive an opt -out amount of $400 per month. For example, if an employee currently receiving medical coverage promotes into the PPFMA and then decides to opt - out of medical coverage, they will only receive the $400 monthly benefit provided in the PPFMA MOU.
12609541.2 PL010-028
2. The City will use the following method for calculating PPFMA members' salary placement upon promotion in accordance with Personnel Rule IV:
a. The City will compare the sum of base salary plus all specialty pays that a member earns both before and after their promotion to the minimum 5.4% increase on promotion.
b. In instances where a 5.4% salary increase places a member in-between steps, the City will bump the member to the next higher step.
c. Pay for off-duty maintenance of a motorcycle and off-duty pay for the care and feeding of a canine will be excluded from these calculations as they represent overtime.
d. Members must work night shift for a one-year period prior to promotion in order for the City to include night -shift differential pay in the calculation.
IN WITNESS THEREOF, the Parties have caused the duly authorized representatives to execute this Agreement this 28thday of October, 2024.
13y:
Signature: rarer Mcr(''e zie-
Tom 1Vkc enzi e [email protected]
PPFMA President
12609541.2 PL010-028
By:
signature: 4saimGi kap/freZ
Emil8sanna rramirrza f @ptace
u-ezntia.org
Acting City Administrator
PPFMA/Placentia Side Letter Agreement
2024.11.05
Final Audit Report 2024-10-31
Created: 2024-10-29
By: Alice Burnett ([email protected])
Status: Signed
Transaction ID: CBJCHBCAABAAIzN1Ix2t6N-ZJGtxfOSg-BKwLgW6NGyi "PPFMA/Placentia Side Letter Agreement 2024.11.05" History Document created by Alice Burnett ([email protected]) 2024-10-29 - 0:27:14 AM GMT
Document emailed to Rosanna Ramirez ([email protected]) for signature 2024-10-29 - 0:27:19 AM GMT
Document emailed to Tom McKenzie ([email protected]) for signature 2024-10-29 - 0:27:19 AM GMT
Email viewed by Rosanna Ramirez ([email protected]) 2024-10-31 - 7:09:09 PM GMT
Document e -signed by Rosanna Ramirez ([email protected]) Signature Date: 2024-10-31 - 7:11:15 PM GMT - Time Source: server Email viewed by Tom McKenzie ([email protected])
2024-10-31 - 9:16:52 PM GMT
Document e -signed by Tom McKenzie ([email protected]) Signature Date: 2024-10-31 - 9:17:42 PM GMT - Time Source: server ® Agreement completed.
2024-10-31 - 9:17:42 PM GMT
• Adobe Acrobat Sign
RESOLUTION NO. R-2024-68
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PLACENTIA, CALIFORNIA APPROVING A SIDE LETTER
AGREEMENT SETTLEMENT AGREEMENT BETWEEN THE CITY
OF PLACENTIA AND THE PLACENTIA POLICE AND FIRE
MANAGEMENT ASSOCIATION
A. Recitals
1. The City and PPFMA have reached an agreement on terms for settling a Grievance filed against the City of Placentia ("City") by the Placentia Police and Fire Management Association ("PPFMA").
2. As part of this settlement, the City and PPFMA have agreed to a side letter agreement amending the Memorandum of Understanding ("MOU"), PPFMA No. 23-24 effective June 9, 2024 through June 30, 2025.
THEREFORE, the City and PPFMA agree and City Council approves as follows:
1. The City and PPFMA agree to enter into the Side Letter of Agreement attached as "Exhibit A" to this Resolution. The Settlement Agreement and Exhibit A are effective upon City Council approval.
APPROVED and ADOPTED this day of 2024.
Jeremy Yamaguchi Mayor
ATTEST:
Robert S. McKinnell, City Clerk
STATE OF CALIFORNIA
COUNTY OF ORANGE
190
I, Robert S. McKinnell, City Clerk of the City Of Placentia do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council held on the day of 2024 by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
Robert S. McKinnell, City Clerk
191