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CC 2016-08-09_09b MOU_POA FY 16-17 MEMORANDUM TO: CITY COUNCIL FROM: DEBORAH MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES KAREN SISKO, HUMAN RESOURCES MANAGER SUBJECT: CONSIDERATION OF A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTATNDING WITH THE ARROYO GRANDE POLICE OFFICERS’ ASSOCIATION FOR FY 2016-17 DATE: AUGUST 9, 2016 RECOMMENDATION: It is recommended that the City Council adopt a Resolution approving a Memorandum of Understanding (“MOU”) with the Arroyo Grande Police Officers’ Association (“AGPOA”) for FY 2016-17. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Total costs in FY 2016-17 are projected to be approximately $132,100. The budget anticipated increased costs of approximately $76,700 and will be amended to reflect the additional change during the mid-year budget review. BACKGROUND: The AGPOA MOU expired on June 30, 2016. Negotiations have been under way for the past several months for a successor MOU. The terms of the proposed MOU were voted on and approved by the AGPOA’s membership on July 27, 2016. Salary adjustments will become effective on August 12, 2016, the first day of the first full pay period following ratification by the AGPOA and Council approval of the MOU. ANALYSIS OF ISSUES: Changes to the POA salary and benefits recommended in the successor MOU include the following:  Sworn employees will receive a 6% salary increase in FY 2016-17 (not retroactive).  Classic and 2nd Tier Sworn employees will pay a 2% Employer contribution towards their CalPERS retirement. PEPRA Sworn employees will pay a 0.5% Employer contribution towards their CalPERS retirement.  Non-sworn employees will receive a 4% salary increase in FY 2016-17 (not retroactive) with no payment of the Employer contribution to CalPERS. Item 9.b. - Page 1 CITY COUNCIL CONSIDERATION OF A MEMORANDUM OF UNDERSTANDING WITH THE ARROYO GRANDE POLICE OFFICERS’ ASSOCIATION FOR FY 2016-17 AUGUST 9, 2016 PAGE 2  The City will adjust the cafeteria plan amount to pay 50% of the increase in the cost of the lowest cost HMO medical plan available to the City up to a maximum of a 5% increase in premiums for City’s contribution for 2107. This provision is consistent with the prior MOU. ALTERNATIVES: The following alternatives are provided for the City Council’s consideration 1. Adopt the Resolution approving the proposed MOU; 2. Do not adopt the Resolution; 3. Provide direction to staff. ADVANTAGES: Approval of the proposed MOU will help address inequities to maintain competitive salaries and benefits which will assist with recruitment and retention issues in the Police Department. DISADVANTAGES: The recommendation will increase costs to current and future budgets. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, August 4, 2016. The agenda and report were posted on the City’s website on Friday, August 5, 2016. No public comments were received. Item 9.b. - Page 2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING A MEMORANDUM OF UNDERSTANDING FOR EMPLOYEES REPRESENTED BY THE ARROYO GRANDE POLICE OFFICERS’ ASSOCIATION AND REPEALING RESOLUTION NO. 4625 WHEREAS, the City Council deems it to be in the best interest of the City of Arroyo Grande and its employees represented by the Arroyo Grande Police Officers’ Association that compensation be fixed for all full-time non-management employees as herein provided; and WHEREAS, the City has established compensation and working conditions through the meet and confer process with the designated employee representatives as set forth in Exhibit “A” entitled Memorandum of Understanding between the City of Arroyo Grande and the Arroyo Grande Police Officers Association (“AGPOA MOU”), a copy of which is attached hereto and incorporated herein by this reference. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande that the AGPOA MOU is hereby approved. This Resolution shall be effective as of July 1, 2016. BE IT FURTHER RESOLVED that this Resolution shall repeal those sections of Resolution No. 4625 which established salary and benefits for full-time employees represented by the Arroyo Grande Police Officers’ Association. On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 9th day of August, 2016. Item 9.b. - Page 3 RESOLUTION NO. PAGE 2 JIM HILL, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: GEOFF ENGLISH, ACTING CITY MANAGER APPROVED AS TO FORM: HEATHER WHITHAM, CITY ATTORNEY Item 9.b. - Page 4 EXHIBIT A Item 9.b. - Page 5 Item 9.b. - Page 6 Item 9.b. - Page 7 Item 9.b. - Page 8 Item 9.b. - Page 9 Item 9.b. - Page 10 Item 9.b. - Page 11 Item 9.b. - Page 12 Item 9.b. - Page 13 Item 9.b. - Page 14 Item 9.b. - Page 15 Item 9.b. - Page 16 Item 9.b. - Page 17 Item 9.b. - Page 18 Item 9.b. - Page 19 Item 9.b. - Page 20 Item 9.b. - Page 21 Item 9.b. - Page 22 Item 9.b. - Page 23 Item 9.b. - Page 24 Item 9.b. - Page 25 Item 9.b. - Page 26 Item 9.b. - Page 27 Item 9.b. - Page 28 Item 9.b. - Page 29 Item 9.b. - Page 30 Item 9.b. - Page 31 Item 9.b. - Page 32 Item 9.b. - Page 33 Item 9.b. - Page 34 Item 9.b. - Page 35 Item 9.b. - Page 36 Item 9.b. - Page 37 Item 9.b. - Page 38 Item 9.b. - Page 39 THIS PAGE INTENTIONALLY LEFT BLANK Item 9.b. - Page 40