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HomeMy WebLinkAbout11 TPOA AND TPSA MOU 11y O Agenda Item 11 Reviewed: AGENDA REPORT City Manager &SI% Finance Director N/A MEETING DATE: JULY 21, 2015 TO: JEFFREY C. PARKER, CITY MANAGER FROM: DERICK YASUDA, DIRECTOR OF HUMAN RESOURCES SUBJECT: MEMORANDA OF UNDERSTANDING WITH THE TUSTIN POLICE OFFICERS ASSOCIATION — POLICE OFFICER REPRESENTATION UNIT AND THE TUSTIN POLICE OFFICERS ASSOCIATION — POLICE MANAGEMENT REPRESENTATION UNIT SUMMARY Adoption of the attached Resolutions and Memoranda of Understanding (MOU) will authorize terms and conditions of employment for employees in classifications represented by the Tustin Police Officers Association — Police Officer Representation Unit (TPOA) and the Tustin Police Officers Association — Police Management Representation Unit (TPMA) in accordance with City Council direction. RECOMMENDATION It is recommended that the City Council adopt the following resolutions: 1. Resolution No. 15-42 amending the City's Classification and Compensation Plans and approving a Memorandum of Understanding with TPOA for the period July 1, 2015 through June 30, 2018; and 2. Resolution No. 15-43 amending the City's Classification and Compensation Plans and approving a Memorandum of Understanding with TPMA for the period July 1, 2015 through June 30, 2018. FISCAL IMPACT The terms of these two agreements will result in an additional cost of approximately $4,204,309 over the three-year term of the agreements (an average of $1 ,401,436 per year). BACKGROUND AND DISCUSSION The City began the labor negotiations process in December 2014. In April 2015, the City's representatives initiated labor negotiations meetings with representatives from the City's four bargaining units. On July 7, the City Council approved new three-year contracts with Tustin Municipal Employees Association (TMEA) and the Tustin Police City Council Agenda Report July 21, 2015 MOU with TPOA and TPMA Page 2 Support Services Association (TPSSA). The City is pleased to have reached agreement with the final two bargaining units, TPOA and TPMA, each also with a three-year contract term beginning July 1, 2015 and ending June 30, 2018. TPOA represents 69 employees in the classifications of Police Recruit and Police Officer. TPMA consists of the City's represented police management staff, which includes a total of 23 Police Sergeants and Police Lieutenants. For employees represented by TPOA and TPMA, the last across-the-board compensation increases, without any offsetting concessions, occurred in December 2008. From 2009 through 2012, the City implemented a number of employee cost- reduction measures, including increased employee contributions to the CaIPERS retirement system, the implementation of second-tier CaIPERS retirement plans and second-tier retiree medical plans, reduction in employee General Leave accrual maximums, and an early retirement incentive. In our most recent two-year agreements, the City implemented a new top step on the salary schedule and increased the City's Flexible Benefits contribution used to purchase health, dental, and other insurance. At the same time, these increases were partially offset by employees paying a greater proportion of CaIPERS retirement costs. All of our employees are now paying approximately half of the total normal cost of the CaIPERS retirement benefit. These previous employee concessions were made in a context of a world-wide recession, declining City revenues, increased employee retirement costs, and the dissolution of the City's redevelopment agency. To the credit of our employees, all bargaining units recognized the circumstances and agreed to a series of contracts that implemented these concessions. The key terms of each agreement are as follows: • 4% base salary increase effective July 1, 2015 and 3.5% base salary increase effective July 1, 2016 • One-time lump sum payment equivalent to 6% of the bargaining unit's average base salary effective July 1, 2017 • Increases to the City's Flexible Benefits contributions (the City's contribution towards medical, dental, and other insurance) of $100 per month effective July 1, 2015, $50 per month effective July 1, 2016, and $50 per month effective July 1, 2017 • Increases to the City's Flexible Benefits Opt Out contribution of $100 per month effective July 1, 2015, $25 per month effective July 1, 2016, and $25 per month effective July 1, 2017 City Council Agenda Report July 21, 2015 MOU with TPOA and TPMA Page 3 • Additional opportunity to voluntarily cash out 40 — 60 hours of accrued General Leave once each fiscal year during the term of the agreement, provided employees have 160 hours of accrued leave at the time of the cash out • The establishment of Martin Luther King, Jr. Day as a paid City holiday • Amending the Tuition Reimbursement program to allow reimbursement for approved courses up to $4,000 per year for graduate school, a four-year college or university, or other related programs or up to $2,000 per year for community college The contracts also include a handful of changes to operational issues such as the department's shift selection procedures and other modifications to clarify current business practices. Both agreements contain re-openers midway through the contract should conditions change and either the City or the associations feel the need to negotiate over any terms and conditions of employment. In addition, TPOA and TPMA have agreed to the City's proposed updates to the Personnel Rules. The Personnel Rules address Citywide policies and procedures on a variety of Human Resources issues, including recruitment, leaves of absence, and discipline. The modifications primarily involve changes in law and current practice since the Personnel Rules were last updated in 2010. The City is extremely pleased to now have multi-year agreements with all four bargaining units that are positive for the employees, within the City's financial means, and will provide stability and labor peace over the next three fiscal years. Derick Yasudal Director of Human Resources Attachments: 1. City Council Resolution No. 15-42 2. MOU between the City and TPOA for July 1, 2015 through June 30, 2018 3. City Council Resolution No. 15-43 4. MOU between the City and TPMA for July 1, 2015 through June 30, 2018