City Council Meeting: March 25,
2008
Agenda Item: 1-L
To: Mayor and City Council
From: Karen Bancroft, Director of Human
Resources
Subject: Resolution Implementing an Equity Adjustment
Required by Memorandum of Understanding between the City and the
Recommended
Action
This report requests that
Council adopt the attached Resolutions:
1) Resolution to
implement an equity adjustment to satisfy the current Memorandum of
Understanding (MOU) between the City and the Santa Monica Police Officers
Association (SMPOA)
2) Resolution to
authorize the City Manager to execute an amendment to the SMPOA MOU to provide
SMPOA parity with the City’s other bargaining units by allowing the same
percentage increase to the cap on the City’s contribution towards medical
insurance effective January 1, 2009. All
other provisions of the MOU are being rolled over for FY2008-2009.
Executive
Summary
The current MOU between the City
and SMPOA requires that the total compensation, as defined in the MOU, of a
Police Officer must be maintained at a level that will place SMPOA at the #2
rank among the comparison cities. As of
January 1, 2008, an equity adjustment of 1.74% will satisfy this provision. The total increase will be approximately
$276,155 for FY2007-2008. Sufficient funds are available in the
Non-departmental budget to cover the additional cost.
The SMPOA agreement expires as
of June 30, 2008. The association has agreed
to rollover their current MOU for another fiscal year (FY2008-2009). One issue that needs to be addressed now
because of the timing of increases to medical insurance premiums is the City’s
contribution towards medical insurance premiums, which are effective January 1,
2009. To give SMPOA parity with the
City’s other bargaining units, the proposed amendment would provide for an
adjustment in the City’s contribution cap up to a maximum of twelve percent
(12.0%). The maximum additional cost
would be $169,362 for FY2008-2009. This
report requests that an appropriation for this additional cost be included in
the FY2008-2009 budget.
Discussion
SMPOA’s current MOU
is scheduled to expire on June 30, 2008.
SMPOA has agreed to rollover their MOU for fiscal year
(FY2008-2009). Per the terms of the MOU
roll-over provision, SMPOA will receive a cost of living adjustment (COLA)
based on the January 2007 to January 2008 Consumer Price Index (CPI) for all
Urban Wage Earners and Clerical Workers in Los Angeles-Riverside-Orange County,
with the COLA not to exceed four percent (4.0%). Since the CPI was 4.6%, SMPOA will receive a
4.0% cost of living adjustment for FY2008-2009.
This will be incorporated into the FY2008-2009 budget.
The terms of the
City’s MOU’s correspond to the City’s fiscal year whereas the cost of medical
insurance is adjusted by the medical insurance providers each calendar
year. The terms and conditions of
medical insurance coverage for SMPOA are set forth in their MOU. The terms and conditions of medical insurance
coverage for all of the City’s other bargaining units (non-sworn and
Firefighters) is set forth in a separate Umbrella Agreement (MOU). Since SMPOA is rolling over their current
MOU for another fiscal year (FY2008-2009), an amendment to their MOU will be
required in order to adjust the City’s contribution towards medical insurance
premiums as of January 1, 2009 to give SMPOA parity with the City’s other
bargaining units. The proposed amendment
would provide for an increase in the City’s contribution cap up to a maximum of
twelve percent (12.0%), which is the same percentage increase that will be
implemented for all of the City’s other bargaining units as of January 1,
2009.
Financial Impacts &
Budget Actions
The total cost of
the 1.74% equity adjustment will be $276,155 for FY2007-2008. This additional cost will be transferred from
the Non-departmental set aside funds (account 01274.511010) to the Police
Department. Assuming that there are no changes in the number and the current
enrollment of active SMPOA employees, the total cost of the increase in the
City’s contribution towards medical insurance premiums will not exceed $169,362
for FY2008-2009. This additional cost
will need to be included in the FY2008-2009 budget.
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Approved: |
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Forwarded to Council: |
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Karen Bancroft Director,
Human Resources Department |
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P. City Manager |