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RESOLUTION APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF STOCKTON AND THE STOCKTON POLICE MANAGEMENT ASSOCIATION
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RECOMMENDATION
It is recommended that the City Council adopt by Resolution the attached Stockton Police Management Association (SPMA) successor Memorandum of Understanding (MOU) effective July 1, 2014 through June 30, 2016. The City Council adoption will authorize the City Manager to: 1) execute the MOU; 2) amend the Fiscal Year (FY) 2015-16 Budget to appropriate additional funds; and 3) take actions appropriate to carry out the implementation of the MOU.
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Summary
Representatives of the City began meeting June 10, 2014, with representatives of SPMA on a successor MOU. The SPMA MOU expired June 30, 2014, and, the City and SPMA desired to negotiate a successor MOU effective after that expiration. The successor MOU presented herein contains an increase to the City’s medical contribution effective the first full pay period after ratification; and a 2% cost of living increase adjustment (COLA) to base pay effective the first full pay period following adoption. Both increases are consistent with the City’s Long-Range Financial Plan (L-RFP) as incorporated into the City’s plan for exiting bankruptcy. The SPMA successor MOU contains similar terms and conditions as the prior two years, with other minor changes to enhance retention and increase operational efficiencies. The parties reached a tentative agreement on July 09, 2015 and the City has received notification from SPMA that the bargaining unit membership ratified this successor MOU. The successor MOU is attached in redlined format as Attachment A.
DISCUSSION
Background
The City has had substantial fiscal shortfalls over the past several years culminating in the bankruptcy filing in June of 2012. On June 26, 2012, the City Council adopted a final budget for FY 2012/2013 under the Pendency Plan filed for the bankruptcy proceedings. It also adopted as part of its Pendency Plan changes in compensation and benefits. In June 2013, the City Council adopted an amendment to the successor MOU for SPMA with a term of two years, July 1, 2012 through June 30, 2014. Now, the existing MOU is expired, and the City and SPMA have since been meeting on the terms of a successor MOU. The focus of these negotiations was to obtain a successor MOU with terms and conditions consistent with the City’s L-RFP.
Present Situation
The relevant amendments under the successor MOU for SPMA are summarized as follows:
1. MOU Contract Term for two years - July 1, 2014 through June 30, 2016 (MOU Section 19);
2. Efficiency Re-opener - SPMA has agreed to a reopener clause to meet and confer upon City’s request regarding proposals related to City’s efficiency measures (MOU Section 1.3);
3. Vacation Sell back - SPMA has agreed to eliminate the vacation sell back provision (MOU Section 9.1(c));
4. 2% base pay increase (COLA) effective July 1, 2015, or the first full pay period following adoption whichever is later, consistent with the City’s L-RFP (MOU Section 15.1);
5. City Contribution Towards Health Insurance - the City has agreed to increase the City’s capped health insurance premium contribution consistent with the City’s L-RFP (MOU Section 14.1 (c)). Therefore, upon Council approval of this successor MOU, the City’s health premium contribution for SPMA members will increase effective July 1, 2015, or the first full pay period after adoption whichever is later, to the same level as other bargaining units who have reached agreements. The City’s overall contribution increase to SPMA member’s health insurance premiums from their current contribution levels will be as follows:
$21 per month for Employee Only;
$38 per month for Employee plus 1 Dependent; and
$51 per month for Employee plus 2 or more Dependents;
6. Health Insurance - SPMA has agreed to a reopener clause to meet and confer upon City’s request regarding proposals related to City sponsored medical plans and implementation of the Affordable Care Act (ACA) (MOU Section 14);
7. Retention Bonus - 27 hours of leave as a retention bonus for members continuously employed by the City from July 1, 2014 through the first full pay period following Council adoption of this successor MOU; leave time has no cash value until the last pay period of the contract term, at such time unused hours will be cashed out, but will have no cash value for any eligible employees separating prior to the last pay period of the contract term (MOU Section 15.10);
8. Holiday Compensation - The City has agreed that Captains and Non-Patrol Lieutenants who are not assigned to the traditional 10-plan Field Operations/Patrol shift schedule, and observe City Holidays will be entitled to take each holiday off with full pay, not to exceed 8 hours for any one (1) holiday listed in section 12.1. When the holiday falls on a regularly scheduled work day, and that scheduled work day exceeds the eight (8) hours of earned holiday pay, the employee shall use the appropriate number of hours from their personal leave to complete their work day (MOU Section 12.2 (a));
9. Holiday Compensation - Patrol Assignments for Police Lieutenants assigned to the traditional 10-plan Field Operations/Patrol shift schedule shall receive a 5% holiday in lieu add pay (equivalent to 8 hours holiday pay for each of the holidays listed in section 12.1). This pay is in exchange for the elimination of extra holiday compensation for these positions (MOU Section 12.2). If Police Lieutenants work on a holiday, actual hours worked will be paid at time and one half (up to 8 hours) (MOU Section 12.2 (b));
10. Conversion to Holiday in lieu - The City has agreed to credit each bargaining unit member an additional eight (8) hours of leave. This leave shall be treated the same as leave allocated as a retention bonus in section 15.10 (e.g., no cash value on separation and automatically cashed out by the last past pay period of the contract term) MOU Section 12.3);
11. Special Assignment Differential - The City has agreed to issue Non-patrol Lieutenants who are not assigned to the traditional 10-plan Field Operations/Patrol shift schedule, and are assigned to schedules that regularly observe holidays off shall receive a “Special Assignment” differential equal to five percent (5%) of the employee’s current base pay. This pay is in exchange for the elimination of extra holiday compensation for these positions (MOU Section 15.9); and
12. Elimination of obsolete language and other language cleanup changes.
FINANCIAL SUMMARY
The cost for the 2% COLA beginning September 1, 2015, is $78,000.
While vacation sell back has been suspended since February 2012, the future cost avoidance for eliminating the Vacation Sell Back provision is $64,000.
The cost for the health contribution increase is approximately $10,000.
The cost for the retention incentive leave hours is $38,000, in the event all members were to cash out the hours June 30, 2016. Vacancy savings within the Police Department during FY 2014-15 are expected to cover the cost for this retention incentive.
The amendments to Holiday Pay and implementation of the 5% special assignment add pay for Non-Patrol assignments is cost neutral, as the add pay is in exchange for the elimination of extra holiday compensation.
This unit is charged 100% to the Police Department General Fund budget. Funding for the 2% COLA and health contribution increase was planned in the Long-Range Financial Plan and additional funds will need to be appropriated to the Police Department FY 2015-16 General Fund Budget for the costs associated with this MOU. No additional appropriation is needed for the health contribution increase. Vacancy savings from FY 2014-15 can be re-appropriated from General Fund available fund balance to the Police General Fund budget in FY 2015-16 in the amount of $38,000 for the one time retention incentive leave hours.
Attachment A - SPMA MOU - redlined