REPORT TO COUNCIL
SUBJECT
Title
Authorize the City Manager to Execute the 2022-2025 Memorandum of Understanding Between the City of Santa Clara and the Police Officers Association (Unit 2) that Incorporates the Terms of the Joint Mediation Recommendation
Report
COUNCIL PILLAR
Enhance Community Engagement and Transparency.
BACKGROUND
The Police Officers Association (hereafter, “Unit 2”) Memorandum of Understanding (hereafter, “MOU”) expired on December 18, 2021.
Given the ongoing challenges related to the COVID-19 pandemic and the surrounding uncertainty, and its impacts on the City’s ongoing budget deficit, the City and Unit 2 engaged in discussions on a successor MOU in an effort to reduce the City’s estimated General Fund deficit. As of February 2022, the City projects a substantial General Fund ongoing shortfall of $19.6 million in FY 2023/24, which is largely the result of COVID-19 induced impacts on the City’s revenues.
As previously noted, the City of Santa Clara’s collective bargaining agreement with Unit 2 expired on December 18, 2021. The City and Unit 2 began negotiations on a successor MOU in September 2021 and met approximately ten (10) times. As the parties were unable to reach agreement during negotiations, both parties agreed to retain a mediator. Mediation sessions were scheduled for May 9 and May 16, 2022. On May 16, 2022, the parties reached a Joint Mediation Recommendation. The Joint Mediation Recommendation was ratified by the Unit 2 membership on or about May 23, 2022 and accepted by the City.
DISCUSSION
The recommended action authorizes the City Manager to execute a successor Memorandum of Understanding with a term of December 19, 2021, through and including December 31, 2025, that incorporates the terms of the Joint Mediation
Recommendation reached between both parties.
The following is a summary of the notable provisions of the Joint Mediation Recommendation:
Term:
December 19, 2021 - December 31, 2025
Wages:
Effective the first pay period of calendar year 2022 and 2023, all salary ranges in classifications assigned to Unit 2 shall remain status quo.
Effective the first pay period of calendar year 2024, all salary ranges for employees holding positions in classifications assigned to Unit 2 shall be increased by approximately 5.0%.
Effective the first pay period of calendar year 2025, all salary ranges for employees holding positions in classifications assigned to Unit 2 shall be increased by approximately 4.0%.
One-Time Non-Pensionable Discretionary Cash Payment:
In recognition of, and to help secure the employees' speedy ratification of this MOU, the City has exercised its discretion to provide a one-time discretionary cash payment of $5,000 for regular employees in the bargaining unit following Council approval of this MOU. The Parties intend and understand that this lump sum payment is non-pensionable and will not be reported to CalPERS. An employee must be employed in a classification assigned to Unit 2 at the time the one-time discretionary cash payment is made to receive the payment.
POST Certificates
Effective retroactive to January 9, 2022, employees that have achieved Intermediate POST certification shall receive 3.75% (from 2.5%) of base pay for this certification, and employees that have achieved Advanced POST certification shall receive an additional 3.75% (from 2.5%) of base pay for this certification. The total amount received for Advanced POST, when combined shall be 7.5% of base pay.
Holiday In Lieu
Effective the first full pay period following City Council adoption, the Holiday In Lieu premium shall be increased to 7.5% (from 5.0%) of base pay.
Healthcare:
Effective January 1, 2023, the City will pay 100% of the premium of the lowest priced Kaiser (Region 1) plan for employees in Unit 2 enrolled at the Employee Only and Employee Plus One levels, and 90% of the premium of the lowest priced Kaiser (Region 1) plan for employees in Unit 2 enrolled in the Employee Plus Two or More level. Employees who select a plan whose premium exceeds the City contribution described above will be responsible for the difference. Employees will not receive any portion of the City’s contribution as cash or any other taxable benefit.
Current employees hired on or before December 31, 2022, who choose not to enroll in a City health plan and meets the requirements set forth in the MOU shall continue to receive a cash-in-lieu amount equal to $835.66/month, while employees hired or rehired on or after January 1, 2023, shall receive a cash-in-lieu amount of $250/month.
Special Response Team (SRT)
Employees who are members of the SRT currently receive a 5% differential during the time the team is activated and combat ready. Employees shall also be eligible to receive the 5% differential if the SRT team is engaged in training activities or participating in SRT team meetings.
Crisis Intervention Training/De-Escalation Premium Pay (CIT)
Effective the first full period in January 2023, employees shall receive a 3.0% premium pay for completion of the following training:
CA POST Crisis Intervention Training (Basic) Certification and
CA POST Hostage (Crisis) Negotiation Training (Basic) Certification; OR
24 hours of accumulated training as approved by the Department’s Training Unit, including but not limited to courses in crisis intervention, de-escalation, strategic communication, and other topics relative to promoting positive, non-biased, non-use of force interactions with the community.
Double Time Pay
The Police Department has faced repeated and ongoing difficulties with obtaining necessary staffing numbers for NFL events, and has had to frequently rely upon staffing from its partner agencies, which creates additional administrative burden. Therefore, in order to incentivize employees to volunteer to work at NFL events, employees who work overtime at NFL games at Levi’s Stadium will be paid at the double time rate for that work. Overtime shall be for pay only. However, the parties acknowledge that the issue of full reimbursement to the City or Stadium Authority for public safety costs is currently under litigation. In the event a court or arbitrator issues a binding decision permitting less than full reimbursement to the City or Stadium Authority for public safety costs including the payment of the overtime rate listed herein, the parties will meet and confer over this change. From the time the contract reopens until agreement is reached, overtime will be paid at time and one-half.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
The City regularly budgets the total compensation cost for its current employees and integrates known and projected cost increases from MOUs in the City’s annual budget. The ten-year forecast also incorporates the projected labor costs.
The costs of this MOU are within budget authority approved by the City Council through the negotiation process. The chart below reflects the estimated changes in costs in the General Fund as well as all funds over the term of the MOU. The ongoing costs will be factored into the budget and the General Fund ten-year forecast. Over the contract period, the ongoing costs in the General Fund total $6.1 million. The cost of the one-time non-pensionable discretionary cash payment is $725,000. As a result of departmental vacancies and continued cost controls, there are sufficient General Fund expenditure savings in fiscal year 2021/22 to absorb these one-time costs. Ongoing impacts will be factored into future updates of the General Fund Ten-Year Forecast.
|
Item |
Description |
Estimated General Fund Cost |
Estimated All Funds Cost |
|
Ongoing Items |
|
Wages (Jan. 2022 and Jan. 2023) |
0% increase |
$0 |
$0 |
|
Wages (Jan. 2024) |
5.0% increase |
$1.8M |
$1.8M |
|
Wages (Jan. 2025) |
4.0% increase |
$1.5M |
$1.5M |
|
POST Pay (Jan. 2022) |
Increase of 2.5% for Advanced POST |
$869K |
$869K |
|
Holiday In Lieu (Pay Period following Council Approval)* |
Increase to 7.5% (from 5.0%) |
$869K |
$869K |
|
Crisis Intervention Training/ De-escalation Pay |
3.0% |
$1.1M |
$1.1M |
|
Total Ongoing |
|
$6.1M |
$6.1M |
|
One-time Items |
|
Non-Pensionable Discretionary Cash Payment (2022) |
$5,000 per employee (one-time) |
$725K |
$725K |
|
Total One-time |
|
$725K |
$725K |
* Cost for calendar year 2022 is approximately $483K, assuming an effective date of June 12, 2022.
The costs associated with the changes to healthcare cannot be determined at this time, as the City cannot predict enrollment behavior, especially with the change to the City paying 100% of the premium of the lowest priced Kaiser (Region 1) plan for employees in Unit 2 enrolled at the Employee Only and Employee Plus One levels, and 90% of the lowest priced Kaiser (Region 1) premium for employees who enroll in Employee Plus Two or More level and the change to the health in-lieu amount.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>, or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Authorize the City Manager to execute the Memorandum of Understanding between the City of Santa Clara and the Police Officers Association with effective dates of December 19, 2021 - December 31, 2025, that incorporates the terms of the Joint Mediation Recommendation.
Staff
Reviewed by: Aracely Azevedo, Director of Human Resources
Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. Joint Mediation Recommendation between the City and Unit 2
2. Memorandum of Understanding between the City and Unit 2 2021-2025 (Track)
3. Memorandum of Understanding between the City and Unit 2 2021-2025 (Clean)