CITY COUNCIL: Resolution Amending the Memorandum of Understanding (MOU) with the Carmel Police Association (POA)

Meeting Date: November 1, 2011
Prepared by: Jason Stilwell, City Administrator

City Council
Agenda Item Summary

Name: Consideration of a Resolution amending the Memorandum of Understanding (MOU) with the Carmel Police Association (POA).

Description: The City and the POA have entered into an MOU that is scheduled to expire on June 30, 2012. The agreement covers both sworn and non-sworn police department employees.

The City Council has determined that in order to achieve long term fiscal stability and sustainability, the City must implement fundamental change to how it provides employee benefits including the implementation of new retirement tiers. Changes in retirement benefit must be negotiated with the City’s recognized bargaining units. The California Public Employees’ Retirement System (CalPERS) administers the retirement benefits of the City’s employees. The California Public Employee retirement Law (PERL) mandates separate retirement formulas for safety and non-safety employees.

In order for the City to implement the new retirement tiers, amendments to the MOUs with all recognized bargaining units is required. The Carmel Professional Fire Fighters (IAFF) has offered to begin a two-tier PERS public safety formula for all fire department employees hired after July 1, 2011. The implementation of a second retirement tier and other minor changes to the MOU for all employees represented by the POA was ratified by its membership on October 21, 2011.

The proposed amendment to the current MOU accomplishes the City’s goal of reducing retirement costs and includes the following additional modifications:

1. 2%@50 retirement tier for newly hired sworn officers and 2%@60 for newly hired non-sworn personnel with three-year final average salary for each effective the implementation date of the new tier by CalPERS;
2. Section 11 and 12 of the MOU will be changed to the accrue rate of 12 hours for holidays and general leave;
3. Increase uniform allowance for all members from $50/month to $75/month; and
4. In-lieu cash for individuals who opt out of the insurance coverage be set at $291 rather than the $270 it states in the MOU (this corrects an error in the contract that was not previously caught since currently none of the members utilize the benefit and is not consistent with the other units.).

Fiscal Impact: The cost of achieving the two-tier agreement now rather than at the expiration of the MOU would be mitigated this fiscal year by implementing the economic benefits. The estimated cost of the economic terms is an estimated $22,000 this fiscal year and $44,000 in 2012-2013.

Staff Recommendation: Approve the attached Resolution incorporating the new terms and conditions into the current MOU between the City and POA.

Reviewed by:

__________________________ _________________
Jason Stilwell, City Administrator Date

CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION 2011-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA AMENDING THE MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY AND THE
POLICE OFFICERS ASSOCIATION (POA)

WHEREAS, the current POA and City have entered into an MOU for the period July 1, 2009 through June 30, 2012; and

WHEREAS, the City conducted a meet and confer with POA regarding retirement
changes in retirement benefit formulas and economic considerations; and
WHEREAS, the membership of the POA ratified certain modifications to the MOU as listed below.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CARMEL-BYTHE-
SEA DOES RESOLVE AS FOLLOWS:
1. Amend Article 7 of the MOU to include 2%@50 formula for newly hired sworn officers and 2%@60 formula for newly hired non-sworn personnel with three-year final average salary for each;

2. Section 11 and 12 of the MOU will be changed to the accrual rate of 12 hours for holidays and general leave;

3. Uniform allowance for all members to increase from $50/month to $75/month; and

4. In-lieu cash for individuals who opt out of the insurance coverage to be set at $291 rather than the $270 it states in the MOU.

PASSED AND ADOPTED by the City Council of the City of Carmel-by-the Sea this 1st day of November 2011, by the following roll call vote:

AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:

SIGNED:

________________________
SUE McCLOUD, MAYOR

ATTEST:

___________________________
Heidi Burch, City Clerk