CITY COUNCIL AGENDA REPORT
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1 L.3 CITY COUNCIL AGENDA REPORT TYPE OF ITEM: Report AGENDA ITEM NO.: 3 DATE: March 19, 2019 TO: FROM: SUBJECT: City Council Steve Naveau Director of Human Resources Successor Memoranda of Understanding Between the City of Oxnard and the Oxnard Peace Officers Association and the Oxnard Public Safety Managers Association. (5/5/5) CONTACT: Steve Naveau, Director of Human Resources Steve.Naveau@oxnard.org, (805) RECOMMENDATION: That City Council adopt by resolution the attached successor memoranda of understanding (MOU) with the following bargaining units: a. Oxnard Peace Officers Association (OPOA); and b. Oxnard Public Safety Managers Association (OPSMA). BACKGROUND The agreements with our police bargaining units represent nine months of negotiations with the two parties. The City began the process with the intent to put its limited resources into fixing the employer contribution to employee healthcare. This has been an ongoing issue that has hampered the City s ability to recruit and retain employee talent. As an example of the issues our employees must manage, a family that accepts medical through the City will pay more than $1,000 per month for medical while nearby jurisdictions with the same medical plans will pay less than $400, and in some cases, significantly less than that. The City s bargaining team made its intentions understood at the outset that, though we were willing to address small issues of compensation, our primary goal was to address the benefits divide and provide only small increases in total compensation of which none of those increases should be reportable to CalPERS as income. By shifting money away from compensable items the total cost of any increases in benefits is significantly less as the City is only paying for the total cost of the benefit rather than the compounded cost if the benefit is reportable to CalPERS. Packet Pg. 73
2 Approve Memoranda of Understanding (5/5/5) March 19, 2019 Page 2 L.3 DISCUSSION The contracts proposed represent fair and reasonable adjustments in overall compensation for our police officers and commanders. Both bargaining units have voted to ratify their respective, proposed contracts. The tentative agreements for each bargaining unit are attached, and more details on each item are provided below: Following terms are applicable to the two bargaining units: Term: Through June 30, 2021 Medical: The City will increase its total contribution to the medical program incrementally to a final amount of $1,543 per month over the term of the contract. Those who elect to waive coverage will receive cash in lieu with a total maximum of a $1,243 increase per month in the last year of the contract. The amount shall be reduced to $900 per month after the end of the contract unless each bargaining group meets the stated target of 75% participation in the City s medical plan. Below is the monthly health care contribution for some of our comparator agencies as compared to Oxnard s: Agency Monthly Employer Contribution City of Oxnard $ City of Thousand Oaks $ City of Ventura $1, City of Santa Barbara $1, City of Simi Valley $1, City of Anaheim $3, City of Glendale $1, City of Riverside $1, City of Pasadena $1, OPOA Physical Fitness Program: The City will increase its contribution to the program by $10,000 per year. Deferred Compensation: The City will make a 0.9% contribution to a qualified 401(a) Deferred Compensation Plan. Callback: City will increase the call back from $2 per hour to $4 per hour. Callback Packet Pg. 74
3 Approve Memoranda of Understanding (5/5/5) March 19, 2019 Page 3 L.3 occurs when an employee is assigned to be available to respond back to work when called by a manager. This requires the employee to be readily available to return to work and places some restrictions on the employees off time. Investigation Differential: The City will provide a 5% differential for two employees whose primary assignment are investigations. OPSMA Uniform: Clean up language to report to CalPERS uniforms, which the City provides to employees at an annual value of $450. In a recent audit finding, CalPERS requires the City to report the value of the uniforms which we provide to employees. The language is intended to comply with CalPERS law. Deferred Compensation: The City will provide an additional 1.4% to a qualified 401(a) Deferred Compensation Plan for a total contribution of 2.4%. STRATEGIC PRIORITIES This agenda item is a routine operational item or does not relate to the four strategic plans adopted by City Council on May 17, FINANCIAL IMPACT The total cost for the OPOA contract in year one is $1,563,407; year two is $1,074,765; year three is $1,074,501 for a total cost of $3,712,673. The total cost for the OPSMA contract in year one is $108,281; year two is $69,600; year three is $81,696 for a total of $259,577. Prepared by Steve Naveau, Director of Human Resources ATTACHMENTS: Attachment 1 - OPOA Contract Attachment 2 - OPSMA Contract Attachment 3 - OPOA Resolution Attachment 4 - OPSMA Resolution Packet Pg. 75
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43 L.3.c CITY COUNCIL OF THE CITY OF OXNARD RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD APPROVING THE SUCCESSOR MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF OXNARD AND THE OXNARD PEACE OFFICERS ASSOCIATION AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO TAKE THE NECESSARY ADMINISTRATIVE ACTIONS NECESSARY TO IMPLEMENT THE AGREEMENT WHEREAS, the Oxnard Peace Officers Association is the recognized representative for the Oxnard Police Officers; and WHEREAS, the City s memoranda of understanding with the Oxnard Peace Officers Association expired August 30, 2018; and WHEREAS, representatives of the City met and conferred in good faith with representatives of Oxnard Peace Officers Association concerning wages, hours, terms, and conditions of employment for employees in the bargaining unit consistent with their obligations under the Meyers-Milias-Brown Act; and WHEREAS, the City has reached agreement with the Oxnard Peace Officers Association attached as Attachment 1 to the City Council agenda report of March 19, 2019, (the Agreement ) which sets forth the modified terms and conditions of employment for this bargaining unit. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF OXNARD RESOLVES that the Agreement is adopted and the City Manager and/or his designee is directed to perform all acts necessary to implement its terms, including but not limited to executing the Memorandum of Understanding on behalf of the City. PASSED AND ADOPTED this 19 th day of March 2019, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Tim Flynn, Mayor Michelle Ascencion, City Clerk APPROVED AS TO FORM: Stephen Fischer, City Attorney Packet Pg. 115
44 L.3.d CITY COUNCIL OF THE CITY OF OXNARD RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OXNARD APPROVING THE SUCCESSOR MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF OXNARD AND THE OXNARD PUBLIC SAFETY MANAGERS ASSOCIATION AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO TAKE THE NECESSARY ADMINISTRATIVE ACTIONS NECESSARY TO IMPLEMENT THE AGREEMENT WHEREAS, the Oxnard Public Safety Managers Association is the recognized representative for the Oxnard Public Safety Manager; and WHEREAS, the City s memoranda of understanding with the Oxnard Public Safety Managers Association expired August 30, 2018; and WHEREAS, representatives of the City met and conferred in good faith with representatives of Oxnard Public Safety Managers Association concerning wages, hours, terms, and conditions of employment for employees in the bargaining unit consistent with their obligations under the Meyers-Milias-Brown Act; and WHEREAS, the City has reached agreement with the Oxnard Public Safety Managers Association attached as Attachment 2 to the City Council agenda report of March 19, 2019, (the Agreement ) which sets forth the modified terms and conditions of employment for this bargaining unit. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF OXNARD RESOLVES that the Agreement is adopted and the City Manager and/or his designee is directed to perform all acts necessary to implement its terms, including but not limited to executing the Memorandum of Understanding on behalf of the City. PASSED AND ADOPTED this 19 th day of March 2019, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Tim Flynn, Mayor Michelle Ascencion, City Clerk APPROVED AS TO FORM: Stephen Fischer, City Attorney Packet Pg. 116
45 OPOA MOU Term: Through June 30, 2021 Medical Contribution Employees who purchase insurance: Incremental increase to final amount of $1,543 per month over the term of the contract Employees who waive insurance: Incremental increase to final amount of $1,243 per month over the term of the contract Reduced to $900 after end of contract term unless OPOA has 75% of members participating in the medical plan Physical Fitness Program: The City will increase its contribution to the program by $10,000 per year Deferred Compensation: The City will make a 0.9% contribution to a 401(a) Deferred Compensation Plan Callback: City will increase the call back from $2 per hour to $4 per hour Investigation Differential: The City will provide a 5% differential for employees whose primary assignment are investigations
46 OPSMA MOU Term: Through June 30, 2021 Medical Contribution Employees who purchase insurance: Incremental increase to final amount of $1,543 per month over the term of the contract Employees who waive insurance: Incremental increase to final amount of $1,243 per month over the term of the contract Reduced to $900 after end of contract term unless OPOA has 75% of members participating in the medical plan Deferred Compensation: The City will make an additional 1.4% contribution to a 401(a) Deferred Compensation Plan Uniform: Clean up language to report to CalPERS uniforms, which the City provides to employees at an annual value of $450
47 Comparison of Monthly Employer Medical Contribution Monthly Employer Agency Contribution City of Oxnard $ City of Thousand Oaks $ City of Ventura $1, City of Santa Barbara $1, City of Simi Valley $1, City of Anaheim $3, City of Glendale $1, City of Riverside $1, City of Pasadena $1,608.46
48 Financial Impact Year OPOA OPSMA Year 1 $1,563,407 $108,281 Year 2 1,074,765 69,600 Year 3 1,074,501 81,696 TOTALS $3,712,673 $259,577
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