TITLE
Recommendation to adopt resolution approving the 2016-2019 Memorandum of Understanding with the Long Beach Police Officers Association. (Citywide)
DISCUSSION
In accordance with instructions from the City Council, a Memorandum of Understanding (MOU) agreement has been reached with the Long Beach Police Officers Association (POA) bargaining unit. The POA represents approximately 800 sworn employees in ranks of Police Recruit through Lieutenant.
Since May 2016, City management and POA representatives have held 13 negotiation sessions regarding their open MOU, which expired on September 30, 2016. A tentative agreement has been reached and jointly signed by representatives of the City and the POA.
The proposed MOU is for a three-year agreement from October 1, 2016 through September 30, 2019, and includes the following major provisions:
1. General Wage Increase:
• 3 percent effective October 1, 2016
• 3 percent effective October 1, 2017
• 3 percent effective October 1, 2018
2. Skill Pay Adjustments - Due to current recruitment and retention issues facing law enforcement, the general purpose of the recommended skill pay and longevity pay adjustments is to mitigate recruitment and retention issues:
a. Conversion of Advance POST Certificate (APC) Pay from a flat dollar amount to a percent of Police Officer Step 5 hourly rate, and an increase of that rate by 4.76 percent to a total of 7.50 percent (equivalent to an increase of approximately $348 monthly).
b. Expansion of APC Pay eligibility that allows eligible Officers to receive APC Pay in conjunction with the existing Education Pay incentive.
c. Conversion of Education Pay from a flat dollar amount to a percent of Police Officer Step 5 hourly rate.
3. Ten-Year Longevity Pay - Effective April 1, 2017, elimination of Ten-Year Longevity Pay (5 percent) and addition of a Step 6 on the current Step 5 salary schedule for all Officers. The initial implementation of this change will include advancing all Officers with six years of Police service by one step; thereafter, employees will progress through salary steps under the current procedure. Step 6 will be the equivalent of 5 percent of Police Officer Step 5 hourly rate (approximately $365 monthly).
4. Healthcare - The formula for employees' contribution towards healthcare costs is slightly adjusted to increase the employee portion. The maximum cap for increases to family coverage was raised from $25 to $30 and the employee premium share formula was adjusted to allow the City to place amounts over the cap into a bank that can be applied to the employee rates in the future. In addition, POA agreed to work through the Health Insurance Advisory Committee (HIAC) to manage employee benefit costs increases.
5. Overtime - Effective September 1, 2017, the maximum overtime hours banked will be reduced from 140 hours to 80 hours.
6. "Me Too" Provision - During the POA MOU term, should non-POA bargaining units receive a greater compensation increase, including one-time payments, such an increase will be given to the POA bargaining unit as well, with certain exceptions.
7. Letters of Agreement - City management and POA representatives also reached agreement on several non-economic issues. The proposed MOU contains the following Letters of Agreement intended to address Officer concerns and improve current operations:
a. Review procedure for mandating Officers to work overtime.
b. Discuss modification of the 12-month Officer training period aimed at increasing the number of Officers in the field.
c. Study feasibility of 12-hour shift schedule for Patrol Officers.
d. Officers will be required to wear bullet proof vests while in uniform.
e. POA to utilize a benefit consultant at Association cost on pilot basis.
This matter was reviewed by Principal Deputy City Attorney Gary J. Anderson on January 25, 2017 and by Assistant Finance Director Lea Eriksen on January 24, 2017.
TIMING CONSIDERATIONS
City Council action is requested on February 7, 2017, to ensure timely implementation of the MOU provisions.
FISCAL IMPACT
This agreement has a total estimated annual net fiscal impact of $14.3 million in the General Fund (GF) and $15.3 million across All Funds once completely implemented in FY 19. The FY 17 portion of the cost is $6.2 million in the General Fund (GF) and $6.6 million across All Funds. It is projected that there will be no impact to the FY 17 All Funds budget as the FY 17 costs will be covered by higher than expected revenues, vacancy savings, and additional funding achieved from taking less conservative budgetary actions such as reducing charges for insurance and funding for unfunded retirement liabilities. Costs for FY 18 and FY 19 will be addressed as part of those annual budget processes. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
ALEJANDRINA BASQUEZ
DIRECTOR OF HUMAN RESOURCES
APPROVED:
PATRICK H. WEST
CITY MANAGER