Title
Staff Report for a Resolution Approving the San Leandro Police Management Unit (SLPMU) Memorandum of Understanding and a Resolution Approving the Conditions of Employer Paid Member Contributions for the San Leandro Police Management Unit (SLPMU)
Staffreport
SUMMARY AND RECOMMENDATIONS
The City Manager recommends that the City Council approve a resolution ratifying the Memorandum of Understanding (MOU) between the City of San Leandro and the San Leandro Police Management Unit (SLPMU) covering the period of January 1, 2013 through June 30, 2015.
In addition, the City Manager recommends that the City Council approve a separate resolution specifying the conditions of Employer Paid Member Contributions (EPMC) for San Leandro Police Management Unit members (SLPMU). This resolution is required by the California Public Employees' Retirement System (CalPERS) in order to implement the EPMC.
BACKGROUND
Police management employees have historically been included in the San Leandro Management Organization (SLMO), but have now formed the San Leandro Police Management Unit (SLPMU) as a separate bargaining unit for the ranks of Captain and Lieutenant. The SLPMU represents eight (8) full-time, sworn management employees. The City of San Leandro recognizes the special compensation received by police managers, and recommends there be a separate procedure for establishing the compensation of these employees.
The City and SLPMU negotiators agreed to create an MOU for the police management bargaining group for the period January 1, 2013 through June 30, 2015. The tentative compensation plan was ratified by SLPMU on August 12, 2013 and is presented to the City Council for approval.
Analysis
The major elements of the tentative agreement include the following:
Duration: Two and one-half years, starting January 1, 2013 and ending June 30, 2015.
Wages: A three (3%) percent across the salary schedule adjustment effective July 1, 2013.
A four (4%) percent across the salary schedule adjustment effective July 1, 2014.
A five (5%) percent across the salary schedule adjustment effective June 1, 2015.
PERS: Effective July 1, 2013, employees shall commence paying 3% of the employee contribution and the City shall contribute 6%.
Effective July 1, 2014, employees shall commence paying 6% of the employee contribution and the City shall contribute 3%.
Effective June 1, 2015, employees shall commence paying 9% of the employee contribution and the City shall contribute 0%.
Pursuant to the Public Employees' Pension Reform Act of 2013, employees hired after January 1, 2013 depending on previous California public agency employment are subject to specific pension formulas and employee contributions.
Benefits: The City's contributions to the medical plans in 2013, based on the 2012 Kaiser medical insurance premium, are as follows:
Level City Cost
Employee $ 610.44
2-party $1,220.88
Family $1,587.14
Employees will pay 50% of premium increases in 2014 and 2015. For the term of this agreement Opt-out premiums remain unchanged from any previous MOU.
Uniform Allowance: The City pays $1,500 for a uniform allowance. Uniform allowance payments shall be made in a separate check during the month of July.
Fiscal Impacts
The agreement is effective January 1, 2013 and will cost the City of San Leandro approximately $5,499 in the first year (2013-14), which primarily represents the 100% City pick up in medical premium increases for 2013, with a 3% wage increase and 3% employee contribution towards PERS. It will cost approximately $13,341 in the second year (2014-15) with a 4% wage increase and 6% employee contribution towards PERS. Although the agreement expires on June 30, 2015, the projected cost in the year 2015-16 is approximately $33,185 with a 5% wage increase and 9% employee contribution towards PERS. The total cost over three fiscal years is approximately $52,025.
ATTACHMENTS
ยท Memorandum of Understanding
PREPARED BY: LaTanya Bellow, Human Resources Manager, City Manager's Office