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Agenda Item 23.

City Council Meeting

Meeting Date:	04/04/2017
FROM:	City Manager

Subject:

Approval of a MOU Between the City of Brea and the Brea Police Management Association (BPMA).

RECOMMENDATION

Adopt resolution approving the Memorandum Of Understanding (MOU) with the Brea Police Management Association.

BACKGROUND/DISCUSSION

Over the last couple of years, the City has approved labor agreements (Memorandums of Understanding or MOUs) with all seven bargaining units and in 2017 five of the seven MOUs are going to expire. In recent months, the City’s negotiation team has been meeting with the Brea Police Management Association (BPMA) to try and reach agreement on terms and conditions for a new successor contract. A Tentative Agreement was reached on March 1, 2017 between the City and representatives of BPMA and the BPMA membership met in mid-March and ratified the proposed contract.

Over the last few years, contracts with employee associations have resulted in agreements to implement pension reforms in Brea consisting of employee contributions to retirement pension costs, elimination of the single highest year retirement benefit for new employees, and a new retirement formula for new members and cost sharing of employer pension obligations. These actions have and will continue to result in considerable cost savings for the City over time. The contract before the Council today also continues the pension reform theme while recognizing the efforts of employees to assist in keeping Brea fiscally sound through the financial recovery and beyond.

The City’s bargaining team has been meeting in good faith with the BPMA resulting in a tentative agreement with this employee association. The agreement calls for an 18-month term including salary increases of 2% in both years with offsetting 1.5% increases to sworn employee contributions to retirement pension costs which will now result in sworn employees contributing the full 9% of the employee’s share plus an additional 3% cost sharing for a total employee pension contribution of 12%. When combined with the pension contributions, the net salary adjustments result in salary increases for the Brea Police Management Association totaling approximately 2% the first year, with second year salary increase of 2%.

Other notable provisions to the contract include a provision in the attached MOU that requires all new employees hired in this unit who retire from the City to be subject to a lower City contribution for retiree health benefits. Now, the City’s medical contribution towards retiree health insurance in this unit will be the CalPERS Public Employees’ Medical and Hospital Care Program (PEMHCA) minimum (as determined by CalPERS on an annual basis), not to exceed the actual cost of the plan selected rather than the $335 benefit that presently exists. The PEMHCA minimum is $128 in calendar year 2017 which is less than what the City is currently paying. Current employees will retain the $335 benefit that presently exists. Other notable provisions to the contract include an increase to the Long Term Disability allowance and revisions to the employee contribution to the Retirement Health Savings Plan including the elimination of the $25 minimum contribution.

FISCAL IMPACT/SUMMARY

The Brea Police Management Association has a total of seven sworn employees. The estimated net General Fund impact of entering into the agreement with BPMA is:
2017: $21,734
2018: $67,587

This action approves the City entering into a new MOU (labor agreement) with the Brea Police Management Association for an 18-month term.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Mario E. Maldonado, Human Resources Manager
Concurrence: Cynthia Russell, Administrative Services Director

Attachments
Resolution 2017-019
BPMA MOU 2017 - 2018