AGENDA & REPORT - Laserfiche WebLink

BACKGROUND The Pleasanton Police Officers' Association (PPOA) covers a total of 83 sworn police employees, 61 police officers and 12 police sergeants. (The ranks of lieutenant and above are designated management employees and not represented by the PPOA.) The current Memorandum of Understanding (MOU) with this group covered the period June 1, 2008 through May 31, 2011. Representatives from the bargaining unit and the City have met and conferred in good faith to develop a successor contract. All agreements reached between the parties during the meet and confer process are tentative until it is ratified by members of PPOA and approved by the City Council. It is the City's practice to introduce the key elements of the proposed contract to allow for open discussion prior to Council action at a future meeting. The first meeting is scheduled for January 31st, followed by consideration and adoption on February 7th. DISCUSSION In accordance with the Meyers-Milias-Brown Act, the parties are required to meet and confer in good faith over items covered within the scope of representation, including wages, hours and other terms and conditions of employment. The significant results of the negotiations include: Term of agreement: The expiration date of the proposed MOU is May 31, 2014, slightly over two (2) years from the date the document becomes operationally effective. This shorter contract allows for greater flexibility to make adjustments should the economic environment change significantly. Wage adjustments: Historically, the parties have engaged in wage adjustment discussions centered on two primary factors: market data obtained from neighboring agencies that are similar in size and perform municipal police services, and the consumer price index (CPI), which reflects the general cost-of-living increases in the San Francisco-Oakland-San Jose area (approximately 3% in December 2011). The proposed contract does not include any wage adjustments. Employee Contribution towards Pension: The cost to fund the CaIPERS pension program is comprised of two parts. The first is a variable employer rate which is expressed as a percentage of salary for covered PPOA employees (in FY 2011/2012, this rate is 24.1%). The second is a fixed 9% contribution for which members are responsible. The City has been paying EPMC on behalf of its PPOA employees, based on an agreement reached in previous years in lieu of the employees receiving salary adjustments. In the current contract discussions, agreement was reached for the PPOA employees to pay the full 9% member contribution over a span of a year and a half. Once the contract has been ratified and approved, employees will pay 3%, followed by 6% in July 2012 and 9% in July 2013. Revised Pension Formula for New Employees: Police personnel currently participate in a CaIPERS risk sharing pool for agencies with less than 100 active members, and have the 3% @ 50 formula pension program. In discussing the potential of implementing a different pension program for new employees, the parties considered Page 2 of 3