That the City Council:
A. Consider and approve a Memorandum of Understanding (MOU) between the City of La Habra and the La Habra Police Association/Civilian Personnel for the period of July 1, 2021 through June 30, 2023; and

B. APPROVE AND ADOPT RESOLUTION NO. ______ ENTITLED:  A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA REPEALING AND REPLACING RESOLUTION 5865 PERTAINING TO A COMPENSATION PLAN FOR THE LA HABRA POLICE ASSOCIATION/CIVILIAN PERSONNEL; and

C. Approve the appropriation of funds from the Fiscal Year 2020-2021 adopted budget for the cost of one-time lump sum pay adjustments for employees.

Representatives from the La Habra Police Association/Civilian Personnel and City Management have met and conferred regarding salary, benefits, and other terms and conditions of employment, and have reached tentative agreement for a Memorandum of Understanding (MOU, see Attachment 1) for a two-year term for July 1, 2021 through June 30, 2023 to include the following substantive changes:
 

Year 1 (FY2021-2022)
Salary Adjustment	Effective on the first full pay period in July 2021 the City will provide a two and one-half percent (2.5%) salary adjustment to all unit
One-Time Lump Sum Payment	Based on the salary schedule in effect on June 18, 2021 the City will provide a one-time lump sum pay adjustment of four percent (4%) to all full-time employees on or before June 30, 2021.  The calculation of the one-time pay adjustment will be as follows:  base hourly rate x 2,080 hours x .04.  Employees hired on or after June 18, 2021 will not be eligible for the lump sum payment.
Medical Insurance	Effective December 1, 2021 the City will provide a monthly cafeteria contribution as follows: Employee:       $1,450 Employee +1:  $1,500 Employee +2:   $1,650
Shift Differential	Effective July 3, 3021 the City will increase shift differential pay by $0.50/hr. for swing shift and an additional $1.00/hr. for graveyard shift as follows: · Swing Shift Assignment: $0.75/hr. · Graveyard Assignment:  $1.50/hr.
Retirement Health Savings (RHS)	Effective the first full pay period in July, the City will contribute $10 per month for each unit member into the RHS.
Wellness Program	The City agrees to increase wellness reimbursement by $100 per year to a maximum of $200 per year.
Holiday	The City agrees to add Martin Luther King Jr. Day as a City paid holiday to all members in the unit.

 

Year 2 (FY2022-2023)
Salary Adjustment	Effective the first full pay period in July 20, 2022 the City will provide a two and one-half percent (2.5%) salary adjustment to all unit employees. Effective the first full pay period in January 2023 the City will provide a two and one-half percent (2.5%) salary adjustment for positions in the Communications Operator classifications only.
One-Time Lump Sum Payment	Based on the salary schedule in effect on June 17, 2022 the City will provide a one-time lump sum pay adjustment of four percent (4%) to all full-time employees on or before June 30, 2022.  The calculation of the one-time pay adjustment will be as follows:  base hourly rate x 2,080 hours x .04.  Employees hired on or after June 17, 2022 will not be eligible for the lump sum payment.
Medical Insurance	Effective December 1, 2022, the City provide a monthly cafeteria contribution as follows: Employee:       $1,450 Employee +1:  $1,600 Employee +2:   $1,750

The proposed Salary Resolution is included herein as Attachment 2.

If approved, the total cost of the two-year MOU is estimated to be approximately $331,260 and allocated as follows:
 

FY2019-20:	$171,175
FY2020-21:	$160,085
Total:	$331,260

The estimated two-year total cost of the MOU with the La Habra Police Association/Civilian Personnel consists of both recurring costs and “one-time” costs apportioned between the General Fund and Non-General Fund sources. The breakdown of those costs is as follows:
 

TYPE		FY21-22	FY20-21	TOTALS
General Fund
	Recurring	$94,523	$79,407	$173,930
	One-Time	$74,613	$78,918	$153,531
General Fund Total		$169,136	$158,325	$327,461
Non-General Fund
	Recurring	$955	$649	$1,604
	One-Time	$1,084	$1,111	$2,195
Non-General Fund Total		$2,039	$1,760	$3,799
All Funds Total		$171,175	$160,085	$331,260

ED 9.1 – Balanced Fiscal Practices