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/Sworn 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 NO. 5860 PERTAINING TO A COMPENSATION PLAN FOR THE LA HABRA POLICE ASSOCIATION/SWORN 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 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 January 1, 2022 the City will provide a three percent (3%) Cost of Living Adjustment to all unit members.
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.  The calculation of the one-time pay adjustment will be as follows:  base hourly rate x 2,080 hours x .04 on or before June 30, 2021.  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 provide a monthly cafeteria contribution as follows: Employee:       $1,450 Employee +1:  $1,500 Employee +2:   $1,650
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 and further provides that all recognized holidays will accrue at 10 hours per holiday.
Special Assignment Pay	Effective July 3, 2021, the City will increase the special assignment pay by $50 per month to a maximum of $350 per month.
Peace Officer Standards and Training Pay (POST)	To encourage education, training and professionalism in law enforcement and to raise the competency of law enforcement officers, the City agrees to provide sworn personnel with monthly POST Pay as follows: Effective July 3, 2021 Intermediate POST  $ 300/mo. Advanced POST      $ 400/mo. Supervisory POST   $ 500/mo.

 

Year 2 (FY2022-2023)
Salary Adjustment	Effective on the first full pay period in January 2023 the City will provide a three percent (3%) salary adjustment to all unit members.
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 will provide a monthly cafeteria contribution as follows: Employee:       $1,450 Employee +1:  $1,600 Employee +2:  $1,750
Peace Officer Standards and Training Pay (POST)	The City agrees to provide sworn personnel with monthly POST Pay as follows: Effective the first full pay period in July 2022: Intermediate POST  $ 400/mo. Advanced POST      $ 600/mo. Supervisory POST   $ 700/mo.

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 $1,313,658, allocated as follows:
 

FY2021-22:	$691,445
FY2022-23:	$622,213
Total:	$1,313,658

The estimated two-year total cost of the MOU with the La Habra Police Association consists of both recurring costs and “one-time” costs apportioned between the General Fund and Non-General Fund sources. 

The breakdown of those costs are as follows:
 

TYPE		FY21-22	FY22-23	TOTAL
General Fund
	Recurring	$392,735	$288,314	$681,049
	One-Time	$278,122	$316,676	$594,798
General Fund Total		$670,857	$604,990	$1,275,847
Non-General Fund
	Recurring	$12,118	$8,499	$20,617
	One-Time	$8,470	$8,724	$17,194
Non-General Fund Total		$20,588	$17,223	$37,811
All Funds Total		$691,445	$622,213	$1,313,658

 

ED 9.1 – Balanced Fiscal Practices