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A. RESOLUTION NO. 2014-204 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF CHULA VISTA AND THE CHULA VISTA POLICE OFFICERS' ASSOCIATION BARGAINING UNIT ("CVPOA") RELATED TO COMPENSATION AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT; AUTHORIZING THE CITY MANAGER TO EXECUTE ANY NECESSARY DOCUMENTS AND/OR MOU AS MAY BE REQUIRED TO IMPLEMENT THE MEMORANDUM OF UNDERSTANDING
B. RESOLUTION NO. 2014-205 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2014/15 BUDGET TO ACCOUNT FOR THE PROPOSED SALARY INCREASE FOR CHULA VISTA POLICE OFFICERS' ASSOCIATION (4/5 VOTE REQUIRED)
C. RESOLUTION NO. 2014-206 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE REVISED FISCAL YEAR 2014/15 COMPENSATION SCHEDULE AS REQUIRED BY CALIFORNIA CODE OF REGULATIONS, TITLE 2, SECTION 570.5
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolutions.
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SUMMARY
The Memorandum of Understanding (MOU) between the City of Chula Vista and the Chula Vista Police Officers' Association (CVPOA) expired June 30, 2014. During the past several months, negotiating teams representing CVPOA and the City have worked collaboratively toward the development a mutually beneficial MOU. Agreement was reached on salary adjustments, term and effect, and pension language.
Staff is also recommending an appropriation to the Fiscal Year 2014/15 budget to address salary changes effective the pay-period that includes January 1, 2015, and approval of the revised Compensation Schedule to reflect the salary change.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378(b)(2) of the State CEQA Guidelines because it is a personnel related action; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
BOARD/COMMISSION RECOMMENDATION
NA
DISCUSSION
The Memorandum of Understanding (MOU) between the City of Chula Vista and the Chula Vista Police Officers' Association (CVPOA) expired June 30, 2014. During the past several months, negotiating teams representing CVPOA and the City have worked collaboratively toward the development of a mutually beneficial MOU that would assist the City in the recruitment and retention of sworn Police Officers where we are experiencing higher than normal vacancies.
The City and CVPOA bargaining unit have met and conferred in good faith, as required by the Meyers-Milias-Brown Act (Govt. Code Section 3500 et. seq.; "MMBA") and reached the following agreement with regards to term and effect, salary adjustments, and pension language. Below is a summary of the agreement reached:
1. Term and Effect: October 28, 2014 to June 30, 2017
2. Salary Adjustments:
· 3% in the first full pay period of January 2015
· 3% in the first full pay period of January 2016
· 3% in the first full pay period of January 2017
3. Pension: incorporate current side letter and PEPRA
4. Incorporate current side letters into successor MOU
The proposed salary and benefit enhancements were ratified by a majority of the CVPOA membership at a general membership meeting on October 1, 2014. If adopted, the proposed salary and benefit enhancements will improve the City's competitive position in the local labor market, resulting in more effective employee recruitment and retention.
Compensation Schedule: California Code of Regulations, Title 2, Section 570.5 requires that, for purposes of determining a retiring employee's pension allowance, the pay rate be limited to the amount listed on a pay schedule that meets certain requirements and be approved by the governing body in accordance with the requirements of the applicable public meeting laws. The Fiscal Year 2014/15 Compensation Schedule ("Compensation Schedule") was originally approved by the City Council at their meeting of July 8, 2014 and subsequently revised and adopted by the City Council on July 25, 2014 and August 8, 2014.
Approval of Resolution C will approve the revised Compensation Schedule to reflect the salary adjustment for the Chula Vista Police Officers' Association effective December 26, 2014, in compliance with California Code of Regulations, Title 2, Section 570.5.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500-foot rule found in California Code of Regulations section 18704.2(a)(1), is not applicable to this decision. Staff is not independently aware, and has not been informed by any Council name] member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. These changes support City Initiative 1.2.3 Retain and attract quality employees under the Operational Excellence goal. Employee compensation is instrumental to recruiting and retaining quality employees.
CURRENT YEAR FISCAL IMPACT
The fiscal year 2014-15 implementation costs related to this agreement are estimated at $410,500 for the positions budgeted in the General Fund and $10,750 for the positions budgeted in the Supplemental Law Enforcement Service Fund and the Police Grants Fund. The Supplemental Law Enforcement Service Fund and the Police Grants Fund will not be able to absorb the increased personnel costs associated with this salary increase. Therefore, staff is recommending a transfer from the General Fund in the amount of $10,750 to address this impact. The total impact to the General Fund will be $421,250. These costs will be offset by unanticipated revenues recognized through previous Council action.
ONGOING FISCAL IMPACT
The annualized costs related to the POA agreement will be incorporated into the fiscal year 2015-16 baseline budget and will be brought to Council for approval as part of the annual budget process.
The Five Year Financial Forecast presented to the City Council in May 2014 indicated a deficit during the forecast period. Since then, the City has reached MOU agreements with CVEA/SEIU, MM/PROF/SEIU, WCE, and now POA. As previously reported, assessed values improved at higher levels than assumed in the Council adopted budget and franchise fees have also increased resulting in unanticipated revenues. These changes have been included in the updated Five Year Financial Forecast presented below. The anticipated costs related to the POA agreement being considered tonight are identified in the forecast.
Five Year Financial Forecast Summary
As summarized in the above table, the City projects that it will be able to absorb the costs of the POA agreement in the current fiscal year and largely in fiscal year 2015-16. The City does project a growing deficit in the outer three years of the forecast, which may require changes to the baseline budget going forward.
As presented, the Five Year Financial Forecast includes the following key assumptions over the forecast period:
· Sustained modest economic growth and no adverse economic down turns.
· Projected revenue growth in alignment with stable economic conditions.
· Status quo expenditure growth with no major cost initiatives.
The Finance Department will be updating the forecast and presenting it to the City Council later this year.
ATTACHMENTS
(1) Memorandum of Understanding (MOU) between the City of Chula Vista and Chula Vista Police Officer's Association, October 28, 2014 - June 30, 2017
(2) Revised Fiscal Year 2014/15 Compensation Schedule
Staff Contact: Irene Mosley