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  Agenda Item   25.    
City Council Meeting
Meeting Date: 11/02/2021  
FROM: Bill Gallardo

Approval of Memorandum of Understanding between the City of Brea and the Brea Police Management Association.  
Adopt resolution approving Memorandums of Understanding (MOU’) with the Brea Police Management Association (BPMA).
The economic and social disruption caused by the COVID-19 global pandemic has been devastating and impacted city operations including labor relations. All our labor contracts expired in June 2020 and due to the pandemic, we worked with the majority of labor association to delay contract negotiations for one year.  As the public health orders started to allow for more in person meetings, the City’s negotiation team began to meet with various employee associations to try and reach agreement on terms and conditions of employment for new labor contracts (Memorandums of Understanding or MOUs).  Considerable progress was made rather quickly, and a successor MOU with the Brea Police Management Association is now ready for City Council consideration. The terms reached in the attached agreement are consistent with the maximum financial authority provided to the City’s bargaining team by the City Council.   

Over the last few years contracts with employee associations have reflected modest changes to the terms of employment, reflecting the City’s policy for maintaining a balanced budget with an eye to sustaining healthy reserves.  In this proposed contract, salaries have been maintained in the first year and instead a 5% salary adjustment is proposed in the second year.  In the third year of the contract, a three percent (2%) cost of living increase in salaries is scheduled. Another two percent (2%) cost of living increase is scheduled for the last six months of the contract. 

In addition, the contract also includes an update to MOU language on how employees are able to use their maximum annual sick leave accruals of personal sick leave per fiscal year to deal with medical and/or dental needs of immediately family members. We are also proposing to modify MOU language to provide that paid leave shall be regarded as hours works for purposes of calculating federally mandated overtime payments. These two items will help us remain competitive in the labor market as these benefits are standard in comparable jurisdictions.  Lastly, special assignment and vehicle allowance benefits are being extended to the newly created Detective Bureau Lieutenant position.
The City has been working with labor groups to prudently “hold the line” on personnel costs for several years now. However, these contract adjustments are needed for the City to stay competitive in the current labor market if Brea is going to continue to attract and maintain quality public safety management employees. The City’s bargaining team has been meeting in good faith with BPMA and have now reached tentative agreements with this employee association. The Association has already ratified this agreement. This action authorizes the City to enter into new a MOU (labor agreement) with BPMA through December 31, 2023. The estimated net financial impact of entering into the agreement with this association for FY 2020-21 through December 31, 2023 (FY 2022-23), or three and one-half years is $473,090.

The net financial impact is $473,090 to the General Fund.  The adopted budget for FY 2021-22 and projected budgets for FY 2022-23 and FY 2023-24 already include $44,254, $89,555 and $135,680, respectively for the General Fund for a total of $269,489.  The remainder of cost of $203,601 will be included in the FY 2021-22 First Quarter Budget Adjustments and programmed in the FY 2022-23 and FY 2023-24 budgets as applicable.  There are sufficient revenues over expenditures projected to cover these costs.
William Gallardo, City Manager
Prepared by: Mario E. Maldonado, Human Resources Manager
Concurrence: Cindy Russell, Administrative Services Director
Resolution - BPMA

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