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Agenda Item 28.

City Council Meeting

Meeting Date:	12/06/2022
FROM:	Bill Gallardo

Subject:

Approval of Memorandum of Understanding between the City of Brea and the Brea Police Association

RECOMMENDATION

Adopt resolution approving Memorandum of Understanding (MOU) with the Brea Police Association (BPA).

BACKGROUND/DISCUSSION

City staff have recently been negotiating a successor labor agreement (Memorandum of Understanding or MOU) with BPA. The City's current labor contract with BPA expires December 31, 2022. The economic and social disruption caused by the COVID-19 global pandemic has been devastating to the economy and has impacted City operations including labor relations. Over the 12 months ended June 2022, the Consumer Price Index for All Urban Consumers increased 9.1%. This increase represents the largest 12-month increase in 40 years. A salary survey of ten comparable cities in our labor market indicated that the majority of the members in this bargaining unit were at least 10% behind the market in total compensation.

Negotiations started in late September and by mid-November we had reached a tentative agreement with BPA. Considerable progress was made rather quickly and a successor MOU agreement with the Brea Police Association is now ready for City Council approval. 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. BPA members have already ratified the tentative agreement.

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 towards sustaining healthy reserves. However, with inflationary pressures impacting our comparable labor market and employees leaving and/or retiring at higher than usual rates, the City sought to stabilize our competitive edge by front loading salary increases in this contract. Therefore, in this proposed contract, salaries have been increased significantly in the first year by ten percent (10%) to ensure that association members do not fall behind in the labor market. A three percent (3%) salary adjustment is proposed in the second and third year of the contract. A two percent (2%) salary adjustment is proposed in the fourth year of the contract and a one percent (1%) cost of living increase is proposed 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 wellness and fitness allowance and the annual benefit was increased by $50 per year. We are also proposing to modify MOU language to provide for an increase in holiday accruals by adding one hour (1) to each existing observed holiday. This equates to adding another City holiday as many surrounding jurisdictions have done so after the US government approved a new federal holiday in 2021. Also, new in this MOU is a $100 per month Composite Artist Pay allowance to one employee. This is unique situation where the City has an employee that is certified to sketch suspects and assist investigators in getting cases resolved quicker. These items will help us remain competitive in the labor market as these benefits are standard in comparable jurisdictions. Lastly, we will incorporate re-opener language on medical insurance benefits (Flexible Benefits Plan) in the event that any other City bargaining unit negotiates an increase to their Flexible Benefits Plan.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Mario E. Maldonado, Human Resources Manager
Concurrence: Kristin Griffith, Administrative Services Director

Attachments
Resolution - Labor Agreement
Exhibit A - BPA MOU