Report Prepared by: Suzanne Fierro, Human Resources Manager
Title
SUBJECT: Approval of a Memorandum of Understanding with the Merced Police Officer Association (MPOA) with a Term of August 5, 2024, Through June 30, 2027
REPORT IN BRIEF
Considers approving a Memorandum of Understanding with Merced Police Officers Association (MPOA) with a term of August 5, 2024, through June 30, 2027.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving Resolution 2024-80, a Resolution of the City Council of the City of Merced, California, approving Memorandum of Understanding with the Merced Police Officers Association (MPOA); and,
B. Authorizing the City Manager to make non-substantive modifications subject to City Attorney approval and to execute the necessary documents; and,
C. Authorizing the Finance Officer to make the necessary budget adjustments and move positions into different funding sources if determined necessary.
Body
ALTERNATIVES
1. Approval, as recommended by staff; or,
2. Take no action; or,
3. Refer back to staff with instructions.
AUTHORITY
Resolution No. 2024-73 - Resolution of the City Council of the City of Merced establishing an Employer-Employee Organizations Relations Policy.
Meyer Milias Brown Act
CITY COUNCIL PRIORITIES
As provided in the 2024-25 Adopted Budget.
DISCUSSION
Background
The Merced Police Officers Association (MPOA) is a recognized employee organization that currently includes Police Officers and Police Sergeants who play an integral role in providing reliable emergency and safety services to residents and businesses of the Merced. Services include patrol, investigations, forensics, emergency management, other essential functions, and training. MPOA’s previous contract expired on June 30, 2024.
The City’s negotiation team included Lead Negotiator Michael Jarvis, Deputy City Manager Frank Quintero, and Human Resources Manager Suzanne Fierro. Meetings with the labor group were held to reach agreement that would be beneficial to both Merced Police Officers Association (MPOA) members and the City. Negotiations centered economics and terms, and updated language changes to the previous Memorandum of Understanding.
The City’s negotiations team and the MPOA have completed the collective bargaining process and have reached agreement on a contract (Attachments 1 & 2.) The contract is consistent with City Council direction and provides base wage increases and other benefits, along with updating the MOU language to align with new state and federal laws as well as CalPERS regulations. Staff recommends adoption of the Resolution approving the Memorandum of Understanding.
A summary of the items agreed upon in this Memorandum of Understanding are as follows:
• Term: The term of this agreement will be effective August 5, 2024, and will remain in effect through June 30, 2027.
• Wages: Base wage increases will be effective August 5, 2024, for the current fiscal year and will increase as follows: year one (2024) 5%, year two (2025) 4%, and year three (2026) 4%.
• Equity Adjustment: One-time adjustment in year one (2024) of 3%.
• Longevity Pay: Pay is as follows: 10 year 2.5%, 15 years 2.5% and 20 years 2.5%. Pay is stackable for a total of 7.5%.
• Premium Pays: POST premium pay is as follows: 2.5% for Intermediate, 2.5% for Advanced and 2.5% for Supervisory. Pay is stackable for a total of 7.5%.
• Education: 6% for Bachelor’s Degree.
• Holiday in Lieu Pay: 3.5% (Holiday Float honored if not used.)
• Classifications: Eliminate Job Class 6460 (Police Officer) and start with Job Class 6853 (Senior Police Officer.)
IMPACT ON CITY RESOURCES
It is estimated that the first-year impact will be $2 million and up to $10 million over the 3-year period. Police Officer and Sergeant personnel are funded in three areas, 1000 General Fund, 2030 Measure C, and 4503 CFD. The increase to MPOA labor costs was not included in the adopted FY 2024-25 budget. Once all bargaining group MOU’s have been approved, Finance will need to determine if some positions need to switch funding sources depending on funding and best use of the funds. The recommendation allows staff to make the necessary additional appropriation for the current fiscal year. Future years will be included in the budget process.
ATTACHMENTS
1. Memorandum of Understanding
2. Resolution 2024-80